WORK BOOK
PROCUREMENT NEGOTIATION
Adopted From
O’Brien, J. (2016b, October 28). Negotiation for Procurement
Professionals: A Proven Approach that Puts the Buyer in Control (Second).
Kogan Page.
Background
1. Identify who we are negotiating with, what we are negotiating and why we are
negotiating and complete the first three boxes.
2. Identify the type of negotiation this is: either one-off or part of a journey and
whether this is the first engagement or a repeat negotiation and tick the relevant
boxes.
3. Identify the value objective for the negotiation and tick the relevant box.
4. Determine and list the long-term objectives for the relationship.
5. Develop a time-bound plan for the activities leading up to this negotiation
and potentially any further events in the future.
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This negotiation
1. List the individual(s) you will be negotiating with and their position.
2. Define what you know about the event, i.e., date, location, mode of negotiation (tick
box).
3. If you can, classify the personality type of their team by inserting their team
identifiers (e.g., TTL, TT1 etc) into the relevant negotiation colour quadrant.
4. Identify and list any known issues or risks for this negotiation.
5. List anything else you know about them, e.g., who they report to, who they need to
please, what motivates them etc. Then move to part 2 of this section.
6. Determine the target outcomes for this negotiation and list in priority order.
7. Determine and note plans for personal style and demeanour to build rapport and
project power. Include specific actions that will resonate with their personality type.
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Power
1. Determine the power balance for each of the five tangible powers based upon facts
and draw a pointer on each dial accordingly.
2. Draw a second ‘dotted’ pointer on each dial to indicate if the ‘projected power’
balance is different to the actual power.
3. Determine the knowledge you hold and what you believe the other party to hold. If
you hold sufficient knowledge, colour in your knowledge indicator; if you believe the
other party has good knowledge of their power position, colour in their indicator.
4. Note the rationale for each determination of power.
5. Consider any specific actions or interventions you or other members of any
negotiation team could take to appear more powerful in the negotiation (intangible
power) or counter what the other party is anticipated to do.
6. Review all five power balances and determine the specific actions that could shift the
power balance or open up new possibilities by considering alternatives and
gathering further knowledge. Enter these into the knowledge-gathering plan.
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Game
1. If there has been a previous engagement, or the game is already ‘in play’ with the
supplier then determine the current game both you and they are playing and tick the
appropriate boxes.
2. Based upon what you know about them decide what game you anticipate they will
play at the event. Tick the relevant box and note your rationale.
3. Based upon your review of the various factors that determine the best game to play,
determine what game you should open with and tick the relevant box in the ‘Games
we will play…’ section and record how you plan to do this.
4. If you anticipate the need to switch game then identify the trigger to switch
(ensuring any team members understand this) and note the next game you will play
(also in this section) as needed.
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Our requirements, concession strategy and their requirements
1. Determine your negotiation requirements and list these in step 8. If you intend to
negotiate on a ‘big picture’ basis, ie a global agreement that encapsulates all
individual requirements, then consider using the bottom line for this.
2. For each, determine the pain factor according to how important each requirement is
and enter high, medium or low as appropriate.
3. Enter your MDO for each line or requirement in step 8.
4. Determine what you think their requirements against you will be and enter these in
step 10. If you think they have any additional requirements then list these too and
circle back to complete steps 1 through 3 on your side against these.
5. Determine your LDO for each requirement and enter in step 9.
6. Determine what you think their MDO and LDO might be (make your best-informed
guess) and enter in step 10.
7. Check there is a ZoMA for each; if so tick the boxes between steps 9 and 10. If there
is no ZoMA check your assumptions, consider revising your LDO or question if the
negotiation should proceed.
8. Determine your individual concession steps according to your overall strategy and
enter these into step 9 against each requirement.
9. Define your strategy and anything of note at the bottom of step 9.
10. Determine your BATNAs and list in step 8.
11. Attempt to anticipate their BATNAs and list in step 10.
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Winning Techniques- Pre- Event
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