Negotiation
Reaching the best agreement on the right quality, quantity, cost, timing, and source of products and services.
Level 1 Introductory: Demonstrates introductory understanding and ability and, with guidance, applies the competency in a few, simple situations. Can direct people to the appropriate source for further information.
BEHAVIORS
- Explains the principles, tools and techniques of basic negotiation.
- Describes suppliers’ markets and pricing structures.
- Lists in which terms and conditions are standard in contracts and the importance of formal contractual variations.
- Develops the primary negotiation skills to estimate the reservation point in preparation for a negotiation.
- Applies tools for negotiation preparation, including self-assessment and assessment of the other party.
QUESTIONS
- Tell me about a time when you assisted in professional negotiation.
Probing Questions
* What was the main issue being negotiated?
* What perspective did each party have?
* What did you do to assist?
* Overall, how did the negotiation turn out?
* What did you learn through this experience?
Level 2 Basic: Demonstrates basic knowledge and ability and, with guidance, can apply the competency in common situations that present limited difficulties.
BEHAVIORS
- Participates in negotiations for standard/non-contentious procurements.
- Evaluates and selects suppliers based on the specification and evaluation criteria.
- Explains the pricing structure and the costs over the life of the contract.
- Uses the pre-qualification and tenders analysis processes and procedures.
- Undertakes negotiations with suppliers in a structured manner to minimize risk and achieve value for money.
- Develops useable and effective terms and conditions through negotiations.
- Performs contractor site visits and assessments using standard procedures.
- Negotiates solutions to areas of conflict.
QUESTIONS
- Please give me an example of when you conducted a negotiation.
Probing Questions
* What did you do to prepare?
* What did you like and dislike about the negotiation?
* What reaction did you notice from the other side?
* What was the outcome of the negotiation?
* Did you change your negotiation as a result?
Level 3 Intermediate: Demonstrates solid knowledge and ability, and can apply the competency, with minimal or no guidance, in the full range of typical situations. Would require guidance to handle novel or more complex situations.
BEHAVIORS
- Analyses pricing structures and the costs over the life of the contract.
- Applies distributive negotiation and integrative (“win-win”) negotiation as required.
- Navigates the challenges and strategies for dealing with coalitions, agents, constituents and teams in negotiation.
- Utilizes trust and relationships in a collaborative negotiation style.
- Applies the appropriate sources of power in negotiation.
- Involves internal team members in the planning and execution of the negotiation ensuring that they understand their role and contribution throughout the negotiation process.
- Takes negotiated variations for appropriate authorization.
- Uses negotiating tactics knowing that different people value different goals.
QUESTIONS
- Tell me a time when you led a negotiation.
Probing Questions
* What type of negotiation was it?
* Did you change your approach during the negotiation?
* How did you work towards achieving your desired negotiated outcome?
* What tactics were used by the other party?
* What was the conclusion?
Level 4 Advanced: Demonstrates advanced knowledge and ability and can apply the competency in new or complex situations. Guides other professionals.
BEHAVIORS
- Facilitates multiparty negotiations.
- Develops pre-qualification strategies, processes and procedures, in line with customer and organizational requirements.
- Provides practical advice and strategic direction to members of evaluation teams.
- Leads the evaluations of strategic value to the organization.
- Reviews negotiated terms and conditions with legal to ensure effectiveness and alignment with current directives, legislation, and policy.
- Develops overall negotiation approaches plans and targets for specific product lines or suppliers.
- Ensures non-discriminatory behavior and legal compliance in specific negotiation cases and for the overall evaluation.
- Leads negotiation strategies for major procurement negotiations.
- Approves negotiated variations.
QUESTIONS
- Please give an example of a multiparty negotiation that you facilitated.
Probing Questions
* What was the negotiation about?
* Who were the parties?
* What were the challenges in this negotiation?
* What did you do to address these challenges?
* What were the outcomes of the negotiation?
Level 5 Expert: Demonstrates expert knowledge and ability, and can apply the competency in the most complex situations. Develops new approaches, methods or policies in the area. Is recognized as an expert, internally and/or externally.
BEHAVIORS
- Develops evaluation strategy for the organization.
- Monitors the entire evaluation process to ensure non-discriminatory behavior and legal compliance.
- Leads to the riskest negotiations.
- Coaches others in the negotiation process.
- Ensures all negotiations are authorized and planned in line with organizational principles, business objectives and within limits of delegated/contractual authority.
- Ensures negotiation strategies are adapted to new and changing circumstances.
- Establishes negotiating parameters for all levels of the organization.
- Establishes effective negotiating teams.
- Harnesses' motivations for negotiating team members.
QUESTIONS
- Tell me about a time you were brought in to close an escalated negotiation.
Probing Questions
* Why did the negotiation escalate?
* What suggestions did you make?
* How was it received by your team?
* How did your recommendations influence the outcome?
* What lessons did you give to your team afterwards.