MODULE

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1. INTRODUCTION
Despite
persist
that
relationships.

The
through

§༊ Procurement

§༊ marketing

§༊ product

§༊ product

All

Although
cumulative
in
seldom
view
measures
acceptable
perspective.
ultimately
with
may
wishes

The
to:

§༊ the

§༊ the

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§༊ the
term

§༊ the

§༊ the

§༊ trade- offs.

As
under
Once
rules
straitjackets,
a
unlocking

Organisations
from:

§༊ a

§༊ a

§༊ the

§༊ the

§༊ the
best

2. RESEARCH
Research
have
reporting
14.5%
executed
appreciate
prerequisite
skills
indicated
to
develop

Eighty
not
processes.
influence,

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Although
organisation’s
negotiation

The
to

§༊ professional
advantage
§༊ professional
meaningfully
§༊ consolidation
Of
irrational
deal
reinforced
Ford
loans

The
being
behaving
responses,
negative

As
moves
become
characterises
product
silo
across
solution.

Within
corporate
competing
Future
Center
Michigan
more
relying
rely
to
irrational
they
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perceptions.
negotiation

Without
negotiation
the
inconsistent
on

A
improvable,

3. CREATING
Negotiation
toward
stand
tended
primarily

3.1
At
Mexico’s
any
unsuccessful
individual
standardized
of
thereby

In
situations,
financial
financial
sought
resolving
settlement.

§༊ ability

§༊ quality

§༊ quality

§༊ quality

Depending
determined.
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§༊ Debtors
to
approach.

§༊ Debtors
with
relationship.

§༊
more

In
system
reviews
what
and
organisational

Guided
problem
were
managers
thereby
maintaining
mutually
teams
loans

By
every
valuable
a
base
wisdom
of
information

Experience
prior
approached.
their
be

The
systematised
shared
coordination
creativity,
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3.2The
3.2.1
Until
developed.
relations
appear
on
moved
emphasis
further
correlating
books
topics
behavioural
Towards
place;
process.
effectiveness
the
variance

It
sales
whether
evaluation
congruent
no
the
in
able
leading
variance
organization
structures
structured

What
negotiation
specific
deals
multitude
other

The
for
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Fisher
thereafter
until
successful
why
larger
to
interacting
negotiation
business.
negotiated
characteristics
Bazerman
rather

3.2.2

As
appreciation
elements
strengthened
market
process.
cover
deal
organisation

Without
is
Such
negotiation
process
process

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 ENTERPRISE NEGOTIATION ENTERPRISE NEGOTIATION
4. AN
MODEL MODEL
BUSINESS BUSINESS
AND AND D

PURCHASINGP PURCHASINGP

PURCHASING PURCHASING

NEGOTIATION NEGOTIATION

NEGOTIATION NEGOTIATION

NEGOTIATION NEGOTIATION
 CLOSED CLOSED Figure 9.1
DEAL DEAL

ORGANIZATIONALLY
4.1
A

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4.2
Establishing
stakeholder
orientation

§༊ defining
§༊ interviewing
necessary,
should
§༊ committing

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4.3

Upon
ensuring
defined

4.4
An
organisation
results
reducing
consequently
competitors;
behaviour.
terms
business

4.5
4.5.1

§༊ To
§༊ To
§༊ To
§༊ To
§༊ To
4.5.2 Examples
§༊ Price
above
§༊ Free
§༊ A
§༊ The
before
§༊ No
concessions
4.5.3

Leading

§༊ All

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§༊ For
completed.
Lagging

§༊ Discounts
§༊ Free
§༊ Requests
analysis
§༊ Zero
§༊ Internal

5. AN
5.1
An
implemented,
implementation
each
the
more
all
and

6. THE
The
concluded.
get
frame
concessions
“If
message,
stands
have
negotiation,
therefore

The
understand
enables
occur,
the

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Applied
useless,
of
an
unfortunately
test
succumbing
the
the
prohibitive

Given
for
The

7. A
A
the

§༊ what
§༊ what
§༊ what
§༊ what
Applying
that
may
provide
trade
could
entering
In
optimal
the
strongly
area
of
store
service

By
as
buyers

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Tactics
analyse
the

8. THE
ALIGNED
One
organisations
who

empowered
are
(strategy)
are

Where
that
tactics

Unfortunately,
the
regularly
and
able
relationships

9. MEASURING
The
approach
enduring
continue
reward

Due
price
assume
price
agents
this
zero- sum
organisational
their

Where
distinguish
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 additional
or
collaborative
developing
feeling
indifferent

