In this post, I would like to address some of the tactics widely used in negotiation. There is a lot to learn when it comes to business, but there is nothing more important in business than learning to negotiate. According to the Merriam-Webster Dictionary to negotiate is “a formal discussion between people who are trying to reach an agreement.” Like in any other discipline, in negotiation, there are techniques or tactics that can be used to get to an agreement where both parts can have positive rewards. But what do you do when you encounter problems during negotiations?
One thing that normally stands in front of us in most of our relationships (not only in negotiation) is our ego. Yes, our ego. Another tactic in negotiation that stood out to me is BATNA or Best Alternative to a Negotiated Agreement. In Stephen Stuart’s video, he explains BATNA as the lowest point a negotiator will consider that still will be beneficial to him/her. He also states that we must not concentrate on the position we have (letting go of the ego, as the Buddhists say) but only on the deal and its goal. One of the main things we should do when negotiating is to learn to separate people from the problem.
In the reviewed video, we can grasp that it is important to make the distinction that negotiators are people too. This means that even if the person seems intimidating and likes to argue we still can learn to overcome that kind of personality for a more rewarding result during the negotiation process. In this video, we also see that we must learn not to focus on the positions of the different parties but on the interests and how it can be fulfilled in a manner that all the involved parties can be at ease with the ending result of the process. Another thing the speaker pointed out is that we should invent options for mutual gain. It is better when both parties feel like they can gain something from the negotiation. No one wants to feel left out (just think about it).
This brings me to the next video where Margaret Neale gives us tips on how to be successful/effective when negotiation. She says that the goal of the negotiation is not to get a deal but to get a good deal; we must know the difference. She goes then to give us three (3) pieces of information to get you to a better negotiation. They go as follows:
1. What are our alternatives? - He or she with a better alternative gets the deal. It is that simple.
2. What is the reservation price? - Reservation is where your bottom line lies, where a no looks as good as a yes. This is also BATNA.
3. What is your aspiration? - What is the realistic/optimistic view of the best possible outcome?
Neale also points out four (4) steps for negotiation. They are the following:
1. Assess - weigh benefits and costs. Do the benefits outweigh the costs or vice versa?
2. Prepare - understand my interest. What do I want to achieve? Understand the preference of the counterpart. What are my interests? What are your interests?
3. Ask - engage with your counterpart. Bring the information that only you have. Share that information with your counterpart.
4. Package - Bundle alternative proposals.
Neale also explains the differences between female negotiators and male negotiators. She says that studies show that female negotiators are more likely to have best results when engaging in representational negations; meaning that they are better when negotiating for someone else. This made think of why are we better in representing people but not good at negotiating for ourselves? Why is this and why are we letting it happen? Margaret Neale points out that there is a social perception of women not asking, therefore, women tend to not use their negotiations skills. Ladies, we need to learn and use our negotiation skills.
When negotiating we must leave our egos to one side and be objective. We must conduct the negotiation to a point where all the parties can be comfortable and fulfilled. Like in any other discipline, in negotiation, we must use the techniques and tactics to make sure both parties interests are fulfilled and the outcome is positive for both parties as well. In negotiation, the way we transmit the message, the deal we bring, and the solutions we give are all necessary for the negotiation to be successful and effective.
Do you have any tips for negotiating effectively?
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