Learn how to get the best business deal [Learn how to make the Smart deal]
The following story tells how one of our trainees [purchasing manager] mastered the process of reaching the best business deal:
"Let us reach an agreement!" As a purchasing manager of a large multinational company, I have heard it too many times at the negotiating table.
As a purchasing manager of a large aerospace technology company, there is increasing pressure in the face of increasingly complex market scenarios. One of our procurement teams' primary responsibilities is to source materials and complex components for commercial and military aircraft, satellites, and defense systems. There are many things to do in every business transaction I make.
We have won many victories, but also suffered some setbacks, such as a contract dispute between our company and one of our long-term suppliers that has plagued me for months.
The debate is so fierce that we even introduce mediators. But after dozens of discussions (with dozens of people), we are still far from a real solution.
After taking part in Hay Think's strategic negotiation training course, I learned the secrets of handling complex disputes such as mine:
Focus on problem solving
Keep lawyers and technical experts away from the negotiating table to simplify mediation and take innovative approaches based on mutual interests.
Don't bargain on negotiating positions, focus on negotiation methods and pay attention
People: separate people from things
Benefits: Focus on benefits, not positions
Choice: create different solutions for the common good
Standards: adhere to objective standards
Mediation role limited to key decision makers
When the meeting room is too crowded, it often reduces the efficiency of the negotiation; on the contrary, it is necessary to build trust between the two sides and promote a frank dialogue with a small group of people.
Take a step back
Objectively assess the problems of commercial transactions from the perspective of outsiders or "take a step back, re-negotiate strategy development and information collation, and objectively review the situation"
Evaluating BATNA
By understanding "Best Alternatives to Negotiating Agreements" [BATNA], you can gain the confidence you need by staying away from unwise transactions.
Expand your ZOPA
Beneficial exploration of contract content or terms, both parties can provide different solutions based on different predictions and interests to expand your "Zone of Possible Agreement" (ZOPA: Zone of Possible Agreement)
MESO [Multiple Equivalent Simultaneous Offers]
By providing multiple creative equivalent proposals, both parties can choose the solution that best suits their own interests based on their actual situation.
Build a genuine relationship
Sometimes small things like gossip can build trust in the negotiation, ease the atmosphere of the negotiation, and facilitate business.
Knowledge of systematic business negotiation: The secrets and confidence of successful transactions in business negotiations brought me back to the negotiating table.
First, let's start with small talk to relax. I acknowledge that we have been engaged in relationship reconstruction for some time and reiterated our expectations for a deal.
Next, I asked the other party if they would like to participate in this round of meetings without a mediator so that we can discuss one-on-one. He agreed.
In the end, both of us stepped back, evaluated the value contribution of the cooperation between the two parties, and jointly put forward proposals based on value creation.
This meeting was a turning point for us, and we successfully reached an agreement. I'm relieved.
I am sure that I have these purchasing negotiation skills and tools will help us to break through the negotiation deadlock and challenge in the future!