Eskom Procurement Book 2015

NEGOTIATION

• What are the facts? What other information do we need, and how are we going to get it? • What are the most and least important issues, for us and the other party? • What is going for and against us on each issue? • What are the limits on our power and the other party’s power? • What are our aspiration levels, realistic expectations and minimum acceptance levels for each issue? • What are the other party’s personal needs and aspirations, based on available evidence? • What are the personalities involved? Who are the most suitable people for our negotiation team and what should be their roles and contribution? 7.4 NEGOTIATION PROCESS The overall negotiation can be presented as a process with a number of steps: • Planning/preparing. • Initial statements (or assessments) of the other side’s most favoured position. • Establishing the existence of flexibility on issues. Generally, the quality of planning and preparation is the most consistent predictor of the likelihood of success or failure. The hard reality, based on experience with many supply professionals, is that preparation does not occur at the same level as it does on the selling side of the negotiating table. Too many negotiators want to jump right into negotiations. There are many reasons for this, negotiations are action oriented, which some consider as fun or fulfilling. And preparation just isn’t as interesting. It requires patience and discipline. But as experienced negotiators tell us, preparation is a critical prerequisite to negotiating success. The preparation process is often characterised by some serious weaknesses, including: • Finding the Bargaining Arena (BA). • Wrapping up a deal within the BA. • Failing to commit sufficient time. • Failing to establish clear objectives. • Failing to formulate convincing arguments or support for positions. • Failing to consider the needs of your counterpart. • Believing that quick and clever is enough. If you feel your negotiating efforts lack in preparation, you are certainly not alone. The key is to identify planning weaknesses and then take corrective action to overcome them. The first step is to recognise the inseparable link between effective planning and strategic negotiating success. Failing to plan effectively can ‘lock in’ mistakes for a long time. The negotiator has to know his business, what he wants in the short term and long term, and why he wants it. He also needs to know about his counterparts’

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