What does it take to become effective negotiators

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We learn a lot from school, but the truth is that we usually learn a lot more outside of the classroom in the mean streets we call ‘real life’. Theories are always presented in nice, neat packages. They often come with clean, sanitary examples to illustrate how the theory works in practice. We read the books and smugly assume we have it all figured out. Then, we are thrust into the real world to apply theory to practice. We set out like some kind of naive Don Quixote, ready to skewer the dragons and strut about our stuff. One big problem though - nobody thought to teach us that the world doesn’t read theories. So here are some useful hints of negotiating with powerful people:

All the following are useful strategies.

- Refer to fair standards and fair procedures.

- Have a good alternative plan in case you can’t get them to agree.

- Offer them something that they want or need.

Find examples of similar cases where people in your position have won.

- Get support from another party (such as a mediator or consultant).

If you negotiate with someone more powerful than yourself, you need to do two things.

1 Protect yourself against making an agreement that is bad for you.

2 Make the most of any points that are in your favor.

A good way to achieve these two things is to consider your BATNA (Best Alternative to a Negotiated Agreement). That means: think carefully about what you will do if you don’t reach agreement. Having an attractive BATNA will give you strength and confidence.

To develop your BATNA, do the following.

1 Make a list of all the things you could do if you don’t reach agreement (for example: not sell, look for another buyer, etc.).

2 Take the best ideas and develop them further (for example: where to find other buyers, what price you could get).

3 Select your best option.

During the negotiation

1 Consider what the other side’s BATNA is likely to be.

2 Tell the other side what your BATNA is if you think it could help your case (for example: I’ve already had other offers; there are other suppliers we could use).

Learning to be an effective negotiator is not that dissimilar either. A few of us read the books, fewer still take a theoretical course. It’s not until you step up to the mark to negotiate that the really valuable learning starts. So, here’s an 8 point checklist you can review to understand what traits make an effective negotiator. It should help to find out where you are, and where you need to go.

1.2.1 Knows what’s going on We cannot be effective negotiators if we don’t know or have a handle on the goals and objectives of our company or organization. We have to be tuned in to the strategic aims of what management is striving to attain. Otherwise, we will find ourselves in the situation of ‘the right hand doesn’t know what the left hand is doing’.

Naturally, it is clearly up to management to plainly state and communicate these objectives throughout the strata levels of its personnel. If you find yourself in a situation where you aren’t clear where your organization is going, you need to find this out and get it right. Good negotiators always have their finger on the pulse and thrust of the long term goals and objectives of their company or organization.

Prepare - Prepare – Prepare A good negotiator can only be effective when they are prepared. We have to do our homework and research before the negotiation or else we will be left groping about in the dark. We need to have all our ducks in a row by gathering all the available and applicable information to have on hand when we need it. To be unprepared is just asking for trouble.

Learn - Probe – Learn An effective negotiator also has the ability to snoop like a nosy detective. When we sit down with our counterpart, we often don’t have a lot of information about the aims of the other side. Every time we sit down with our counterparts we must learn to pry information from them to see the picture from their point of view. The more we can learn about them and what they need or want, the better are we able to develop our proposals or evaluate theirs. We should always know our BATNA and reservation price, but we need to learn more about what lurks behind their motivations.

Sees the BIG picture One very important trait we need to develop and groom is the ability to be dexterous and flexible like a gymnast. The negotiating process is like the currents in a river. They are ever-changing. We can’t go in the game with a fixed mind-set as this will result in tunnel vision. Being flexible allows us to change the rules of the negotiation as we might have to help our counterpart realize the merits of an agreement and the possibilities we both can derive together. Similarly, as we learn more from our opposite number, we can adjust our strategy as the play unfolds.

Thick skinned or staying cool Learn to roll with the punches. Emotions can get heated during a negotiation. A smart negotiator never takes what’s said as a personal affront and can separate the issues from the emotions. So, we must always be detached and maintain our perspective and be focused on our objectives. It’s not about us and it’s not about them. It’s about why we are negotiating.

1.2.6 Can break down the barriers There are many forms of barriers that act as sticking points, causing our negotiations to become bogged down. An effective negotiator learns to recognize the ‘fly in the ointment’ and understand the nature of the problem that stands so resolutely in their way. Once we understand the sticking point, we are able to sniff out the reasons for these barriers. Most things are the result of ‘cause and effect’, so once we know the nature of the beast that stands in our way, we can consider solutions and options to negate and neutralize them.

Can find allies We don’t always find ourselves operating from a position of strength. It even might seem we don’t have much to work with at the initial stages of our negotiation, so sometimes we need to find ways to enhance our position at the table. This often occurs in multi-party negotiations either within an organization or with multiple external negotiating parties. An effective negotiator knows that there is strength in numbers and can ferret out allies to form coalitions to increase their negotiating power.

1.2.8 Has a trusting reputation ‘Fool me once - shame on you...’ Everyone with whom we negotiate forms an impression of who we are as a negotiator. If we create a negative perception where we appear sneaky and disreputable, this vision is going to follow us around like a bad smell. It will likely haunt us down the road in our future negotiations.

If you’ve haggled with a tricky negotiators who played you like a fish, how do you think you will deal with this person again? How effective will you be in trying to create a good agreement or relationship with someone you don’t trust? Well, it’s a two way street. We cannot be effective in our negotiator’s role when our counterpart believes we are trying to stiff them. Integrity and trustworthiness are vital to our reputation as effective negotiators.

So, how did you fare? Take heart if you feel you are lacking in some of these traits. Once you pinpoint where you might be lacking, you can take positive steps and address any shortcomings you might have identified. Take a good training course, read material that can aid you in developing these traits. Above all else, experience is one of the best teachers that can help you in your quest to be a top-notched negotiator. Learn from your mistakes, because we’ve all traveled down the same road [16, 20, 39, 45].

How to enhance your style

Psychological games and personal criticism No one wants to be around anyone who is attacking them or causing them discomfort. In fact, it may cause a negotiator give in, just to get out of there. Confident, skilled negotiators do not allow this to happen.

If a room is uncomfortable, request a change. Either another chair, or change rooms. If they refuse, tell them that the conditions are not satisfactory (not a personal attack, " You made me sit with the sun in my eyes! " ) and we will have to meet at a different time or place to be able to have any chance at success.

If it is a personal affront, for example " Are you qualified to be here? " , or " You look ill. Are you feeling OK? " recognize the attack. Bringing it up (" You know my qualifications, so can we proceed? " , or " I’ve never felt better, but thanks for your concern" ) is the way to alert the other party you know the game. Most of the time, it stops this from further recurrence.

Using threats is a frequently used tactic to acquire concessions. Statements like, " I’ll move all my business" are common to try to use perceived power to get what they want.

An example:

A supplier and customer are attempting to negotiate an arrangement for business growth. If the customer provides the supplier with 10% sales growth in the next year, the supplier will give a 2% commission over-ride as an incentive. The bargaining commences without the customer really considering the value of the relationship. As the bargaining continues, tension increases with the customer finally exclaiming, " I want 4% and if I don’t get it, I’ll move my business to someone who will! " The negotiator for the supplier responds, " While we value the relationship with you, we do not value it enough to be unprofitable. Your request would make that occur. We hope you see the value for both of us in our proposal." The supplier then provided the facts because they were prepared.

Many negotiators, when attacked or placed in uncomfortable situations tend to overlook them and try to move on. This is the result the tactical negotiator needs.

Misrepresentation of facts This can be very difficult to handle, as our emotional reaction would be to call them a liar. Remember, you cannot correct the person, only the situation. People issues have to be separate.

If you cannot trust the other party, you can still negotiate with them. Have your facts and confirm everything. If you cannot confirm something, ask to confer, or reconvene until you can to ensure that the facts are accurate.

If presented with contradictory information, present your facts as being in conflict with theirs, and ask for confirmation. Whenever possible, use third party sources as backup as those sources are unbiased towards this negotiation.

If the other party has represented themselves as the decision-maker and after an agreement has been reached advises you they " have to get it approved" , let them aware that the agreement is now non-binding. Either side can now make alterations as needed. If the other negotiator does not have the authority to agree to the deal, there is no deal. Put this in writing, immediately.

Positional Power These tactics are employed by negotiators who are trying to position the other party into negotiating with themselves. They place the other party into a position where they are the ones making concessions, many times unnecessarily. This is very common when negotiators start negotiating to save the relationship instead of trying to reach an agreement.

Examples of tactics used:

· Flinch: used when you submit your offer. The hope is that you might say something like, " Oh, is that too much? I have some room here" when your original offer was fine.

A simple reply is to dismiss the flinch. If there is a real issue, it will come out later and can be negotiated without the use of tactics.

· Hot Potato: the other side waits until the last minute to present their proposal, and allows no time to decide or prepare.

Take a recess, caucus, reconvene. If it’s a " take or leave it" deal, let it alone.

· Walk out: a gambit to get you to concede something to get them to return to the table. Wait them out. If there are issues, they can be handled in due course in the negotiation.

· Nibblers: they return after the deal has been concluded asking for a small concession. It can be because they " forgot" something, or " something changed, can you help us out? "

The best way to reply to this is to say, " If we are going to reopen the contract, then it will be satisfactory to reopen the entire contract for further considerations. We would like a few small changes, ourselves." Usually, this stops the tactic.

NEVER give something away for free. Always obtain something in exchange that is of high value to you.

· Tag-team negotiators: typically this occurs when a deal has been offered. For example, a company is negotiating to do business with another and there are " two" decision makers on the other side. The first one says, " We can do this, but I can only pay a 5% commission on your orders." The second negotiator gets an odd look on his face and says, " Come on, we can do better than that. Why don’t you pay them 6%? " In reality, they pay 10%, and since you prepared your negotiation, you checked this out. What sounds like a concession is actually a tactic. A recommended way to respond to this is to say, " It looks like the two of you have a disagreement. How about I go out for a while so you can work this out? "

These are just several of the tactics used by negotiators. When faced with tricks and tactics, it is vital to remember some key points:

1. If you prepare and plan your negotiations, you will be more equipped to deal with tactics. You will always know where you are going, where you are in the process, and will know what you can do if negotiations are unsuccessful.

2. The objective of the negotiator is to obtain, efficiently, an agreement that is fair to both sides. We want to keep the relationship in tact.

3. Remember you can only correct and control the situation, not the other person. Our focus has to be on the problem and the process.

4. A negotiator may not only require negotiating the issue, but also the ground rules of the negotiation process.

5. Recognize when a tactic is being employed. Address the tactic with the other party. Do not personalize it (" You are lying to me! " ).

6. Always have sufficient confidence to stop proceedings if they are not going well. This can be via a caucus, or even rescheduling for another day or venue.

7. Always know what you will do if an agreement cannot be realized. Having that knowledge can and will prevent you from proceeding in a negotiation where tactics are muddying the issue. Know where you are in relation to what you will do if negotiations are unsuccessful, throughout the negotiation process. Do not allow the use of tactics cause an agreement to be worse that what could have been done on your own.

Most of us have to negotiate on a regular basis for goods and services we require in our lives. Few enjoy the process, and many do not because they are not equipped to handle the use of tactics in the negotiation process. Understanding tactics and how to deal with them, coupled with more detailed and focused planning of negotiations will give negotiators better outcomes for both sides. This gives the negotiator the confidence to do what is necessary to alter the process so it will work, rather than focusing on the behavior of the other side. Last, when tactical negotiators learn how their tactics can be neutralized, they stop using them and begin to get better results [45].

Negotiation Types

Like it or not, everybody is a negotiator. We use negotiation techniques almost every day. We negotiated when we were kids trading sports cards or toys. We still do it today when we negotiate with the boss for a salary raise, or to buy bigger toys like autos and the latest gimmicks. It doesn’t stop there either because we also use negotiation in our personal lives. We all have some combination of family, friends, significant other, or kids. At some level, we negotiate with them all the time without even knowing it.

Many people don’t like to negotiate because they view it as a hassle. Even though we might consciously think we’re avoiding the blatant negotiation process, we end up doing it without realizing that’s exactly what’s happening. So we may as well learn how to do it well, and decide which of the 2 negotiation types to use.

Removing the veil, we find there are two relatively distinct types of negotiation. The 2 types are known as distributive negotiations, and integrative negotiations. The Negotiation Experts’ training courses teach both methods, as both are essential to negotiate successfully in business.

1.6 Distributive Negotiations - the Fixed Pie The term distributive means; there is a giving out; or the scattering of things. By its mere nature, there is a limit or finite amount in the thing being distributed or divided amongst the people involved. Hence, this type of negotiation is often referred to as ’The Fixed Pie’. There is only so much to go around, but the proportion to be distributed is limited but also variable. How many times has somebody shouted out, ’Who wants the last piece of pizza? ’ Everyone looks at each other, then the pizza slice, and two or more hands rush to grab it.

In the real world of negotiations, two parties face off with the goal of getting as much as possible. The seller wants to go after the best price they can obtain, while the buyer wants to pay the lowest price to achieve the best bargain. It’s really just good old plain haggling, which is not all that much different from playing a tug of war.

A distributive negotiation usually involves people who have never had a previous interactive relationship, nor are they likely to do so again in the near future. Simple everyday examples would be when we’re buying a car or a house. Purchasing products or services are simple business examples where distributive bargaining is often employed. Remember, even friends or business acquaintances can drive a hard bargain just as well as any stranger.

When we are dealing with someone unknown to us, and it’s a onetime only occurrence, we really have no particular interest in forming a relationship with them, except for the purpose of the deal itself. We are generally less concerned with how they perceive us, or how they might regard our reputation. Ours and their interests are usually self-serving.

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