Table of Contents
Defining the Process and Undertaking First Steps
Conducting and concluding a successful negotiation is a responsibility purchasing and supply management professionals must master in today's fast-paced business environment. Without this ability, organizations are deprived of the competitive edge they need to stay on top.
Gathering and Analyzing Data
Negotiating is more than the behavior displayed at the negotiating table. Organizations are placing more emphasis on the systematic evaluation and selection of suppliers and the development of long-term productive relationships. Therefore, there is a much greater application of structured negotiation planning, including task planning and process planning:
Conducting Practice Sessions and Performing Closing Steps
Negotiating skills are a core competency for anyone who has to deal with suppliers. Purchasers should receive training in negotiating through formal means (courses, seminars, workshops) and/or through "apprenticeship" in direct experience. Training is essential to a successful negotiation. As with any critical situation, an unproven, inexperienced individual should not attempt to take a leadership position in the process.
JONATHAN E. HUGHES, M.I.P.D., M.I.D.
Jon Hughes is chairman and development director for ADR International Purchasing Consultants, Ltd., Bracknell, Berkshire, England. He is also a visiting research fellow at the Centre for Strategic Procurement Management at the University of Birmingham, England. Mr. Hughes specializes in the realignment of strategic business processes and the development of innovative supplier management practices for leading organizations in the pharmaceuticals, media, services, and public sectors. He is a corporate member of the Institute of Personnel Development in the United Kingdom and is a frequent speaker worldwide, including NAPM International Purchasing Conferences in Atlanta, Anaheim, and Chicago, and the International Purchasing Federation in Vienna. Mr. Hughes earned his master's degree from Cambridge University.
Glenn Shihata is a financial analyst in reengineering at American Express, World Financial Center, New York. His primary responsibilities are to conduct cost benefit and probability analyses to evaluate reengineering opportunities, streamline business processes, and develop and implement cost-cutting techniques throughout various business functions, including purchasing. Mr. Shihata is an active member of NAPM and a contributor to Purchasing Today™. He received his bachelor's degree in business administration, with concentrations in finance and procurement, from the University of San Diego, where he studied with procurement expert David N. Burt, Ph.D.
- Dobler, Donald W., Ph.D., C.P.M., Burt, David N., Ph.D., and Lee, Lamar. Purchasing and Supply Management: Text and Cases, Sixth edition, McGraw-Hill, Inc., 1996
- NAPM Insights, November 1995, "Doing Your Homework"
- Norquist, Warren E., Burt, David N., Ph.D., and Anklesaria, Jimmy. Zero-Base Pricing: Achieving World Class Competitiveness Through Reduced All-in-Cost, Probus Publishing, 1990
- Reck, R. and Long, Brian. The Win-Win Negotiator, Pocket Books, 1989
- Morrison, William F. The Prenegotiating Planning Book, John Wiley & Sons, 1985
FOR FURTHER READING
- Acuff, Frank. How To Negotiate Anything with Anyone Anywhere Around the World, AMACOM, 1993
- Back, Ken and Kate. Assertiveness at Work: A Practical Guide to Handling Awkward Situations, McGraw-Hill, Inc. 1990
- Fisher, Roger and Brown, Scott. Getting Together: Building a Relationship That Gets to Yes, Hutchinson Business Books, 1989
- Fisher, Roger and Ury, William. Getting to Yes, Hutchinson Business Books, 1981
- International Journal of Purchasing and Materials Management, Spring 1996, "Can a Negotiation Support System Help a Purchasing Manager?"
- Jandt, Fred. Win-Win Negotiating: Turning Conflict into Agreement, John Wiley & Sons, 1988
- Kennedy, Gavin. Everything is Negotiable: How to Negotiate and Win, Arrow Books, 1992
- King, Norman. The First Five Minutes: The Successful Opening Moves in Business, Simon and Schuster, 1988
- Nierenberg, Gerard. The Complete Negotiator, Nierenberg & Zeif Publishers, 1986
- Seltz, David and Modica, Alfred. Negotiate Your Way to Success, Farnsworth Publishing Company, 1990
- Training and Development, March 1996, "Thrust and Parry: The Art of Negotiating"
- Wing, R.L. The Art of Strategy, Doubleday, 1988
- Winkler, John. Bargaining for Results, Pan Books, 1992
FOR LISTENING AND VIEWING
- ADR International Purchasing Consultants. Securing Agreement: The Complete Toolkit for Negotiating with Suppliers. (Video and Audio)
- Nightingale-Conant Corporation. Getting to Yes: How to Negotiate Agreement Without Giving In. (Audio)
- NAPM. Negotiation: The Basic Concepts. (Video and Audio)
- NAPM. Negotiation: Putting the Basic Concepts to Work. (Video and Audio)
- NAPM. Negotiation: A Case Study in Preplanning. (Video and Audio)
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