Loading...

PROCUREMENT NEGOTIATION  

LEARNING OUTCOME 3

Developing Questioning Techniques

What are Questioning Techniques?

Questioning techniques are different ways of asking questions to get specific types of information. It is like having different tools in a toolbox; each tool is used for a different purpose. In a negotiation, using the right questioning technique can help you gather information, understand the other person's perspective, and guide the conversation.

1. Open Questions:

Detailed Explanation:

Open questions are designed to elicit detailed and expansive responses. They typically begin with words like "what," "why," "how," or "describe." These questions give the other person the freedom to express their thoughts and feelings, providing you with valuable insights. For example, "What are your main concerns about this proposal?" or "How do you see this project progressing?" Open questions are useful for building rapport, understanding the other person's perspective, and gathering in-depth information. They encourage dialogue and allow you to uncover hidden needs or motivations.

2. Leading Questions:

Detailed Explanation:

Leading questions steer the respondent towards a specific answer or assumption. They often contain implied suggestions or biases. For example, "You agree that this is the best solution, don't you?" or "Isn't it true that this approach is more efficient?" While leading questions can be useful for confirming assumptions or guiding the conversation, they can also be manipulative and limit the respondent's freedom of expression. It is important to use them ethically and sparingly.

3. Cool Questions:

Detailed Explanation:

Cool questions are neutral and non-threatening, designed to gather information without provoking emotional responses. They are used to maintain a calm and objective atmosphere. For example, "What is the current status of the project?" or "What are the key milestones?" Cool questions are useful for gathering factual information and avoiding unnecessary conflict.

4. Planned Questions:

Detailed Explanation:

Planned questions are those that you strategize and prepare beforehand. This involves anticipating potential responses and formulating follow-up questions. Having a list of planned questions ensures that you cover all important topics and stay on track during the conversation. This technique is crucial for structured negotiations and interviews.

5. Treat Questions:

Detailed Explanation:

Treat questions are designed to build rapport and create a positive atmosphere. They acknowledge the other person's expertise or contributions. For example, "You have extensive experience in this area; what are your thoughts on..." or "Your insights are valuable; how do you see this impacting..." These questions make the other person feel valued and encourage them to share their knowledge.

6. Window Questions:

Detailed Explanation:

Window questions are designed to explore new areas of discussion or uncover hidden information. They are used to expand the scope of the conversation and gain a broader understanding of the situation. For example, "What other options have you considered?" or "What are some potential challenges we might face?" These questions help to reveal new perspectives and opportunities.

7. Directive Questions:

Detailed Explanation:

Directive questions are used to guide the conversation towards a specific point or objective. They are more focused than open questions and help to steer the discussion. For example, "Can you provide specific examples of this?" or "What are the next steps we need to take?" These questions are useful for keeping the conversation on track and achieving specific goals.

8. Gauging Questions:

Detailed Explanation:

Gauging questions are used to assess the other person's understanding, feelings, or level of agreement. They help to ensure that everyone is on the same page and that there are no misunderstandings. For example, "How do you feel about this proposal?" or "Do you understand the implications of this decision?" These questions are important for monitoring progress and addressing any concerns.

9. Tag Questions:

Detailed Explanation:

Tag questions are short questions added to the end of a statement, such as "isn't it?" or "don't you?" They are used to confirm understanding or seek agreement. For example, "This is a good plan, isn't it?" or "We're in agreement, don't you think?" Tag questions can be used to soften statements or encourage participation.

10. Multiple Questions:

Detailed Explanation:

Multiple questions involve asking several questions at once. While this can be efficient, it can also be overwhelming for the respondent. It is important to use this technique sparingly and to ensure that the questions are related.

11. Reflective Questions:

Detailed Explanation:

Reflective questions involve repeating or rephrasing what the other person said to confirm understanding or encourage further elaboration. For example, "So, you're saying that..." or "If I understand correctly, you mean..." These questions show that you are actively listening and help to clarify any misunderstandings.

12. Hypothetical Questions:

Detailed Explanation:

Hypothetical questions explore potential scenarios or outcomes. They often begin with "what if" or "imagine." For example, "What if we were to change the deadline?" or "Imagine we had unlimited resources; what would we do?" These questions are useful for brainstorming and exploring new possibilities.

