Negotiation, daily practice (and 3)

Last week we went deeper in our discussions on Negotiation and we introduced some new concepts about it (Maping, Framing, Expectations...). This week we will close our series of articles regarding Negotiation with the last best practices I would like to share with you.

The first best practice is about maping your ZOPA, the Zone Of Possible Agreement. If you remember we already talked about Walkaway Points and Anchoring of both seller and buyer. If you want to make a good preparation of your Negotiations you need to draw the ZOPA, i.e the area between both parts Walkaway Points and where an agreement is possible. During this process, good skills of Communication are very important and hence it is very advisable to tell, more than asking the other part. Remember that according to Neuro-Linguistic Programming (NLP) most of our communication is non-verbal and Negotiation is not an exception; the words you use and the tone of your voice are to be observed too. Be careful as well with Time Management: a Negotiation process demands a big investment in time for both parts, so it’s normal to arrive at the end of it quite tired and therefore vulnerable. Pay then lots of attention to the “last minute demands” as the other part might use this technique to raise the bar. One typical mistake that beginners can do while negotiating is to repeat the last words of the other part. It’s something that we have learned as “Mirroring” and indeed it’s a good practice because it shows attention to the other part....but when you repeat the figure/price given by the other part it just reinforces their anchoring! It also may happen that during Negotiation the other part states something that you really did not expect and you can be somehow “frozen”....well, if this happens never show your emotions and do something, whatever it can be to create diversion! Could it even be that you feign a malaise or a coughing attack! There are as well some expressions to change while negotiating because they can condition the process. I recently read an article in Fast Company magazine regarding this, and I believe we have to pay attention on it. For instance, it’s much better to say “Thanks for waiting” than “Sorry I’m late”; or using “I don’t” instead of “I can’t” and even “I am focused on this” rather than “I am busy”. All this phrasing puts you in a power position. Of course, never forget to summarize the agreement at the the end of the Negotiation to be really sure that everybody is fully aligned and no misunderstandings happened. And please, be really aware with the use of Negative Language as it just reinforces the opposite of what you want to say: how many times have you seen somebody asking with a negative formula? What would you think the answer will be?....

Beyond ZOPA and Communication there is another interesting concept I’d like to mention. It’s the BATNA: Best Alternative To a Negotiated Agreement...in other words your Plan B, and even C!. Indeed, though we have insisted that Preparation is vital you cannot enter the Negotiation room without alternatives to your proposals. Building your BATNA means that, if the Negotiations don’t go the way you expected, you already have in mind possible paths/ideas to avoid the breaking and not reaching an agreement. Of course there are some elements like the Balance of Power between both sides that will affect the BATNA: which part is more depending on the agreement, what are the precedents, what are the time pressures, etc.

One of the most interesting but demanding experiences in Negotiation is the Group Negotiation, i.e when it’s not a “one-to-one” exercise but a multiple parts process. There is a lot to say about this very particular Negotiation but I will especially insist that, during the preparation process, there are a couple of items to check: the Roles that everybody in the team will play, and what can every role say and avoid saying. Regarding Roles there is a typical distribution of them and you will normally find: the Leader, the Principal Negotiator, the Financial Specialist, the Observer and a Business Specialist depending on the topic of the Negotiation. The Leader normally is the one who manages the climate of the meeting, which he opens, and summarizes the ideas/agreements. The Principal Negotiator is the one who carries all the weight of the Negotiation, as he is the one delivering and receiving the proposals. The Financial specialist is the one who looks at the numbers from both parts, being sure that everything is under control from that point of view. The Observer is a role that is not very much considered but that can be key in a Negotiation process. He “just” observes the reactions of the other part, but by doing this he can analyze the non-verbal communication and therefore detect any inconsistency that could potentially reveal a trickery... And finally you can as well invite a Business Specialist depending on the topic of the Negotiation, bringing their expertise according to the needs of the process. Just remember that Specialists of all kind (including Financial) have only to speak when asked or if they notice a big controversy/misunderstanding.

Last but not least we have to talk about Concessions. I have seen during my life many experienced account managers just agreeing 100% to what the buyer has asked them without asking for a counterpart or concession....when this is even the whole principle of this game! Concessions are about that, asking back a movement from the other part after they make a demand which modifies the initial setting. The risk here is to link every Concession to Price. I would strongly recommend you to map, during the preparation process, all the Tradable items you could potentially ask back as a counterpart. Believe me there are much more elements than you think, it’s just a question of “making the cake bigger”: added volumes, payment terms, product specs, delivery conditions, administration processes, marketing budgets, etc. Another advice is, as well, to quantify in value these possible Concessions when you map them, because they do not normally have the same value... and link them, so the game will be something like “if you take this, then we give you that”. Pay also attention to the difference between “real value” and the “perceived value” as sometimes it happens that something that costs you “peanuts” is very valued by the other part.

Well, I hope you have liked these series of 3 articles regarding Negotiation. It is a practice that I really love and enjoy, and through my whole career I have had the chance to participate in different seminars (IESE, Acclivus Corp, ESIC, Cegos...) and to learn from the best, good bosses and colleagues I have had. But overall if you really want to improve your Negotiation skills I can only recommend you very strongly to contact iNegotiate, the best Negotiation Academy and Consultancy, where Philip Blanc, its CEO, will make you a “Master Negotiator”. Concepts we have discussed here come from their expertise and believe me, when you participate in their “Master Negotiator Workshops” there is a “before and after” in your Negotiation life...but I won’t say more!

Don’t forget that Negotiation is a ritual and that you need to practice it to become a good negotiator...the World has never learned as fast about anything, ever.