Over the last fourteen (14) weeks, one has been covering the ins and outs of negotiations, from outcomes and locations to styles, types and many more negotiation elements.
Some of the suppositions in the series were adopted and adapted from leading experts, including Hitesh Bhasin, Sharthak Mishra, Markus Braer, Geert Hofstede, Raymond Cohen, Jeswald Salacuse, Raymond Smith, Steve Gares, Victor Kremenyuk, Aman Garcha, Michael Benoliel, Wei Hua, Deepak Malhotra, Tony Rossiter, Christopher Copper-ind, Calum Corburn, Jason Gordan, Brad Spangler, Donald Buresh, Graydon Candice, Stange Madison, Mike Dixon, Tessa Albert Warschaw, the Harvard and Walden Universities negotiations expert Groups.
The rest are Harry Warren, Supply Chain Resource Cooperative, Kartik council on Supply Chain Management, Chartered Institute of Procurement and Supply, PanAvest International and Partners, Various presentations from Professor Douglas Boateng, Menon, Ben Richardson Patrick Collins, Jim Hornickel, Svetlana Sergeyeva, Gavin Kennedy, Chris Voss., Roger Fisher, Marrianne Eby, Gennaro Cuofano, William Ury, George Nicolas, Margaret Buj, Deb LaMere, Brittney Helmrich, Molly Fletcher Brandi Calero-Holmes, Michael Bechara Walden University experts et al.
To wrap up the negotiation series, one would leave you with some top seven tips for negotiation success to consider as part of your pre and post negotiations process
- Be prepared
Preparation is the first step in any successful negotiation. Ensuring you have all the knowledge needed to succeed before entering the negotiation process is an essential preparation strategy. Do your research on the company you are negotiating with, the negotiator, their wants and needs, the industry they are in, their competition, etc.
Preparation should involve gathering facts and data about the negotiation counterpart and developing a clear outline of their desired outcomes. Preparing any questions needed to gain clarity around any of the unfamiliar areas should also be a part of the preparation process.
The more you know, the better you will be equipped to make negotiation decisions.
- Listen actively
No matter how well you prepare for a negotiation, there will always be more to learn or know. Asking questions and listening to your negotiation counterpart’s responses may provide insights into the wants and needs of the other party that you didn’t have before. Active listening can help negotiators get the information they need to create mutually beneficial deals, break any tension or move past a deadlock. Understanding the importance of active listening and applying it in the negotiation context can mean the difference between negotiation success and failure.
- Know when to walk away
Before you enter the negotiation, you need to have a solid understanding of what you intend to achieve from the process. You need to know what you want, what you need and what your BATNA is. Once you have clarity on your desired outcome, you must set a bottom-line walkaway point.
Knowing your bottom line – even before you start negotiations – will provide a clear point at which you know when to step back and walk away from an undesirable negotiation result. If you do not have a clear understanding of your BATNA, WATNA and bottom line, you may be convinced to accept an agreement that does not serve the objectives of the negotiation.
While all negotiations aim to reach an agreement, making a deal that is not beneficial to either party just for the sake of making a deal is not a good idea.
Although negotiations can be long and stressful, it is essential to remember that not reaching an agreement is better than accepting a bad deal. Knowing when to walk away enables you to make the right decision when it becomes clear that a favourable agreement will not be reached.
- Aim for win-win
While all parties involved in a negotiation have their own desired outcomes, working towards a win-win agreement should be the ultimate goal.
When both parties can walk away from a negotiation with a feeling of having their needs met, opportunities for developing long-term, mutually beneficial relationships emerge. Aiming for fair, win-win negotiation outcomes will set the tone for negotiation success.
- Be flexible
Part of aiming for a win-win negotiation is being mindful of various possible outcomes that would benefit both parties. To achieve mutually beneficial negotiation outcomes, a degree of flexibility is required.
Although negotiators need to know what they are willing to accept and not accept in a negotiation, they should also clearly understand areas in which they are ready to be flexible—knowing areas essential to your position allows you to be flexible in other sites are not as important. A flexible approach where you can give and take based on each other’s needs can help a negotiation go more smoothly.
