Between most negotiating partners exists a dense network of relationships and dependencies beyond the current negotiation. This network of relationships and dependencies makes it possible to influence the environment of the negotiating partner reciprocally. A customer is at the same time a supplier for another part, in an export market one operates a joint venture, the communication partner is a member of the same digitalization working group, acquaintances from university days, connections via professional networks such as LinkedIn. What influence does your behavior have on the negotiation environment? Will others show solidarity with you? Can you forge a coalition?
What about your access to decision-makers at your negotiating partner? As a teacher, you could contact the parents. Keep in mind that your negotiating partners have similar plans. How good is your negotiating partner’s access to your environment? Are there connections through a previous joint employer, conferences or trade fairs? If you are a trendsetter, you can influence public opinion. Please think in segments, it doesn’t always have to be the whole industry, maybe it is enough to influence the mood in one department. Please also think of information channels for a certain industry, newsletters for certain products that are read by many decision-makers.
And what about the negotiation communication? Are you in the driver’s seat? How active are you at the process level of the negotiation? A forceful small customer with various special requests has quickly caused a multiple of his sales potential for the next few years in process costs.
Working on the lever of influence:
Coalitions play a major role in negotiations. If you succeed in forming a coalition, you will have increased your influence on the negotiation process. The first step to increasing your influence on the negotiation process is to get an overview of the network of relationships between you and your negotiating partner or the company you are negotiating with. Often you do not even have the numerous points of contact on your radar. Once you have an overview, you can plan how to use these connections to your advantage.
It is somewhat more time-consuming if you have to establish relationships first. It is helpful if you can fall back on the contacts of your colleagues or on contacts and experience from previous negotiations. Generally speaking, if you negotiate, you would do well to build and maintain a large network of relationships, even beyond the boundaries of your company or department.
The lever of influence in procurement:
- How big is my influence on the behavior of other market participants? Is my behavior of relevance to other customers of this supplier? Is our company a trendsetter? Can we form a purchasing alliance with other customers?
- How good is the access to higher hierarchical levels in the supplier company?
- How good is our ability to control the supplier’s contacts within our own company?
- How much influence does our company have on public opinion?
- How active are we in negotiating at the process level? Can we influence the behavior of the supplier’s representative with our powers of persuasion and our rhetorical skills?
The lever of influence in sales:
- How big is the influence of our company on the behavior of other market participants? Is our company’s behavior relevant to other suppliers of the customer? Is our company a trendsetter? (Example: Aldi increases prices)
- How good is the access to the higher hierarchical levels in the client company and relevant specialist departments?
- How good is our knowledge of the customer’s activities in our own company (quality assurance activities, cooperation in research and development)?
- How big is the influence of our company on public opinion?
- How active are we in the negotiation at the process level? Can we influence the buyer’s behavior with our powers of persuasion and our rhetorical skills?
