Analyze the set-up. Imagining how one’s counterpart views a negotiation leads to more valuable outcomes for both parties. Unfortunately, sellers are usually in the dark about the assumptions and habits of procurement professionals. They assume that a competitive pitch process has been carefully thought through and that it reflects the client’s true priorities; in fact, this is often not the case. Procurement teams often default to a tightly controlled and highly leveraged competitive pitch process because it is easier to administer than trying to negotiate across complex internal stakeholders and multiple suppliers simultaneously. Moreover, procurement leaders are often incentivized by short-term metrics that encourage a simple zero-sum negotiation mentality and foster a control-oriented process mindset.
Read the full article on Harvard Business Review.