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1 Developing negotiating skills
We all negotiate a lot more than we think we do, in every area of our life, and developing negotiation skills is an essential part of moving up the career ladder.
Negotiation is the process of trying to find an agreement between two or more parties with differing views on, and expectations of, a certain issue. Some people dread negotiating because they associate it with conflict, bad feelings, and having to make sacrifices. However, good negotiations find a balance between each partyās objectives to create a win-win outcome.
Step one: Understand the different types of negotiation
The negotiation process works by means of discussions, compromise, and ātradingā. It goes without saying that negotiations can take different forms, depending greatly on the people involvedātheir skills, attitudes, and style. Other factors influencing the character of a negotiation are the context or background to the negotiation, time pressures, and the issue under discussion. Negotiations tend to be competitive or co-operative, though.
1 Competitive negotiations
Competitive negotiations often have an unfriendly atmosphere and each party is clearly out to get the very best deal for themselvesāthe other partyās objectives tend not to come into the equation. Itās best to avoid this type of negotiation if possible, but if you find yourself in this situation, bear the following in mind.
If you can, avoid making the opening bid as it gives a great deal of information to the other party. Try not to tell the other party too much and aim to keep control of the meetingās agenda.
Conceding in a competitive situation is seen as a sign of weakness, so do this as little as possible. The size of the first concession gives the opposing party an idea of the next best alternative, and tells them exactly how far they push you.
If conflict flares up, negotiators need to use assertiveness skills to maintain a prime position, and to defuse the situation.
2 Co-operative negotiations
Many people see negotiation as a battle where the stronger party defeats the weaker party, where there is a winner and a loser. In some cases, negotiations can break down altogether, such as in industrial disputes which result in strike action. In this scenario, there are only losers. It neednāt be like this, however. In co-operative negotiation, conflict is minimised and the whole idea is to reach a solution where everyone benefits. This approach tends to produce the best results, mainly because there is much better communication between the parties. In addition, it makes for better long-term relations if it is necessary to work together over a long period.
The opening will involve gathering as much information as possible but also disclosing information so solutions can be developed that are acceptable to both parties. This involves:
considering a number of alternatives for each issue
using open questions (which do not have āyesā/ānoā answers)
helping the other party to expand their ideas about possible solutions
Both parties will make concessions if necessary, normally aiming to trade things which are cheap for them to give but valuable to the opposing party, in return for things which are valuable to them (but may not be so cheap for the other party).
TOP TIP
By listening, summarising, paraphrasing, and disclosing in co-operative negotiations (for example, āI would like to ask you a question. . . .ā or āI feel that I need to tell you that. . . .ā), conflict will be kept to a minimum and itās much more likely that a solution favourable to everyone will be reached.
Step two: Prepare yourself
As with many business situations, good preparation will help to reduce your stress levels. Donāt think that preparation time is wasted time; itās anything but. Begin by working out your objectives, and making sure they are specific, achievable, and measurable. Itās also important to have a clear idea of what you are expecting from the other party.
Be sure that your expectations are realistic and that their results are easy to assess. Itās a good idea to write down objectives, ordered by priority. One way to do this is to classify them as āmust achieveā, āintend to achieveā, and ālike to achieveā. For example, a new photocopier has been bought for the office. It breaks down after a week and you need to contact the su...
