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What are some common negotiation techniques?

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Negotiation is a vital skill in corporate accounting, as you often have to deal with different stakeholders, such as clients, auditors, regulators, and managers. Whether you are trying to secure a contract, resolve a dispute, or persuade someone to accept your proposal, you need to know how to communicate effectively and reach a mutually beneficial outcome. In this article, we will explore some common negotiation techniques that can help you achieve your goals and avoid conflict.

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Danh Tran

Finance Business Partner @ Hoan My Medical Corporation | Seasoned Strategist

1 Prepare and research

Before you enter any negotiation, you should do your homework and gather as much information as possible about the situation, the other party, and your own interests and alternatives. This will help you to understand the needs, expectations, and motivations of both sides, and to identify the areas of agreement and disagreement. You should also set your objectives and priorities, and determine your best alternative to a negotiated agreement (BATNA), which is the most favorable option you have if the negotiation fails. Having a clear BATNA will give you more confidence and leverage in the negotiation.

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Danh Tran

Finance Business Partner @ Hoan My Medical Corporation | Seasoned Strategist
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Effective negotiation begins with thorough preparation and research. Understand your goals, anticipate the other party's needs, and gather relevant information. A well-informed approach sets the foundation for a successful negotiation.

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2 Build rapport and trust

Negotiation is not only about exchanging facts and figures, but also about establishing a positive and respectful relationship with the other party. You should try to build rapport and trust by using active listening, empathy, and open-ended questions. These skills will help you to show genuine interest and curiosity, to acknowledge the other party's emotions and concerns, and to encourage them to share more information and insights. You should also use positive body language, such as eye contact, nodding, and smiling, to convey confidence and sincerity.

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Danh Tran

Finance Business Partner @ Hoan My Medical Corporation | Seasoned Strategist
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Building rapport and trust is crucial in any interaction. Be genuine, actively listen, and show empathy. Establishing a connection based on mutual understanding and respect fosters an environment where open communication and trust can flourish.

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3 Use collaborative and integrative strategies

Negotiation is not a zero-sum game, where one side wins and the other loses. Rather, it is a collaborative and integrative process, where both sides can create value and achieve a win-win outcome. You should use collaborative and integrative strategies, such as brainstorming, problem-solving, and expanding the pie, to generate creative and mutually beneficial solutions. These strategies will help you to focus on the underlying interests and needs of both parties, rather than on their positions and demands, and to find ways to increase the total value of the agreement.

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4 Apply persuasive and influential tactics

Negotiation is also a persuasive and influential process, where you need to convince the other party to accept your proposal or offer. You should apply persuasive and influential tactics, such as framing, anchoring, and reciprocity, to shape the other party's perception and behavior. These tactics will help you to present your proposal or offer in a favorable and appealing way, to set a high but realistic initial point for the negotiation, and to create a sense of obligation and fairness by making concessions or offering benefits.

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5 Manage emotions and conflicts

Negotiation can be a stressful and emotional experience, especially when there are high stakes, strong differences, or personal issues involved. You should manage your emotions and conflicts by using self-awareness, self-regulation, and assertiveness. These skills will help you to recognize and control your own emotions, to express your opinions and feelings respectfully and confidently, and to deal with the emotions and conflicts of the other party. You should also avoid common pitfalls, such as getting angry, defensive, or aggressive, or making assumptions, accusations, or threats.

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Danh Tran

Finance Business Partner @ Hoan My Medical Corporation | Seasoned Strategist
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To navigate emotions and conflicts in negotiations, remain calm, express yourself diplomatically, and acknowledge others' perspectives. Take a step back if needed, focus on common goals, and seek solutions collaboratively. Effective emotion management fosters a more constructive negotiation process.

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6 Review and follow up

After you reach a tentative agreement, you should review and follow up by using confirmation, documentation, and implementation. These steps will help you to verify and clarify the terms and conditions of the agreement, to formalize and record the agreement in writing, and to execute and monitor the agreement in practice. You should also provide feedback and appreciation to the other party, and maintain the relationship for future negotiations.

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7 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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What are some common negotiation techniques?

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1 Prepare and research

2 Build rapport and trust

3 Use collaborative and integrative strategies

4 Apply persuasive and influential tactics

5 Manage emotions and conflicts

6 Review and follow up

7 Here’s what else to consider

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