Commissioners work in cooperation with procurement within the Local Authority. Their role focuses on ensuring that procurement activities are lawful, transparent, financially responsible, and deliver value for money. They oversee and influence how procurement is carried out.This often means they come into conflict with internal stakeholders who either do not understand (or do not wish to understand and comply with) the procurement policies and procedures. Stakeholders face numerous challenges and pressures and often feel that the procurement process is slow and bureaucratic. This can turn the relationship between commissioners and stakeholder’s “toxic” characterised by conflict, political infighting, poor governance and distractions from the need to serve the community. Therefore, both sides need to understand that fundamentally negotiation is a practical process whereby two or more parties attempt to persuade each other to accept the merits of their relative bargaining positions and to influence each other to reconcile their often-competing needs. The aim is to determine the overlap in the zones of agreement, whereby both sides agree, sometime called the “sweet spot”
A key part of that process of reconciliation is the ability to see things from another’s point of view. This is especially true when commissioners are participating in negotiations with internal stakeholders. Failure to take the other party’s needs, interests and wants into consideration risks a non-compliant outcome and related risks to the Authority.
The most appropriate strategy to attain an optimal outcome will depend on several key drivers for both sides. It will depend on the degree of collaboration or competition existing between the parties within the Authority. The skill of the negotiators on both sides and the relative balance of negotiating power between them. Sometimes stakeholders will be tempted to go over the head of the commissioner to seek approval for a fast track or direct purchase based on the need to meet a legislative required service delivery. In some instances, this is an appropriate action. However, in some Authorities this route is used to compensate for a lack of planning places the Authority is a sub optimal procurement situation leading to higher costs and poor service, which is why pretender planning now being mandatory under the Procurement Act. This is a failure of leadership from senior management to enforce the provisions of the Act and who need to support the commissioners and empower them to undertake due diligence of all contracts and agreements.
If the proposed negotiated outcome does not meet the interests, needs and wants of the stakeholders or the commissioners then why would either party accept it? Commissioners and stakeholders need to appreciate these interests and what the resistance will be to what they are proposing. To facilitate this, they need to determine what they have to offer that both commissioners and stakeholders will value. For their part commissioner’s knowledge of the legalities of contracting and procurement and the risks is one example where they can add real value. Commissioners need to create outcomes that satisfy the other party’s interests, whilst seeking value for money and are compliant with the procedures. Commissioners need to explore creative and innovative solutions, in cooperation with stakeholders as allowed and encouraged by the Procurement Act.
Commissioners need to understand the factors that are driving their stakeholders. They need to identify the forces that are influencing their behaviour. They need to develop counter proposals they could make and prepare for possible responses, both positive and negative. They should anticipate and prepare responses that will overcome stakeholder objections.
Commissioners need to appreciate the constraining forces, including delivery pressures, budgets, priorities and challenges that stakeholders are operating under. They need to understand the personal preferences as these with affect the communication and influencing style will help commissioners to take the practical steps to shape their approach to building rapport and moving toward an agreement. It is also critical that commissioners understand the internal political situation within their Authority. Which departmental stakeholders wield the most power and influence and how can they gain the support of these key decision makers to enable them to ensure compliant procurements.
In the final analysis successful commissioner – stakeholder negotiations involve both parties identifying an outcome that each side believes is an improvement on the Status Quo.