Eskom Procurement Book 2015

NEGOTIATION

7.5.3.1 Checklist for Packaging

The following points are important to remember during agreement packaging:

• Identify the objectives, priorities, and potential concessions of your counterpart. • Review the objectives of both parties in the light of LIM. • Has enough movement been indicated to produce a package? • What concessions are you looking for? • Which concessions will we signal in the package? • What do you want in return? • Have you considered all the possible variables?

7.5.3.2 Checklist for Bargaining

Don’t lose sight of the following:

• Firm rule: Everything must be conditional. • Decide what you require in exchange for your concessions. • List and place what you require at the front of your presentation. • Signal what is possible if your counterpart agrees to your conditions. • Keep all unsettled issues linked. • Be ready to bring back any previously settled issues if when under pressure, you need negotiating room. Timing the close is a big factor in its credibility. The closing package must meet enough of your counterpart’s needs to be acceptable. The purpose of closing is to find agreement. The close must be stated in such a way that failure to accept it more or less as it stands will lead to no deal. A number of ‘closes’ may be considered: • Concession close: This terminates the bargaining step by offering a concession to secure the agreement. • Summary close: This terminates the bargaining step by summarising everything, highlighting the concessions, and emphasising the benefits of agreeing. • Adjournment close: For example, ‘We have summarised the benefits of agreeing with what is on offer. This is our final offer and we suggest we take an adjournment for you to consider it’. • Or-else close: In its strongest form this is an ultimatum: accept what is on offer ‘or else’. • Either/or close: This terminates the bargaining step by offering two packages to be considered. Each of these packages falls between your most favoured position and your intent.

7.5.4 CLOSE AND AGREE

155 CHAPTER 7