06/ 12/ 2008
by Charles R. McConnell
Nearly everyone engages in negotiations at work and at home on a daily basis. We negotiate with children over what they wear to school. Managers negotiate with vendors. Workers negotiate vacation schedules. Performance evaluation, counseling and problem-solving usually require some form of negotiation. Indeed, it's characteristic of effective managers that they are persuasive negotiators who obtain commitment rather than simple obedience from their employees.
Being able to negotiate well is a must for small business owners. Not sure if you have what it takes to make a deal with vendors, employees and colleagues? To start out, you must know the basic forms of negotiation:
- The power play is an authoritarian approach that's considerably less than true negotiation. The side that's “higher” on the authority scale might pay lip service to cooperation, but is usually prepared to steamroll over all objections and ignore others' contributions.
- The fixed positions approach is a “take-it-or-leave-it” approach in which both parties adopt rigid positions and are reluctant to compromise. Most of their energy goes into defending their individual positions.
- The haggling approach takes place when bargainers ask for more than they expect to get. They offer options favorable to themselves only, and they try to create an obligation by giving the other party a little something.
- The collaborative or value-adding approach is always more likely to result in win-win outcomes. You achieve your objectives while helping others achieve theirs. Consider a simple example: An employee asks to leave work early each day so she can pick up her child at school. The employee also proposes to make up the time by accepting more weekend assignments. When the manager agrees, both parties win.
In preparing for a negotiation, know in advance what you want and what you're willing to concede. Sometimes it helps to have not only a specific goal but also several fallback positions or alternative goals. For important negotiations, put these goals in writing.
Outline the options you can offer, consider how you can best open the discussion and prepare the arguments you can make to maximize the positive aspects of your interests and to counter the other person's arguments.
Before meeting and actually negotiating, try to find out what the other side wants and how badly it's wanted. What might they propose? What advantages do they have?
The principal steps in any negotiation are:
- Clarifying interests. Ask how the other party views the situation and what he or she considers most important. Don't continue until the viewpoints and desired outcomes of both sides are clear.
- Focusing on points of agreement. Center on what you perceive as areas of agreement and work from there. Save problem areas for later.
- Formulating possible options—the more the better. Articulate the benefits of each option for the other person. Don't get stuck believing that your solution is the only good one.
- Agreeing on the best option. If you cannot reach complete agreement be willing to compromise—but not until you've explored all possible win-win solutions.
- Being prepared for an impasse. Keep the meeting going; the longer the discussion continues, the more likely the other party is to give in. If things continue to stall, call for a break or a postponement. Each of you may need more information.
- Refining the deal. Refine the selected agreement to ensure that each party is comfortable with it.
- Wrapping it up. Review what's been agreed and document the agreement.
There are some frequently encountered barriers to successful negotiation.
- Fear. One might fear loss of friendship or future cooperation. Some people cave in quickly because they don't have the stomach for disagreement; others are inflexible or demanding because they fear people will take advantage of them.
- Secrecy. Some negotiators mistakenly believe they will win more readily or more often if they withhold information.
- Ultimatums and deadlines. Avoid presenting an ultimatum unless absolutely necessary. Once you make such a threat, be willing to enforce it; otherwise, your bluffs will be called in future negotiations.
- Anger, sarcasm, ridicule, or tears. Emotional responses are seldom indicated. Experienced negotiators are not moved by emotion, but admittedly some novices are.
- The team approach. Sometimes the team approach to negotiation is advantageous, such as in providing additional expertise and support, but often it poses problems. Showing up with a cadre of supporters may suggest you lack the ability to handle the process alone. And the team approach takes longer and is more likely to end without reaching consensus.
- Over-reliance on data. Statistics are useful if valid, but too much reliance on them backfires when the other party finds flaws in your data or comes up with more impressive data.
- Delaying tactics. Repeated delays serve only to postpone needed action and erode whatever spirit of cooperation that may exist.
But rules and barriers and other considerations aside, it helps to remember that no negotiation may be considered truly successful unless both parties can feel they have gained something.
