Negotiation strategies help in working with one or more stakeholders to find an equitable solution to a situation. What makes a good negotiation is to get the best possible advantage while agreeing to concessions that encourage the other party to agree to the terms that have been laid out.
What is negotiation?
Negotiation is a soft skill that is used to achieve a desired outcome between two or more parties. CEOs need to hone their negotiation strategies to get the best possible arrangements and terms for a specific goal. Negotiation strategy examples can include getting a lower price on recurring supply orders, encouraging another CEO to partner with your company and create a new product, or negotiating a new office space lease. Negotiation techniques in the workplace is also one of the traits of successful leaders because it shows they can make good decisions on behalf of an organization.
What makes a good negotiation?
What makes a good negotiation is when both parties have a desired outcome in mind and the ultimate result will likely fall somewhere in between those two objectives. Strive to create a conversation that respectful and courteous to find a resolution that can become a win-win for both.
Importance of negotiation strategies
Knowing how to leverage negotiation tactics can help in nearly all facets of life. The importance of negotiation strategies is as listed:
- Provides growth
- Helps with crisis situation
- Maximizing value
- Getting favorable outcomes
- It amplifies operations
How do you prepare for a negotiation?
Preparing for a negotiation requires engaging in due diligence. That means you need to research the other party to understand them as a whole, identify their priorities, and get an idea of areas where they may concede. Here are the most important elements of preparing your negotiation strategy.
Thorough research
Researching the other party’s background helps you understand how it operates, its internal culture, and what affects them the most. It helps in better understanding of how other party is going to respond to the proposals.
Understand priorities of the other party
The other party in the negotiation also has an interest in coming to an equitable agreement, or else they wouldn’t have engaged in negotiations in the first place. However, their priorities may be different from yours, which is why negotiations are important.
Setting goals
Defining or setting goals is an important part of your negotiation preparation. Going into a negotiation without being absolutely sure of what you want can result in you getting less than you’re seeking.
Potential adjustment
Identifying potential concessions one can give, as they can help close the deal sooner rather than later. Making sure that the concessions are ones that won’t weaken your position or give the appearance of trying to play hardball.
What are effective negotiation strategies?
You can engage in a number of different negotiation strategies that are appropriate for the situation at hand. Following negotiation strategies will help you use your emotional intelligence when approaching another party to enter into negotiations.
Creating trust and bond
Good negotiating outcomes are a result of good relationships and relationships must be developed over time. Because of that, good negotiators are constantly looking for opportunities to enhance the relationship and strengthen their position. In some cases, the result of the negotiation is determined even before the individuals meet for discussion.
Being optimistic
It can be easy to fall into the thinking that the negotiation many not go as per ones wishes and it’s a waste of time. Avoid this type of thinking and stay positive while the other party considers your offers. If they say no, you can make a different offer or walk away from the table altogether.
Realize all potential outcomes
When working on the strategies for negotiation, take a step back and look at all potential outcomes and what their impact would be. Engaging in this exercise helps in countering or accepting the offers made by the other party as one has already evaluated the implications and effect on their business.
Being articulate and clear
Being articulate is a key negotiation strategy that separates the good negotiators from the masters. When you have a strong belief in what you’re negotiating for, you will shine. Be direct when presenting a situation. Be clear about what is expected.
Types of negotiation styles
There are different types of negotiation styles that can be employed when it is time to come to an agreement with another party. Below are some of the common types of negotiation styles:
Competitive negotiation
This consists of getting the most for yourself at the expense of the other party. It’s also known as being aggressive, defensive, or assertive because you have a need to win.
Mutual negotiation
This involves creating a pleasant working atmosphere with the other party and keeping each other’s goals in mind.
Obliging negotiation
This type of negotiation strategy intentionally puts you at a disadvantage with the other party from the start of the process. You’re not seeking to win so much as you’re looking to make an apology or give a sweetheart deal for a more balanced one in the future.
Passive-aggressive negotiation
The purpose of this is to avoid conflict by ignoring the issue at hand. Sometimes it happens when the other negotiator is competitive or aggressive.
Negotiation strategies help you get what you want from a given situation. It doesn’t matter if you’re the initiator or recipient of an offer to negotiate. What matters is your ability to engage in a negotiation strategy that benefits you, builds your reputation as a reasonable player, and helps you build up your leadership qualities.
