PASA NEGOTIATION SKILLS BENCHMARKING REPORT
Shock lack of negotiation skills in procurement
At PASA’s CPO Forum, interest was voiced about developing negotiation skills of procurement teams to drive business results. As a result of such keenly expressed interest, PASA has actioned our entrepreneurial spirit and produced a report based on research conducted in conjunction with Dr Matt. Lohmeyer & Dr R. Andrew Bean of Negotiation Partners.
* How well does the procurement industry negotiate?
* How common is negotiation skills training?
* Do executives actually negotiate or are they solving problems?
A total of 308 executives from across Australia and New Zealand participated in the PASA study to benchmark negotiation preferences across procurement, sales and senior management.
Knowing that negotiation skills are essential for procurement and supply professionals, this study is crucial to identify the nature of the challenge we face as an industry, benchmark preferences and highlight where the industry skill gaps are. To add value to our organisations, we must raise our game.
Key findings of the PASA study include:
- Most executives over-estimated their ability to negotiate effectively – some dramatically so. Almost a third of participants rated their organisations “8/10” for negotiation ability, even though fewer than 6% prefer to use negotiation techniques to gain agreement.
- Almost 40% of those surveyed have never had any negotiation skills training and a similar number last attended a 2-day (or longer) negotiation skills program more than two years ago. That means the majority of executives in the industry are either self-taught or were last coached a long time ago.
- Senior managers have started to focus on negotiation skills in the last 12 months, as evidenced by a much higher rate of training uptake, compared to their more junior colleagues.
- Most executives studied do not actually negotiate, even when they think they are conducting a negotiation. Much value and opportunity is lost through a lack of skill and a focus on only one or two problem solving techniques.
The procurement profession is over-estimating its ability to negotiate effectively. We have a way to go in recognising negotiation skills as a key professional requirement – and that begins with a greater understanding.
Put a stop to losing value and opportunity through lack of negotiating skill.