Ch. 13: Negotiation and Conflict Resolution

Triangle Talk

1. Know exactly what you want

• Your goals, needs and wants

1. Know exactly what they want

• Address first

• Frame your needs in terms of other party’s needs

• Fair, flexible and reasonable

1. Propose action in an acceptable way

Negotiation Framework

• Identify/anticipate sourcing requirement

• Determine if it is negotiation or bidding

• Plan for negotiation

• Conduct

• Execute and follow up

Typical Objectives

• Acceptbale unit price

• Contracted quantities

• Required delivery lead time

• Improved supplier quality

Recognize Counterpart’s Needs

• Consider long tern success

• Give and take: Niether party should expect 100% “win”

  • Expect trade-offs

Phases of Negotiation: Step One

• Fact finding and info sharing

• Confirm info

Phases of Negotiation: Step Two

• Reccess to asses new infor

• Strengths and weaknesses

• Review objectives and positions

• Organize agenda

Phases of Negotiation: Step Three

• Meet in person or online

• Narrow differences on issues

• Offer proposals/counterproposal

• Exchange concessions

Phases of Negotiation: Step Five

• Seek agreement

• Conclude negotiation

• Agree to follow on activities

Power

• Ability to influence another person/org to do something

• Can be done in a good or bad

• Used in negotiation

Legitimate Power

• Based on official position

• : CEO

• Separate from reward or coercive power

• Ability to award the contract

Win-Win Negotiation

• Understand wants/needs

• Focus on common ground

• Joint efforts

• Creative solutions

• Engage in open info sharing

International Negotiation

• Complex due to

  • Customs

  • Laws

  • Culture/ culture shock

• Extra time and effort

Negotiation

• Formal communication

• In person or online Narrow differences

• Seek mutual agreement

• 2+ people or orgs

Common Terms

• BATNA

• Issue

• Position

• Tactic

• Strategy

BATNA

• Best Alternative To a Negotiation Agreement

• Point of advantage to walk away from negotiation

• Bottom line

Position

• Negotiation opening offer

• Optimistic or ideal

• Stated demand

Interest

• Play detective

• Try to separate other part’s interest through series of open ended questions

  • Listen carefully

• Focus on underlying interests

Need vs. Want

• Need: Negotiated outcome that negotiators must achieve

• Want: Outcome that a negotiator would like to have

• Exchanged as a concession