Negotiation Principles

Let’s face it. Most people hate negotiation. Studies showed that people would rather leave a significant amount of money on the table if they could avoid negotiation. I was one of them. However, you cannot avoid negotiation in life, even if you are not in a role that explicitly requires negotiation in the job description. You negotiate daily, whether you like it or not.

Here are a few negation principles that I realized after many years in roles that actually require negotiations with high stakes of money and other long-term impact. This is not a summary of negotiation techniques. There are plenty of books about those. I am going to talk about principles. People can take different practical approaches with their own personal style. But I do believe that these are some very important principles to keep in mind before you even enter the room to negotiate.

1.?Aim for a win-win outcome. Negotiation is rarely a zero-sum game. Typically, both sides have priorities they really want to achieve, but these priorities are usually not the same. Always try to exchange things that will result in a win-win situation where both parties get the most important things out of the negotiation. Not only does this make the current one easy to achieve, but it is also helpful for a long-term relationship.

2. Be honest. Many think of negotiation as a game in which you must outsmart your opponent. I would rather think of it as a partnership. Do not ever try to trip the other side. Of course, you don’t have to show all your cards, but whatever you show, it has to be true. Even if you get away with a false promise at this time, it will come back to bite you later.

3. Be prepared. Get all the facts and think about all possible scenarios beforehand. Don’t rush into a negotiation with partial information. Nothing hurts your strategy and morale more than a total surprise.

4. Keep in mind the goal of your negotiation. Be clear about the goal of negotiation before getting into it, and remind yourself throughout the course. Usually, it is NOT the following:

• Prove you are smarter
• Prove your opponent did something wrong
• Prove your products are superior to others
• Make the other side happy (if they are your customers)

If the other side says something that is not quite true or correct, but will not affect the current negotiation, let it go. Do not argue or agree. You need to control the flow of the conversation and align it to the north star.

5. Let the other side win when necessary. This is an extension of the win-win principle. When you get what you want, let the other side win some if that is within your acceptance range. Letting the other side win will help close the deal and create a happy ending, even if you think what they asked is irrelevant or a bit unreasonable.

6. Willing to walk away. You always need a bottom line that allows you to walk away from a negotiation. Usually, having a deal is better than no deal, but that is not always true. My favorite professor, Dr. Peter Fader from 美国宾夕法尼亚大学 - 沃顿商学院 , emphasizes that “customer centricity” does not mean you have to please every customer at all times. This is also true in negotiation. There are times when no deal is better than a bad deal. If that is the case, keep smiling, shake hands sincerely, and walk away.