Negotiation techniques
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The object of this article will be to provide a set of tools and recommendations to a project manager wanting to improve his or hers negotiation skills. | The object of this article will be to provide a set of tools and recommendations to a project manager wanting to improve his or hers negotiation skills. | ||
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Whether it is with an underperforming team member or an important financial contributor, it is a good idea to prepare for the negotiation in advance. The amount of preparation needed is proportional to the importance of the deal and to the importance of the parties involved. A solid communication plan will help accomplish an effective negotiation, ensuring the prime goal whilst maintaining a continuous relationship with the opponent. | Whether it is with an underperforming team member or an important financial contributor, it is a good idea to prepare for the negotiation in advance. The amount of preparation needed is proportional to the importance of the deal and to the importance of the parties involved. A solid communication plan will help accomplish an effective negotiation, ensuring the prime goal whilst maintaining a continuous relationship with the opponent. | ||
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==Types of negotiation== | ==Types of negotiation== | ||
| − | win-win: Every negotiator want to get as much of the goods being discussed as they can | + | win-win: Every negotiator want to get as much of the goods being discussed as they can but the successful project managers are aware of the fact that there is a broader spectrum of things that matter such as the stability and durability of the agreement. The ability to repeat a similar deal with the stakeholder at a later point in time. |
| − | win-lose: In a scenario where the project manager can assume never to engage with the person again distributive bargaining, also known as the win-lose technique, can be applied. | + | win-lose: In a scenario where the project manager can assume never to engage with the person again distributive bargaining, also known as the win-lose technique, can be applied. May provide great short term benefits may also ruin your reputation as a PM. |
==Negotiation strategy== | ==Negotiation strategy== | ||
In building good relationships you have to make people trust you. If you employ unpleasant types of negotiation strategies (such as?) your stakeholders will evidently choose to do business with someone else. | In building good relationships you have to make people trust you. If you employ unpleasant types of negotiation strategies (such as?) your stakeholders will evidently choose to do business with someone else. | ||
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| − | When in a negotiation with a vendor, where the goal is to set a price for a good or service, you can strike a better deal | + | In order to achieve the best possible output, you should never walk into a negotiation unprepared. Be aware of a viable second option. Should the current negotiation fail one can apply the Best Alternative To A Negotiated Agreement, BATNA. |
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| + | Do research on the product or service you are purchasing. | ||
| + | When in a negotiation with a vendor, where the goal is to set a price for a good or service, you can strike a better deal if you are the one who comes up with the first offer. | ||
A good deal is one that is good for both parties. Prior to a negotiation your counterpart will have some expectation as to what sort of deal they will get. | A good deal is one that is good for both parties. Prior to a negotiation your counterpart will have some expectation as to what sort of deal they will get. | ||
| − | Active listening | + | ===Active listening=== |
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| + | Negotiation is about changing someones mind, but how can you change someones mind if you don't know where that mind is. By listening to what the opponent has to say you build trust and you make it more likely to that they will listen to you. | ||
==Managing emotions== | ==Managing emotions== | ||
| − | Managing emotions and relationships are the most important | + | Managing emotions and relationships are the most important parts of being a successful negotiator over an extended period of time. Having a good set of arguments is in not sufficient to accomplish what you want to do. |
The effective negotiator don't underestimate the role of emotions have in a negotiation. This includes your own emotions as well as the emotions of your counterpart. You have to be empathic and understand your opponents interests and what is important to them at a fundamental level. Try to also understand external constrains that the counterpart may have. Who is your stakeholder answering to? The importance of saving face. some people have an idea of how they would like to be perceived in the workplace/ in a professional context. If this is a case try to look for an agreement where you | The effective negotiator don't underestimate the role of emotions have in a negotiation. This includes your own emotions as well as the emotions of your counterpart. You have to be empathic and understand your opponents interests and what is important to them at a fundamental level. Try to also understand external constrains that the counterpart may have. Who is your stakeholder answering to? The importance of saving face. some people have an idea of how they would like to be perceived in the workplace/ in a professional context. If this is a case try to look for an agreement where you | ||
