Effective Negotiating And Why It's Important
What Is Negotiation?
Negotiation is the method of talking over a result with another person or group of people, each with assorted targets on the same issue, with the purpose of reaching a result that is ideal for both parties. Take a car sale for instance - you would probably negotiate the purchase price with the seller to produce a price you are both able to pay.
At the office, negotiation is performed in many areas - negotiating when setting deadlines for tasks, priorities for work, utilization for team members, budgets, and lots of other areas.
Why Negotiate?
The objective of negotiation is to develop a win-win situation - a position that everyone is pleased with. Many situations that require negotiation and agreement usually are not quickly accepted by the other party. This is when a conversation or negotiation is necessary - to come to an agreement on an issue. If we didn't negotiate, significantly less would get accomplished and relationships wouldn't be made as easily between people.
Do Your Research
Before commencing any negotiation, perform some research on the other party, in relation to the issue at hand. Learn what their motivators are. Why are they not agreeing to your first terms? What's their intention with this situation? If they're not pleased with the project schedule you've prepared, for example, determine why. Find out if they have a busy schedule of work, or lack resources during the lifecycle, or other factors.
Decide On Your Lowest Position
One more thing you'll need to do before you start the negotiation discussion is to figure out what your lowest position is. This is a point that represents the most you will give the other party, or the lowest point you will go on a price/time/terms. This is the least advantageous to you. It's not the point at which you start, or the point you should be aiming to get to. It's the point that you won't go any more on.
Determine The Point Of The Negotiation
When you begin the operation of negotiating an outcome, highlight the point of the negotiation. Even if this may seem obvious, it's a good idea to mention it at the start. For example, you can say. "We're here to make an agreement on the budget needed to implement a new software system". This is an effective negotiation technique and is used to make the issue clear to either side.
Make Your Proposals Gradually
You've figured out your lowest position, however you shouldn't start at this point. You should have a position in mind that is more favorable to you. Discuss your proposal to them (budget, time, resourcing, an idea, whatever you're proposing) and ask if they accept those terms. If not, they would make another offer back to you, that is more beneficial to them.
At this point, don't rush instantly to your lowest point. Make moves steadily to their favor, and at a particular point you should reach an answer. If you jump straight to your lowest offer, they either accept it (which is good for you, but could be better) or they refuse it (and that means you have no more room to move).
A Win-Win Result Is The Aim Of Effective Negotiating
The goal of effective negotiating is to get a result that both sides are content with. This can be close or far from the first proposal, but provided that all sides are relatively happy with the final result, it's an effective negotiation. Try to keep it professional - try not to let your emotions get involved. Don't forget, what you're negotiating at work is most likely a professional or business decision and not an emotional one.
Know When To Walk Away
At some point, you might reach a stalemate or a dead-end in the negotiation discussion. Irrespective of how effective your negotiating has been, there could just be a point where no further action can be taken. The other party won't budge, and you won't change your offer. This is the time when you may need to consider walking away. Make them a clear offer on the issue, and mention it's up to them to approve or refuse. Ensure that it stays professional - not making an agreement could be better than committing to something that is unfavorable to you and that you can't deliver on.
Be Respectful
You should try to keep it professional constantly throughout the negotiation, and really should be respectful of the other party. Don't get emotional throughout the negotiation process, keep your brain on the outcome and respect the other party's requests and their issues. This is a great way to get a win-win result for both people concerned.
Putting several of these effective negotiating tips into practice in your next negotiation will ideally help your chances!