Good negotiations create positive outcomes for all parties, says David Bamford of Manchester Metropolitan University, who offers some ways to boost your skills
Negotiation is an important, perhaps essential skill that can be taught, developed, and practiced. If the word “negotiation” seems daunting, consider refining it to “successful persuasion,” which involves striving for a win-win agreement. We focus on creating opportunities for everyone to gain, even if some concessions are necessary. As negotiation trainers often say, instead of aiming for a bigger slice of the pie, think about how to make the pie bigger for everyone. This perspective can help visualise the process more effectively.
In this article we’ll provide you with ways to consider negotiation because negotiation isn’t limited to formal occasions; it happens every day in various situations. It’s a mutual discussion aimed at resolving differences, settling terms of an agreement or transaction, and ideally reaching a mutually beneficial endpoint.
To negotiate effectively, start by clarifying your objectives. Decide what you want to negotiate about, what the best outcome would be, and whether negotiation is worthwhile or if you should simply pay the ticket price. Determine if you can achieve your objectives without negotiating, as this might be less stressful and faster.
Once you’ve decided to proceed, gather information about the other parties involved, including their authority and internal company politics. You can find a lot of information online, such as on company portals. Agencies can provide reports on company financial positions, market positions, and history. Understanding the other parties is crucial.
Next, clarify your own position within the company. Consider your power, authority, independence, and negotiation guidelines. Think about who needs to be present at the negotiation – some people will demand to be in the room, while others just need to be kept informed.
You also have options for negotiation styles: confrontational, accommodating, or competitive. These should be considered in advance and aligned with both your personality and that of others, and do plan the exchange by developing procedures to ensure the stages are logical and have contingencies in place. Decide if the negotiation needs to be formal or if some elements can be informal. A useful tip is to look for a door rather than creating walls – sometimes planning for a win-win can lead to better results.
Furthermore, plan the physical environment if it’s a face-to-face meeting. Consider the time, date, duration, and ensure the premises are professional and geographically convenient. Pay attention to details like room layout, placement of desks, chairs, windows, digital projectors, and refreshments. Small things can make a difference; providing pastries and hot beverages can be an ice-breaker, and creates a relaxed starting point. Breaking bread or sharing chocolate biscuits can help facilitate conversations.
“People may forget what you said, but they’ll always remember how you made them feel”
Leave room for manoeuvre
Next, we move into the actual exchange. After introductions, it’s ideal to keep things formal by stating the purpose of the meeting and presenting an agenda. Ideally, participants will have known this in advance. During the exchange, try to state your case clearly and logically. Asking questions can be a useful mechanism for encouraging conversation and sharing information. Research shows that effective negotiators ask twice as many questions as those perceived as less effective. Develop a way to make offers without revealing all your cards at the beginning – never start with your final offer.
In terms of conduct, it’s important to remain calm, confident, and assertive, but avoid being annoying or offensive. People may forget what you said, but they’ll always remember how you made them feel, which is crucial for your reputation.
When closing the deal, it’s useful to put together hypothetical proposals. For example, “Suppose I could guarantee an order of X for the next X years. Would it be possible for you to lower the price?” This approach allows for flexibility and practical exchanges. If you’re not making progress, suggest a break or recess, and perhaps reconvene over a casual conversation.
If an agreement is reached, a top tip is to actually get it in writing or evidenced electronically. Even seemingly unimportant details should be recorded and agreed upon, including a clear timetable. Negotiation objectives should be SMART (specific, measurable, achievable, relevant, and time-bound). Ensure that everyone concerned is informed about the agreement. It’s important to communicate the terms and conditions clearly and to keep appropriate parties in the loop, both formally and informally.
Finally, implement the agreement. If you’ve committed to something, follow through. Review your performance afterward – how did you handle your preparation and the exchange itself? Did you close everything appropriately? Reflect on your behaviour and identify areas for improvement to enhance your negotiation skills for next time.
“Effective negotiators ask twice as many questions”
Transforming your approach
Finally, here are some general top tips that have been assembled over the years:
- Always ask for more than you want at the beginning. This gives you room to negotiate.
- Take the perspective of the other party. Put yourself in their shoes and try to understand why they are seeking an agreement or a deal. This can inform your approach.
- Don’t take blame for refusing an offer. If you know you have to say no, use psychology to avoid taking the blame. For example, you can interact with colleagues and then come back with a response like, “If it were up to me, we could discuss this, but I’ve checked with X and they say no,” or “The company provides clear guidance that we cannot do that.” This allows the other party to be hard on the problem, not the person, and can help move things forward.
Mastering the art of negotiation is not just about securing better deals, it’s about transforming the way you approach every interaction. By refining your negotiation skills, you can create win-win scenarios that benefit all parties involved. Imagine the power of walking into a negotiation with confidence, knowing you have the tools to achieve your goals while fostering positive relationships.
So, to recap. Start by clarifying your objectives and gathering crucial information. Understand the perspectives of those you’re negotiating with, and choose a style that aligns with your personality and the situation. Plan meticulously, from the agenda to the physical environment, ensuring every detail supports a successful outcome.
During the exchange, communicate clearly, ask insightful questions, and remain calm and assertive. Remember, it’s not just about what you say, but how you make others feel. Close deals with flexibility and foresight, and always get agreements in writing.
Finally, reflect on your performance and continuously seek improvement. By implementing these strategies, you’ll not only enhance your negotiation skills but also build a reputation as a fair and effective negotiator. Embrace these techniques, and watch as you transform challenges into opportunities, achieving success in supplier deals, advisor fees, and software contracts.
About the author
David Bamford is Professor of Operations Management at Manchester Metropolitan University. He is an experienced industrialist/academic who has published over 250 articles, book chapters and reports. His multiple publications include two co-authored books: Managing Quality, and Essential Guide to Operations Management.
Further reading
This article was first published in Business 4.0