In
business, as in life, your skills as a negotiator will occasionally be tested.
By concentrating on five fundamentals in particular—preparation, factual
agreement, rapport, active listening, and common interests—you can greatly
improve your prospects for success.
A
negotiation strategy can’t succeed in advance, but it can fail in advance.
There is
arguably no more important component of a negotiation strategy than
preparation.
Start
by envisioning the negotiated outcome to which you aspire, and understand why
it is desirable for you. Identify your must-haves. This will enable you to
distinguish areas where you are willing to compromise, from areas where you are
determined to stand firm.
Your
preparations for a negotiation should include research into the other party and
h/er interests. Try to identify the outcome the other party desires, and issues
on which you think s/he may be willing to compromise.
Finally,
it is important that you clarify the terms and process of a negotiation at the
outset. Who will be present at the meetings? How long are the negotiations
anticipated to last? What does the other party’s chain of command look like,
and who will sign off on the final decision? Are there key dates upcoming,
deadlines, or other technical details that need to be established?
Make sure the other party is willing to
agree, in writing, to the terms of the negotiated outcome. You want to
avoid a situation where the other party unilaterally re-opens negotiations that
you thought had concluded.
Establish
consensus on key facts.
Negotiations
tend to be deliberate and can be mentally taxing, so it’s helpful to reach
agreement on the facts, and thereby avoid unnecessary discord and delays.
Over
the course of the negotiations, information may come to light that is new to
you. Should this occur, make a note of it and try to verify it. Call for a
pause in the negotiations if necessary. Don’t accept a consequential “fact”
that you don’t know is true, or an interpretation of reality you can’t endorse.
Just
as importantly, both parties to a negotiation must have realistic
expectations—including an understanding of the conditions that each party
faces.
If,
for example, a manufacturing subcontractor cannot fill an order because h/er
factory has sustained significant damage in an earthquake, a well-informed
manager of the retail firm that placed the order won’t attribute the shortfall
to the subcontractor’s incompetence or negligence. A shared understanding of
facts on the ground, including risks and potential causes of delay, is often
essential to maintaining positive professional relationships.
Build
rapport.
This
involves getting to know one another personally, ensuring that all parties are
on the same page, and managing or de-escalating conflicts. Rapport has verbal
and non-verbal components; body language plays a central role.
Progress
in negotiations tends to be especially difficult when there is hostility
between the parties. Small talk can help to break the ice, but in some cases,
this approach simply won’t be adequate. Some basic conflict management
techniques can help you move forward in negotiations, even if you aren’t
particularly fond of your counterpart.
•
Avoid making provocative
statements that may cause your counterpart to shut down or become defensive.
•
If your counterpart makes such
a provocative statement, express your lack of appreciation therefor, but
suppress the temptation to retaliate in kind.
•
Maintain non-threatening
physical posture and body language. Speak calmly and slowly, and de-personalize
the source of conflict—for example, “This situation makes me uncomfortable.”
rather than “You are making me uncomfortable.”
•
If necessary, take a break, and
return to the topic of contention once you and your counterpart have both had
an opportunity to regain composure.
Listen
actively.
Active,
attentive listening enables you to ascertain your counterpart’s wants, needs,
goals, and any other relevant information s/he may have to offer. It also allows
you to hold h/er accountable for any changes in h/er position that you haven’t
acknowledged or agreed to. Your priority in negotiations should not be to catch
your counterpart off-guard, to exert control, or even to “win”. Rather, your
main aim should be to safeguard your own interests with an approach that
emphasizes listening, critical thinking, and strategic dialogue.
Seek out
common interests.
Ultimately,
the goal of all parties to a negotiation is the same: to obtain something they
desire, while sacrificing as little as possible. Because desirability is partly
subjective, successful negotiations among equal partners can often result in a
“win-win”.
A
sure way to achieve real, substantive progress in a negotiation is by focusing
on shared interests and ambitions. Once you know where your common interests
lie, you will find it easier to iron out the details of any compromises that
may be necessary.
