NEGOTIATE FOR HIGH QUALITY AGREEMENTS

Negotiating is more than a key business skill; it is a life skill. I negotiate with my boss, my clients, people who report to me, the people who do work for me with no reporting relationship, my spouse, and my children.

A definition. Negotiation is a process of exchange – a give and take between two or more parties to resolve conflict or problem solve, and reach a mutually beneficial agreement. The foundation of a collaborative negotiation is that the relationship and the issue(s) are both important. Your goal is to get your needs met and preserve a cordial working relationship.

Identify your critical interests.

1. Establish what you need, not just what you want.
2. Prepare your desired settlement point for each issue you will be agreeing on.
3. Identify where you think you should open the negotiation based upon how much play you believe is important for this issue and this individual.
4. Establish your walk away.

Prepare options in advance for what you will do if you cannot come to agreement. Share these with others who may be involved (i.e., your boss) to assure that you won’t agree to a deal that you regret. When people get caught up in "making a deal", they sometimes lose sight of what constitutes a "good" deal. Thoughtful planning keeps you focused on the business issues and will prevent your emotions from influencing the outcome.

Identify the needs of the other side. Next, identify needs of the other party. What are the crucial issues to them, both personally and professionally? The more knowledge you have about what is important to them, the more creative you can be in constructing an appealing offer. Money is central to most negotiations, but time, resources, training, terms, expertise and even recognition are examples of alternative currencies. Offering those currencies that have value to the other side can have significant power to influence the outcome of the negotiation.

Skilled negotiators ask more questions. How do you get at what the other side needs? Ask questions! Skilled negotiators spend more than twice as much time asking questions to gain information on the other side’s thinking and position.

Critical path. Managing the critical tasks and phases of a negotiation before, during and after help ensure your success. Planning in advance includes setting the climate and the agenda. Take the mystery out of what your intentions are by agreeing in advance of the face to face time what you will discuss and how much time you plan to spend on it. Provide the other party time and the opportunity to react and have input to the agenda. As you prepare through these preliminary activities, you are demonstrating your interest in a collaborative working relationship and your desire for mutually beneficial results. You may also learn more about their interests.

Opening. Opening a negotiation session with some exchange of pleasantries is customary and relaxes both of you. Even in negotiations with co-workers remember to be gracious, but don’t delay the inevitable… they know what you are there for!

When you begin the negotiation, review the agenda and time expectations. Share concerns here if you believe that there is not enough time to reach a quality agreement. Get both parties’ opening positions out on the table. It really doesn’t matter who reveals their position first. Offering the other side the opportunity to share theirs first is gracious. On the other hand, you may open first to get the discussion started.

Questioning and listening. Successful negotiators spend more time in the questioning phase than average negotiators. Get to this sooner and spend more time here. Listen for what people say and what they choose not to say. Paraphrase what you have heard to check your understanding and theirs. People don’t always say what they mean, so offer the opportunity to clarify anything you may have misunderstood. Ask "what if" and comparative questions to help discern the relative worth of different options.

Currencies and Concessions. Currencies and concessions mean the same thing; it is when they are offered that changes their label. What you offer is of value only in the context of the other party’s interests. So, although you may think you "have a great offer", remember, they define "great"!

Summarize. Summarize what you have agreed to as you go and take notes. Trusting your memory compromises your objectivity and brings the people issue back in. What I remember verses what you remember pits us against each other, instead of us together against the issue.

Problems. It is naive to think that all negotiations take place in an atmosphere of mutuality. People may use deadline pressure, threats, cherry picking, deadlock, good guy bad guy and other tactics to gain an "advantage". Stay issues oriented, and avoid taking it personally.

Use cooperative tactics such as brainstorming or taking a break to caucus. Sometimes taking a break gives both sides needed refreshment. Even if you are alone, a break can help you stay focused. When you return, review the agreements so far, emphasize your common ground, and agree to what you want to accomplish.

If you are unable to work collaboratively at this time, or have run out of time, set a next meeting date and time. You may choose to have others join the negotiation or continue in your place. You may choose the next session to be a brainstorming session, which may include others.

When you hit an obstacle, it usually is a symptom of misunderstanding and may relate to misinformation or issue with your product or service. Take it seriously, and use your questioning and listening skills to enhance your understanding. Deal with the issue, diffuse it and move on.