Negotiation Skill Sharing - Part 1

Dear friends

To start 2023, would like to share some ideas on Negotiation skill as it is also RA core skill. Plan to share this weekly and we hope you find it helpful

What

Negotiation is a process in which two or more parties with different interests and needs work to find a mutually acceptable solution to a problem or dispute. The process often involves discussions, compromise, and the exchange of information and ideas. Negotiation can take place between individuals, groups, organizations, or nations and can be formal or informal.

History

The practice of negotiation is ancient and can be found in many cultures and civilizations throughout history. In ancient times, negotiation was often used to resolve conflicts between tribes and nations, and to establish trade agreements.

In modern times, negotiation is used in a wide range of contexts, including business, politics, and law. The study of negotiation as a discipline began in the 20th century, with the work of scholars such as the American lawyer and diplomat Roger Fisher, who co-wrote the 1981 book "Getting to Yes: Negotiating Agreement Without Giving In".

This book is widely considered as one of the most influential works in the field and popularize the idea of "principled negotiation" which advocate for separating the people from the problem, focusing on interests instead of positions, generating a variety of options before deciding what to do and insisting that the result be based on some objective standard.

Fun Facts

?According to a study by the Kellogg School of Management, negotiators who made small talk at the beginning of a negotiation were more likely to reach a mutually beneficial agreement.

• Research has shown that people tend to overvalue the things they own. This phenomenon is known as the "endowment effect," and it can have an impact on negotiations, as people may be less likely to part with something they own.
• Studies have also shown that people are more likely to make concessions in negotiations if they think the other person is similar to them. This is known as the "similarity-attraction effect."
• In many cultures, gift giving is an important aspect of negotiation. In some cases, gifts are given to establish trust and goodwill, while in other cases, they may be used to gain an advantage.
• Negotiations can be affected by a variety of nonverbal cues, such as posture, facial expressions, and gestures. For example, research has shown that people tend to view others as more powerful and trustworthy when they are standing tall and making direct eye contact.
• Negotiations can happen with non-human entities, computers or AI programs negotiate with each other over prices and rules for self-driving cars.

Measurement of Negotiation Success

Measuring the success of a negotiation can be a bit subjective, as what may be considered a success for one party may not be for another. However, there are a few general indicators that can help you determine whether a negotiation was successful:

1. Agreement: The most obvious indicator of a successful negotiation is that the parties were able to reach an agreement that satisfies the interests and needs of all parties involved.
2. Mutual benefit: A successful negotiation should result in a solution that is mutually beneficial for all parties. This means that the agreement should not only address the interests and needs of the parties, but it should also be fair and equitable.
3. Improved relationships: Negotiations can help to establish and improve relationships between parties, so a successful negotiation should lead to better communication, understanding, and cooperation between the parties involved.
4. Meeting goals and objectives: Prior to the negotiation, both parties should have clear goals and objectives, if the outcome of the negotiation is aligned with the goals and objectives of all parties, then it can be considered a success.
5. Cost/time effective: In some cases, the negotiation process could be costly or time consuming, if the outcome of the negotiation justifies these costs, it's considered successful.
6. Implementation: Successful negotiations should be followed by successful implementation of agreements, you could measure the success of negotiation by checking if the agreements are being followed and met.

It's important to note that what constitutes a successful negotiation will vary depending on the specific context and the parties involved. It's important to have a clear understanding of the goals and objectives of both parties, and to evaluate the outcome of the negotiation based on how well it addresses those goals and objectives.

Look forward to share more next week (Risk and Benefit of Negotiation, Different strategy with pros and cons, What is principal negotiation, How to improve etc)

Jack

Asia Regulatory Professionals Association