Can you remember when you won a negotiation successfully? Successfully means, the win win negotiation, where both parties came into a close deal with some sort of achievements? It is the best philosophy of dealing with negotiation. Effective negotiations strategies in workplace and in business communication has some unwritten rules.
Negotiation skills is a part and parcel in a person’s life. We are in it frequently. Successful negotiation skills can bring great success in life on may ways. How to negotiate in business is a major concern for companies.
Benefits of a successful deal
- Business profits
- Relationship development
- Next opportunity
- Confidence development
- Career development
- Competitive advantage
- Business growth
- Personally development
- Emotional control
Some people do some blunders while negotiation process. By this, they lose the golden opportunity to win. And create damage in regards to deal, business and relationship.
Six distinct stages of the negotiation process: (1) preparation; (2) establishment of negotiator identities and the tone for the interaction; (3) information exchange; (4) exchange of items to be divided; (5) closing the deal; and (6) maximizing the joint returns.
Principles of negotiation skills
- Competing (I win – You lose)
- Accommodating (I Lose – You Win)
- Compromising (I Lose / Win some – You Lose/ Win some)
- Collaborating (I Win – You Win)
- Avoiding (I Lose – You Lose)
Negotiation mistakes to avoid
Following are some negotiation mistakes people frequently do, perhaps not intentionally.
Here we will address how to overcome them by ‘not doing’
#1 letting emotion get in the way
Emotions are good stuff when used wisely. A reason for failure in the negotiation is not use of emotions diplomatically. Need to improve emotional intelligence for a wider range of success in life.
People are not here to see our emotions. Think, what you would prefer if you had to face it from other’s part. They find emotions as a blackmail. It causes serious damage in deal at present and future. Don’t let your emotions dominate situation. Use your emotions professionally to win. Enhance your Emotional Intelligence in workplace.
Miscommunication hinders the way for a successful deal. In Fact communication is a crucial part to properly understand the pros and cons of every deal. Proper communication may affect greatly to obtain outcome of a deal greatly. Demonstrate the best communication skill you have.
Understand what is the issues of deal. What is it’s objective. If the other person asks for a ship and you talk about sheep, the negotiation is useless. You might have a single chance to convince your counterpart. Be confident to handle it successfully.
#3 not do enough research
Before going to intervene a deal, some people don’t do any background research on the issue. A holistic research is in fact very crucial before every action. Research keep you updated about facts and figures. You will have a detailed answers on frequently asked questions.
It is important to have all your probable answers ready against questions. Doing a thorough research can ensure your thoughts focused and to the point. You can stand your logic by your research before facing your negotiation process.
When you are going to face a person or company you know before, you can talk very boldly, because you know her likes and dislikes.
Say, you are going to attend your toughest client and you her choice, you will get privilege. Or, think you are going to negotiate with your boss regarding you promotion, if you don’t research on your achievements to the company, and your future plan you will be doing, why should he consider your case?
#4 not getting them direct (talk to the source, CEO)
Sometimes, you may encounter a representative from a company, or one’s behalf. And you may not convince him well, because of his lack of proper communication. As a result, the ultimate outcome of the negotiation goes in vain.
We should understand whom we are going to deal with. His details, background, etc. need to know properly. In case he is not the right person, we have to dive deeper. Know his source, his company chief, or the CEO.
Negotiation skills is not that you just death with face to face and it’s over. It is a long term process. Know further about the source and company. Then, reach them directly through proper channel. You can do it before or after.
‘No’ is the beginning of a successful negotiation process. So, don’t be disheartened upon the rejection from your target, keep going to negotiation strategies.
#5 know leverage
As per the source, Leverage (negotiation) In negotiation, leverage is the power that one side of a negotiation has to influence the other side to move closer to their negotiating position. A party’s leverage is based on its ability to award benefits or impose costs on the other side.
A successful negotiator can make the best use of a leverage gained on way of negotiation process. As per the source, some tips to gain leverage and execute it properly, are as follows:
- Understand what you did to gain leverage
- Control yourself and your counterpart
- Consider what stimuli will influence the person with whom you’re negotiating
- Strategize how you can impress and/or dominate the other negotiator
- Be long term in thought and outcome
- Feed the ego
- Shift the perspective to fit your reality
- Learn to be a good spin master
- Remember to synchronize your body language with your speech when positioning your perspective to gain leverage
- Summarize people in negotiations with one word
- Think about where you come into a situation that will determine your perspective.
