Negotiation 101
BATNA
Refers to your “best alternative to a negotiated agreement,” or the best outcome you can expect if you fail to reach agreement at the bargaining table with your counterpart. An evaluation of your BATNA is critical if you are to establish the threshold at which you will reject an offer. Effective negotiators determine their BATNAs before talks begin.
Top 10 Negotiation Skills
Negotiate the process
Carefully negotiate how you will negotiate in advance. Discussing procedural issues will clear the way for much more focused talks. Don’t assume you’re all on the same page when it comes to determining when to meet, who should be present, what your agenda will be, and so on.
Building rapport
You and your counterpart may be more collaborative and likely to reach an agreement if you spend even just a few minutes trying to get to know each other. If you’re negotiating over email, even a brief introductory phone call may make a difference. This is one of the most valuable negotiation skills to master.
Listen actively
Resist the common urge to think about what you’re going to say next while your counterpart is talking and listen carefully to her arguments, then paraphrase what you believe she said to check your understanding. Acknowledge any difficult feelings, like frustration, behind the message. Not only are you likely to acquire valuable information, but the other party may mimic your exemplary listening skills.
Ask good questions
Ask lots of questions that are likely to get helpful answers. Avoid asking “yes or no” questions and leading questions, such as “Don’t you think that’s a great idea?” and craft neutral questions that encourage detailed responses, such as “Can you tell me about the challenges you’re facing this quarter?”
Search for smart tradeoffs
Try to identify issues that your counterpart cares deeply about that you value less. Then propose making a concession on that issue in exchange for a concession from her on an issue you value highly.
Being aware of the anchoring bias
The first number mentioned in a negotiation, however arbitrary, exerts a powerful influence on the negotiation that follows. You can avoid being the next victim of the anchoring bias by making the first offer (or offers) and trying to anchor talks in your preferred direction.
The 3 key qualities of negociation
Clarity : on your objectives, on what you want and what you don'y want, what is acceptable and what not. Detachment : it’s about keeping emotions out of the process. Equilibrium : being able to maintain your equilibrium and be able to stay calm, clear and connected to what you’re trying to achieve.
How to Strike the Right Note in a Negotiation
Present multiple equivalent offers simultaneously
Rather than making one offer at a time, consider presenting several offers at once. This strategy of presenting multiple offers simultaneously decreases the odds of impasse and can promote more creative solutions. If your counterpart rejects all of them, ask him to tell you which one he liked best and why. Then work on your own to improve the offer, or try to brainstorm with the other party an option that pleases you both.
Contingent contract
In essence, a bet about how future events will unfold. Works best when negociations get stuck because of disagreements on how certain scenarios will play over time. E. g.: if you doubt a contractor’s claims that he can finish your home renovation project in 3 months, propose a contingent contract that will penalize him for late completion and/or reward him for early completion.
Plan for the implementation stage
Place milestones and deadlines in your contract to ensure that commitments are being met. Consider agreeing to meet at regular intervals throughout the life of the contract to check in and, if necessary, renegotiate. In addition, adding a dispute-resolution clause that calls for the use of mediation or arbitration if a conflict arises can be a wise move.
Win-Win Negotiation
It involves working to get the best deal possible for yourself while also working to ensure that your counterpart is satisfied. The “win-win” negotiators seem to have the most success. It doesn’t mean you to split resources right down the middle with a sole focus on being “fair", automatically making a concession just because the other party made one or that you should try to avoid conflict and tension at all cost.
What is a Win-Win Negotiation? - PON - Program on Negotiation at Harvard Law School
Get clear on your negotiation goals
There are 3 key questions you should ask yourself: What's the best possible outcome ? What's your bottom line ? This refers to the least acceptable offer. If you're the seller, what's the lowest offer you'd be willing to accept? And if you're the buyer, what's the most you'd be willing to pay? What's your plan B ? Your "BATNA" - your best alternative to a negotiated agreement. What are you going to do if you don't reach an agreement?
