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Article published on LinkedIn.com: May 31, 2023
14_negotiation_310523_en.pdf
the negociation
Negotiations can conjure up images of trade delegations,
hostage takings, and big business mergers.
However, the truth is that negotiation is also all around us,
it is a fundamental part of life and business.
Knowing the basics will come in very handy whether it's
deciding your vacation plans or negotiating your salary.
If you stick to the following tips, you'll likely find that
you and the other party will walk away feeling as if you got a
bargain.
1.
Prepare and know exactly what you want:
any good guide to negotiation stresses the importance of
preparation.
However, anyone who has ever tried to prepare for it knows
that it is trickier than it looks, as it is almost impossible
to imagine all the potentialities that can arise in a rapidly
changing situation.
To prepare yourself, as well as you can without getting
overwhelmed, follow this next list of things to do:
a.
Define your attainable maximum, not the likely outcome:
rather than focusing on the terms you think the other party
will agree to, identify what success looks like to you, so you
don't set the bar too low.
b.
Define your start point:
some trade-offs will simply not be acceptable to you or your
organization and these should be made crystal clear in
advance.
c.
Define your interests:
know your priorities and what you can trade to achieve them.
d.
Define the stakes and conditions:
measure what you can use when negotiating and think about new
factors you can introduce.
It is best to identify specific measures for success. Of
course, if you were to consider every negotiable condition in
a complex negotiation, you could end up dealing with millions
of possible combinations.
But you should at least look at the main items on your list to
determine the value and thus inform your process.
This will help minimize psychological effects and streamline
decisions on both sides, increasing the likelihood of
acceptance.
2.
Focus on potential:
negotiation, as opposed to haggling, can create new value
rather than simply distribute it. New value is created by
substituting something you want by offering something in
return.
Having multiple negotiation items to trade ensures that you
can increase the potential for success, rather than reduce it
in the process.
3.
Establish an atmosphere of trust and transparency:
At the start of every negotiation, reveal your priorities and
ask the other side to be open about theirs.
This seems counterintuitive, as many people don't want to
share this information because they fear the other party will
misuse it.
Some research suggests that full transparency can lead to
manipulation tactics.
However, revealing your interest can signal cooperation and
elicit reciprocity. If the other party also offers
information, you should feel empowered to share more.
Your counterpart's priorities will provide you with important
information that you may not have acquired during preparation
and can lead to the discovery of potential compromises and
concessions.
This is often overlooked in negotiations, as both parties tend
to think that they want to get, for example, a better price
and just focus on that.
In such a situation, to generate the optimal result, do not
talk about the price at the start of a negotiation. Leave the
more difficult elements for the end.
Good negotiation starts with building rapport with the other
party. Trust is essential. Trust is a human trait used by
great negotiators to establish ground rules when opening a
denial as well as when seeking mutual gains.
If a negotiation starts to go wrong, you can always refer to
the goals set out at the start of the process as a way to ease
the tension.
4.
Know how to dispel intimidation attempts:
at some point, you will likely encounter a negotiator who will
try to assert value in a hostile manner. The person may try to
intimidate you and may even threaten you.
When this happens, fear usually kicks in and the prehistoric
part of the brain that manages your experiences and emotions
takes over, shutting down the creative parts of the mind and
preparing you for fight or fleeing. You will need to give
yourself time to emerge from this state.
By using simple and practical tools such as questions, you can
begin to guide the conversation and regain your ability to
think clearly.
For example, if your counterpart mentions, « This delivery
schedule is not realistic! »
It may be useful to take the last words of the
statement and turn it into a question, for example, « Isn't
the timetable realistic? »
Even if you are afraid at the time, he will now have to
explain himself. This gives you time to reposition yourself.
On the other hand, when the tension rises during an attack or
when someone raises their voice you could simply mention, « I
feel tension in the air. » This can help defuse the situation
by getting the counterpart to end their tirade and start
explaining themselves.
5.
Advanced negotiation tactics:
once you've mastered these basics, including knowing how to
build trust and relationships, you can focus on some advanced
tactics.
Although they can be effective ways to gain an advantage, you
should use them with caution.
For example, the benchmark tactic. A reference point can be a
price, an object, a service, or a favor.
