Negotiations Made Simple The 3 x 5 Technique ISM-Florida Gulf Coast April 21, 2011 Sam Farney,...

Negotiations Made SimpleThe 3 x 5 Technique

ISM-Florida Gulf CoastApril 21, 2011

Sam Farney, C.P.M.

1© Supply Chain Advisors 2011

Acme Manufacturing

3 Suppliers

Precision processes & lengthy qualification –

limits flexibility

Excessive Lead-time – poor customer response,

builds inventory & obsolescence risk

© Supply Chain Advisors 2011 2

3 Simple Steps

1. Prepare & Prioritize


3 Simple Steps


2. Communicate


3 Simple Steps


2. Communicate

3. Learn to Win


Prepare & Prioritize

Set aside time- 20-30 min Uninterrupted

a. Gather facts - subject & suppliers- Market situation / web search- Cost models & current trends SDS Notebooks & Propurchaser- Counterpart’s WIIFM

b. Set goals & targets c. Select opening positions

- aim high; "WIN" results


Communicate

Telephone - info exchange

Email - info + positions

Face to face - listen and learn


The 5-Word Negotiation

Listen to Learn

“NO !”Set clear expectations



Listen to Learn

“NO !”“WHAT IF ?”

Explore options & possibilities



Listen to Learn


“WHY ?”Understand other’s position



Listen to Learn


“WHY ?”“JUSTIFY !”

Performance, not promises“How will we measure that?”


Do’s & Don’ts

DO

Analyze the situationRemain Flexible & OpenEmpathizeBe HonestKeep Eyes on the TargetKeep it Simple

DON’T

Go for the JugularDo all the talkingTry to dominateSave all agreement to the

endKeep everything in your

head


Information is Power!

Prepare & PrioritizeResearch and set goals & targets

Choose communication medium and timingProbe to learn

Watch for unexpected openingsSeek measurable commitments

Establish systemic tracking


Negotiations Made Simple The 3 x 5 Technique ISM-Florida Gulf Coast April 21, 2011 Sam Farney,...

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