SCLCI Early Editions: “Elements of Negotiations”
Activities and important components that you will encounter in your next negotiation. Take our survey and test your knowledge. Include your feedback in the comments and join the VCC Community.
NOVEMBER 15, 2023 Authored by Hilary J. Schmitt, SCMP S&Co., Supply Chain Logistics Consulting SUBSCRIBE HERE.
Everyone Negotiates.
Negotiation can be completed without a second thought, some of us are constantly negotiating and may not even be aware of it. This article about some important elements in negotiation will help you when you have an agreement to reach with another party, or perhaps multiple parties, and you want to take a purposeful approach.
Important Preparations for Your Negotiation.
Read through this list of negotiation activities and you be the judge. We’ve added a survey for your feedback.
Plan.
- Plan to engage in a negotiation.
Question.
- Determine why this process is important to your company.
Strategize.
- Develop an approach for the negotiation and remain adaptable throughout.
Align.
- Deliberately focus on the results needed to reach your company’s objectives.
Define.
- Set your BATNA, know the ‘best alternative to negotiated agreement’ before you begin and use that plan if you do not have a satisfactory agreement.
Prepare.
- Become reasonably knowledgeable of the other parties involved and estimate the constraints you may encounter.
Practice.
- Experiment with practice scenarios that could happen during your negotiation and get comfortable with pausing or pursuing a course of action.
Prioritize.
- Get clear about what this negotiated agreement must deliver to your company and what else is only ‘nice-to-have’.
Communicate.
- Make the negotiation about sharing an understanding of each parties’ limitations and requirements.
Commit.
- Be involved in this process to reach a real consensus for you and with the other party and to make a conclusive decision.
Get Help.
- Have trusted advisors ready that can act as directional guides for complex and heavily weighted negotiations.
Listen.
- Uncover unspoken potential benefits, observe any warning signs, and validate new information.
Recalculate.
- Review if there is any item left on the table and bring attainable value into the agreement as well.
Trim.
- Discard what is not important to your company’s objectives.
Conclude
- Close a deal or use your BATNA
Negotiation Readiness Survey
Now that you’ve read the list and are all ready for your negotiation, you can rate the suggestions in the survey. You can take the survey and view the results by following the link below to our premium subscription channel.
a) exactly right for reaching an acceptable agreement,
b) too much to think about because things move so quickly, or
c) something that you do all of the time.
Remember, we like to hear what you think. Put your feedback in the comments section and join us in the Value Chain Consultants Community for members exclusive chat.
The VCC Glossary:
ADR: Alternative Dispute Resolution.
V.C.C., NOV 13 2023
THE VCC GLOSSARY
Alternative Dispute Resolution – Supply Chain Logistics Consulting
Meditation
A Comparison of Two Types of Mediation. What is the difference between taking a facilitative or evaluative role in mediating a dispute during negotiation?
Mediation; A Facilitative Role
- primarily role is helping communication between parties during negotiation
- acting to improve listening and information absorption of each side
- works towards productive conversations by opposing viewpoints
“The facilitative mediator’s role is to smooth the lines of communication between the parties, make sure each side is listening to the other, and generally ensure that the conversation is a productive one.” (2022, Collaborative article by HBR Program on Negotiation Staff)
Mediation; An Evaluative Role
- all tasks of a facilitative mediator in negotiation
- also completes an evaluation of the positions of the various parties
- when required, may predict the judgments of an arbitrator
- could be asked to propose a settlement for consideration by those involved
“The evaluative mediator’s role is not only to facilitate the conversation but also to evaluate each side’s position (and in some cases) predict what judgment an arbitrator might make, and possibly propose a settlement for the parties to consider.” (2022, Collaborative article by HBR Program on Negotiation Staff)
#supplychain #logistics #negotiation #mediation
SCLCI Back-to-Basics:
“The Benefits of Integrative Negotiations”
The Four Benefits of Integrative Negotiations. (SupplyChainLogistics.net)
Back-To-Basics, Supply Chain Management
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