13. Closed Questions:

Detailed Explanation:

Closed questions are designed to elicit short, specific answers, often "yes" or "no." For example, "Are you available tomorrow?" or "Did you complete the report?" Closed questions are useful for confirming facts or obtaining specific information. However, they can limit the conversation and prevent the other person from providing detailed responses.

14. Probing Questions:

Detailed Explanation:

Probing questions are used to delve deeper into a specific topic or issue. They are follow-up questions that seek to clarify or expand on previous responses. For example, "Can you elaborate on that?" or "What specific factors led to that decision?" Probing questions are essential for uncovering underlying issues and gaining a comprehensive understanding.

Formulating Your Best Alternative to a Negotiated Agreement (BATNA)

What is a BATNA?

Imagine you are trying to sell your old bicycle. If you cannot get a good price, you need to decide what you will do instead. Will you keep it? Sell it to someone else? Give it away? Your BATNA is your best option if you cannot reach an agreement in the current negotiation. It is your "Plan B."

1. Know Your BATNA:

Detailed Explanation:

Knowing your BATNA is the first and most crucial step. This involves identifying and evaluating all your potential alternatives to the current negotiation. It is about asking yourself, "What will I do if I can't reach an agreement with this person?" For example, if you are negotiating a job offer, your BATNA might be accepting another job offer, continuing your job search, or staying in your current role. If you are selling a car, it might be selling to a different buyer, keeping the car, or trading it in. Once you have identified your alternatives, you need to assess their value. Which one is the most favourable? Which one will provide you with the best outcome? This assessment helps you determine your BATNA, which becomes your fallback position. Knowing your BATNA gives you confidence and leverage in the negotiation.

2. Improving Your BATNA:

Detailed Explanation:

Improving your BATNA involves taking steps to make your alternative options more attractive. This enhances your bargaining power and gives you more flexibility in the negotiation. For example, if your BATNA is to continue your job search, you might focus on networking, updating your resume, and applying for more positions. If your BATNA is to sell your car to a different buyer, you might advertise it more widely, or fix any small issues that could lower its value. By strengthening your BATNA, you increase your leverage and make it less likely that you will accept an unfavourable agreement. It is about making your fallback plan as good as it can be.

3. Disclose Your BATNA:

Detailed Explanation:

Whether or not to disclose your BATNA is a strategic decision. Disclosing a strong BATNA can sometimes strengthen your position by signalling that you are willing to walk away from a bad deal. However, disclosing a weak BATNA can weaken your position. It is important to consider the context of the negotiation and the relationship with the other party. If you are in a strong position, disclosing your BATNA can demonstrate your confidence and resolve. If you are in a weaker position, it might be best to keep your BATNA private. It is important to use this tactic with care.

4. Consider the Other Side's BATNA:

Detailed Explanation:

Understanding the other side's BATNA can give you valuable insights into their bargaining position and motivations. By considering their alternatives, you can anticipate their potential moves and develop strategies to influence them. For example, if you know that the other party has a strong BATNA, you might need to make more concessions to reach an agreement. If you know that they have a weak BATNA, you might be able to negotiate more favourable terms. It is about putting yourself into their shoes.

5. BATNA-less:

Detailed Explanation:

Being BATNA-less means that you do not have a viable alternative to the current negotiation. This puts you at a significant disadvantage, as you are essentially forced to accept whatever terms are offered. In this situation, you have very little leverage and are vulnerable to exploitation. For example, if you are desperate for a job and you do not have any other offers, you might be forced to accept a low salary or unfavourable working conditions. If you are selling a house, and have to sell it by a certain date, you may be forced to accept a lower offer. It is crucial to avoid being BATNA-less by exploring and developing alternative options whenever possible. If you find yourself in this position, it is best to try to improve your position before entering into the negotiation.

Adopting the Zone of Possible Agreement (ZOPA)

What is the Zone of Possible Agreement (ZOPA)?

Imagine you are trying to buy a used video game. You have a maximum price you are willing to pay, and the seller has a minimum price they are willing to accept. The ZOPA is the range of prices where you both could agree. It is the overlap between your acceptable range and their acceptable range.

The Harvard Business School ZOPA Model:

The Harvard Business School ZOPA model divides the negotiation space into four zones, helping to understand how different offers are perceived.

