Open the morning paper and it’s hard to escape. Whether it’s negotiating the federal debt ceiling or watching professional sports leagues try to figure out new collective bargaining agreements, it feels like everyone needs to be sent to remedial negotiation school. If the business world worked like this, nothing would ever get accomplished.
Assuming that you want to get a deal done (and I’m not sure the people in Washington do) let’s go through some of the basics of negotiating that will lead to a successful outcome.
The person with the most information usually does better. Don’t go into a negotiation without doing your homework about the other party and the issues under discussion. What do you know about the other negotiators and their style? Not many people buy a new car today without getting on the Internet to research the dealer’s costs. Do your homework beforehand to avoid getting burned.
Know your objectives for the negotiation and try to understand the other party’s. Is there a certain price level that you must achieve for the deal to work? Is there a certain time frame that the other party must work within? Is your objective to create a strategic partnership or is this a one-time deal with someone you’ll never see again? Your objectives and those of the other party go a long way in determining your approach, strategy and tactics.
Once negotiations begin, remember to negotiate the entire package. Most people are quick to focus on price, which is a big part of many deals. However there are other factors such as payment terms, delivery time frame, and other aspects that may be valuable to you or to the other party. And remember that people usually ask for more than they expect. Don’t get trapped into agreeing on one factor until all of the negotiation elements are defined and in play.
Listening is your friend. Spend more time listening than talking. Most of us suffer from the desire to show off our knowledge, but using your ears is the best way to gather information, learn about the other party, and understand their true objectives.
Maintain your ability to walk away. Your greatest piece of leverage in any negotiation is the power of “no.” It’s okay to walk away from a bad deal that is not in your best interest. Do what is best in the long term. Some short-term discomfort or embarrassment in extricating yourself from a bad deal is worth the long-term pain and aggravation from agreeing to a deal that won’t work for you or your company.
Deadlines matter. As we’ve seen from the past week’s agreement between NFL owners and players (pending as of this writing), things get done when people start to feel it in their wallet. You know what your deadlines and pressure points are, and be assured that the person on the other side of the table has theirs as well.
Compromise is not a dirty word if you’re really trying to get a deal done. Negotiation offers you the chance to get creative, weigh issues of value to you and the other party, and come up with a solution that is good for your company.
Do you have a business question or topic that would make a good column? Send your ideas or questions to jeff.neuville@b-assistnc.com and share your business experience with others.
Email
Facebook
Google
Twitter
Favorites
More
Advertisement