PUBLISHED BY IAITAM Publishing, LLC 1137 State Route 43 Suffield, Ohio Copyright 2008 by IAITAM Publishing, LLC All rights reserved.
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1 Acquisition
2 PUBLISHED BY IAITAM Publishing, LLC 1137 State Route 43 Suffield, Ohio Copyright 2008 by IAITAM Publishing, LLC All rights reserved. No part of the contents of this book may be reproduced or transmitted in any form or by any means without the written permission of the publisher. When assessing any legal matter, do not rely solely on materials published by third parties, including the content in this paper, without additionally seeking legal counsel familiar with your situation and requirements. The information contained in the IAITAM Best Practice Library and each of its volumes is provided for informational and educational purposes and does not constitute legal or other professional advice. Furthermore, any applicability of any legal principles discussed in this paper will depend on factors specific to your Organization, situation, and location. Consult your corporate legal staff or other appropriate professionals for specific questions or concerns related to your corporate governance and compliance obligations. IAITAM makes every effort to ensure the correctness of the information we provide, to continually update our publications, and to emend errors and outdated facts as they come to our attention. We cannot, however, guarantee the accuracy of the content in this paper, since laws change rapidly and applicability varies by reader. The information in this publication is provided on an as is basis without warranties of any kind, either expressed or implied. IAITAM Publishing, LLC disclaims any and all liability that could arise directly or indirectly from the reference, use, or application of information contained in this publication. IAITAM Publishing, LLC specifically disclaims any liability, whether based in contract, tort, strict liability, or otherwise, for any direct, indirect, incidental, consequential, punitive or special damages arising out of or in any way connected with access to or use of the information in this paper. IAITAM Publishing, LLC does not undertake continuous reviews of the Web sites and other resources referenced in this paper. We are not responsible for the content published by other organizations. Such references are for your convenience only. For further information on where IAITAM Publishing, LLC books are available, contact IAITAM Publishing, LLC at or by calling IAITAM. Visit our website at IAITAM Best Practice Library and Best Practice BluePrint are trademarks of IAITAM Publishing, LLC. ISBN-13: ISBN-10:
3 Table of Contents Acquisition / Procurement Overview... 1 Introduction to Acquisition... 1 Definition of Acquisition... 1 Purpose of Acquisition... 2 How Acquisition Relates to IT Asset Management... 2 Implementation of IT Asset Goals... 2 GOAL 1: Develop a Request and Approval Process... 2 GOAL 2: Develop and Maintain an Asset Selection Process... 3 GOAL 3: Develop and Maintain a Negotiations Process... 5 GOAL 4: Develop a Process for Defining Terms and Conditions... 7 GOAL 5: Develop a Redeployment Process... 8 Introduction to Procurement... 9 Definition of Procurement... 9 Purpose of Procurement Values Seen in the Procurement Process Include: Contractual Opportunities Volume Purchase Agreements Maintenance Agreements Service Level Agreements Outsourcing Agreements Leasing Analyzing New Pricing Structures Request and Approval Process Introduction to the Request and Approval Process Definition of the Request and Approval Process The Purpose of the Request and Approval Process Importance of Roles and Function in the Request and Approval Process Functionality of a Request and Approval Process Asset Selection Process Introduction to Asset Selection Process Definition of the Asset Selection Process Purpose of Asset Management i
