This PPT slide, part of the 19-slide Business Transformation: Personnel Risks PowerPoint presentation, focuses on the critical issue of maintaining healthy relations with employee representatives, particularly during times of organizational transformation. It highlights that such transformations often lead to heightened emotions, making negotiations with entities like labor unions and work councils particularly challenging. The text suggests that unresolved disputes can have long-lasting repercussions, affecting the organization for years.

To mitigate the risk of damaging these relationships, the slide outlines 3 key strategies. First, it emphasizes the importance of establishing a clear communication and negotiation strategy well before any discussions begin. This proactive approach is essential for setting the tone and expectations for the negotiations.

Second, managing the expectations of the negotiating partners is crucial. This involves understanding their perspectives and concerns, which can help in navigating the complexities of the discussions. Proper expectation management can prevent misunderstandings and foster a more collaborative atmosphere.

Lastly, the slide advocates for an analytical approach to negotiation preparation. Techniques such as scenario modeling and other analytical exercises are recommended to identify the best possible outcomes. The objective here is to arrive at solutions that are beneficial for both the organization and the employee representatives.

The concluding note stresses the importance of a robust negotiating strategy to avoid unfavorable collective bargaining agreements, which could lead to significant increases in personnel costs. This slide serves as a valuable guide for executives looking to navigate the intricate dynamics of employee relations during transformative periods.

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