Is negotiation an art or a skill? Can we learn to master it?
Jagriti Kumar
Business Leader, India & SAARC | General Management | P&L Management | Entrepreneur | IIM Ahmedabad | Sales & Marketing | Healthcare | J&J, Smith & Nephew, Coca Cola, ICICI Bank UK
Negotiations define the outcome in a conversation or a deal. I define a successful negotiation as one where all parties walk away satisfied, achieving a win-win outcome. It might not be the best case for everyone, but it satisfies the least minimum criteria for all. While negotiation is an art, it is skill based and one can always learn it.?
Practicing this skill involves meticulous planning, self-awareness and strong execution.
Planning for Negotiations:
Know Your Objectives: Begin by defining your goals and what you hope to achieve- the best case and the least minimum. Understand your needs and needs of the other party. Clarity is key.
Research: Investigate the other party's background, interests, and potential negotiation tactics. The more you know, the better you can strategize.
Set Priorities: Rank your objectives in order of importance. This helps you remain flexible during the negotiation process.
Determine Your Walk-Away Price: Knowing the lowest offer you are willing to accept prevents making rash decisions during the negotiation.
Executing a Successful Negotiation:
Build Rapport: Establish a positive atmosphere by being respectful, empathetic, and a good listener. Trust and goodwill are the foundations of successful negotiations.
Communicate Clearly: Express your points concisely and persuasively. Use active listening to understand the other party's perspective.
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Seek Common Ground: Identify shared interests and goals. A win-win negotiation hinges on finding mutually beneficial solutions.
Creative Problem-Solving: Be open to innovative solutions that might deviate from initial expectations.
Handle Ethical Dilemmas: If demands conflict with your values, communicate your concerns respectfully. Explore alternative options that align better with your principles.
Maintain Patience: Negotiations can be lengthy. Stay patient and avoid rushing into decisions that don't align with your goals.
In summary, a successful business negotiation is not about one party triumphing over the other; it's about finding common ground where both parties benefit. It involves meticulous planning, open communication, and the flexibility to adapt to changing circumstances. While sticking to your values is crucial, a willingness to explore creative solutions can often lead to a more satisfying outcome. Remember, your walk-away price is your safety net, ensuring you don't compromise beyond your limits. Mastering the art of negotiation is a valuable skill that can foster long-term business relationships and sustainable success.
I found "Never Split the Difference: Negotiating As If Your Life Depended On It" by Chris Voss, the best book on negotiations that I have read. Which is the best book on negotiations you have read?
Sales Manager - Surgical Vision Suite at Alcon. Student@NMIMS
1 年Thanks for sharing Jagriti Kumar
Chief Oprating Officer at Leading Healthcare
1 年Thanks Jagriti Kumar for bringing up this pivotal subject . I totally subscribe to all the points . In my opinion what I have seen that if you can win the client with unimaginable service which may be intangible immediately, In long run client will reward you 4 times in tangible ways . I feel if I can add value to the growth of my clients , my clients will never mind in paying the price . let us replace the term negotiations with Value addition for mutual growth.
Orchestrating Procurement & Supply chain excellence || Driving value through strategic sourcing || PMI??
1 年Nice article . Well mentioned , Win-win is ideal and very challenging to achieve. However if the win is defined basis the purpose and not people or org, then it may be achievable. Well explained in the book “ Getting to yes”- Roger Fisher &. William Ury.
Ex General Manager at Titan Industries
1 年Hi Jagriti, very well articulated note on one of my key task most part of my life. And I remember all the innovative ways we found to maximise value for each other’s companies. My two cents on the topic is that, research before negotiating has to focus on list of aspects that are of value for either side beside just price. This is the fundamental tool to enable creation of win win outcomes. For example, in retail, brand presence - product placement, VM, staff training etc are of value to the brand. Special arrangements to enhance service levels, quicker response/resolution of customer concerns, managing inventory/absolesce and parity in promotions are of value to the retailer. In my experience with retail as well as contract manufacturing, such non price aspects end up opening up monetary arbitrage. In simple terms, there are items that are of monetary value to the other party which you can provide with much lower cost. All it requires is the flexibility that you have mentioned.
NSM at Smith & Nephew Endoscopy
1 年My moto - you put your foot int something, you get it