STEP 2

Fix the stakes,... motivate yourself

Once you have defined your target, the stakes determine the limitis or the real dimensiones to reach it.  These dimensions are regarding you and your implication with the negotiation.

Try to kept your mind without any thinking.  Then, try to think in the reasons you are working as buyer and your motivations to do your work.  And finally, try to understand the reason why you are going to "fight" with the supplier to attain your goal.

The stakes are differents and they depend of each person;

• your reputation or status are very important, 
• you look for the continuos approval of your work,
• you know that your supplier is expensive, the quality must be increased or the delivery improved.
• you need to make a favour to your internal customer to get any other thing in exchange ("buyer" way of life).
• your wage increase depends of your cost improvement efforts.

The levels for the stakes range from non implication to total implication.  The level os this implication is vital to reach the best agreement.  With non implication you will get NOTHING.



For example, you can imagine a negotiation with a turnover of 10k€ for office supplies or an important contract with some couriers (logistics flows por production and non production matters) of 1 M€.  Try to fix the stakes for both negotiations in order to reach the best quality, cost and delivery. If you fix the values for your stakes you will know the time you need invest to attain your goal.

The stake are important in order to define the preparation of the negotitation and determine your implication.  If your level of implication is high the final value of the negotiation must be high, but remember, your goals must be reachable; although your motivation is very close to a sing star, football soccer star or a marathon man, if your target is not achievable your negotiation will be a disaster.

In one of my last experiences, all the purchasing department members were highly motivated and implicated in our job.  Our implication was very close to the 300: this is the purchase department!!! OW OW OW!!!! But we received the order to ask for suppliers a cost reduction of 25%; the great majority of negotiations were a disaster.

Out of this example to fix the stakes an intensive preparation and total application are indispensable.

What do you think?

Please, let your comments, suggestions,impression, ideas,...