Discover the 5 pillars of strategic negotiation, according to a Harvard expert

Negotiation is one of the oldest practices known to mankind. Since the past, techniques have been perfected, but the goal remains the same: to close the best deals.

In purchasing, negotiation is an indispensable factor and a true art when developing strategic partnerships in B2B.

Breno Paquelet, a specialist in strategic negotiations from Harvard University, is the author of the book “Negocie sem medo”, published in 2022 (Companhia das Letras publisher).

According to the author, it is necessary to understand the dynamics of negotiations and keep in mind that the stance adopted can be decisive for the success or failure of agreements.

Based on his professional experience and academic training, the specialist created a methodology based on five pillars: posture, preparation, communication, tactics and emotions.

Below, check out the details of each of the negotiation pillars:

1. Posture

Is your supplier your friend or your enemy? stance is the mindset that the buyer brings to the negotiation. Negotiation can be viewed as a process of competition, in which there is only one winner, or of cooperation, in which both parties win.

The big challenge is to maintain balance, since, by focusing on satisfying the interests of the other party, the stance can become accommodating, according to Paquelet.

A win-win relationship is essential to building lasting relationships with suppliers, that is, both parties benefit from the agreements signed.

2. Preparation

Negotiating is an art and as such requires preparation. Before the negotiation stage, the buyer must be equipped with the necessary information, to have more security and assertiveness.

This information can be defined with each company and its demands. It is also necessary to know the supplier well, its strengths and weaknesses and whether there are supply limitations.

In addition, preparation involves choosing strategies to achieve greater savings and reduce purchasing lead time, such as using a e-Procurement solution.

Being prepared to negotiate means having important information at hand, feeling safe and knowing how to act in unexpected situations and challenging scenarios.

3. Communication

In shopping, the communication between buyers is essential for processes to flow efficiently and without harming the team's productivity.

Having clarity and objectivity when negotiating makes the purchasing cycle more agile. In addition, it allows the buyer to have more time to dedicate to business growth strategies.

For Paquelet, listening to and understanding the other party's ideas and objectives during a negotiation is also important to build a relationship of trust and respect.

4. Tactics

Just like in chess, tactics are specific strategies you can use to influence the other party during a negotiation.

Being well informed about prices already practiced in the market, planning and using seasonality to your advantage in negotiation are some of the possible strategies for obtaining the best purchases.

Despite the various tactics that exist, the objective should be to create an agreement that meets the interests of both buyer and supplier, in an ethical and transparent manner.

In this free e-book, we have selected 14 skills that you need to develop to be a successful professional buyer. Click here to download!

5. Emotions

Just like posture, emotions are related to the buyer's behavioral skills, which can impact a negotiation.

When emotions are positive, such as enthusiasm, motivation and security, they can help establish a relationship of trust and empathy when negotiating.

On the other hand, if the emotions are not negative, such as fear, worry and insecurity, they can hinder the parties' ability to reach a good agreement.

in the post “Common feedback for a purchasing professional”, we share some important skills for purchasing professionals, with tips on books, films and series.

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