August 6, 2018
NASPO recently held the REACH (Regional Education and Connection Hub) Conference in New Orleans, Louisiana. 270 state members representing 47 states and the District of Columbia came together to participate in the first “super regional” conference in NASPO’s history, bringing together the Southern, Eastern, Midwestern, and Western Regions. The event was filled with educational and professional growth opportunities that expanded NASPO members’ support network into all four regions. In this series of blogs, NASPO staff will share key takeaways and highlights from REACH’s expansive programs agenda.
One conference. One session. Many lessons to be learned. Getting the best value out of contracts was a main learning objective during one of the REACH General Sessions. Developing a negotiation strategy to aid in accomplishing that goal was another one. Continue reading to find out what our members learned during this session, and how to become a more successful negotiator!
How do you create a path to success when negotiating? This was the overarching question at one of the NASPO REACH Conference General Sessions with speakers and NASPO Members representing the District of Columbia (DC): George Schutter, CPO; Wil Giles, Chief Contracting Officer; and Jim Pearson, Chief Learning Officer. The ability to negotiate well is a critical skill to have in the field of procurement, and the goal of any negotiation is to get to, in Mr. Schutter’s words, a ‘meeting of the minds,’ as well as getting value for both parties involved. Easier said than done, right?
The fundamental rules of every negotiation are the same. The challenge is being able to ensure that the negotiations result in value for each party so that an agreement can be made. Below are three tips shared by the team from DC to help prepare you and your staff for a successful negotiation:
In addition to roles and responsibilities, the speakers also suggested preparing a carefully scripted response list to anticipated supplier questions so that the entire team is on board and consistent with their responses. Think carefully about which questions are appropriate to answer and to maintain a level playing field of information.
Both parties should contemplate each other’s MDO, LAA, and BATNA before everyone sits down at the proverbial table to discuss solicitations. Understanding the ZOPA is critical for a successful negotiation; within this zone, an agreement is possible. However, if you or the supplier is outside the ZOPA, no amount of negotiation will yield an agreement.
The presenters from DC gave the REACH attendees much to think about when it comes to effective procurement negotiations. We hope these tips can be helpful to you and your team in your next negotiation!