Summary Procurement Negotiation (1/10)
The preparation and successful execution of negotiations is one of the key competences in procurement. This overview contains some of the central elements for developing this competence. 1️⃣ Every expert in negotiations once started with none. The integrated procurement competency model defines three levels for each competency area, starting with Advanced Beginner, Competent and Expert. 2️⃣ Negotiation is not an event, but a process. In addition to the preparation, execution and follow-up of a negotiation, there are also two phases for the annual, overarching planning of negotiations. 3️⃣ The following overview deals with negotiation tactics. Roughly speaking, the possible tactics can be divided into five groups: delay, collaboration, manipulation, power and pressure. 4️⃣ The right preparation for a negotiation is one of the success factors. There are 9 main areas to consider: (I) negotiating team, objectives and timetable; (II) power analysis; (III) BATNA and alternatives; (IV) facts and interests; (V) negotiation strategy; (VI) possible options; (VII) negotiation tactics; (VIII) compromises and concessions; and (IX) opening of negotiations. 5️⃣ In the centre is a form with the 9 areas described above. It is important to be clear about your own position as well as the possible position of the other party (the supplier). 6️⃣ In team negotiations, it is important to be clear about the different roles in a negotiating team and to prepare accordingly. 7️⃣ A negotiation always involves interaction between the negotiating parties. Where there is interaction, there can also be conflict. It is important to know your own preferences and the preferences of your own team members. 8️⃣ Your own preference does not always have to coincide with the strategy defined before the negotiation: (I) AVOID - procrastinate to win; (II) ADAPT - lose to win; (III) COMPETITION - win/lose; (IV) COOPERATE - win/win; and COMPROMISE - splitting the difference. 9️⃣ Finally, an overview of active listening with its 5 steps: encourage, clarify, circumscription, reflection, and confirmation. Dr. Mario Büsch, Purchnet https://www.linkedin.com/in/mariobuesch