PROCUREMENT STRATEGY
Types of negotiation Walden explains , “ There are two main negotiation types .” The first is position-based , where one party wins while the other loses . What Walden calls “ position-based ” is referred to as “ zero-sum ” in game theory and economic theory .
Walden says , “ It is subjective and individual-oriented , aiming to shift the other party to a preferred position . The second is strategic or interest-based , where both parties can win . This type of negotiation relies on facts , expertise and understanding to reach a joint position where both parties benefit .”
Negotiation best practices To ensure successful negotiations , Walden suggests several best practices . He advises organisations to ensure that any musthaves or pre-qualification requirements are already satisfied ahead of the negotiations . Obtaining buy-in from leadership to the negotiation strategy in advance provides further clarity on positions and interests .
Walden emphasises the importance of forming the negotiation team with absolute clarity on roles and responsibilities , as well as any subject matter experts needed . Planning the negotiation approach in a structured manner , considering interests , key terms , and issues to be negotiated , tailored to the personalities of the people involved , is crucial . Lastly , documenting
“ Negotiations are never straightforward , so by being strategic organisations can proactively assess the variables ”
VINEETHA JAYARAM GLOBAL SUPPLY MANAGER , NVENT
54 August 2023