I hope that you have enjoyed the articles \u201cWhy To Hate Fact-Based Negotiation, Part I\u201d and \u201cWhy To Hate Fact-Based Negotiation, Part II.\u201d<\/p>\n
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Now, I know from some email I received, that some readers got the false impression that I recommend using only emotion-based negotiation and not fact-based negotiation.\u00a0 Not the case.\u00a0 In both articles, I alluded to my belief that fact-based negotiation \u201cshould be a tool in the procurement negotiator\u2019s toolbox. Just not the only tool.\u201d<\/p>\n
Let me share a great example of why.\u00a0 I have a friend who was, up until recently, a vice president of sourcing for a large health care institution.\u00a0 He was an excellent negotiator in his own right.\u00a0 But when certain types of equipment buys came up, he always delegated negotiating responsibility to this one particular member of his staff.<\/p>\n
Why?<\/p>\n
Because the guy had an incredible knack of getting equipment for free.<\/p>\n
This particular staff member either knew the value to a supplier of having a leading name in the industry using their gear, and\/or of being able to sell aftermarket parts and services to a large customer in the future, and\/or something else, but this guy was able to ethically get millions of dollars of equipment for his employer at no cost.\u00a0 The suppliers were huge companies, so no one had to worry about putting a supplier out of business from negotiating too hard.<\/p>\n
The guy was simply a great communicator and negotiator.<\/p>\n
Now, if that guy only used fact-based negotiation, he would have calculated a should-cost model that would have had him asking for a 5% discount or something.\u00a0 And he would have been doing his organization a disservice.<\/p>\n
You might be saying, \u201cBut, Charles, it sounds like that was a huge company.\u00a0 That guy\u2019s tactics wouldn\u2019t work as well for a smaller organization like mine.\u201d\u00a0 And you may be right.\u00a0 But I have seen organizations even larger<\/em> than this company mandating fact-based negotiation.<\/p>\n And that\u2019s just dumb.<\/p>\n As soon as you start taking tools out of the toolbox, you limit your negotiation potential dramatically.\u00a0 Why would anyone do that?<\/p>\n As a procurement negotiator, you need an open mind and lots of tools.\u00a0 Use them all and keep finding ones that work better!<\/p>\n Recommended Reading<\/b><\/p>\n Newly Updated: The Executive\u2019s Guide To The SPSM Certification<\/a> I hope that you have enjoyed the articles \u201cWhy To […]<\/p>\n","protected":false},"author":12,"featured_media":4094,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3509","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-procurement"],"yoast_head":"\n
\nOptions For Staying Certified As An SPSM<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"