I have been negotiating as either a buyer or a seller for most of my life.
For example, I still can’t understand why, after considerable research and diligently outlining the many advantages in point form, my parents wouldn’t let me get a pet monkey when I was 10. That proves that sometimes, no matter how well-prepared you are, the other side of the table remains unreasonable.
Childhood traumas aside, I have always been fascinated by negotiation, writing about the subject many times over the years – including for this blog.
The one common thread through the years is that complex negotiations are not a process that is done once and forgotten until there is a problem. Like supply chain resiliency, negotiations must also have a certain fluidity to address the volatility we have experienced over the past few years. If you are balking at the idea that a negotiated contract is final, consider the following. I can share countless case studies where stakeholders with circumstantial flexibility fared much better during periods of significant change than those who insisted on “holding” a partner’s feet to the fire to enforce compliance despite the negative impact and longer-term consequences.
Negotiation?
A Circular Process Versus A Finite Chain
It is reasonable to say that negotiations are a critical part of the S2P process that is circular versus a finite chain of executed steps. With the former, you have a relational approach, and the latter a transactional approach. In today’s world, which is better when negotiating with a key stakeholder – relational or transactional?
The Winner?
The simple message is that negotiation capability is a much sought-after skill organizations actively seek in today’s procurement professionals, and negotiations are now more than ever relational.
To hone these skills requires more than a once-in-a-while seminar and the subsequent effective execution of a series of steps. It requires regular, realistic, and consistent one-on-one interactive training that develops the ability to respond to both anticipated and unanticipated scenarios effectively. It goes beyond learning techniques to include communication and collaboration because successful outcomes are not a one-way street. Within the context of the above, in my next post, I will talk about LavenirAI and why it is the new standard for continuous negotiation talent development.
Procurement Insights
When does a negotiation reach a conclusion, e.g., when is it really over?
Posted on January 16, 2024
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I have been negotiating as either a buyer or a seller for most of my life.
For example, I still can’t understand why, after considerable research and diligently outlining the many advantages in point form, my parents wouldn’t let me get a pet monkey when I was 10. That proves that sometimes, no matter how well-prepared you are, the other side of the table remains unreasonable.
Childhood traumas aside, I have always been fascinated by negotiation, writing about the subject many times over the years – including for this blog.
Here are a couple of the more memorable ones:
Does Age Influence Contracting Negotiation Styles? (Procurement Insights, October 2010)
Are women really better at negotiating than men? (LinkedIn, May 2014) – Note: this post still holds the record for comments with 242.
What Makes Someone A Good Negotiator? (Procurement Insights, April 2022)
Is This A Good Negotiation Outcome? (Procurement Insights, November 2023)
The one common thread through the years is that complex negotiations are not a process that is done once and forgotten until there is a problem. Like supply chain resiliency, negotiations must also have a certain fluidity to address the volatility we have experienced over the past few years. If you are balking at the idea that a negotiated contract is final, consider the following. I can share countless case studies where stakeholders with circumstantial flexibility fared much better during periods of significant change than those who insisted on “holding” a partner’s feet to the fire to enforce compliance despite the negative impact and longer-term consequences.
A Circular Process Versus A Finite Chain
It is reasonable to say that negotiations are a critical part of the S2P process that is circular versus a finite chain of executed steps. With the former, you have a relational approach, and the latter a transactional approach. In today’s world, which is better when negotiating with a key stakeholder – relational or transactional?
The simple message is that negotiation capability is a much sought-after skill organizations actively seek in today’s procurement professionals, and negotiations are now more than ever relational.
To hone these skills requires more than a once-in-a-while seminar and the subsequent effective execution of a series of steps. It requires regular, realistic, and consistent one-on-one interactive training that develops the ability to respond to both anticipated and unanticipated scenarios effectively. It goes beyond learning techniques to include communication and collaboration because successful outcomes are not a one-way street. Within the context of the above, in my next post, I will talk about LavenirAI and why it is the new standard for continuous negotiation talent development.
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