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CIPS L4M5 Exam Syllabus Topics:

Section	Weight	Objectives
Topic 1: Know how to prepare for negotiations with external organisations	35%	- Planning and resources 1. Team roles and preparation plans 2. Information gathering and market intelligence - Economic and market factors 1. Inflation, exchange rates and risk factors 2. Supply and demand conditions 3. Market structure and competition - Negotiation criteria and objectives 1. Prioritising issues and trade-offs 2. Defining measurable outcomes - Cost and price analysis 1. Cost modelling and price analysis techniques 2. Types of costs and pricing structures
Topic 2: Understand key approaches in the negotiation of commercial agreements with external organisations	35%	- Application of commercial negotiations in procurement and supply 1. Sources and management of conflict 2. Definitions and purpose of commercial negotiation 3. Position within the CIPS procurement cycle 4. Team and stakeholder management in negotiation - Types of negotiation approaches 1. BATNA, target setting and reservation price 2. Pragmatic and principled negotiation styles 3. Collaborative / integrative (win-win) 4. Distributive / competitive (win-lose) - Power dynamics in negotiation 1. Impact of power balance on outcomes 2. Relationship types and their effect on negotiation 3. Sources of power and influence
Topic 3: Understand how commercial negotiations should be undertaken	30%	- Communication skills 1. Active listening and questioning 2. Non-verbal communication and emotional intelligence - Stages of negotiation 1. Opening, exploring, bargaining, closing and implementing - Tactics and influencing methods 1. Cultural and ethical considerations 2. Managing concessions and deadlocks 3. Persuasion and influencing techniques - Review and improvement 1. Evaluating results and performance 2. Documenting agreements and lessons learned

Section

Weight

Objectives

Topic 1: Know how to prepare for negotiations with external organisations

35%

- Planning and resources

1. Team roles and preparation plans
2. Information gathering and market intelligence

- Economic and market factors

1. Inflation, exchange rates and risk factors
2. Supply and demand conditions
3. Market structure and competition

- Negotiation criteria and objectives

1. Prioritising issues and trade-offs
2. Defining measurable outcomes

- Cost and price analysis

1. Cost modelling and price analysis techniques
2. Types of costs and pricing structures

Topic 2: Understand key approaches in the negotiation of commercial agreements with external organisations

35%

- Application of commercial negotiations in procurement and supply

1. Sources and management of conflict
2. Definitions and purpose of commercial negotiation
3. Position within the CIPS procurement cycle
4. Team and stakeholder management in negotiation

- Types of negotiation approaches

1. BATNA, target setting and reservation price
2. Pragmatic and principled negotiation styles
3. Collaborative / integrative (win-win)
4. Distributive / competitive (win-lose)

- Power dynamics in negotiation

1. Impact of power balance on outcomes
2. Relationship types and their effect on negotiation
3. Sources of power and influence

Topic 3: Understand how commercial negotiations should be undertaken

30%

- Communication skills

1. Active listening and questioning
2. Non-verbal communication and emotional intelligence

- Stages of negotiation

1. Opening, exploring, bargaining, closing and implementing

- Tactics and influencing methods

1. Cultural and ethical considerations
2. Managing concessions and deadlocks
3. Persuasion and influencing techniques

- Review and improvement

1. Evaluating results and performance
2. Documenting agreements and lessons learned

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CIPS Commercial Negotiation L4M5 Prüfungsfragen mit Lösungen (Q194-Q199):

194. Frage
Which of the following types of question are likely to be the most effective to check facts in negotiations?

A. Closed
B. Open
C. Hypothetical
D. Leading

Antwort: A

Begründung:
Closed questions are designed to elicit specific, factual responses - typically "yes" or "no" or a brief piece of information. These are particularly useful when verifying details during negotiation. For example, asking
"Did you receive the revised schedule on Monday?" ensures clarity and reduces ambiguity.
Reference: L4M5 Commercial Negotiation 2nd edition (CORE), Section 3.3 - Communication and Questioning Techniques in Negotiation

