Whether it's buying or selling, dealing with customers or employees,
business owners have to negotiate virtually every day. Yet many may not view
it as a separate skill, such as bookkeeping or time-management. Successful
negotiating is both a science and an art, and central to your success.
Therefore it makes sense to brush up your skills.
Most negotiating is applied common sense, yet there are many mistakes people
make. The most common is greed: starting out with the attitude that you are
going to get everything you want, and that's that. Another pitfall is
getting too emotional about what should be a dispassionate business deal.
You should focus on what you want out of the deal, and shouldn't let
yourself be distracted by what you feel about the person you are negotiating
with.
This is the nub of negotiating. It is a form of communication, close to
persuasion, but aimed at a realistic outcome. The process will only work if
both parties want it to. This means coming to some kind of agreement that
satisfies all involved.
Another very common mistake is not to negotiate at all. For instance, if you
are dissatisfied with the service you are getting from a supplier, it may be
tempting to ring them up and berate them. While this may be emotionally
satisfying in the short run, all you have done is generate a row. It is
unlikely that you will come to some new understanding with your supplier
that leads to what you really want, a better service.
Far better if you had rung up, described your concerns and then asked: "What
can you do about this?" The result might not have been much better – but
then it might have been a lot better. You don't know until you try. Not
starting a negotiation at all is the worst option.
The good news is that negotiating is one of the most carefully studied
business skills. There is plenty of help at hand. There are some highly
entertaining books on the theory, such as Everything is Negotiable by Gavin
Kennedy (Arrow Books), or Getting to Yes by Roger Fisher and William Ury
(Century Hutchinson). As for the practice, there is the inimitable Video
Arts company, the outfit founded by John Cleese and colleagues, which has
produced some of the funniest and most effective training films I have ever
seen. (Video Arts, Dumbarton House, 68 Oxford Street, London W1D 1LH;
020-7637 7288.)
WHAT IS NEGOTIATING?
There are three central points to bear in mind: negotiating is adversarial
but not just an argument; there are certain rituals to be followed in order
to keep everyone happy; and negotiating is, by its very nature, complex.
Good negotiators prepare carefully, concentrate throughout the process and
yet are able to fit the smallest detail into the overall picture.
The adversarial point is one of the trickiest to master. Remember, the idea
is to reach a deal agreeable to both of you. Being too aggressive, or too
passive, can be self-defeating. Being able to negotiate in a reasonably
dispassionate way, while being emotionally persuasive, is a delicate
balancing act which can take a lot of practice.
The idea of ritual may sound odd, but it merely means paying respect to the
other party, taking the time to make sure that all opinions are heard and
taken into account. Meetings should take place in a manner with which both
parties are comfortable. You should also be prepared to take your time. If
the other party feels it is being hurried into a deal, it may dig its heels
in.
THE PROCESS
Preparation is key. Just 30 seconds spent trying to think yourself into the
other party's position will pay dividends. What are they thinking? What are
they prepared to give up? Having a full command of the facts will also
impress upon the other person that you are a professional negotiator who
should be treated with respect.
The basis of your negotiation will centre on a series of variables. For
instance, if you are negotiating a pay deal with an employee, the variables
would include basic pay, holiday pay and sick pay, overtime, pensions and so
on. Even the date on which the new deal comes into force and how it can be
terminated are variables.
Success also depends on defining your aims. A general idea of "getting the
best deal possible" is not sufficient.
This leads on to your negotiating position, which is based on the answers to
three questions: What is your ideal result? What is your fall-back position?
And what is the absolute rock-bottom deal you are prepared to accept? The
definition of the rock-bottom deal is the bare minimum you can live with. In
other words, anything lower and you would walk away.
HOW TO WIN AT NEGOTIATING
• Query whether fixed issues can't be altered. In this way you may be able
to bring unexpected factors into the bargain.
• Time is always negotiable. However fixed various deadlines may seem, they
can always be changed.
• You will only succeed if you concentrate throughout the process. Keep on
top of the details as they build up and don't be afraid to make frequent
notes.
• Always talk as if a deal is possible. If you give the impression that you
are sceptical about the possibility of any deal at all, this will cast a
shadow over the proceedings.
• Be happy to signpost the conversation and appear positive. You will get a
lot more out of the process if, by using positive comments and body
language, you can convince the other side you are prepared to be reasonable.
• Keep a careful eye on the subtext. Listen for giveaway phrases indicating
they think they are "getting away" with something.
• Give yourself time. If something pops up that you didn't expect, or about
which you can't make up your mind, take the pressure off yourself. Pretend
to take some notes, or say something like "yes, that's a very good point,
perhaps you could tell me more". Don't feel pressured into blurting out
something that you may regret later.
• Always keep the whole deal in view. There is a danger that if you settle
particular points first, you may run out of things to haggle over as you get
to the end of the list. Don't try to clinch the whole deal too early, when
the other side is still introducing new factors.
OTHER USEFUL TIPS
• Clear away the second-guessing by declaring your true aims and asking the
others to reveal theirs. At the very least it should clear the air a bit.
• Don't be afraid to signpost where you want to go. Being too subtle can
disadvantage you. If you give the other side some idea of where you want to
go, and make encouraging noises on the way, they are far more likely to go
there with you.
• Don't let them throw you off the scent. And you can try some tricks as
well. Common techniques are throwing out a whole list of unimportant
demands, with your key demand buried in the middle. The idea is that by the
time you have "given up" all the unimportant points they will be fully
prepared to concede your key one. Another is to take a tea break or similar
if things aren't going your way. Give yourself time to regroup and think of
a new approach.
• Never for a moment forget your aims. Maintain the pressure right to the
end. The idea is to cement a deal, not argue for ever.
John Willcock is the editor of 'Global Turnaround' magazine: email:
[log in to unmask]
There is a time in the life of every problem when it is big enough to see,
yet small enough to solve. -Mike- Levitt-
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