The 5 Most Important Negotiation Skills You Must Master
Determine your core negotiation strategy (CNS)
It means finding the doorway that you want to enter the negotiation through. That could be the doorway of safety and liability or of value, the doorway of competition or of future business.
Understand your negotiation signature
That signature is the habitual way that you go about a negotiation. Understanding your default signature helps you know what you're working with. Some people try to go in and beat the other person up on price. Other people are really intimidated, reticent, and afraid to ask for anything.
Build Motivation
One of the most powerful things you can do in a negotiation is draw out why the other party wants to make a deal. You can do this by asking questions and building negotiating roots. Asking questions about their competition and why they want to work with you -- what's in it for them -- builds your negotiating counterpart's motivation.
Play the reluctant part
Use your body language to communicate your reluctance , to communicate you're not really eager to make a deal: sit back from the table and keep the tension in your bodies low You can manipulate your voice to sound more reluctant : speak slowly and softly. Reluctant parties qualify their language . They don't show excitement. Everything is qualified and subdued.
Basic negotiation skills
Asking good question : Good negotiators seem to ask a lot of questions and are very concerned about understanding exactly what it is you are trying to achieve from the negotiation. Patience : concentrate first on getting agreement on all the parts of the contract that are common between parties before settleing other issues. Preparation: Preparation accounts for 90% of negotiating success.
3 Negotiation Skills to Help You Influence Anyone | Brian Tracy
Distributive Negotiation
Refers to a competitive negotiation strategy which is used when the parties seek to distribute a fixed resource such as money, assets, etc. between themselves. It is also known as zero-sum, or win-lose negotiation, in the sense that the parties to negotiation try to claim the maximum share for themselves and due to which when one party wins or reaches its goals and the other one loses.
Difference Between Distributive Negotiation and Integrative Negotiation
Integrative Negotiation
It implies a collaborative negotiation strategy, in which parties seek a win-win solution to settle the conflict. In this process, the parties aims and goals are likely to be integrated in such a way that creates a combined value for both the parties and thus results in enlarging the pie. It stresses on reaching a mutually beneficial and acceptable outcome, keeping in mind the interest, needs, concerns, and preferences of the parties concerned.
4 basic negotiation styles
...depending on different social motives: Individualists seek to maximize their own outcomes with little regard for their counterparts’ outcomes. . Cooperators strive to maximize both their own and other parties’ outcomes and to see that resources are divided fairly. Competitives seek to get a better deal than their “opponent.” They behave in a self-serving manner and often lack the trust needed to solve problems jointly. Altruists , who are quite rare, put their counterpart’s needs and wants above their own.
Understanding Different Negotiation Styles
Using emotional intelligence in negotiations
Repeat the last 1-3 words your counterpart just said back to them - makes your counterpart feel safe enough. Practice tactical empathy . Demonstrate to your counterpart that you see the nuances of their emotions. Get to a “no.” Being pushed for “yes” makes people defensive; they fear a trap. The moment you’ve convinced someone that you understand their dreams and feelings is the moment a negotiation breakthrough can happen. Create the illusion of control. The secret to gaining the upper hand in a negotiation is to give the other side the illusion of control.
5 Tactics to Win a Negotiation, According to an FBI Agent
Indaba
Is used to simplify discussions between many parties and is designed to allow every party to voice its opinion, but still arrive at a consensus quickly. Instead of repeating stated positions, each party is encouraged to speak personally and state their “red lines,” which are thresholds that they don’t want to cross. But while telling others their hard limits, they are also asked to provide solutions to find a common ground
This simple negotiation tactic brought 195 countries to consensus
Negotiating without being a pushover
Do: Frame the negotiations as a problem-solving challenge. Take the time to make small talk. It’ll build connections you can leverage later on. Stress the areas on which you agree, and use words like “we” to signal you are invested in the relationship. Don’t: Reflexively cave on issues because you think it’ll win you favor. Simply ask what the other side wants. Ask why they want it. Mistake impact for intent. The other side may have their own unique pressures that restrict their ability to maneuver.
How to Negotiate Nicely Without Being a Pushover