It’s important to remember that rigid, one-sided thinking is unlikely to end in a successful agreement. Being open to negotiating mutually beneficial outcomes will provide a platform for flexible discussions and more positive results.
- Don’t underestimate yourself or your negotiation counterpart
No matter the negotiation counterpart, if you have prepared effectively and have a solid negotiation plan, there is no reason why you should not be able to come out of the negotiation successfully. Do not enter a negotiation underestimating or doubting your abilities to achieve your desired outcome. If you go into a negotiation doubting your ability to succeed, you will, in all likelihood, end up accepting an agreement that does not best serve your organisation’s needs.
Similarly, no matter your organisation’s size, position, strength, financial worth, etc., do not underestimate the power of your negotiation counterpart.
- Don’t take things personally
Business is business. Negotiations should be about coming to the best possible deal for both parties, and emotions should not be allowed to dictate your approach. Negotiators who let their emotions get the better of them during a negotiation can negatively impact the outcome.
Personal attacks during negotiation are likely to trigger emotional responses. As a negotiator, you need to be aware of these triggers and not allow yourself to become too emotionally involved. Counterparts may use your emotional responses against you during the negotiation, leading to uncomfortable mistakes or an end to the talks altogether.
When it comes to business negotiations, negotiators should try to be aware of their emotional triggers and use them to their advantage when they come up. Dealing with personal attacks in a calm and friendly manner is not always easy, but is the best option for ensuring your negotiation does not get side-tracked or blown off course.
To recap, by considering these seven tips, negotiators can begin to adopt and, in some cases, adapt the skills and attitudes needed to facilitate effective, efficient and successful negotiations.
To conclude, always bear in mind during negotiations that:
- A NO DEAL is better than a bad deal!
- An agreement and a contract are, in most cases, NOT THE SAME.
- Bargaining is a WIN-LOSE TACTIC to get the best out of a desperate situation
- Avoid going into a negotiation WHEN ON THE BACK FOOT.
- A bailout is simply a rescue package. WHEN BEING RECUSED, THERE’S LITTLE ROOM TO NEGOTIATE. It may be better to creatively adapt bargaining tactics to get the best out of a desperate situation.
- YOU ULTIMATELY GET what you negotiated for!
- Effective negotiations are at their best WHEN THERE ARE MULTIPLE OPTIONS.
- It is perilous to go into negotiations with OUTDATED FACTS AND FLAWED DATA
- During negotiations, LISTEN MORE AND TALK LESS. It helps to reshape tactics without necessarily deviating from the end goal.
- DO NOT GET EMOTIONAL during negotiations.
- Have at least ONE NEGOTIATION EXPERT WITHIN THE ORGANISATION.
- Allocate at LEAST FIFTY PERCENT (50%) OF THE TIME ALLOCATED to the “negotiations project’ to prepare for the negotiations. Without preparations, all efforts will add up to nothing!
A final gentle reminder that negotiations provide the opportunity to build or destroy value. Their outcomes have IMPLICATIONS FOR ORGANSATIONS, INDUSTRY, SOCIETY, YOURSELF AND GENERATIONS TO COME.
>>>Professor Douglas Boateng (MSc, EngD, FCILT, FSOE, FIPlantE, FCMI, FIC, FInst. D, FIOM, FCIPS, FIoD, CDir) Rtd* is an international chartered director and Africa’s first-ever appointed Professor Extraordinaire for Industrialisation and Supply Chain Governance. He is the CEO of PanAvest International and the founding non-executive chair of MY-future YOUR-Future and OUR-Future (“MYO”) and the top-rated daily Nyansakasa series. Professor Boateng is a recipient of over five (5) lifetime achiever awards, including one in 2018 from HP* (Hewlett Packard), for outstanding contributions to industry and academia. He is currently the non-executive chair of the Minerals Income and Investment Fund (MIIF). Professor Boateng was previously the non-executive chair of the Public Procurement Authority (PPA).
