How to Nail A Negotiation: What is a Negotiation?

Having had the privilege of training many negotiators all over the world for some years now, one of the key obstacles I frequently come across is the issue of mindset. Put simply many of us go to the negotiating table with a less-than-ideal definition of what “negotiation” actually is!

We think that in some way we are required to outsmart our negotiating counterparties in a confrontation or competition. This in turn often leads to defensive or even aggressive behaviours that actually move us further away from the result we are seeking. We forget that a crucial aspect of negotiation involves being able to effectively explain and “sell” our solution to the other party. After all, if all sides are incapable of walking away from the negotiating table feeling satisfied with the outcome, then what is the point of negotiating in the first place?

To explain more about how the negotiation process works and how you can nail your negotiations, I've put together a succession of posts which I'll be sharing on here. In it, I'll be leaning on everything I’ve learnt from over 20 years of experience in working and training alongside some of the best sales and negotiation professionals on the planet.

And furthermore, we’ve condensed everything here into a free “Negotiation Checklist” (coming soon!), which you can download and start using to guide your next negotiation. Whether you’re asking for a raise or thrashing out a new business deal, it has something for everyone. 

What Is A Negotiation?

Contrary to what many people think the negotiation process, when it is effectively being conducted, has nothing to do with haggling or competing. On the contrary, the best negotiators are deeply concerned with creatively finding ways of assisting their counter-parties to meet their objectives as well as their own. 

The Business Dictionary defines negotiation as: 

Bargaining (give and take) process between two or more parties (each with its own aims, needs, and viewpoints) seeking to discover a common ground and reach an agreement to settle a matter of mutual concern or resolve a conflict. 

We can see from this definition that the negotiation process hinges on an understanding of the sometimes hidden needs and priorities of our counter-parties, as well as an ability to make and receive concessions (the give and take part). 

Usually we will negotiate when there is a deal we wish to achieve that has the potential for both parties to walk away with a win-win outcome. Regardless of whether we are negotiating with a client or someone else, perhaps with our boss for a pay rise for example, the underlying structure and principles of the negotiation process remain the same. 

Opportunities to negotiate often reveal themselves at critical junctures. Perhaps we are seeking a promotion, or maybe we need to cut costs in our business and therefore need to revisit our relationships with existing suppliers? Whatever the scenario, we need to be fully prepared with a complete understanding of the distinct structure and stages of the negotiation process.

Why do we negotiate?

In a corporate environment, there are many reasons for needing to negotiate – and there are numerous benefits associated with these. For instance, we may wish to build better, longer-lasting relationships with our clients or suppliers that are based on value, and not purely on price. This way our relationships will be more likely to produce rewarding great outcomes for both parties. 

Perhaps we wish to achieve higher sales margins, negotiate a lease or service delivery, or to create the most efficient workable solutions with our suppliers. Whatever the reason, having an effective negotiation framework based on goodwill will help us to achieve our objectives, and will raise our reputation both within our organisation and with our peers and counterparties alike. If we can secure a reputation for being a firm but fair negotiator this will undoubtedly serve us well in all our future negotiations. 

The Negotiation Process

So what are the stages of the negotiation process, and why is it essential to know what is required in each stage? Put simply once we know where we are in a negotiation, it will be possible to employ the right skills to stay ahead. An appreciation of the distinct structure of a negotiation will act as a roadmap for us. 

The stages are as follows:

• Preparation
• During
• Closing
• Walking away (if necessary)

In the the next post, we’ll look at each of these distinct stages in more detail.

If you have any questions regarding your negotiation process feel free to get in touch!