Proactively identify and take up opportunities to maintain regular contact with customers and suppliers

Elements describe the essential outcomes of a unit of competency.

Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide.

1. Build business relationships.

1.1 Establish relationships within appropriate cultural context.

1.2 Build trust and respect in business relationships through use of effective communication skills and techniques.

1.3 Proactively identify and take up opportunities to maintain regular contact with customers and suppliers .

2. Conduct negotiations.

2.1 Conduct negotiations in a professional manner in the relevant cultural context.

2.2 Conduct negotiations in the context of current organisation goals.

2.3 Maximise benefits for all parties  through use of established negotiation techniques  and in the context of establishing long term relationships.

2.4 Incorporate feedback and input from colleagues into negotiation where appropriate.

2.5 Communicate results of negotiations to appropriate colleagues and stakeholders within appropriate timeframes.

3. Make formal business agreements.

3.1 Confirm agreements in writing according to organisational requirements, using formal contracts where appropriate.

3.2 Obtain approvals for all aspects of formal agreements according to organisational procedures.

3.3 Evaluate and act on the need for specialist advice as required.

4. Foster and maintain business relationships.

4.1 Proactively seek, review and act upon information needed to maintain sound business relationships.

4.2 Honour agreements within scope of individual responsibility, complying with agreed terms.

4.3 Take account of agreed performance indicators.

4.4 Make adjustments to agreements in consultation with customer or supplier and share information with appropriate colleagues.

4.5 Nurture relationships through regular contact and use of effective interpersonal and communication styles.

This section describes the skills and knowledge required for this unit.

Required skills 

• communication skills to:

• conduct negotiations that may be of significant commercial value
• establish and nurture ongoing professional relationships

• critical thinking skills to evaluate potentially complex internal and external issues that affect professional relationships and business negotiations
• initiative and enterprise skills to pro-actively seek opportunities for building business relationships
• literacy skills to:

• read and interpret potentially complex agreements, conditions and contracts
• develop or participate in the development of formal commercial agreements

• numeracy skills to evaluate commercial data and cost structures
• planning and organising skills to plan activities and initiatives that support professional relationships
• problem-solving skills to anticipate and respond to challenges in the negotiation process.

Required  knowledge 

• commercial context for business relationships in the relevant industry sector, including:

• industry structure and interrelationships
• sources of supply
• distribution and marketing networks
• professional networks

• principles of negotiation, stages in the negotiating process and different techniques that can be applied
• nature of agreements and contracts in the relevant industry sector and their key inclusions
• key components of contract law at an overview level, including:

• terms and obligations of contract
• methods of contractual agreement
• exclusion clauses
• dispute resolution clause
• termination of contracts

• other legal requirements that impact negotiations and agreements in the relevant industry sector, including consumer protection.