How a manager's poor customer negotiation skills affect the team?

In a business setting, being able to communicate well, and having good negotiation skills is important but as a manager it’s even more important and here’s why. A manager is responsible for dealing with clients on behalf of his team, closing deals (sales!) if you will, solving conflicts — that arise in all projects — and making sure everyone is happy at the end. So when you have a really bad client negotiator type of a manager, it does affect not just your relationship with the client but also in turn your morale if you are the underling in that team.+

1. Increased Workload Due to Unfavorable Agreements

When a manager lacks negotiation skills, they may be more likely to agree to demands that are unrealistic or to not negotiate against demands from clients that are excessive. This can result is agreements that put unnecessary strain on the team. For example, agreeing to a deadline without negotiating for additional time or resources causes team members to have to work long hours in order to fulfill it, resulting in stress and burnout. Over time this additional work load with no negotiation of better terms will cause the team to become less productive and increase turnover.

2. Low Morale from Perceived Unfairness

If a team feels their manager is constantly making exceptions for the client without pushing back on their behalf, it can lead to a sense of inequity. Employees may feel unappreciated if they regularly witness their manager accommodating what they consider to be unfair client requests. This sentiment can sap morale, as team members wonder if their work and perspective are actually being advocated for. A manager who doesn’t look out for their own team will likely find that the dynamic of trust and loyalty within the group begins to break down.

3. Inconsistent Project Outcomes

If a manager is not good in negotiation, he will never be able to define clear boundaries and expectations during discussions with clients. For the team, this means that often they would be asked to deliver much higher than what was agreed initially and no additional resources or compensation would be provided for that. This uncontrolled expansion of project goals is often called as scope creep and it typically happens due to weak negotiation. Also, when a manager fails to negotiate well, then the team also can’t plan their activities properly and hence it becomes extremely difficult for them to deliver quality.

4. Lack of Clear Communication and Alignment

Negotiation, it’s not just about winning or losing it’s about defining things and getting on the same page. A manager who is unable to do so will likely be unable to explain his or her teams capabilities, limitations and requirements to the client. The effect of which is that team members will either get ambiguous directions or be forced to react to moving goal posts, both of which are incredibly frustrating. Obviously none of us can deliver something more than what we can, but when there is a gap between what one expects from a client vs what one can deliver leads to further inefficiencies and misunderstandings that clog up an already degenerate workflow.

5. Diminished Professional Growth Opportunities

Strong negotiators are able to get better terms for their group and also make sure they get new and bigger things too. If you aren’t a good negotiator, you might not even realize that you should be asking for more. You may “lose” the better projects, potentially with challenging work or visibility (due to being unaware or due to thinking it was impossible or had no recourse). That isn’t just annoying – over time your team’s prospects can suffer, leading to frustration from the talented people who want some challenges and growth (and then they’ll leave).

6. Strained Client Relationships

Though the manager is responsible for the direct client relationship, if this relationship breaks down due to poor negotiation, it will impact on your team. If a manager doesn’t deal with conflicts or sort out disagreements with clients what usually happens is that an atmosphere of tension is created. The clients may get demanding or impatient and the team bearing the brunt of this pressure can start to sense a threatening or hostile work environment where issues remain unresolved.

7. Diminished Team Confidence in Leadership

A manager’s ability to negotiate effectively is an extension of their leadership. If team members see their manager continuously failing to achieve positive results, confidence in the leader will be shaken. This lack of confidence breeds disengagement – team members believe that their leader is not fighting for them. A large part of leadership is showing a team that all of the hard work that they do behind closed doors when the managers are negotiating with the outside world is protected and fought for, because otherwise, what are leaders left with? When there isn’t trust and admiration, the answer simply becomes authority.

8. Missed Financial Incentives and Rewards

Good negotiation also often results in financial benefits for the organization and the team. A manager who is not a good negotiator might not be able to bring good deals or good payment terms which again might have an impact on the team’s budget, bonuses or resources. As a consequence, this will impact the overall health of the team and the growth, which means that there won’t be hiring budget, money for new tools or even to social events within your teams with team’s budgets.

Conclusion

Managerial customer negotiation skills are needed to get deals that are good for the organization as well as to protect and promote the team but when they are not present, the adverse impact on team workload, morale, development and trust in management is significant. Managers with strong negotiation skills can feel confident they are looking out for their team, creating a better work environment and setting up their organization for long term success.