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  • Negotiation Tactics

    Can someone explain in details Negotiation Tactics?

  • #2
    Re: Negotiation Tactics

    In short there is a substantial amount of information covering this topic. The important thing to note is that the concepts and methodolgies that can be utilised are not really specific to the Public or Private Sectors but rather, cultural influences and other like factors are the major drivers of different approaches being used.

    I have attached three short documents that can provide you with some insight on negotiation tactics and that may spark some thoughts or ideas. Importantly the one document questions the approach of negotiation, something which is becoming more common these days.
    Attached Files

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    • #3
      Re: Negotiation Tactics

      Very informative and interesting Gregg, this has given me the insight.

      Thanks

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      • #4
        Re: Negotiation Tactics

        Hi there,

        I think your market research is very important and can help you in negotiations....try looking at supplier cost structures, supplier market position etc....before going into negotiations.....if there is a chance to meet informally with them..try to do this beforehand to suss what you are up against...and also complile your wish list - very important!!.......and practice your tactics..eg chinese crunch etc....and practice with your cross-functional team before the big day!!!

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        • #5
          Re: Negotiation Tactics

          Great.Highly appreaciated

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          • #6
            Re: Negotiation Tactics

            Also, try and find out on what sales training courses the supplier sent their staff, and/or what sales methodology they follow.

            If you adapt your wishlist to their selling steps, it is usually a pleasant, successful and profitable process for all concerned.
            David van der Walt

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            • #7
              Re: Negotiation Tactics

              Also, one of the important process is the Process Framework. Basically there are 5 steps to manage:

              1. Process step 1 - Diagnose the Needs (theirs/ours). There are usually two levels operating (stated organizational needs vs hidden personal needs).

              2. Process step 2 - Choose the Style (cooperative (blue) vs competitive (red). Intentionally you would then bring in flexibility.

              3. Process step 3 - Control the Climate (there are 3 key Interactive variables: Time, Place and Mood. I remember once we arranged the chairs in the our boardroom in a such a way that the suppliers delegates were facing the sum and close to the door which gave the message that they were close to the exit point and we controlled the climate. Needless to say, they acquiescied)

              4. Process step 4 - Identify / Use Tactics and Counter Tactics (to alter the perceived Balance of Power (what is your exit point/strategy, where can we compromise but never lock yourself into a position) Difficult to get out if nailed

              5. Process step 5 - Manage the different Phases (Introductory, Differentiation, Integration and Settlement). But you need to pace purposefully to manage them

              All the above then focuses on the Outcome you want to achieve. This could be:

              (i) Short term
              (ii) Long term

              Above all else, you have 3 key time zones to manage:

              1. Pre-Negotiation influencing where Key activities are

              - Review History
              - Research the content
              - Prepare the process
              - Develop OP (Other Party) Relationship (s)
              - Involve Third Parties
              - Rehearse (perhaps the most important part)

              2. Formal Negotiation (Remember the Process step 1, 2 and 3)

              3. Post-Negotiation Implementation where Key activities are

              - Celebrate
              - Documentation
              - Lock-in / Monitor Compliance
              - Review the Relationship (s)
              - Advise Third Parties
              - Audit Content and Process

              I hope the above helps. I am currently preparing to sit for the CSCP Exam in December 2006 and have a fair degree of knowledge and experience in International Negotiations and Purchasing. Will dig a little deeper during the course of the week and update this response.

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              • #8
                Re: Negotiation Tactics

                In addition to my previous response, i can also provide you with the following that may be useful - "the Art of Negotiation"
                Attached Files

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                • #9
                  Re: Negotiation Tactics

                  Hi

                  How did the exam go, hope all went well.Thank you for response, has made a difference.
                  I have been tasked to come up with a cost saving solution on our travelling expenditure.
                  We are currently spending approximately R25m year on year on travelling.We make use of two travell agents paying them booking fee,management fee and 10% when they book us a cheaper flight.

                  There was an option of emplying one more person to assist the current one but then book on line using two diners card.

                  But it was never persued because of risks anticipated.

                  Now I have to explore some options.

                  Any advice on this

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                  • #10
                    Re: Negotiation Tactics

                    Let me dig a bit deeper in the documentation I have and I will be able to provide some pointers.

                    No, I decided to skip the December CSCP exam because I was a bit on the scary side of not reaching the full marks I was aiming for and would sit either one of the two exams this year.

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                    • #11
                      Re: Negotiation Tactics

                      Hi; There is couple of things that you need to look at when trying to find some savings on a particular item. You need to understand the processes very well, see if there are'nt any areas where you need to streamline your processes cutting out unneccessary redtape. You need a clearly defined sourcing strategy this covers a lot of things, understanding your buying patterns, suppliers and relationships you have with your suppliers, your total cost model, leverage your buying powers, bulk procurement, long term contracts with your suppliers and fix prices etc etc.

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                      • #12
                        Re: Negotiation Tactics

                        Thanks.Will explore.

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                        • #13
                          Re: Negotiation Tactics

                          this is also important when trying to Negotiate we should Gather information of all equipment

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