1. Reasonable Zone:

Detailed Explanation:

The reasonable zone represents the range of offers that are mutually acceptable and beneficial to both parties. These offers are seen as fair and equitable. In this zone, both sides feel like they are getting a good deal. For example, in a salary negotiation, this might be the range where the employer offers a salary that meets the employee's expectations and the employee's skills, and experience are valued. Offers in this zone are more likely to lead to successful agreements and long-term relationships. This is the goal of any negotiation, to find a solution that fits into this zone.

2. Credible Zone:

Detailed Explanation:

The credible zone consists of offers that are within the realm of possibility but might not be ideal for either party. These offers are still considered acceptable, but they might require some concessions or compromises. For example, in a real estate negotiation, this might be the range where the buyer offers a slightly lower price than the seller's asking price, but the seller is willing to accept it to close the deal. Offers in this zone can lead to agreements, but they might not be as satisfying as those in the reasonable zone. This is where compromises are made.

3. Extreme Zone:

Detailed Explanation:

The extreme zone includes offers that are highly favourable to one party and significantly unfavourable to the other. These offers are seen as aggressive or unrealistic. For example, in a business negotiation, this might be the range where one party demands highly favourable terms that would put the other party at a significant disadvantage. Offers in this zone are likely to damage relationships and hinder the possibility of reaching an agreement. These offers are often used as an anchor, or a starting point, to then move toward a more reasonable offer.

4. Insult Zone:

Detailed Explanation:

The insult zone consists of offers that are so far outside the realm of possibility that they are considered offensive or disrespectful. These offers are likely to terminate the negotiation and damage any chance of future collaboration. For example, in a job offer, this might be a salary that is significantly below the market rate and insulting to the candidate's skills and experience. Offers in this zone demonstrate a lack of respect and can lead to irreparable harm. It is highly advised to not enter this zone, as it will likely end the negotiation.

Determining Negotiation Goals and Targets

What are Negotiation Goals and Targets?

When you go into a negotiation, you need to know what you want to achieve. It is like going to the grocery store with a shopping list. You have your "ideal" items, your "okay" items, your "backup" items, and things you absolutely will not buy. These are your goals and targets.

1. Ideal Target:

Detailed Explanation:

The ideal target represents the most favourable outcome you can realistically hope to achieve in the negotiation. It is your "dream scenario" or "best-case scenario." This target should be ambitious but still within the realm of possibility. For example, if you are negotiating a salary, your ideal target might be a salary that is significantly higher than the market rate, along with generous benefits and perks. If you are buying a car, it might be the lowest possible price with all the desired features and an extended warranty. Setting an ideal target gives you a clear vision of what you are aiming for and provides a strong foundation for your negotiation strategy.

2. Optimal Target:

Detailed Explanation:

The optimal target represents a highly favourable outcome that is more realistic and achievable than the ideal target. It is your "very good scenario" or "most likely scenario." This target should be challenging but attainable. For example, in a salary negotiation, your optimal target might be a salary that is slightly above the market rate, with standard benefits. If you are buying a car, it might be a price that is slightly below the asking price, with some of the desired features. The optimal target serves as a practical goal that you are confident you can reach with effective negotiation.

3. Fallback:

Detailed Explanation:

The fallback represents an acceptable outcome that you are willing to settle for if you cannot achieve your ideal or optimal targets. It is your "backup plan" or "minimum acceptable outcome." This target should be carefully considered and should still meet your essential needs. For example, in a salary negotiation, your fallback might be a salary that is at the market rate, with basic benefits. If you are buying a car, it might be a price that is at the asking price, with only the essential features. The fallback ensures that you do not walk away from the negotiation empty-handed and provides a safety net.

4. Walk-Away:

Detailed Explanation:

The walk-away point, also known as the reservation point or bottom line, represents the absolute minimum acceptable outcome that you are willing to accept. It is the point at which you will walk away from the negotiation because the deal is no longer in your best interest. This target should be firmly established before entering the negotiation. For example, in a salary negotiation, your walk-away point might be a salary that is below the market rate, without any benefits. If you are buying a car, it might be a price that is significantly above the asking price, with no additional features. The walk-away point prevents you from accepting an unfavourable agreement and protects you from making a bad deal. It is important to know this point, and to stick to it.

Negotiation and Questioning Techniques Quiz

1 of 20

    Quiz Score

    Percentage: 0%

    Answered Questions: 0

    Correct Answers: 0

    Faults: