Every organisation has its own mission-critical goals and its preferred method of achieving them. One of the trickiest things to contend with is when another group of people sees things differently. This gap becomes especially evident when either party needs to negotiate something—whether it’s the final price of a product or a service for sale, a change in policy, or the terms of reference for a particular project.
If you’re a figurehead in one of these touch negotiations, what strategy should you assume? How do you ensure that your desired outcomes are met, even if there’s some initial hesitance on the part of the other group?
More than a one-off event, you should think of negotiation as just one of the core management skills you’ll need to practise when you’re in a position of authority. The more conscious you are of your negotiation strategy, the better you’ll be at adapting to different situations that require you to advocate for different outcomes. When you learn to plan your approach it becomes easier for you to earn the elusive “win-win” situation that benefits both you and the other party. Strive to master the craft of touch negotiation, and it will take you and your company very far in your goals.
Below is a list of things you can do to become a better touch negotiator. You will learn about them in-depth upon investing in a tried-and-tested negotiation course for middle and upper management.
Understand How the Process of Negotiation Works
The first thing that you need to remember about negotiation is that it is often a long game, especially if the stakes are high. High-value negotiations typically occur in five stages:
· The preparation stage, in which the negotiator revisits the reason for negotiation and the variables at play,
· The discussion stage, in which the negotiator decides on the optimal behaviours or tactics to assume when beginning the engagement,
· The expansion stage, in which the parties will go over proposals for achieving the desired outcome,
· The bargaining stage, in which the two parties address potential conflicts in the negotiation variables, and;
· The finalisation stage, in which the deal is closed and all agreements are settled and documented.
Knowing how long and arduous some negotiations can be, the wise negotiator will exercise patience, begin preparing their research, and build their conviction to see the deal through.
Know Exactly What You’re Negotiating For
When entering a negotiation, you should always come in with an awareness of what exactly you want to happen. Before you start speaking with the other party, list down the outcomes you want to win and the conditions you need to meet for the negotiation to be adjudged successful.
Say for example your negotiation involves securing a discount from your supplier in your next purchase order. How big a discount do you want from them? Exactly how much money does your company intend to save? It’s good to have the specifics in mind, e.g. a particular figure or percentage.
Know Who You’re Negotiating With
It helps to do a thorough study on the party you’ll be negotiating with. Look for information that matters to the success of your negotiation, such as the cultural context you’ll be operating in or the party’s stance on issues that are key to the proposal.
Go over the other party’s business profile, study their role in the industry, and think about what exactly they could stand to gain from the negotiation. This will help you open your negotiations on a good note and make the other party feel like they are being respected and engaged—which is, of course, a big factor in achieving a positive outcome.
Set a Timeline for Achieving Each Negotiation Milestone
A universal fact that you have to accept about negotiations is that they take time. But exactly how much time they occupy on your company calendar is something that you do have control over. To ensure that the negotiation is moving along at the pace that you need it to, it’s good practice to keep a time and process agenda and to set at least a tentative deadline for each negotiation milestone.
This strategy is particularly useful for time-sensitive projects such as seasonal product launches. In that scenario, you’ll need to settle on a supplier several months before the launch occurs. It puts into perspective that you’ll need to engage in talks early in the year and finalise your choice of supplier a certain number of months before you start sales.
Identify Potential Sources of Conflict
Some negotiators can get very lucky when it comes to settling final arrangements with other parties. But that process is rarely a smooth, quick, and frictionless one. By default, negotiators should prepare to be met with some degree of conflict. This can involve passive resistance, at best, and hostility or hard-bargaining tactics, at worst. Some examples are when the other party fluctuates between extreme demands and small concessions or employs a take-it-or-leave-it attitude.
When negotiating, it’s important to listen as much as you talk and to carefully analyse the source of conflict between you and the other party. Eventually, you’ll be able to crack at the surface of why that conflict may exist and what constitutes a win-win situation for both of you. That understanding will be crucial in ironing out conflict in the bargaining stage and arriving at the most satisfying arrangement for both parties.
Weigh Up Your Options Whenever You Put Your Cards on the Table
Though it’s essential to communicate goodwill and openness to discuss things, a negotiator must remember that engagement is also about power. At the end of the day, there is still an outcome that they have to advocate for, and that outcome will not be met if the other party is allowed to dominate the discussion.
Thus, to a certain extent, you also have to think about how to demonstrate your power and how to stay in control whenever you put your cards on the table—for example when you’re deciding whether to make the first offer. Always strive to be in a position where you’re fully composed and never in danger of losing your cool in front of the other party.
Work Towards Sustaining a Positive Relationship with the Other Party
The very best outcome that you can secure when you negotiate for your company is a precedent for continued success in the future. Of course, that success may involve material wins like closing various deals and saving your company a lot of money. But it could also take into account some important emotional wins, like earning a loyal new business partner.
When you’ve mastered the practical skills of negotiation, aim to win not only one engagement with the other party but a series of wins that will be good for your company’s long-term growth. Learn how to cultivate the positive relationships that come out of your negotiations and secure handsome rewards for all parties involved.
Learn the Art and Science of Negotiation with Priority Management
At Priority Management, we teach decision-makers like project managers, senior salespersons, and procurement officers how to go about the art and science of negotiation. Registrants will learn about the basic negotiation principles, as well as how to manage both the structure and process of negotiation and how to take on a more tactical view for different groups and organisations.
Contact us now to enrol, and get access to in-depth knowledge on negotiation through our accompanying Learning Guide and Negotiation Planner!