Negotiation for Procurement Professionals: A Proven Approach that Puts the Buyer in Control

441 Pages·2016·7.852 MB·English

by  Jonathan O'Brien

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Negotiation for
Procurement
Professionals
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Second Edition
Negotiation for
Procurement
Professionals
Jonathan O’Brien
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Publisher’s note
Every possible effort has been made to ensure that the information contained in this book
is accurate at the time of going to press, and the publishers and author cannot accept
responsibility for any errors or omissions, however caused. No responsibility for loss or
damage occasioned to any person acting, or refraining from action, as a result of the material
in this publication can be accepted by the editor, the publishers or the author.
First published in Great Britain and the United States in 2013 by Kogan Page Limited as
Negotiation for Purchasing Professionals
Second edition 2016
Apart from any fair dealing for the purposes of research or private study, or criticism or review,
as permitted under the Copyright, Designs and Patents Act 1988, this publication may only be
reproduced, stored or transmitted, in any form or by any means, with the prior permission in
writing of the publishers, or in the case of reprographic reproduction in accordance with the terms
and licences issued by the CLA. Enquiries concerning reproduction outside these terms should
be sent to the publishers at the undermentioned addresses:
2nd Floor, 45 Gee Street 1518 Walnut Street, Suite 1100 4737/23 Ansari Road
London EC1V 3RS Philadelphia PA 19102 Daryaganj
United Kingdom USA New Delhi 110002
www.koganpage.com India
© Jonathan O’Brien 2013 and 2016
The right of Jonathan O’Brien to be identified as the author of this work has been asserted by him
in accordance with the Copyright, Designs and Patents Act 1988.
ISBN 978 0 7494 7730 1
E-ISBN 978 0 7494 7731 8
British Library Cataloguing-in-Publication Data
A CIP record for this book is available from the British Library.
Library of Congress Control Number
2016949865
Typeset by Graphicraft Limited, Hong Kong
Print production managed by Jellyfish
Printed and bound in Great Britain by CPI Group (UK) Ltd, Croydon, CR0 4YY
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For Elaine, Emily and Hugh
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Contents
Introduction;
01: Introducing negotiation;
02: Countering the seller’s advantage;
vii 03: Red sheet – a winning process for negotiation;
04: Planning the negotiation;
05: Negotiating across cultures;
CoNteNts 06: Personality and negotiation;
07: Power;
08: Game theory in negotiation;
09:Building the concession strategy;
10: the negotiation event;
11: Winning event tactics and techniques;
12: Body language;
List of figures ix 13: Managing what you say and how you say it;
14: Making it a success
List of tables xiii
Preface xv
Acknowledgements xvii
About the author xix
Introduction 1
01 Introducing negotiation 3
02 Countering the seller’s advantage 21
03 Red Sheet – a winning process for negotiation 35
04 Planning the negotiation 47
05 Negotiating across cultures 73
06 Personality and negotiation 105
07 Power 143
08 Game theory in negotiation 179
09 Building the concession strategy 203
10 The negotiation event 231
11 Winning event tactics and techniques 251
12 Body language 309
viii Contents
13 Managing what you say and how you say it 337
14 Making it a success 357
Appendix – The Red Sheet Negotiation Tool 385
Glossary 401
References and further reading 403
Index 411
ix
LIst of fIGuRes
figure 1.1 An interpretation of Maslow’s hierarchy of needs 4
figure 1.2 The value pie – claiming or creating value 7
figure 1.3 Different forms of agreement in a negotiation 8
figure 1.4 The ZoMA (Zone of Mutual Agreement) 10
figure 1.5 Negotiation pre-requisites and success factors 12
figure 2.1 The sales funnel (adapted from Rich, Spiro and Stanton,
2007) 25
figure 3.1 Negotiation planning using the Red Sheet 36
figure 3.2 The overarching STEP framework 38
figure 3.3 The Situation STEP within Red Sheet 39
figure 3.4 The Target STEP within Red Sheet 40
figure 3.5 The Event Plan STEP within Red Sheet 41
figure 3.6 The Post-event STEP within Red Sheet 41
figure 3.7 The full 15-step Red Sheet process 43
figure 3.8 The abbreviated Red Sheet process (simple negotiations) 44
figure 4.1 Red Sheet step 1 – Background (worked example) 48
figure 4.2 Supplier’s value objectives 56
figure 4.3 Supplier preferencing tool 62
figure 4.4 Day One analysis to support negotiation planning 64
figure 4.5 Red Sheet step 2 – Stakeholders (worked example) 69
figure 4.6 The RACI model 70
figure 5.1 Steps for cultural adaptation 97
figure 5.2 Red Sheet steps 3 and 11 – Culture and culture plan
(worked example) 104
figure 6.1 The steps to negotionality 107
figure 6.2 The COW SOAP model 109
figure 6.3 The ACE model 110
figure 6.4 Conflict styles for negotiation (based on Thomas–Kilmann
Conflict Style Instrument) 114