Are You A Skilled Negotiator?

In the words of Herb Cohen, the Master Negotiator- "You can negotiate anything". From your professional life to your personal life and everything that comes in-between, negotiation is practically inescapable.

We all negotiate. You do it on a daily basis, sometime even unknowingly. If you have agreed to something with another person, then you have participated in a negotiation. Whether you want to ask for a raise or get that compensation in a salary negotiation or you want to buy a new house, negotiation is inevitable.

In the world of business there is a need to negotiate outcomes every step of the way and if you are not skilled at negotiating you could end up losing even if you are very good at what you do otherwise.

Here are a few pointers to help you negotiate successfully:

Do your homework thoroughly

In a negotiation there is no room for ambiguity. If you have failed to prepare, be prepared to fail!

Before you sit at a negotiating table, do your homework. Arrive at what you want to achieve out of the negotiation and what you are willing to give away.

Come up with the worst case scenario and have a Plan B if that happens to come to pass. Now, you have anticipated the worst, created a plan to deal with it and are also clear on what the best outcome would be.

Build 'Trust' early

Trust is the currency of negotiation. I once negotiated a settlement for my company which had gone into a dispute with a public sector client. The client's claim was over a million dollars. When I entered into the negotiation, I sensed that the environment was very hostile and realized that no settlement would result in those circumstances.

Over the next few meetings, I focused primarily on building trust with the client and listening to his side of the story. I refrained from mentioning any aspect of our stand on it. As I connected with the client, we both realized that we had taken extreme positions and that an amicable solution was possible.

I ensured that my company honored anything that I committed. The result was an amicable, 'No-Fault Settlement'.

Always negotiate from a position of strength

Imagine you are out of work, desperate for a job and are called for an interview for a position that you like very much. What do you think the outcome will be?

No prizes for guessing here!

You will probably accept whatever is offered and most likely be dissatisfied with the outcome even though you got the job. Why? Because, you were in no position to negotiate anything!

Consider another scenario. You already have a job and are called for the same interview. This time you will be in a much better position to negotiate as you are operating from a position of strength! See what difference it can make!

So, before you get into a negotiation, know your strengths and weaknesses and assess the value of what you have to offer in monetary terms even if what you offer is only qualitative.

Never give away anything without getting something in return

I learnt this lesson, the hard way. Some years ago, I was negotiating an IT services contract with a Public Sector client in India. The negotiations stretched forever.

In every meeting the client asked for a concession, which I conceded. But, every request I made for counterpart concession was met with the stock reply "We will consider this internally and revert."

The client ended up making no concession at all, while I had exhausted everything that I had to offer. When I look back at it, I realize it was so disastrous that I couldn't have messed it up any more, even if had I wanted to.

Knowledge is the key

The more you know about the objectives, strengths and weaknesses of the other party you are dealing with, the better it is for you to negotiate a win-win solution.

For instance, if you are buying a house and you get to know that the seller is facing financial issues then using this information you could get a lower price in return for an early payment.

Keep your emotions aside

The key to negotiation is communication. And, 80% of all communication, is non verbal. So watch out very carefully, for body language. If the answer to your question is accompanied by a gesture that is contrary to what is being said, then you need to probe further.

For instance, body language experts will tell you that when a person tells a lie, he tries to cover his mouth or touch his nose. When you encounter a gesture like that, be on guard.

Never take a stand that you cannot go back from

Negotiation is about give and take. If you want something your way, you should be prepared to give something in return. If you issue an ultimatum that you simply cannot change, then the negotiation is practically over.

Even if the other party agrees to your unilateral stand, the element of trust would have gone and it would leave the other party feeling vulnerable. And, if you have to back out of your stand, you will lose all your credibility.

Talk about issues and not problems

Referring to a problem as an issue makes it a little impersonal and also paves the way for exploring a solution together.

For instance, let’s say one of your team members approaches you with a request to work from home twice a week. Instead of saying that's a problem for you, explain the issue.

You might end up saying "If you work from home, I will have an issue conducting meetings where your face to face interactions are required. And, I won't be in a position to monitor your progress."

The focus then shifts to addressing the issues and getting an agreement on it.

Use open ended questions

One of the cardinal rules of a negotiation is to keep your communication channels open. You can do this by using open ended questions.

For instance, if you are buying a house and want four months time to make the payment. Instead of saying - "I will need four months to make the payment. Is that OK with you?" You could ask- "What kind of payment terms do you have in mind?"

You may end up discovering that four months was never an issue. So why make it one now?

Never be pushed into a decision if you are not ready

Let’s say you are negotiating a promotion in your organization and you are told that you could get one if you are willing to relocate to another city (that you are not willing to go to). You are asked to decide in 48 hours.

Don't assume that you will lose that promotion if you don't revert in 48 hours. If you need more time to consider, ask for it. Quite often deadlines in a negotiation are a ploy to put pressure on you.

As a rule, everything in a negotiation should be considered flexible.

Know when to walk away from the deal

In any negotiation you have to know at what point, the deal becomes detrimental to you and be prepared to walk away from the deal, if you reach that point.

This is where the concept of BATNA comes in. The term BATNA stands for - Best Alternative to a Negotiated Agreement. Simply put, it is your worst case scenario and encapsulates the outcome if the negotiation fails. Therefore, your objective is to get something better than the BATNA out of the negotiation. If you don’t, you are better off walking away.

Experience is your biggest teacher

During and after every negotiation, analyze in detail, what you did right, what went wrong and what you could have done differently. You will learn more from your mistakes than anything else and you could end up surprising yourself with your expertise in negotiations!

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I am very grateful to all of you for your overwhelming response to my last post- 'The Art of Making a Brilliant Presentation.' It was an eye opener for me!

I am sure many of you would have First Rate negotiation skills and would have negotiated successfully, several times in the past. Please feel free to share your thoughts, advice and experiences. What you think is ordinary for you, could be extraordinary for others.

It goes without saying that your response is very much appreciated!

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