What considerations are important in preparing to negotiate? In pairs suggest as many as you can.
Listen to the recording in which a Management Communications Consultant, Diana Ferry, talks about preparing for a negotiation. Mark the seven points below in the order in which she mentions them.
Identify your minimum requirements.
Prepare your opening statement.
Decide what concession you could make.
Know your own strengths and weaknesses
Know your role as a part of a team.
Prepare your negotiating position – know your aims and objectives.
Prepare any figures, any calculations and any support material you may need.
Test your knowledge of negotiation skills. Choose the correct answers.
1. The amount of time you should devote to planning for a negotiation is directly related to the amount of time you’ll spend in the actual negotiation. How long is that?
a) twice as long
b) four times as long
c) nine times as long
2. What is the cornerstone of just about every negotiation you will ever enter into?
a) there’s always a winner and a loser.
b) every negotiation is a trade.
c) the other side is always your enemy.
3. Which of the following actions represent the beginning of a negotiation?
a) a demand
b) a request
c) an offer
d) all of the above
4. Which of the following is not a stage of the negotiation process?
5. The tone for just about every negotiation will be set during which time frame?
a) the first five seconds
b) the first 5 minutes
c) the first five hours
6. True or False: You should never make the first concession.
7. Which of the following words should you always avoid using during a
8. Which of the following statements best describes a negotiation tactic called “The
a) you have to do it my way
b) you have to do it better than that
c) you have to see it my way
9. When conflict arises during a negotiation, which is the best way to handle it?
a) avoid the conflict
b) compete with the conflict
c) integrate the conflict into discussion
10. True or False: It’s better to make no deal rather than a bad deal.
You can win in a negotiation just by being better prepared. 90% of successful negotiation is down to preparation. It can help you get what you want from the negotiation. It does work for everyone. There’s no secret. You really just need to know how to prepare and which preparation framework to follow. We say things like, "We're just in the negotiation stage of the deal ..." There is no more profitable expenditure of time than the time spent preparing to negotiate. Here's your checklist:
· Know what you want and don't want
Most of us have a general idea of what we want or want to avoid in a deal. Write a paragraph describing in detail what you want and don't want from the transaction, then, edit this description furiously until it is laser focused and precise. When we are crystal clear on our objective(s) and rationale(s) for their acquisition, we are most likely to achieve desired results.
· Know what your counterpart wants and doesn't want
Now do the same for your counterpart. Write the description of what your opposite is looking for and seeking to avoid. This exercise tends to be a real eye-opener. Knowing our counterpart's goals, objectives helps us see commonalities that lead to creative solutions.
· Know what concessions you are willing to give
What must you absolutely achieve to consummate a successful bargain? What terms, conditions, extras could you live without? Every great negotiator knows there must be give and take on both sides for agreements that make sense.
· Know your alternatives
Having an alternative vendor or supplier really helps your level of confidence.
· Know your counterpart and your subject matter
A lot of information is available to us on personality styles, body language, etc. Remember transactions take place between people ... and people view the same facts and appeals differently.
· Rehearse You know how to get to Carnegie Hall? It's the same road to negotiation success - Practice - Practice -Practice! Remember use it or lose it!
Ten Negotiation Techniques:
· Prepare, prepare, prepare. Enter a negotiation without proper preparation and you've already lost. Start with yourself. Make sure you are clear on what you really want out of the arrangement. Research the other side to better understand their needs as well as their strengths and weaknesses. Enlist help from experts, such as an accountant, attorney or tech guru.
· Pay attention to timing.Timing is important in any negotiation. Sure, you must know what to ask for. But be sensitive to when you ask for it. There are times to press ahead, and times to wait. When you are looking your best is the time to press for what you want. But beware of pushing too hard and poisoning any long-term relationship.
· Leave behind your ego. The best negotiators either don't care or don't show they care about who gets credit for a successful deal. Their talent is in making the other side feel like the final agreement was all their idea.
· Ramp up your listening skills. The best negotiators are often quiet listeners who patiently let others have the floor while they make their case. They never interrupt. Encourage the other side to talk first. That helps set up one of negotiation's oldest maxims: Whoever mentions numbers first, loses. While that's not always true, it's generally better to sit tight and let the other side go first. Even if they don't mention numbers, it gives you a chance to ask what they are thinking.
· If you don't ask, you don't get. Another tenet of negotiating is "Go high, or go home." As part of your preparation, define your highest justifiable price. As long as you can argue convincingly, don't be afraid to aim high. But no ultimatums, please. Take-it-or-leave-it offers are usually out of place.
· Anticipate compromise. You should expect to make concessions and plan what they might be. Of course, the other side is thinking the same, so never take their first offer. Even if it's better than you'd hoped for, practice your best look of disappointment and politely decline. You never know what else you can get.
· Don't absorb their problems. In most negotiations, you will hear all of the other side's problems and reasons they can't give you what you want. They want their problems to become yours, but don't let them. Instead, deal with each as they come up and try to solve them. If their "budget" is too low, for example, maybe there are other places that money could come from.
· Stick to your principles. As an individual and a business owner, you likely have a set of guiding principles, values that you just won't compromise. If you find negotiations crossing those boundaries, it might be a deal you can live without.
· Close with confirmation. At the close of any meeting, even if no final deal is struck, recap the points covered and any areas of agreement. Make sure everyone confirms. Follow-up with appropriate letters or emails. Do not leave behind loose ends.