Knowing how to negotiate is a crucial skill for any professional, even outside of the business world. After all, many people engage in this kind of dialogue —whether negotiating contracts, making a case for budget increases, asking for a raise, selling property, or closing a deal. Even personal affairs, for example, settling disagreements with loved ones or deciding where to eat with friends, involve some negotiation.
Hence, good negotiators are often likely to succeed in their endeavours, both within and outside their professional lives. The good news is that it’s not particularly difficult to cultivate the skills needed to become a great negotiator. If you want to learn more, below are five things you can do to facilitate a successful negotiation:
Plan Ahead
As the saying goes, if you fail to plan, you are planning to fail. Before entering any negotiation, you will need to do your homework. It means mapping out your goals and boundaries ahead of time. Failing to do so may lead to oversights that could negatively affect your discussion. Two of the most important things you’ll need to formulate are your zone of possible agreement (ZOPA) and your best alternative to a negotiated agreement (BATNA).
Your ZOPA, referred to as the bargaining zone, is the negotiating area where all parties can find common ground. When both parties have overlapping interests, it can lead to a positive bargaining zone. Conversely, when the interests of both parties don’t overlap, this leads to a negative bargaining zone. It is where your BATNA comes into play. It acts as a backup plan in case your negotiation goes sideways. Should both parties fail to reach an agreement, your BATNA will ensure that you don’t leave the discussion without benefits.
Know How to Create Value
When entering a negotiation, some people focus on getting the most benefits from everyone involved. In a metaphorical sense, they aim to get the largest slice of the pie. However, this is not a successful negotiation. To facilitate a good negotiation, you should aim for a win-win outcome. After all, it’s difficult for the other party to satisfy your needs if they don’t feel satisfied with their end of the bargain, and vice versa.
Rather than focusing on getting the biggest slice of pie, try to make the whole pie bigger. It is called integrative negotiation and requires you to create value for all parties. One of the best ways to approach this is by identifying concerns that the other party cares about and that you, on the other hand, do not value as highly. You can then concede to these terms and create a compromise that would benefit both parties. It creates a win-win situation and fosters rapport for future negotiations.
Communicate Clearly
You can’t benefit from a negotiation if you don’t communicate your goals and boundaries. What do you hope to achieve? What are your non-negotiables? Be sure to inform the other party of this crucial information concisely, and articulately and civilly.
Another part of effective communication is knowing how to ask the right questions. Refrain from asking “yes” or “no” questions and leading questions that prompt biased responses. Be sure to ask neutral questions that encourage in-depth answers from the other party.
Additionally, good communication requires active listening. Avoid thinking of what to say next when your counterpart is speaking—instead, listen intently and paraphrase your understanding of what was said afterward. It will help you gain and retain key information and foster an environment of mutual respect.
Hone Your Emotional Intelligence
Negotiations are not just discussions between the parties but also about what is left unsaid. Often, people tend to imply emotions or thoughts through non-verbal cues. Such cues include facial expressions, body language, and tone of voice.
Keeping this in mind, honing your emotional intelligence is a must. It will allow you to read the other party’s emotions, which is a big help when conducting a smoother negotiation. For example, if you sense that the other party is upset or frustrated, acknowledge it with empathy. You can call for a break so everyone can cool down, then address the concern tactfully when the negotiation resumes.
Review Your Experiences
Be sure to review your past negotiations before entering a new one. This way, you can identify any points for improvement. Remember, it is perfectly natural to make mistakes along the way. What is most important is reviewing them so you can formulate concrete ways to address or avoid these errors the next time around.
Knowing how to negotiate is always advantageous, regardless of your career. With some patience and effort, you’ll be able to open many new doors and gain countless benefits—both professionally and personally. Following the steps outlined can help hone the skills necessary to negotiate your way through life.
For further information on how we can deliver our professional suite of sales and negotiation courses, contact our office and allow one of our professional staff members to provide you with the information to accommodate your staff, business, and organisational requirements.