Negotiation can drain or charge your team batteries
Whenever you are sales or procurement manager, you have had to mobilize your people to negotiate with internal or external business partners. Many of your people link negotiation with a stressful situation where obviously conflict of interest will rise. Those two facts: stress and conflict can paralyze people form performing.
How can it impact department objectives, if you are responsible for procurement:
- buyers may collect three offers and pick up the best one without even an attempt to negotiate conditions
- people may hide behind screen and e-sourcing software what can demolish relationship with key suppliers, frustrate you stakeholders and open doors to backdoor selling techniques of your suppliers
- tension and high expectations can demotivate buyers from being creative and seeking for new saving opportunities
How can it impact department objectives, if you are responsible for sales:
- key account managers may prefer to avoid meeting with procurement people, losing knowledge on sourcing strategies
- sales representatives may submit offers at minimum margin what can impact your profitability
- lack of negotiation can lead to lower satisfaction levels at the both sides of the table
Improve preparation skills to increase motivation to negotiate
The group of prepared amateurs will very likely beat an unprepared professional in the negotiation.
The first place to focus attention at is the way that people prepare themself to the negotiation as a team or as an individual. By human nature as we get more experienced and elder, we run more and more on "automatic pilot", repeating patterns known to our brain. For many buyers or sales it means NO preparation at all! They just go and do the show! using tricks and tips to get to get what they want. But is that truly the optimal result?
Make sure that at least the below steps are taken before your people go to negotiate important contracts:
95% of success is excellent preparation, 5% is the negotiation itself
A good, successful negotiator is a prepared negotiator. That has a great impact on motivation of your people to negotiate. Team preparation and team negotiation help to diffuse the knowledge, the skills but you need a framework to apply, which could be Eveneum Negotiation Compass® method.
18+ years of experience in project sourcing and strategic procurement. Managing Partner at Eveneum, a company specialized in advisory and competencies development. Focused on sectors where relationship building and trust element between partners is the mission critical factor. Supports customers on early suppliers engagement processes and early procurement engagement into R+D work. He has been delivering projects related to: negotiations on behalf, niche technology suppliers scouting. Keynote speaker at Polish and international conferences. Lecturer at Jagiellonian University (Procurement Management post graduate studies).