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How can you create a successful negotiation strategy to benefit all parties involved?

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Negotiation is a skill that can help you achieve your goals, resolve conflicts, and create value for yourself and others. However, negotiation can also be challenging, especially in times of crisis or recession, when resources are scarce, emotions are high, and uncertainty is pervasive. How can you create a successful negotiation strategy to benefit all parties involved? Here are some tips to help you prepare, communicate, and collaborate effectively.

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Kamal Rathi

Global Technology Lead for Trade Management and Post Trade Cash Equities
David Danagher BL

Barrister|General Practice|GDPR|Phone: +353 83 3962899

1 Know your interests and alternatives

Before you enter a negotiation, you need to identify your interests, which are the underlying needs, values, and motivations that drive your position. You also need to assess your alternatives, which are the options you have if you walk away from the deal. Your best alternative to a negotiated agreement (BATNA) is the most favorable option you can pursue without the other party. Knowing your interests and alternatives will help you set realistic and flexible goals, avoid settling for less than you deserve, and leverage your bargaining power.

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Kamal Rathi

Global Technology Lead for Trade Management and Post Trade Cash Equities
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A negotiation ever rarely has an interest served for all Parties. There is almost always the one having an upper hand and no one would easily give in on the advantage they have. If the parties are not aware of who has the edge - they are either not prepared to get on the table or taking things for granted. Idealistic views here won’t stand practical. Recognise your position before going on the negotiation table, identify the risks you can take if loose or what you can put at stake to win the negotiation. Communicate clearly and without hesitation. Build a clear expectation to allow for an easy settlement.

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David Danagher BL

Barrister|General Practice|GDPR|Phone: +353 83 3962899
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In my experience the key to creating a successful negotiation strategy to benefit all parties involved is having full knowledge of all matters involved in the process which in turn will help support successful negotiation terms. The more knowledge you have the more persuasive your arguments will be heard. Avoid situations where a question you don't have an answer to catches you off guard. Negotiations ought to be flexible and involve give and take from both parties. For example, if you win something from the other party be prepared to give something back in return and it is essential for each party to convey their messages and terms to keep negotiations running smoothly.

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2 Understand the other party's perspective

To create a win-win outcome, you need to understand the other party's interests and alternatives as well. This will help you empathize with their situation, anticipate their concerns, and address their needs. You can gather information about the other party by doing some research, asking open-ended questions, listening actively, and summarizing their points. You can also use mirroring, which is the technique of repeating the last few words or phrases of the other party, to show interest and build rapport.

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3 Generate creative options

One of the challenges of negotiation is to overcome the fixed-pie mentality, which is the belief that the resources are limited and one party's gain is another party's loss. To overcome this mindset, you need to generate creative options that can expand the pie and create value for both sides. You can do this by brainstorming with the other party, looking for common interests, trading off issues of different importance, and bundling multiple issues into packages.

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4 Use objective criteria

Another challenge of negotiation is to deal with conflicting perceptions, emotions, and values that can affect the fairness and legitimacy of the deal. To deal with this challenge, you need to use objective criteria, which are external standards or benchmarks that can justify your offer or request. You can use objective criteria such as market value, industry standards, expert opinions, or precedents to support your position, persuade the other party, and resolve disputes.

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Dr. Alexander Hoeppel

Next Level B2B Deals
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"Objective criteria" are good. But remember that there is no such thing as THE objective value. Therefore, select the information that is useful for your own interests in the negotiation. The aim of the negotiation is not to define objective truths, but to achieve the best possible result for your own side. ??

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5 Manage the process and relationship

The final tip for creating a successful negotiation strategy is to manage the process and relationship effectively. The process refers to the structure, sequence, and timing of the negotiation, while the relationship refers to the trust, respect, and rapport between the parties. You need to manage both aspects to ensure a smooth and productive negotiation. You can do this by setting an agenda, choosing a suitable venue, establishing ground rules, making concessions strategically, and expressing appreciation.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Sonu Dev Joshi

Operations & Supply Chain Strategist | Bridging the Gap Between Strategy and Execution | Business Advisor & YouTube Educator
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Focus on integrative negotiation, where the goal is to find solutions that meet the needs of all parties. This requires moving beyond positional bargaining and delving into underlying needs. Encourage a dialogue to uncover these deeper needs, which often opens doors to creative solutions that are more satisfactory for everyone involved.

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How can you create a successful negotiation strategy to benefit all parties involved?

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3

4

5

6

1 Know your interests and alternatives

2 Understand the other party's perspective

3 Generate creative options

4 Use objective criteria

5 Manage the process and relationship

6 Here’s what else to consider

Negotiation

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How can you create a successful negotiation strategy to benefit all parties involved?

1

2

3

4

5

6

1 Know your interests and alternatives

2 Understand the other party's perspective

3 Generate creative options

4 Use objective criteria

5 Manage the process and relationship

6 Here’s what else to consider

Negotiation

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