nedelja, 6. julij 2014

Negotiate strategic partnership

As we said in our previous blog, there is no real reason why slotting your negotiation opponents with more than three basics strategies:


















Although gear for the partnership in the above picture is the smallest (since it applies for the smallest portion of your suppliers in the procurement portfolio (=the counter parties in negotiation)) – it rotates the fastest. Somewhat mirrors the energy required from both negotiation parties required to be injected into the relation.

Partnership in business is like with friendships in our life… How many real friends do we have? More than five? Really? Let’s talk about physics – because the nature doesn’t lie, right?:

  • taking into account the zero law of thermodynamics, which says that two bodies are in thermal equilibrium with a third system, they must be in thermal equilibrium with each other… well, since free markets impose equilibrium due to competitive forces, also market players, competitors and /or partners have to be well balanced to navigate well;
  • combining it with the first law of thermodynamics: the energy can neither be created from nothing nor destroyed into nothing. But it can be transformed and transferred (from one to another body).

You can conclude that differences in expectations between two negotiating parties you can overcome by converging towards (most preferable common interest) closing negotiation with an agreement infusing great amount of energy.

With your friends, they will “cost you” energy – as by newest definition: “a friend is a person to whom you continually give unlimited great deal of your energy. And conversely, he/she serves as a battery charger when your energy is low”. Same with partnership in business? 

(Strategic) partnership is the highest level of relationship offered through the negotiation strategies presented in this blog. Beyond the limits of competition, coopetition, or merely consultation over RFI & RFP, embracing all different levels of participation, the partnership between negotiating parties stresses cooperation from very early stage of design of the change until the final agreement later on. In partnership, individualism is withdrawn in favor of highest level of collaboration. 

According to the most or even all previously mentioned characteristics: the nature of foreseen agreement itself (i.e. duration of contract, scale & scope, cooperation on early R&D, …), the communication across joint activities in problem solving process before the conflict is even on the horizon, and involving strategic issues of mutual cooperation. 

Partnership requires high corporative culture & ethics with companies, and highest moral values of individuals participating in the negotiation teams. All mentioned creates wonderful social capital, which, especially in time of recession, where trust is pretty rare currency, always gains in value. It develops mutual respect and that special sensitivity for possible not only business, but particularly cultural and other differences. These is exceptionally important since in era of globalization, most of the relations these days often state and social crosses borders. 

The necessary condition to form a partnership is sharing same or similar aspects of a common interest on a targeted area. But be aware – as many as there are benefits of the partnership relation, not much less there are limitation present, at least in comparison with other levels of cooperation /coopetition.








































All these characteristics make the partnership as a strategic approach to negotiate an ultimate upgrade of the integrative strategy where all basic features of principle negotiation are adjusted for a cooperation rather than coopetition. Again, the directions are following simple principle – address the partner’s party as they would be part of your (business) system, a part of your life.

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