Do departments see eye to eye - 5 key aspects to manage Interdepartmental Negotiations

In an organizational context, have you engaged in negotiations with departments and groups across the organization? 

How often have you run close to a risk of derailing the negotiation due to differences in interests and the approach of the departments? 

In these times when the silos in organizations are breaking down, people in various departments of the organization frequently negotiate with each other. During the process of negotiation, they often have to interact with each other, make decisions and get closure quickly. However, the individuals do not always look at every negotiation from the same angle. They may see some of the additional dimensions applicable to the scenario such as their own interests, previous experiences, future aspirations, prejudices and others. These factors have the ability to influence the approach a person may take in interdepartmental negotiations.

Occurrences of differences in interests and departmental cultures happen in any organization, but it is important that these do not become detrimental to a healthy company culture, especially if the departments end up in logjams instead of collaborating to help derive solutions for mutual gains. At the end of the day, the negotiations are to progress the interests of everybody, and primarily the company. While defining the policies and designing the processes, the leaders and their teams have to be proactive in reducing and/or eliminating any kind of impasse that might result from the differences. A sustainable solution needs to be derived that builds in collaboration as well as an environment of executive/senior management support for escalations.

 The key to achieving success in such negotiations would depend on the right combination of the following 5 critical facets:

1. Strong preparation - As it applies to everything we do, “If it is planned well, it will end well”. So, when you are preparing for an interdepartmental negotiation, it is important to determine the key aspects of the negotiation as follows:

• What are your (your department's) own interests and what are the interests of the other department? More importantly, how does this align with the overall interests and goals of the company? It is important to prepare for these to build solutions for everybody 
• Support your proposal with clear justification of the importance of the idea. 
• Understand who is(are) the decision maker(s) in the other department, and how you would cater to their requirements. Understand their style also to prepare holistically.

 2. Engagement - This is the phase where you actually engage with the other departments. Following are critical aspects to consider during this phase:

• During the interaction with the other departments, any prior biases should be kept aside, and negotiation should start with an open mindset. 
• Communication - Focus on how you are communicating to the other department. The essentials of communication in terms of appropriate listening, clear articulation, highlighting the WIIFM etc. are important.
• Style assessment - During the interaction, pay careful attention to the styles demonstrated by the other party, and act accordingly. Often your preliminary assessment of their styles might be different from the style they demonstrate during the engagement. Also bear in mind that departmental leader culture does not come in the way of departmental negotiations.

 3. Effective influencing ability - There are several influencing techniques that apply to these interdepartmental negotiations. Most notable are the following:

• Authority - The effective use of authority is an important consideration. Authority comes from working with facts, being an expert, or having power. Choosing the appropriate authority that provides the most leverage is a very vital consideration. Bear in mind that the other party will also be able to leverage an authority. 
• References - In a negotiation, it is vital to use references. Do you have other departments that can endorse your idea in your negotiation? 
• Bonding - Often, negotiations are governed by the personal rapport and relationships that individuals share with each other (& their superiors). This has an important effect on the result of the negotiation. 

Other influencing techniques can also be applied depending on the circumstances. However, previously mentioned are the most commonly used. For a full review of influencing techniques, you may connect with Anuj Jagannathan who has elaborated these in his book.

 4. Departmental Culture aspects – Over a period, a culture develops within the departments in an organization. This could also be attributable to the leader’s culture. It is highly recommended to bring together different groups of people and to keep aside any competitive behaviours with the focus on the organization as a whole. 

• Information should be shared openly to achieve the company purpose.
• Bear in mind that departmental leader culture does not come in the way of departmental negotiations.
• Goals or performance targets of the departments should foster collaboration.
• Establish a cross-functional group that focuses on achieving organizational goals rather than department/personal goals.
• Establish an effective escalation route for the departments in case of conflicts.

5. Strong closure - At the end of a successful negotiation, it is important to document all the agreed items and get sign-off(s). 

• All assumptions should be properly documented to avoid any misunderstanding and difference of opinion.
• Best practices have to be stated for future reference
• Long term commitments have to be clearly documented so that staff turnover does not impact the decisions made.

The end result of every negotiation can depend on proper application of the process as well as the demonstration of appropriate behaviours and use of influencing skills. Decisions made and behaviors demonstrated in each such instance of handshake will act as a precedent for future negotiations. Over a period, the approach used by each department has an impression on the mind of the individuals and also determines the image of the departments. The departments as a whole might be perceived as cooperative or rigid based on these all instances of negotiation. While it might look like a daunting task, it is key to foster communication, break silos and improve business relationships between departments.

 Henry Ford said “Coming together is a beginning, staying together is progress, and working together is success” 

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