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==Dealing with difficult people== | ==Dealing with difficult people== | ||
There are three types of negotiators out there… | There are three types of negotiators out there… | ||
| − | Your counterpart may apply a hard bargain strategy because they feel your first offer | + | Your counterpart may apply a hard bargain strategy because they feel your first offer was too far from what they value their product or service as. |
| − | . When engaging with a hard negotiator the best solution may be to start looking for other strategic options out there. Improve your alternatives and try to find other options by engaging other stakeholders. If a potential vendor is not willing to reduce their price point | + | . When engaging with a hard negotiator the best solution may be to start looking for other strategic options out there. Improve your alternatives and try to find other options by engaging other stakeholders. If a potential vendor is not willing to reduce their price point you should consider other sorts of perks that the vendor may be able to offer such as additional services. |
| − | When dealing with a difficult counterpart who seems to prefer competition over collaboration, we tend to categorize the opponent as irrational but few people in professional environments are. Before you walk away from the negotiation, try to identify why your opponent is acting the way they are. | + | When dealing with a difficult counterpart who seems to prefer competition over collaboration, we tend to categorize the opponent as irrational but few people in professional environments are. Before you walk away from the negotiation, try to identify why your opponent is acting the way they are. Take time to try to identify any hidden constrains the counterpart might have. This could be a tight budget, fear of walking away from the negotiation with too little or commitments to other ongoing projects. |
Your opponent may also be conducting a hard bargain technique to save face. He/she may have an idea of who they want to be as a negotiator, ha want to establish/maintain a reputation by taking a firm stand/holding out on proposals. | Your opponent may also be conducting a hard bargain technique to save face. He/she may have an idea of who they want to be as a negotiator, ha want to establish/maintain a reputation by taking a firm stand/holding out on proposals. | ||
Calling out irrational behavior can cause the opponent to lose self-esteem which can trigger anger leading to an increasingly competitive behavior. ...be sensitive as some people are self-conscious about the way they are being perceived and work hard to save face. | Calling out irrational behavior can cause the opponent to lose self-esteem which can trigger anger leading to an increasingly competitive behavior. ...be sensitive as some people are self-conscious about the way they are being perceived and work hard to save face. | ||
Revision as of 16:00, 18 February 2018
Contents |
Abstract
Negotiation is a complex interaction between two or more individuals. Having a good set of negotiation skills is most central a project manager both in day-to-day activities amongst the team members of the project and when interacting with project stakeholders. The negotiation skills of the project manager can be said to go beyond achieving a wanted output because the project manager often need to maintain a positive relationship with the opponent of the discussion as the success of the project can be viewed as a subjective evaluation by the stakeholders involved. Consequently, accomplishing mutually acceptable solutions is often important to the project manager.
The object of this article will be to provide a set of tools and recommendations to a project manager wanting to improve his or hers negotiation skills.
Whether it is with an underperforming team member or an important financial contributor, it is a good idea to prepare for the negotiation in advance. The amount of preparation needed is proportional to the importance of the deal and to the importance of the parties involved. A solid communication plan will help accomplish an effective negotiation, ensuring the prime goal whilst maintaining a continuous relationship with the opponent.
Types of negotiation
win-win: Every negotiator want to get as much of the goods being discussed as they can but the successful project managers are aware of the fact that there is a broader spectrum of things that matter such as the stability and durability of the agreement. The ability to repeat a similar deal with the stakeholder at a later point in time. win-lose: In a scenario where the project manager can assume never to engage with the person again distributive bargaining, also known as the win-lose technique, can be applied. May provide great short term benefits may also ruin your reputation as a PM.
Negotiation strategy
In building good relationships you have to make people trust you. If you employ unpleasant types of negotiation strategies (such as?) your stakeholders will evidently choose to do business with someone else.
In order to achieve the best possible output, you should never walk into a negotiation unprepared. Be aware of a viable second option. Should the current negotiation fail one can apply the Best Alternative To A Negotiated Agreement, BATNA.
Do research on the product or service you are purchasing. When in a negotiation with a vendor, where the goal is to set a price for a good or service, you can strike a better deal if you are the one who comes up with the first offer.