To summarize, gaining leverage gives you extra benefits in negotiation process. So, find it out intelligently. Use it deliberately.
#6 not listening
Listening is a great skill. It gives us extra benefits by understanding the matter. Listening also gives us enough time to prepare our answer to deliver a convincing answer.we can be well prepared about the dimensions and pattern of expected question, topic or discussion.
People want you to listen them. They reward a psychological benefits upon them who listen to them attentively.
Listening is a strong power. It is a social ability for any individual. When you listen, you can help them accordingly. Showing curiosity upon an issue helps to divulge ins and outs of negotiation strategies that ultimately help to have gain a leverage.
#7 knowing when to leave time-wise
Every discussion and negotiation have a boundary. There should have a pause at the optimum time of bargaining. How to negotiate in business determines the following stages are-
- Beginning offer
- Closing with deal
A successful negotiator knows her limit. She understands when to leave. For that, one needs to be clear about the negotiation strategies and goal. Knowing about the negotiation personalities and wearing their shoes have great benefits to know limit.
#8 to be extreme soft or hard
Desperate drive in the negotiation process is not welcomed. It gives the other party an impression that you are dominating. It might cause a permanent damage in negotiation success and relationship. This situation might arise when you are over confident, or you have been so obsessed with your target. Never to be too hard. You should not win once to lose forever.
Although it is always advised to be polite and soft, being too soft is not ultimately good for negotiation. People may start thinking you to have some limitation that you want to hide. They will think you have no personality. Your target will be getting a psychological privilege over you. Going at moderate pace of politeness is good enough every time.
#9 not understanding personality
Not all of our targets are with same personalities. Some of them may be found similar, but most of them are not similar at all. In fact, everyone we come across in our journey is unique. They have different pattern of behaviors, attitudes, choices, and personalities. An intelligent negotiator always keeps this on mind and approach. He knows how to negotiate price.
Differences in human personalities demand different approaches while negotiation. Success of the bargaining depends on smart approach from a negotiator. Identify the pattern of personality you are handling. She can be a frugal, introvert, inquisitive, or over smart. Deal with her accordingly how to negotiate price. Improve your top soft skills that employers will look for future.
#10 caring too much
Importance of negotiation is significant for any organization and for individual. Negotiation is a normal process in bargaining. As a marketeer, everyday you will undergo this process with many a people. Caring too much in negotiation is not that much useful every time. Earlier, we suggested not to be too much hard or soft. Too much caring is also close to that.
What happens when you care too much? It proves your vulnerable personality in front of your counterpart. The other part will be thinking you might have some unjustified benefits with the negotiation. Importance of negotiation skills in business cares this much.
#11 focusing only on the money
Every deal in this world has some cause and its effect. It is the core of any business. We undergo any action that intends to have some gain.
Money or financial benefits are a great motivation for our activities. Negotiation examples will also be associated with money, in most of the cases. But, it should not be the only issue we should consider.
Earning money is good, but, it should not damage all other associated factors in its way. We will bargaining, we will negotiate, but it should not come in a way that implies we are doing it only for money.
We should not prove our greed for money. Be careful so that the way of our earning money in negotiation should not damage our relationship, understanding, decency, approach and future opportunities.
#12 trying to beat the other person
Negotiation skills training should be a win win deal. You should gain something, your counterpart should also gain the rest. It is a realistic deal, that should not reach to our personal level. No personal attack is appreciated. We should not refer any of our previous grudge in a present negotiation process.
We are not in a negotiation process to criticize our counterpart. It is not our objective to win by any means. It is not a personal fight. Act professionally. Never compromise with your standards.
Don’t sacrifice your attitudes. Be skilled on how to improve negotiation skills in the workplace. How to negotiate effectively means we have to make a win win deal. It never implies any fraudulence, lie and cheat.
Let your opponent with the negotiation. It is a good way to win their heart to open up better opportunities in future.
#13 not seeking other options
Negotiation skills training is a combination of many styles and stages. Successful bargain shifts from one to other. A good negotiator can apply all options as and when needed. In fact, you should have well prepared to capitalize then diplomatically according to the merit of situation, place, person.
When we don’t bother about importance of negotiation skills in business, bad negotiation examples occur. Business negotiation examples give productivity when we pay attention and care.