Negotiation techniques

Revision as of 15:02, 19 February 2018

Change title to either: Successfull negotiation Negotiating successfully

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 recommendations/a guide line to project managers wanting to improve his or hers negotiation skills.

Effective negotiators are able to both capture and create value. Most negotiations involve multiple issues which allows the negotiators to be creative and make tradeoffs. You can strike a better deal by trading across the issues of the discussion. This is know as logrolling and it requires that the negotiator/ you a clear vision of your own as well as the opponents preferences. there may be .. value you dont care for

The best way to uncover any hidden agendas the counterpart have is by building a trusting relationship during the negotiation. This is done through listening to what the opponents interests are,

When in a negotiation you should have high aspirations and fight hard for your case, but your expectations of the outcome should also be firmly grounded in reality as your proposal may not seem as good as you might think to the opponent. Should the negotiation reach an impasse you may have to reject the offer and apply the BATNA.

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. The Zone of possible agreement is

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 order to achieve the best possible output, you should never walk into a negotiation unprepared. Negotiator with a clear goal consistently outperforms those without one. 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. 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.

The first thing you should do in preparing for a negotiation is to clarify your goal. Having constructed a strong BATNA in advance will give you confident.

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. Don't meet their demands too quickly, by raising the stakes to much at a time. When negotiating a financial matter you should prepare by calculating your reservation value, the lowest valued price your willing to accept. If the opponent fights you on this, you should implement the BATNA.

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. By creating a trusting bond with with the stakeholder during the negotiation, he or she will feel as though your decisions are less risky and thus more acceptable.

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 also make it more likely to that they will listen to you. If your not sufficiently empathic, and your listening style is interruptive?... it will show.

active listening: ask good questions that are open ended qustions like why, as opposed to being assertive. Don’t be afraid to ask. Pay attention to nonverbal c in order to detect hidden messages. Many people are under the influence that if we want to be persuading one needs to be talking, but in reality the case is that.. Learn what matters to the opponent.

BATNA

You should always be aware of a viable second option should the negotiation fail. The course of action The Best Alternative To A Negotiated Agreement, BATNA, is the fallback solution you outside alternatives. Having thought this through in advance will protect you from making the wrong choice and walking away a suboptimal solution. To create your BATNA, begin by listing alternatives. Brainstorm viable options which can meet your intent by other means and at the same time pleasing the relevant stakeholders. Evaluate each option and calculate the value of pursuing it. Then chose the most attractive solution and establish the BATNA. Implement the BATNA if the negotiation is headed towards impasse. Having a strong BATNA will increase your negotiation power so you should take active steps to better your BATNA.

Sophisticated negotiators does not only think through their own BATNA, they will also have thought about what the opponent might do without the proposed deal. Although this is harder to asses it will give you an understanding of their negotiation power, what they can obtain without your proposal and their possible trigger points.

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.

Should you feel ambushed by a rush of emotions during a negotiations there are a few steps you can do to release tension.

Common mistakes

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. Once you are under the impression that the counterpart has negative thoughts you dislike him :(

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]. Pay attention to your hands and try to keep them in a neutral position. Restless arm movement will make you appear less confident. As the negotiation becomes heated your body may response with a tense body language. Pay attention to what caused you to

Avoiding eye contact signals unease and lack of confident. However, too much eye contact may make you appear threatening / aggressive/ intimidating. It is natural to look away when processing new information.

You can affect a win-win negotiation by influencing your counterparts expectations to what he/she will get. 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

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 who negotiate in a self-serving manner 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 use more time before reaching an agreement. Allow for breaks in from the discussion to release tension and... Time pressure often leads to quick judgement which can cause both parties to walk away with a less than optimal deal.

References

1 Getting to Yes: Negotiating Agreement Without Giving In (Penguin, 1991, second edition)

2 Dealing with difficult people, Harvard law school

3 https://www.bc.edu/content/dam/files/centers/cwf/individuals/pdf/BANTABasics.pdf (pdf)

4 Gower Handbook of Management Skills (Dorothy M. Stewart, 1998, third edition)