A good deal is one that is good for both parties. Prior to a negotiation your counterpart will have some expectation as to what sort of deal they will get.
Active listening
Negotiation is about changing someones mind, but how can you change someones mind if you don't know where that mind is. By listening to what the opponent has to say you build trust and you make it more likely to that they will listen to you.
Managing emotions
Managing emotions and relationships are the most important parts of being a successful negotiator over an extended period of time. Having a good set of arguments is in not sufficient to accomplish what you want to do. The effective negotiator don't underestimate the role of emotions have in a negotiation. This includes your own emotions as well as the emotions of your counterpart. You have to be empathic and understand your opponents interests and what is important to them at a fundamental level. Try to also understand external constrains that the counterpart may have. Who is your stakeholder answering to? The importance of saving face. some people have an idea of how they would like to be perceived in the workplace/ in a professional context. If this is a case try to look for an agreement where you
In general a good advice would be to try to separate the person from the argument.
Nonverbal communication
Research suggests that the successful negotiator has a high degree of self-awareness. Typically, we are much less conscious of nonverbal messages than what we are actually saying, and yet, the nonverbal communication represents two thirds of the message of what is communicated. Consequently, the project manager will benefit from having a conscious knowledge of the things he/she says through visual cues. The nonverbal communication covers everything we say through the use of gestures, paralanguage and body language. [something about the different types with associated recommendations]
In order to successfully negotiate you should be aware of the nonverbal messages you emit. Your opposing negotiator will notice it either way and may leverage their position from what they interoperate, which can cause you to walk away with less than initially planned [something about manipulation].
Dealing with difficult people
There are three types of negotiators out there… Your counterpart may apply a hard bargain strategy because they feel your first offer was too far from what they value their product or service as. . When engaging with a hard negotiator the best solution may be to start looking for other strategic options out there. Improve your alternatives and try to find other options by engaging other stakeholders. If a potential vendor is not willing to reduce their price point you should consider other sorts of perks that the vendor may be able to offer such as additional services. When dealing with a difficult counterpart who seems to prefer competition over collaboration, we tend to categorize the opponent as irrational but few people in professional environments are. Before you walk away from the negotiation, try to identify why your opponent is acting the way they are. Take time to try to identify any hidden constrains the counterpart might have. This could be a tight budget, fear of walking away from the negotiation with too little or commitments to other ongoing projects. Your opponent may also be conducting a hard bargain technique to save face. He/she may have an idea of who they want to be as a negotiator, ha want to establish/maintain a reputation by taking a firm stand/holding out on proposals. Calling out irrational behavior can cause the opponent to lose self-esteem which can trigger anger leading to an increasingly competitive behavior. ...be sensitive as some people are self-conscious about the way they are being perceived and work hard to save face.
When experiencing a biased counterpart it is beneficial to allow the negotiation to stretch over a longer time period. Allow for breaks in from the discussion to release tension and. Time pressure often leads to quick judgement causing both part of the negotiation to feel dissatisfied/walk a way with a less optimal deal at hand.
Common mistakes in negations
A common mistake in negotiation is to over attribute intentionality. When experiencing discomfort in an argument due to comments from the opponent which hurts or upsets, a common mistake is to assume that the person who caused the discomfort meant it. This causes us to retaliate, creating a downwards spiral of conflict. Trying to held back from assuming your opponent deliberately tries to upset you will be beneficial.
The problem of projection. Projecting your own interests and desires on to your counterpart. You presume they share your interest and believes. Sometimes we may have negative thoughts which we start assuming are shared with others.
You can sabotage a win-win negotiation by influencing your counterparts expectations in an non-beneficial way or by meeting their demands too quickly. If your reaction to a proposal is cooperative and you nod, smile and ... your counterpart will raise their expectations and if your not prepared to meet the demands you will end up with a disappointed counterpart. Conversely, if you meet an offer with a surprised look/squint eyes? ... you can lower their expectations. Don't appear too satisfied with the outcome of the negotiation, as this may signal to the opponent that they could have struck a better deal. Don't celebrate prematurely. A huge smile signals that
