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The Art of Negotiating

Negotiating is often referred to as an ”art”. While some people may be naturally more skillful as negotiators, everyone can learn to negotiate. And, as they often say in business, everything is negotiable. Some techniques and skills that aid people in the negotiating process include:

· Aiming high

· Visualizing the end results

· Treating one's opponent with respect and honesty

· Preparing ahead of time

· Exhibiting confidence

a) Preparing to Negotiate

Lack of preparation in a negotiation almost always sets a person up for failure. First and foremost, each party must clearly define their own goals and objectives. Secondly, each party must anticipate the goals of the opposition. This may require doing some background research. Finally, each party must come up with various alternatives to their main objectives.

Here are some preparatory questions to ask yourself before beginning talks with the other party:

· What is my main objective?

· What are all of the alternatives I can think of?

· Why do I deserve to have my goals met?

· What will my opponent's counter proposal likely consist of?

· How can I respond to this counter proposal?

· When would I like to have this issue resolved?

· What is my bottom-line?

· What market research/homework do I need to do to back up my cause?

· What is my bargaining power compared to my opponent's?

· What do I know about the principles of negotiating?

b) Collaborative Negotiating

In business, the goal of negotiating parties should always be for mutual gain. This type of win-win negotiation is often called collaborative negotiating. The opposite of collaborative negotiating is called competitive negotiating. The goal of competitive negotiating is for one party to win and the other to lose. Dishonest practices, such as lying, manipulation, intimidation, and bribery are often used in this type of negotiation.

Main Principles of Collaborative Negotiating:

· Resolve previous conflicts ahead of time

· Deal with issues, not personalities

· Commit to listening more than speaking: The more you know about your counterpart, the more likely you will achieve your goals. You cannot convince someone of something when you do not know anything about them, or what their own needs are. A common mistake is to prepare one's next question or point while the opponent is speaking.

· Establish trust in the onset

· Develop a common goal

· Discuss a common enemy

· Take opponent's views/needs into careful consideration: Not only do you want to win this negotiation, you want your opponent to win as well, so that he or she will negotiate with you again in the future.

c) Preparing to Negotiate a Job Offer

Negotiating a job offer should mean more than just saying, yes. Though being offered a job is an exciting time, it is also an important time to use your negotiating skills. Here are some issues you may want to raise before you accept:

· Salary

· Promotion opportunities

· Insurance (medical, dental, accident, life)

· Holidays

· Vacation time

· Retirement/pension plans

· Stock options

· Overtime

· Expenses

d) The Negotiation Process

It's time to negotiate! Here are a few golden rules to successful negotiations:

1) Always try to negotiate for at least 15 minutes. Any less than that and it is unlikely that either party has had enough time to fairly consider the other side. Generally, the size or seriousness of the negotiation determines the amount of time needed to negotiate it. Setting a time limit is a good idea. Approximately 90% of negotiations get settled in the last 10% of the discussion.

2) Always offer to let the other party speak first. This is especially important if you are the one making a request for something such as a raise. The other party may have overestimated what you are going to ask for and may actually offer more than what you were going to request.

3) Always respect and listen to what your opponent has to say. This is important even if he or she does not extend the same courtesy to you. Do your best to remain calm and pleasant even if the other party is displaying frustration or anger. Remember some people will do anything to intimidate you.

4) Acknowledge what the other party says. Everyone likes to know that what they say is important. If the other party opens first, use it to your advantage, by paraphrasing what you have heard. Repeat their important ideas before you introduce your own stronger ones.

5) Pay attention to your own and your counter partner’s body language. Review the chart below to learn how to interpret body language during the negotiations. Make sure that you aren't conveying any negative body language.

e) Coming to a Close or Settlement

There are a number of signals that indicate that negotiations are coming to a close. This may not always mean that an agreement has been reached. In many cases, there are many rounds of negotiations. The preliminary round may uncover the major issues, while subsequent rounds may be needed to discuss and resolve them. Here are some signals of talks coming to a close:

· A difference of opinion has been significantly reduced.

· One party suggests signing an agreement.

· One or both parties indicate that a period of time to pause and reflect is necessary.

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