Chapter 13

Question 1

What is Negotiation

Answer 1

A process of formal communication, either face-to-face or via electronic means, where two or more people, groups, or organizations come together to seek mutual agreement about issue or issues

Question 2

Triangle talk-negotiation planning took

Answer 2

Step 1: know exactly what you
Step 2: know exactly what they want
Step 3: prose actions in a way they accept

Question 3

Step 1: know exactly what you want

Answer 3

Determine and formalize goals and objective
-helps retain focus and minimize distraction
-when written, can be referred to readily during negotiations
-the more clearly defined, the more likely priorities will be achieved

Question 4

Step 2: know exactly what they want

Answer 4

Attempt to find out what the other party’s needs and wants
-estimate the underlying interest to the other party
-asks them yourself what their needs and wants are

Beware of the other party thinking like you

If the negotiator finds out the needs and Wants are different from what was presumed, make adjustments to account for change

Ask probing, open ended questions to account for change

Question 5

Step 3: Propose action in a way that they can accept

Answer 5

Frame your needs in terms of the other party’s need

Make it easy for the party to say yes

Remain flexibility, fair and reasonable

Address their needs firsts

Answer 6

Phase 3:Planning for the Negotiation

Negotiation planning involves a series of steps to prepare the parties for pending negotiation

•Step 1Develop specific objectives
•Step 2 Analyze each party’s strengths and weaknesses
•Step 3 Gather relevant information
•Step 4 Recognize your counterpart’s needs
•Step 5 Identify facts and issues
•Step 6 Establish position on each issue
•Step 7 Develop the negotiation strategy and accompanying tactics
•Step 8 Brief other stakeholders
•Step 9 Practice the negotiation

Question 7

Step 1 :Develop Specific Objectives

Answer 7

•Objective
–Aspiration or vision to work toward in future

•Typical objectives
–Acceptable unit price
–Contract quantities
–Required delivery lead time
–Improved supplier quality

Not all objectives are equally important
–Need to prioritize
•Must have (needs)
•Would like to have (wants)

Question 8

Step2 :0Analyze Each Party’s Strengths and Weaknesses

Answer 8

•Understand through research and experience
–Personality
–Negotiation style
–History of the other party
•Assess relative strengths and weaknesses, i.e., “due diligence”
–Each negotiation experience is unique

Question 9

Step 3: Gather relevant information

Answer 9

•Previous experience with other party
–What happened between parties?
–Was negotiator satisfied with previous outcome?
–Are we negotiating with same people or with different negotiators?
–What we’re areas of disagreement?

Question 10

Step4:Recognize Your Counterpart’s Needs

Answer 10

•Must consider longer-term success
•Issues critical to supplier may not be issues critical to buyer, and vice versa
•Give-and-take must be considered
–Each party should not expect to prevail in all issues
–Setting priorities for concessions and issue tradeoffs

Question 11

Step 5:Identify Facts and Issues

Answer 11

•Fact
–Reality or truth that parties can state and successfully verify
•Issue
–Items or topics to be resolved e g price, quality, delivery date etc
•Triangle Talk is a helpful tool

Question 12

Step 7:Develop the Negotiation Strategy
and Accompanying Tactics

Answer 12

•Strategy
–Overall approach used to reach mutually beneficial agreement
•Tactic
–Art or skill of employing available means to accomplish an end, objective, or strategy e g low ball, caucus tactic etc
–Includes supporting action plan and activities

Question 13

Step 8 :Brief Other Stakeholders

Answer 13

•Stakeholder
–One who has an interest in or will be affected by negotiation outcome(s)
•Need to be aware of, and in agreement with, desired objectives
–Includes major issues and initial positions for those issues
–Prevent unwanted surprises
–Develops stakeholder buy-in and support

Question 14

Step 9: Practice the Negotiation

Answer 14

Step 9: Practice the Negotiation

•Rehearse before formal negotiation
•Applies to complex and formal negotiations that are …
–Large dollar amount
–Long span of time
–Crucial to success of organization
•Mock or simulated negotiation
–Helps raise awareness of unanticipated questions and issues
–Role play other party to develop empathy