REENGINEERING NEGOTIATIONS

How can organizations make their negotiations more efficient and rewar ding? Managers must recognize that negotiations inside the organizatio n strongly influence the outcome of negotiations outside the organizat ion. Using the example of Alta Systems, an information technology cons ulting services company, the author illustrates how internal and exter nal negotiations processes are integrally linked and describes how man agers can enhance negotiation results by improving those processes. Al ta's difficult negotiations with an important client demonstrate the o bstacles that arise when organizations are balancing internal and exte rnal negotiations: negotiators walk away from good deals because these do not march the organization's stated position or they agree to subo ptimal deals because the organization views any agreement as better th an no agreement; negotiating parties fail to explore underlying intere sts and see the other's perspective; negotiators function as advocates rather than as joint problem solvers, internal and external negotiati ons are compartmentalized; and the parries do not discuss the negotiat ions process. Managers of negotiators can take the following actions t o overcome these obstacles. Choose wisely among options and alternativ es. Use internal prenegotiations to gain agreement on the organization 's best alternatives and to clarify the negotiator's role and authorit y in gathering information, sharing interests and alternatives, and co mmitting to deals. Change the negotiator's role. Treat negotiators as ''handymen'' who undertake different tasks at different times, negotia tors may serve, for example, as meeting facilitators or problem solver s as the need arises. Integrate internal and external negotiations. In stitute flexible processes that survey the interests oi ail parties an d encourage ongoing interaction among internal and external groups. Ex plicitly discuss the negotiations process. Encourage negotiators to se t meeting agendas that focus on establishing the long-term plans, goal s, and purposes of the negotiations. Communications within organizatio ns too often sabotage the success of negotiations with suppliers, cust omers, and clients. By tailing steps to align internal and external ne gotiations, managers can significantly increase the Value that their o rganizations derive from any agreement.