How do you keep stakeholders happy during vendor negotiations?

1 Identify your stakeholders

The first step in stakeholder management is to identify who are the key people or groups that have an interest or influence in your vendor negotiation process. These could include your project sponsor, team members, end users, customers, suppliers, regulators, or competitors. You should map out their roles, goals, concerns, and communication preferences, and prioritize them according to their power and interest level. This will help you tailor your negotiation strategy and tactics to address their needs and expectations, and avoid potential conflicts or misunderstandings.

3 Manage expectations

The third step in stakeholder management is to manage expectations with your stakeholders during vendor negotiations. You should set realistic and achievable goals and objectives for your negotiation, and communicate them clearly and transparently to your stakeholders. You should also explain the rationale and benefits of your negotiation approach and decisions, and highlight the trade-offs and risks involved. You should also update your stakeholders regularly on the progress and outcomes of your negotiation, and report any changes or issues that may affect your original plan or scope.

4 Involve and empower

The fourth step in stakeholder management is to involve and empower your stakeholders during vendor negotiations. You should seek their input and feedback on key aspects of your negotiation, such as the selection criteria, evaluation process, negotiation agenda, or contract terms. You should also leverage their expertise, knowledge, or relationships to support your negotiation, such as providing technical advice, market information, or referrals. You should also delegate some tasks or responsibilities to your stakeholders, such as conducting research, reviewing documents, or negotiating subcontracts, to make them feel valued and engaged.

5 Build trust and rapport

The fifth step in stakeholder management is to build trust and rapport with your stakeholders during vendor negotiations. You should demonstrate your professionalism, competence, and integrity in your negotiation, and show respect and appreciation for your stakeholders' perspectives and contributions. You should also establish a positive and collaborative relationship with your vendors, and avoid adversarial or aggressive tactics that may damage your reputation or credibility. You should also celebrate your achievements and successes with your stakeholders, and recognize and reward their efforts and support.

6 Resolve conflicts

The final step in stakeholder management is to resolve conflicts with your stakeholders during vendor negotiations. You should anticipate and prevent potential conflicts by identifying and addressing the sources and causes of disagreement or dissatisfaction, such as conflicting interests, values, or expectations, or poor communication or coordination. You should also manage and resolve existing conflicts by using constructive and respectful techniques, such as active listening, empathizing, reframing, or compromising. You should also learn from your conflicts and improve your stakeholder management skills and processes for future vendor negotiations.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?