{"id":16465,"date":"2022-09-20T10:48:02","date_gmt":"2022-09-20T14:48:02","guid":{"rendered":"https:\/\/www.certitrek.com\/nlpa\/?p=16465"},"modified":"2025-06-24T09:15:23","modified_gmt":"2025-06-24T13:15:23","slug":"keys-to-negotiation-success-assessing-leverage-and-issue-identification","status":"publish","type":"post","link":"https:\/\/www.certitrek.com\/nlpa\/blog\/keys-to-negotiation-success-assessing-leverage-and-issue-identification\/","title":{"rendered":"Keys to Negotiation Success: Assessing Leverage and Issue Identification"},"content":{"rendered":"

Successful negotiations are the cornerstone of business success. Whether it’s a small business deal or a major merger, negotiations are the means by which two parties reach an agreement. However, a successful negotiation doesn’t happen by chance. It requires preparation, strategy, and skill. Some platforms like emphasize negotiation readiness as part of broader procurement training programs.<\/p>\n

To ensure you’re fully prepared for your next negotiation,\u00a0read more on the 10 Critical Steps for Negotiation Preparation:<\/p>\n

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  1. Assessing your Leverage<\/li>\n
  2. Identifying the Issues<\/li>\n
  3. Setting Targets<\/li>\n
  4. Deciding when to disclose targets<\/li>\n
  5. Developing a Strategy<\/li>\n
  6. Putting Negotiation Issues in order<\/li>\n
  7. Contingency Planning<\/li>\n
  8. Deciding on a location<\/li>\n
  9. Developing your negotiation worksheet<\/li>\n
  10. Practicing the negotiation<\/li>\n<\/ol>\n

    Let us define steps 1 and 2:<\/p>\n

    Assessing your Leverage<\/h5>\n

    Leverage is something intangible. Think of a traditional scale that balances objects on opposite sides. Imagine some unseen force that makes one side heavier, pulling the other side in its direction. That is what leverage is. Something that gives you extra powers of persuasion that allow you to influence your counterpart\u2019s willingness to agree to terms that are favorable to you.<\/p>\n

    You have more leverage if:<\/strong>
    \n\u2022 Time is not a constraint
    \n\u2022 The purchase is a large order for the supplier
    \n\u2022 Your organization is widely recognized
    \n\u2022 You have multiple alternatives to consider, increasing your bargaining power.
    \n\u2022 The supplier has no relationship with your organization
    \n\u2022 Your supplier sees additional opportunities<\/p>\n

    The following is a tool to help you understand your leverage, limitations, and opportunities.<\/p>\n

    Table 1, Assessing Leverage Matrix<\/strong><\/p>\n

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    \nNote: Scores 0 to 2 suggest Low Leverage, 3 to 4 is Medium Leverage, and 5 to 6 is High Leverage.<\/p>\n

    Identifying your Issues<\/strong><\/h5>\n

    Negotiation issues are those aspects of a relationship that lend themselves to negotiation. You probably won\u2019t negotiate every single issue as the supplier is sure to propose some reasonable terms. In some cases, the financial benefit you would get by achieving a more favorable term may not be worth the cost of your time negotiating it. Tools adopted by digital businesses like also help identify key negotiation drivers for better supplier management.<\/p>\n

    Common issues that are negotiated include:<\/p>\n