Post Negotiation Performance Analysis

I have made use of the DPSS 5 Ps Model of negotiation, Planning, Preparation, Participating, Performing and Post Evaluation and as the framework for assessing the overall performance of the negotiating team by using a series of simple questions. These could be used by those who are responsible for ensuring effective future negotiations. This process is a key part of our intermediate and advanced negotiations courses.

?The five Ps approach suggests we need to review the negotiations that had just be completed. We need ask the negotiation team to respond to a series of simple questions in the following order:

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Planning

?Did the negotiating team plan for the forthcoming negotiations effectively and efficiently?

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·??????? Was that evidenced by clear understanding who was going to lead the negotiations and thus who were going to act in support?

·??????? Did the team have clear idea of the objectives and outcomes and desired from the negotiations?

·??????? Did the degree of planning undertaken reflect the relative value, risk and complexity of the project being negotiated?

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Preparation

?Was the negotiating team well prepared?

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·??????? Was this evidenced by their ability to present coherent and robust facts and figures clearly to the other side?

·??????? Was the team able to react to statements made by the other side or to challenge such statements with their own analysis?

·??????? Did the team gain the support of key stakeholders before the negotiations began?

·??????? Did the team have a robust Best Alternative to a Negotiated Outcome (BATNA)?

·??????? Were they able to demonstrate that they had fully researched the current market conditions in terms of competition and capacity?

·??????? Did the team demonstrate an insight into the possible aims, objectives, motivators and business culture of the other side and their impact upon the other side?

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Participation

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Did the buying team effectively participate in the negotiations?

·?????????? Was this evidenced by their willingness to be flexible and innovative in seeking optimum outcomes?

·?????????? Were the team open to offers or proposals from the other side?

·?????????? Did they demonstrate that they were willing to compromise and seek sustainable outcomes?

·?????????? Were they able make a robust opening position?

·?????????? Were they able to react effectively to any counter offers made by the other side?

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Perform

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Did the buying team perform well?

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·?????????? Was this evidenced by them adopting an appropriate negotiation strategy, taking account of the relative bargaining positions of both sides.

·?????????? Did the team take account of the Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis, Supplier Preference Model,Kraljic matrix and market conditions when formulating their strategy options of win/win or win/lose or lose to win?

·?????????? Did they make it their clear to the other side at the appropriate stage of the negotiations?

·?????????? Did they use appropriate tactics and ploys?

·?????????? Were they able to recognize such strategies used by the other side and, as appropriate, counter them?

·?????????? Did they demonstrate how to effectively use persuasive and influencing skills during the negotiations?

·?????????? Was the negotiating environment, location, seating and general atmosphere appropriate?

·?????????? Did the team clearly communicate their key points to the other side?

·?????????? Did the team listen, understand and/or clarify what the other side was trying to communicate during the negotiations?

·?????????? Did the negotiators deal with the “personalities” of the other side efficiently, for example, did they effectively deal with stable versus unstable extroverts?

·?????????? Did the team achieve its key objectives without too many participants making too many concessions or crossing too many red lines?

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Post Evaluation

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·?????????? Did the buying team conduct a post negotiation review?

·?????????? Did this review become evident in the form of planned meetings or events soon after the negotiations finalized or a critical stage ended during ongoing negotiations?

·?????????? Did the meetings occur at critical stages when high value, complex and high-risk projects had been conducted throughout several months (if not years)?

·?????????? Were all those involved in the negotiations invited and their observations taken fully into account?

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Considering the immense amount of detail which could flow from an effectively conducted 5P strategy, the need is clear.? You need a balance between the financial or service benefits gained from the negotiation and the subsequent impact upon the relationship. If these negotiations are executed with a strategic partner, then the benefit of a modest financial gain could be more than offset by the damage done to the relationship and the subsequent reduction in the supplier’s willingness to be flexible, innovative and collaborative. These attributes are often more valuable than small savings in costs.

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