Best Practices in Procurement
Negotiations Planning and Strategies

PROGRAM SUMMARY

The ability to negotiate successfully is one of the most basic of the business person's skill sets. Significant positive or negative impacts are made to every organization's bottom line from the negotiations conducted by their employees with outside firms. Therefore, it is essential for any organization's continued success that employees are well trained and experienced in the planning, strategies, and conducting negotiations.

This seminar is designed to provide strong competencies in the methods and strategies that will result in successful negotiations with suppliers and contractors.

COURSE OBJECTIVES

Upon completion of this seminar, participants will know:
- The importance of planning in successful negotiations
- Approaches in negotiations
- 4 techniques to assist in single and sole source negotiations
- The importance of determining, rating, and valuing the issues in a negotiation
- 6 areas in evaluating strengths and weaknesses
- 18 Important points to remember in the negotiation
- Essential elements of the final preparation

WHO SHOULD ATTEND?

Managers and professionals involved in:
- projects, contracts, purchasing, contract administration operations, maintenance, engineering, quality,
- and other company activities that expose them or their staff to negotiations with contractors - and suppliers and who want to improve their competency in this critical area of performance.

TRAINING METHODOLOGY

Participants will gain from a combination of instructional methods, including lectures by an experienced practitioner and consultant, exercises, group discussions covering current practices and their relationship to the implementation of concepts and techniques discussed.

ORGANIZATIONAL IMPACT

The organization will benefit by:
- Reduced total cost of purchased material, equipment, and services
- Better outcomes in disputes and claims with suppliers and contractors
- Improved supplier performance
- Having the advantage in negotiations as a result of their employees being better prepared and trained than the other side's employees.
- Greater likelihood that the organization's objectives in dealing with outside firms will be met.

PERSONAL IMPACT

Attendees will gain by participation in this program as a result of:
- Increased skill sets in negotiations
- A greater sense of confidence and professionalism
- Applying increased negotiation skills to personnel situations
- Greater ability to obtain desired outcomes in negotiations
- Increased recognition by the organization due to improved performance

COMPETENCIES EMPHASIZED

• Negotiation planning
• Negotiation styles & techniques
• Dealing with tactics
• Understanding the other side
• Buyer/seller positioning on key contract issues
• Developing negotiating skill sets

COURSE SUMMARY

Session 1: The Criticality of Successful Negotiations

Session 1 discusses how business people understand that among the many hats they wear, the ability to be successful in negotiations is essential to their organization's growth and future

• Why are we here?
• Negotiation skill sets
• Who wins negotiations
• Small-Group Exercise-Discuss the necessary skill sets of a good negotiator.

Session 2: Steps In Negotiation Preparation

Session 2 brings home the concept that no amount of negotiator experience, skill, or persuasive ability can make up for the lack of thorough preparation.

• When does the negotiation start
• The most important thing to remember in negotiations
• Comparing approaches in negotiations
• Reducing the impact of back door selling

Group Discussion: What type of negotiation philosophy has been the norm for attendees.

Session 3: What Gets Negotiated?

In Session 3, we will explore how in business negotiations, the amateur has only a few issues, but the professional negotiates many matters.

• Defining the issues
• Timing as an issue
• Valuing the issues
• Rating & issue types
• Total cost of ownership considerations

Group Exercise: Define the issues that could be negotiated in some common contract clauses.

Session 4: Assess Strengths & Weaknesses

Session 4 discusses how your reputation and that of your organization will significantly influence the negotiation outcome, as will each side's strengths and weaknesses and recommendations on how to deal with the most challenging negation-that is with a single or sole source.

• Pressure Points
• Understanding the other side's power
• Evaluating your position
• Know your BATNA
• Single and sole source negotiations

Small-Group Exercise:  How would you respond to a specific ethical situation which will be presented?

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