To
large
according

§༊ Relationship Relationship:
the

§༊ Communication
Communication:
could

§༊ Interests Interests:
interests
(government,

§Options:
༊ Options
that

§༊ Legitimacy
Legitimacy:
sides

§༊ BATNA BATNA:
interests

§༊ Commitment Commitment:
understand

Given
quantify,
approach
not
require

Although
negotiation
to
outcomes.
discounts
to
reductions
significant
result
organisation,
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Apart
show

9.1
When
negotiators
the
the
pushing
relationship
minds
relationship,

The
that
enhanced,
is
relationship
jointly
working
will
make
eventual
are

Developing
requires
ensure
concessions,
relationship.
will
value- creating

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 THE USUAL DEAL --RELATIONSHIP
RELATIONSHIPCYCLE
CYCLE

Confirm
and

Restrict Reduce

information and

Figure 9.2

Under Create
the deal

A BETTER DEAL --RELATIONSHIP

RELATIONSHIPCYCLE
CYCLE

Improve
understanding

Share Expand

about the

Figure

Create
Improve
communication options

Ertel
IBM,
amount
would
intention
companies
depend

In
their

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immediate
the
the
one
problems
(relationship
licensing
relationship

KODAK
KODAK AND
AND IBM
IBM DEAL
DEAL AND
AND RELATIONSHIP
RELATIONSHIP

DEAL RELATIUONSHIP ISSUES

§༊ Retirement §༊ Reliability
§༊ Use §༊ Giving each other the benefit of
§༊ Service the doubt
§༊ Ease §༊ Absence of coercion
§༊ Record §༊ Understanding each other’s
§༊ Pricing objectives
§༊ Terms
§༊ Timeliness and consultations
§༊ Termination
§༊ Mutual respect
operations
party
Fig.

9.2

Negotiators,
their
negotiation
time
shortlist,

The
these
deal.
dramatically
client.

Developing
protect
measure
their
producing
this

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Identifying
objective
judgment

When
where
that

If
organisation.
their
accounts.

A
to
BATNA.

When
sales,
representatives
leverage.

9.3
Moving
carefully
communication.
adequate
reluctantly

The
makes
therefore

§༊ providing
to

§༊
merely

§༊ showing
source

§༊ applying
creative

Although
of
more
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SITUATIONAL VIEW STEPS IN THE SITUATIONAL VIEW INSTITUTIONAL VIEW EXAMPLE TOOLS &
NEGOTIATION PROCESS PROCEDURES

Goals are set on a case basis; negotiators seek to ANALYSIS & OBJECTIVE Goals are set on a case -by-case basis; negotiators seek to Objectives for each negotiation are tied to larger corporate
goals; • Deal and relationship scorecards

maximise personal compensation. SETTING maximise personal compensation. separate goals are established for the deal and the relationship. • Negotiation instructions template

Preparations proceed in an ad hoc manner; often there’s no time for NEGOTIATION Preparations proceed in an ad hoc manner; often there’s no time for Preparations are well structured; negotiators draw
on previous • Database of past negotiations

any preparation. PREPARATION any preparation. corporate experience. • Worksheet for understanding counterparts’ choice

• Manager’s checklist for BATNA review

Negotiators act as lone wolves with little supervision; success or NEGOTIATION Negotiators act as lone wolves with little supervision; success or Managers play an active coaching role; colleagues
share a • Negotiation playbook that links strategies to categories of

failure is seen to be purely dependent on personal ability. ENGAGEMENT failure is seen to be purely dependent on personal ability. negotiation methodology/approach and negotiations
vocabulary. • Training programs for negotiators and their managers

• “Yellow Pages” that enable efficient consultation with

experienced colleagues

Reviews are done sporadically; focus is on cost reductions and DEBRIEFING/REVIEW Reviews are done sporadically; focus is on cost reductions and Reviews are performed systematically to capture
• Structured review questions that focus not only on outcomes but

percentage of deals closed. percentage of deals closed. information so it can be applied to future negotiations; focus is not also on process

only on the results of each negotiation but on the way it was • Debriefing forms that feed into best -practises database

conducted; reviews extract lessons rather than apportion • Training in constructive debriefing

blame or praise.

Figure

10.
In
will
delegates

§༊ Partisan
§༊ Expectations
§༊ Interpretation
§༊ Negotiation
§༊ Agenda
§༊ Inter- and
§༊ Coalition
§༊ Debriefing
The
strategy

11.
Ertel
Guide
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Dietmeyer
Process,

Fink
Law

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MODULE
ESTABLISHING
AND
SUMMARY

There
level

1. Need- Based
§༊ More
§༊ Increased
§༊ Complexity
§༊ Buyers/sellers
§༊ Relationships
§༊ Pricing

2. Effectiveness- Based
§༊ Low
§༊ Limited
§༊ Departments
§༊ More
§༊ Low
strategy
execute

• Strategy
• Tightened
• Higher
• More
♦ Common
♦ Higher

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♦ Selling
♦ More
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