Pillars to support negotiation success

We can have all the qualifications in the world but if we can't make good deals we will never be successful in today's challenging economic climate

Sue Preston PMMS Consulting Group - עדכון אחרון: 07/02/2011 21:46:15

Negotiation may not be innate but it is a skill that can be learned and practised, and the four pillars of negotiation (as described in the book It's an Even Better Deal by Paul Steele) provide a practical way to greatly improve negotiation success.

Pillar one - people


There are four fundamental areas to focus on here: To value and respect, and to be warm and tough.


We have to value the other party's view and respect the fact it will probably be different from ours. One thing is for sure, buyers and sellers see the world from two very different perspectives - neither right nor wrong, just different.

We also need to remember we're only as good as our last negotiation, so it is important to reflect and ask ourselves some key questions after the event. How far did I show my value and respect for the other party as a person? Did they appear to value me? If not, why not?


Demonstrating value and respect in a negotiation requires good communication skills. We need to adapt our language to ensure we are on the same page. We need to be clear and listen to key information rather than listening for the next gap to come along for when we can speak. If we talk more than we listen in a negotiation we are probably giving too much information away, without getting any back in return.


Our approach needs to be warm with the people, but tough on business needs. We need to be assertive at every opportunity as opposed to aggressive or a pushover.


Pillar two - the key persuaders


The five persuaders are emotion, logic, threat, bargain and compromise
.

It's always worth remembering that emotion, logic and threat are free one-way streets. If we use these persuasion methods effectively, while valuing and respecting the other party with a warm approach, they will move towards us without any cost to our business.


• Emotion - A powerful motivator if used effectively.

• 
Logic - Ensure to research the business or company if you want to win a logical argument. Used with respect, this can be very powerful.

• Threat - Used non-aggressively, this can be very effective in a negotiation, such as suggesting we have alternative suppliers in the wings - but be certain that these are actually available.


Bargain and compromise are used later in the negotiation process. This is where we start trading until we reach the behaviour of 'last resort and compromise' by splitting one single variable, such as price or payment terms.

• Bargaining - Trading concessions can be rewarding, but can be costly and may not be the best resolution.

• Compromise - Seek the middle ground. If other persuaders have not worked, work out a compromise that leaves both sides satisfied. The party that initially takes the more extreme position in a compromise usually gets the better deal.



Emotion, logic and threats are free, where as bargain and compromise cost.  Decide on your preferred style, and remember to identify the other party's chosen approach.


Pillar three - process


There are six phases to any successful negotiation, starting with preparation and planning, then opening, testing, moving, concluding and finally reviewing.


There are some key questions we should be asking ourselves throughout this process:

• Were my aims and objectives appropriate?
• Was my preparation adequate?
• How accurate were my views on our position and that of our counterpart?

• Did the opening set the right mood for the meeting?
• Did I test out all the assumptions I had made?
• Did I convey well what I needed from the deal?
• How well and early did I discover what the other side really wanted?
• How well did I control the course of the negotiation?
• How effective was my questioning?
• How acute was my listening?
• How decisive were my summaries?

• How well did I work the trading of concessions?
• Was I giving anything away without getting something back in return? If so, what was the cost to my organisation?

• How clear were both sides as to what had been concluded?



Pillar four - ploys

Ploys are the tactics or tricks that are used during a negotiation which are often seen as manipulative ways of gaining movement. As such, they have their place in short-term 'winner takes all' negotiations, and the buyer definitely needs to be able to spot when they are being used on them. But they should be used with caution and deliberation in any negotiation where the ongoing relationship matters. 

The appropriate use of tactics and ploys, and counters to them, comes with practice and you should re-examine instances you come across, and analyse why and in what circumstances they were successful, or not.


The most successful tactics for you, as with other aspects such as your behavioural patterns, will tend to be those with which you are most comfortable. 
But comfortable or not with tactics, you need to be able to recognise those that the other party is using on you. Once you accept these tricks as ploys, it dilutes the power they have on you and the negotiation.