RELATIONSHIP DEVELOPMENT & CULTURE
STATE OF FLUX
2014 GLOBAL SRM RESEARCH REPORT
182
Figure 6.12. Impact of SRM on negotiations – all respondents 2013 / 2014
○ 2014 ○ 2013
NO CHANGE TO NEGOTIATIONS NOTED LESS LEGAL INVOLVEMENT QUICKER TO REACH AGREEMENT LESS ADVERSARIAL LONGER TERM PERSPECTIVE TAKEN BY BOTH SUPPLIER BRINGS MORE ADDED VALUE TO THE TABLE BETTER OUTCOMES FOR BOTH PARTIES MORE CONSTRUCTIVE TONE / DISCUSSIONS
0% 10% 20% 30% 40% 50% 60%
© 2014 State of Flux
Figure 6.13. Impact of SRM on negotiations – leaders / fast followers / followers
○ LEADER ○ FAST FOLLOWER ○ FOLLOWER
BETTER OUTCOMES FOR BOTH PARTIES
QUICKER TO REACH AGREEMENT
MORE CONSTRUCTIVE TONE / DISCUSSIONS
SUPPLIER BRINGS MORE ADDED VALUE TO THE TABLE
LONGER TERM PERSPECTIVE TAKEN BY BOTH
LESS ADVERSARIAL
LESS LEGAL INVOLVEMENT
NO CHANGE TO NEGOTIATIONS NOTED
0% 10% 20% 30% 40% 50% 60% 70% 80%
© 2014 State of Flux
BEHAVIOURS
Behaviours will not always be perfect but what is probably more disconcerting and disruptive are inconsistent behaviours both within an individual and across an organisation.
The area where positive impact has been reported is similar to last year with just one exception ( figure 6.12 ). The proportion of respondents reporting that a longer term perspective is being taken by both sides has doubled since 2013. The impact on negotiation is reported to be higher by leaders with half agreeing that it is quicker to reach agreement and 64% reporting that outcomes are better for both parties ( figure 6.13 ). We find that the supplier now routinely offers alternative and innovative solutions to issues Global Strategic Relationship Manager – UK mobile telecoms company
77% of respondents believe that consistent behaviours are an important aspect of SRM.
Behavioural maturity and consistency will be evident with both positive and negative impact across the whole of the relationship. It can be evident in stakeholder engagement, governance, operational performancemanagement, collaboration etc. But, probably the area where it comes under the most severe test is during negotiations. We asked organisations if they believed SRM has had any positive impact on negotiations.
Just over 75% of respondents reported at least some positive impact on negotiation as a result of SRM.
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