195. Frage
Which of the following are most likely to be fundamentals of Fisher & Ury's principled negotiation?
1. Depersonalise the argument
2. Focus on positions
3. Generate creative options
4. Using subjective criteria

A. 2 and 3 only
B. 1 and 4 only
C. 2 and 4 only
D. 1 and 3 only

Antwort: D

Begründung:
Principled negotiation is based on four fundamentals: people, interest, options and criteria:
Diagram Description automatically generated
1st Principle: separate the people from the problem: Negotiator should depersonalise the situation and accepting that the subject matter of the negotiation. This can be difficult for untrained negotiators, but this is a key skill to develop
2nd principle: focus on interests, not positions: It is important in principled negotiations not to focus on their parties' positions (what are expressed during negotiations), but on the interests (underlying needs) behind them
3rd principle: invent options for mutual gains: this principle aims to help the parties find a solution that both would benefit from. The more options - or tradeables - that can be brought to the table the better.
4th principle: insist on using objective criteria: is about making sure that the negotiation stays focused on outcomes based on objective criteria and that it is productive.
LO 1, AC 1.2

196. Frage
An experienced procurement professional is developing strategies for forthcoming negotiations with her key supplier. To avoid negotiation deadlocks, she identifies the reasons why negotiations could fail. Which of the following are most likely to be reasons for negotiation failures? Select TWO that apply.

A. Both parties focus on common interests
B. Unachievable objectives were set up
C. Underlying interests of TOP are overlooked
D. Buyer helps to create a co-operative atmosphere
E. MIL objectives are well established

Antwort: B,C

Begründung:
:
It has been said that most negotiations are won (or lost) at the preparation stage. Success in a negotiation cannot be claimed unless you can refer back to your objectives and show how you have achieve them. In broad terms, negotiation plans/strategies involve 4 key activities:
1. Developing and prioritising your objectives and limits
2. Seeking to understand TOP's objectives
3. Developing concession plans
4. Planning the resources and logistics required and agreeing team roles.
Questions to gain an understanding of why a negotiation failed
Did we collect and make effective use of all information available when preparing for the negotiation?
Did we set objectives for the negotiation that were stretching and achievable and established MIL objectives?
Did we determine a strategy for the negotiation?
Did the other party understand our needs correctly?
Were we aware of the underlying interests of the other party?
Were our proposals convincing enough for acceptance by the other party?
Did we explore different variables in the negotiation?
Did we fully understand all proposals?
Did we give any unplanned concessions and did we check the importance of these?
Did we focus on common interests?
Did we ask a range of questions?
Did we get answers to all our questions?
Could we answer all the questions addressed to us in a proper and positive way?
Did we summarise effectively?
Did we use different methods of persuasion in the negotiations?
Which tactics did we use and what effect did they have?
Did our negotiating team work well as a team?
Did we help to create a co-operative atmosphere

197. Frage
Which of the following are behaviours that builds trust between the buyer and the supplier in business relationship? Select TWO that apply.

A. Over-inflated contingency funds
B. Commercial espionage
C. Allowing supplier to involve in early product development
D. Tendency to blame other party
E. Conducting transparent procurement process

Antwort: C,E

Begründung:
Trust-building behaviours are as following:
Joint-effort issue resolution
Open sharing of information
Open and honest discussion on root cause of failures
Joint planning focusing on value for money and risk sharing
Commercial transparency and co-proposition of cost reduction and service improvement programmes Joint recognition and celebration of successes

198. Frage
Using emotion as a technique of persuasion is ethical. Is this a true statement?

A. No, because it's not the best route to enhance relationships
B. Yes, because use of emotion will always lead to agreement
C. No, because emotions should not be involved in business agreements
D. Yes, because it may appeal to the supplier's goodwill

Antwort: C

199. Frage
......

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