Even though establishing a benchmark for trading seems like a
simple tactic, it should be used with caution as it can also
backfire.
If you're wondering if you should make the offer first or let
the other party go first, a good rule of thumb is that the
party with the most information to put in, should go first.
However, it is necessary to evaluate before starting. If this
is you, should your request be realistic, or should you ask
for a lot more than expected and meet in the middle?
Remember that your point of reference can damage the
relationship you have carefully established, generate
hostility, or force your counterpart to drift away.
On the other hand, you will have to consider the fact that
there are negotiations where the other party asked for much
less than they could have had, which becomes a costly mistake
for you, if you offer first.
However, if you are presented with an « unrealistic »
point of reference, it is best to communicate that it is a
failure and ensure that both parties realign their strategy
before making another offer.
6.
Tough guys don't win:
a good negotiation creates an agreement in which both parties
feel good. A win-win negotiation above all, does not consist
in winning only for oneself.
The advantages of a win-win attitude during agreements make it
possible to carry out the post-agreement successfully.
More importantly, your reputation will be much better if you
trade fairly and with respect.
7.
Listen:
the key to a successful negotiation is to fully understand the
other party wants, needs and motivations. You can only achieve
this by listening and learning from what they tell you.
The adage that 2/3 should be devoted to listening and the
other 1/3 to speaking is good to follow.
8.
Find out what really matters to the other party:
finding out the other party's motivation can allow you to
retain the advantage for the latter part of the negotiation.
For example, as a seller, you offer a free warranty. This is
probably a marginal cost to you here, but it can give your
customer peace of mind when things go wrong.
9.
Put on the scene:
the environment and the climate make all the difference in the
negotiation. Choose the venue carefully, as it will reflect
how the negotiation may unfold.
For example, cold and informal meeting rooms can inspire
hostility, while a more informal setting can promote warmth
and understanding.
10.
Announce your colors:
at the beginning of a negotiation, you must define the terms
of engagement. For example, everyone should agree to conduct a
productive and respectful negotiation.
This is useful for clarity, but also allows you to backtrack
if someone strays. For example, if a person becomes stubborn
and acts tough, you can remind them that they have agreed to
be respectful.
11.
Bargaining Power:
Bargaining power comes in many forms, and you can often have
more of it than you think. It is essential to understand where
your strengths and weaknesses lie.
Bargaining power is not just the obvious measure such as
marketing power, but can be more subtle such as political,
social or relationship power.
12.
Some offers just don't work:
some negotiations can hit a wall. It may be a good idea to
pause and regroup, or to be open and frankly discuss the
impasse. If all else fails, then maybe the deal can't be done.
Some offers are not meant to be.
However, new information may appear a little later which will
change the whole equation. If so, remember that there's
nothing to be ashamed of, if you can't reach an agreement.
13.
Enjoy:
negotiation can be tense, drawn-out, and stressful. Learn how
to make it an enjoyable experience and everyone will thank you
for it.
14.
Remember win-win:
if there's one suggestion to take away, it's a win-win.
Negotiating is about getting a good deal and aiming to destroy
the other party will do you no favors, as the cost associated
with your long-term reputation could be most damaging.
Here we all need to remember
Captain Jack Sparrow comment, « why fight when you can negotiate? All one needs
is proper leverage. »
Find out more about « Decision-making meanders »
with My Success Is Your Success. The book through
questions, quotes and reflections provides the necessary
elements to explore all about motivation so to shape your
success and help those around you do the same. Remember that
success is all about team efforts!
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This book is the result of forty years
of experience acquired with local and international
organizations and companies and during consultancy,
change management, transition and marketing services.
This 404-page
personal development book was published by WebTech
Publishing and is available online in English, North
American French and European versions. For more
information and to view the flip book, visit
webtechPublishing.
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About the Author
Decelles
Other publications:
ISO Pour Tous
– Le manuel
d’information ISO – Le guide de préparation ISO – La
gestion du changement en affaires – La gestion de
projet d’affaires – Le
changement POUR TOUS –
Change your future,
now! – Mon succès est votre succès.
Press Contact
Germain Decelles, o.s.j.
WebTech Management et Publication Incorpored
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