250 word open engagement

250 word open engagement.

I don’t understand this Management question and need help to study.

PJM400 MOD4 Discussion Questions

Please respond to both POST1: (A question from the professor) and POST2: I have included my original post as reference.

References

Baily, P., Farmer, D., Crocker, B., Jessop, D., & Jones, D. (2015). Procurement, principles & management (11th ed). United Kingdom: Pearson (Intl) Inc.

Project Management Institute. (2017). A guide to the project management body of knowledge (PMBOK® Guide) (6th ed.). Newton Square, PA: PMI Publications.

Required

Recommended


Original post:

Procurement Negotiations

  1. What are some steps the project procurement team can take to prepare for negotiations?

Negotiation processes involve activities to resolve disputes of all kinds through consultations between the parties involved to reach an agreement. They can either be formal or informal. However, to prepare for a negotiation, these are the steps that need to take place (Baily et al., 2008):

  1. A team involved with the negotiation process should be carefully picked.
  2. A team cannot run without its leader; hence the second step will be leader installation.
  3. It is essential that a SWOT analysis of the teams be articulated.
  4. Involving each team player, objectives can be formulated, strategies developed, determine the priorities, and set the scene of the agenda plan.
  5. A psychological preparation would do well and, at the same time, ensure perfection through practice sessions.
  6. Describe three factorsthat you believe can derail the project procurement negotiation process.
  7. Over focus on prices compared to other negotiation interests. There is a loss in the exploration of other opportunities.
  8. There is no asking of sufficient questions. In a typical interaction of the seller and the procurement agent, the buyer is always the one asking the questions and the procurement department giving statements. The one asking the questions is still the one running the process.
  9. Procurement departments focus more on price than specifications and volume. 80% of opportunities to reduce cost comes from volume specifications and only 20% from price specifications.
  10. How can contract management professionals avoid these challenges in their procurement negotiations?
  11. It is important to start early planning at the stage of Request of Proposal (RFP). The terms of the contracts should be attached to the RFP so that the desired outcome is achieved (Iyas & Hassan, 2015).
  12. Knowledge about the other party will assist in setting up the strategy for the desired outcome. Negotiating from a strong position as power originated from expertise.
  13. Vital preparation is important before engaging with suppliers. It is important for individuals to be disciplined while controlling emotional outbursts (Iyas & Hassan, 2015).

References

Baily, P., Farmer, D., Crocker, B., Jessop, D., & Jones, D. (2008). Procurement principles and management. Pearson Education.

Ilyas, M. A. B., & Hassan, M. K. (2015). Negotiate to win across cultures. Paper presented at PMI® Global Congress 2015—EMEA, London, England. Newtown Square, PA: Project Management Institute. Retrieved from https://www.pmi.org/learning/library/guide-to-nego…


POST1: (Professors questions to me)

XXXXX, these are essentially bullets and slightly difficult to group together so it might be good to incorporate into a paragraph narrative going forward. However, each point stands on its own merit and is well stated.

Do you have a source for supporting your points captured in the “factors that can derail a project”? In particular, your points in item 8? They make for great “checklist items” for those who are planning their negotiation strategy.

POST2:

The

route the procurement team prepares to take for negotiations is critical

in gaining a successful result during procurement. Of the many

activities to be considered, understanding the type of negotiations that

you will be participating in maybe the most important, from market

conditions to the number of competing suppliers. It is also important to

note where the organization’s limitations and restrictions are in terms

of budget and schedule. Once the parameters are understood there are

steps to prepare for negotiations, they start with a carefully selected

negotiation team and a well-chosen leader; perform and discuss SWOT

analysis in the marketplace for factors impacting on the organization’s

success, now and in the future; and prepare the team mentally and

professional with mock negotiation sessions (Baily et al., 2015).

Many factors may lead to derailment or outright failure during the negotiation process. The negotiation process is complex and these factors may be due to mistakes or poor assumptions in the areas of authority, credibility, information, time, and emotional control and communication skills (Dinnar & Susskind, 2018). Failure to document the new conditions or agreed-upon terms may lead to unmet promises later. Negotiated terms that were discussed and agreed upon must be confirmed in writing to be upheld later. Failure for the seller to listen or to ask detailed questions to fully understand the needs of the buyer, may lead to missed opportunities later. Finally, when the seller fails to understand the interest of fulfilling the need and focuses on the bottom line price. As budgets are to be considered but if you fail to fulfill the clients need they may find another vendor who is willing to (Dinnar & Susskind, 2018).

As with many things in project management, the documentation of practices and lessons learned is key to increasing success. Knowing what worked and what didn’t during a negotiation with a supplier can be invaluable when a comparable situation arises in the future (Dinnar & Susskind, 2018). .

Reference

Baily, P., Farmer, D., Crocker, B., Jessop, D., & Jones, D. (2015). Procurement, principles, & management (11 ed.). United Kingdom: Pearson (Intl) Inc.

Dinnar, S., & Susskind, L. (2018). The Eight Big Negotiation Mistakes that Entrepreneurs Make. Negotiation Journal, 34(4), 401–413. https://doi.org/10.1111/nejo.12244

250 word open engagement

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