Business Skills

Negotiation

Summary: Creating and implementing mutually beneficial solutions

Conflicts of interest are endemic in business. Negotiation is the process of resolving those conflicts. There has been a great deal of research on negotiation, such as the Harvard Program on Negotiation, but this is the first practical negotiation framework that incorporates this research with the latest communication techniques. Two businessmen discussion issue

Before negotiation:

  • Set goal: Identify both the ideal outcome and the minimum acceptable outcome. Identify the underlying interests and multiple goals that would satisfy those interests. If one goal is unattainable, another may be possible.
  • Manage yourself: Negotiations can be emotional, but excessive emotion is generally unhelpful. Self-control techniques can be used to create a more positive mental state.
  • Create proposed agreements: Empathy provides insights to the interests and emotions of the other side. Understanding the other side is critical and will continue during the meeting. Develop some potential agreements that satisfy the anticipated interests of all parties.
  • Develop persuasion strategy: Look at the keys to influence and use some of them to support potential agreements. Develop a cooperative frame for the negotiation. Communicate this frame to the other side and avoid being drawn into a confrontational battle. Consider using metaphors to help frame the discussion.

During negotiation:

  • Establish rapport: Rapport is extremely important in negotiations. Rapport involves observing the behavior and emotional state of the other person and synchronizing with it. People will not listen until they feel understood.
  • Use language effectively: Perhaps the most important part of a negotiation is discovering the interests of the other side. This is best achieved with clear, precise and emotionally neutral questions. Avoid vagueness - misunderstanding helps nobody. This approach also helps to diffuse negative emotions and demonstrates a genuine effort to understand them. When some tentative agreement arises, switch to emotional, persuasive language to encourage them to accept the solution.