Definition 1 of 378
- Adopt a principled approach in negotiations and seek win-win
- Accept it is OK to agree to disagree and express your wishes - it does not need to affect the
relationship
- Leave open the option for future business/references if there is no deal
- Respect confidentiality
- Do not lie to TOP - there should be no need if you are a good negotiator
- Do not publicly criticise suppliers even if negotiations break down
- Do not personalise criticisms or insult individuals - this will be remembered long after
Tactical ploys - One more thing
Example reflection questions on the 'Process'
P2P process compliance - Insight
Tips to protect relationships
Definition 2 of 378
The result of a persons attractiveness, worthiness and right to others' respect, sometimes referred
to as charisma in leaders. Stems from the personality and way of engaging with others.
Reward power
Coercive power
Referent power
Legitimate power
,Definition 3 of 378
- Ask open 'why?' 'what?' and 'how?' questions to elicit deeper insights into their needs, interests
and expectations
- Develop new options to share with your team on a breakout session following new info
- Check all key assumptions made during the preperation stage
- Clarify your and their perceptions in areas where there may be misinterpretations
- Show concern for TOP's needs and interests
- Summarise regularly and use paraphrasing to ensure you have interpreted them correctly
- Listen attentively with 'ears and brain' to their answers, statements and questions
- Seek to identify and confirm any common ground on which you agree
The price of a product can be described as being inelastic if
Emotional Quotient (Emotional Intelligence) is the set of skills that
Typical behaviours at the testing stage of a negotiation meeting - The 'Do's'
Example reflection questions on the 'Process'
Term 4 of 378
Tactical ploys - Good cop / Bad cop
Adding a fixed mark-up for profit to the unit price of a product, expressed as a %
Price - cost / cost x 100
A legal clause whereby the contract price can be varied, either up or down, by reference to
an agreed formula, eg. inflation rate or some other recognised index
an act to make TOP warm to the 'good cop' and make more concessions than they would in
absence of the 'bad cop'
typical buyer position:
would like disputes to be resolved in buyer's jurisdiction
typical supplier position:
would like disputes to be resolved in supplier's jurisdiction
,Term 5 of 378
Personal Power Bases
- To start a conversation
- To build rapport
- To get the negotiation started and get TOP to start first
set targets for all of the objectives you are seeking to achieve
-Statutory minimum wages
-Regulation costs
-Commodity material inputs
Term 6 of 378
Negotiation is an expected core skill that involves considerations of
Budgeting, forecasting and market analysis
Approach, objectives and people and power aspects
Tactics, timing and resource allocation
Communication, presentation and branding strategies
, Definition 7 of 378
describes the range of commercial relationships between a buyer and supplier based on richness
of communication, longevity and mutual dependence
Absorption costing
The relationship spectrum
Microeconomics
Porters five forces
Definition 8 of 378
1. Seperate the people from the problem
2. Focus on interests, not positions
3. Invent options for mutual gain
4. Insist on using objective criteria
Paul Steele's 'The Buyers Perspective' - High Risk, High Expenditure
Macroecononmic factors - Economic growth
CIPS' preferred approach to negotiation, at least as a starting point, is
Principled Negotiation (Integrative Negotiation) is based on four fundamental principles
Definition 9 of 378
used when the interested parties are attempting to create more of something of value to share,
also known as a collaborative approach or win-win
power in negotiation
reward power
integrative approach to negotiation
cips' preferred approach to negotiation, at least as a starting point, is
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