4 Describing Asset Standards...35 Standardization of Assets...36 How Asset Selection Relates to IT Management...37 Reasons to Assemble an Asset Selection Committee...37 Forming the Asset Selection Committee...38 Planning for the First Selection Committee meeting...39 The Specifics of Selecting Assets...42 Redeployment Process...47 Introduction to Redeployment...47 Defining the Redeployment Process...47 Purpose of Redeployment...47 How Redeployment Relates to IT Asset Management...48 The Dynamic Cycle of Redeployment...50 How Redeployment Gives benefit...52 Summary of Redeployment Values...54 Negotiation Process...57 Introduction to the Negotiation Process...57 Definition of the Negotiation Process...57 Purpose of the Negotiation Process...57 Benefits Attained from Effective Negotiations...58 Negotiations...58 Preparation for Negotiations...59 BATNA...62 Following the Plan...63 Winning Ways of Negotiating...64 Tricks and Tactics...66 Closure...70 Reality Check for Selection and Negotiation...71 Negotiator Styles...72 The Process...72 For the IT Asset Manager...73 Why Negotiate?...73 Sample IT Asset Management Topics for Negotiation...74 Reviewing the Basics...75 Formal Selection Processes...76 ii
5 Fundamental Suggestions for the Novice Negotiator Negotiating Styles Assessing Different Styles Competitive Style Accommodating Style Avoidance Style Compromising Style Collaborative Style Determining the Styles of Others Style Responses Recognizing the Qualities of a Strong Nnegotiator Dealing with Difficult Styles and Tones Preparing for Negotiations Preparation Analyzing Strengths, Weaknesses, Opportunities and Threats (SWOT) Developing the SWOT Analysis Do s and Don'ts for SWOT Analysis Criteria to Be Considered During Planning for Negotiations Identifying External Criteria Proposed Offers and Counterproposals Building the Framework A Final Note on Analysis Planning The Communications Plan Identifying Concessions Planning the BATNA Final Agreement Creating the Team Planning Checklist A Final Word on Power from Planning Conducting the Negotiation The Curtain Rises Opening Setting the Agenda Language and Definitions in the Negotiations Process iii
6 Managing Communication During Negotiations The Basics Speaking and Listening During Negotiations When Communication is Blocked A Word About Nonverbal Communication Exploring Issues and Inventing Options The Power of Focused Questioning Final Thoughts on Control and Communication Building a Strategic Power Base Other Sources of Power Trust Reaching Agreement Concessions Making Offers Closure Developing the Contract for the Final Agreement Terms & Conditions Addenda Who Provides The Paper? Inclusive Scripting Alternative Dispute Resolution (ADR) Closure for the Contract After the Agreement Relationship Management Monitoring Compliance Resolving Conflict Deadlocks Breaking Deadlocks Deciding to Walk Away Applying BATNA Returning After a Walk Away Secrets of Good Negotiators When the Other Party Is Unreasonable Focus On Your Goal Try To See Things from Their Point Of View iv
7 Make It Easy for Them to Say Yes Use the BATNA to Your Advantage Countering Tactics A Final Word on Defusing Conflict Types of People and Situations Practical Applications Organizing the Workgroups What Part of No Don t You Understand? Defining and Using Power Sources Standard Terms & Conditions Introduction to Standard Terms & Conditions Definition of Standard Terms & Conditions Contractual Clauses Acceptance of Program LICENSE Anti-Virus Audit and Verification Authority Authorized Use Binding Documents Confidential Information Consulting and Training Services Contingency Planning Use (AKA Disaster Recovery) Copy - Software and Documentation Dangerous Use Definitions Disaster Recovery Use Effective Date Entire Agreement Equal Employment Export Administration Force Majeure Governing Law (1) Governing Law - UCITA Grant of License Infringement Indemnity v
8 Introductory Statement Invoicing Limitation of Liability Merger Notice Ownership Payment Publicity Restriction Security Mechanism Severability Software Delivery Software Maintenance Response Schedule Source Code Taxes Technical Support Services Technical Support & Maintenance Renewal Term of License Termination Effect of Termination Return of Programs Upon Termination Rights Granted Time Bomb Title Transfer and Assignment Use of Software During Lawsuit Warranties Limitations on Warranties Limited Production Software Warranties Warranty Exclusive Remedies Roles and Responsibilities Templates, Workflows and Whitepapers Acquisition Workflow Contract Review Worksheet RFI including Vendor Questions Introduction Negotiation Most Least Win Win vi
9 Negotiation Planning Worksheet Negotiation Preparation Worksheet No-Bid Letter PC Acquisition Form RFP Award Letter RFP Decline Letter RFP Rejection Letter Sample Terms and Conditions Single Source Justification and Approval Tool Selection Criteria Due Diligence Procedure for Site Acquisition ROI Template Glossary of Terms vii
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