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Harnessing the Full Power of Negotiation

By John D. Baker

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It is of vital importance for organizations to regularly and thoroughly revisit their normal practices and procedures to assess, amend or replace them in order to reduce unnecessary costs and improve operating performance. The standards of measurement in the evaluation should be based on ethics, effectiveness, efficiency and their contribution to the accomplishment of the mission of the organization. If the evaluation finds significant weakness, top management must demand and lead real change for the sake of the health and success of the organization itself. Embedded opposition to change, of course, is almost a given. Risk for leadership and the entity are real.

Central to an operational review of this importance must be a determination of the current and potential roles of the negotiation process in managing internal operations. Unlike the role of external negotiation which is relatively clear in most organizations, the role of internal negotiation is more uncertain. This article addresses both areas and suggests that both facets of negotiation should play major roles in every organization. Teaming the two areas of negotiation focus is the only way to truly harness the full power of the craft for the institution.

External Negotiation

The role of external negotiation in most organizations is well established and accepted as the primary instrument of inter-organizational action throughout the world. Most organizations see negotiation as the principal means for the exploration, discussion and creation of inter-organizational alliances, joint ventures, mergers and acquisitions.

External negotiation is also viewed widely as the most appropriate agent of institutional action to create and build relationships that are basic to such essential components of an organization’s existence as reliable supply chain management, sales success, government and regulatory approvals, legal representation, and union bargaining. Why is negotiation the supporting vehicle for these enterprises? Simply, because experience demonstrates that negotiation works.

Harnessing the Full Power of Negotiation By John D. Baker


Copyright © 2012 John D. Baker
Copyright ©   2012  The Negotiator Magazine
The Negotiator Magazine  (September, 2012)