Negotiating successfully

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 the wanted output as the project manager often need to maintain a positive relationship with the counterpart because the success of the project can be viewed as a subjective evaluation by the stakeholders involved. Consequently, accomplishing mutually acceptable solutions is important to the project manager. The object of this article will be to provide recommendations to project managers wanting to improve his or hers negotiation skills.

The best way to uncover any hidden agendas the counterpart may have is by building a trusting relationship during the negotiation. This is done through listening to what your opponents interests are and paying attention to their nonverbal communication.

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 head towards an impasse you may have to reject the offer and apply your BATNA.

An open communication amongst the project team members will result in higher team efficiency and as project manager it is important to have an understanding of communication style of other parties. .. in order to maintain an open dialog with both internal and external stakeholders.

Research suggests that the successful negotiator has a high degree of self-awareness.

Types of negotiation

Every negotiator want to get as much of the goods being discussed as they can but a successful project manager is aware of the fact that there is a broader spectrum of things that matter such as the stability and durability of the agreement. Aiming towards keeping a good relationship with the project stakeholder... repeating a similar deal with the stakeholder at a later point in time. In building good relationships you have to make people trust you. If you employ unpleasant types of negotiation strategies your stakeholders will evidently choose to do business with someone else.

Negotiation theory differentiates between two main types of negotiation.

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. These techniques can provide great short-term benefits but may ruin your reputation as a project manager.

Win-win negotiating is al about maintaining a satisfied opponent whilst achieving the desired output. thereby avoiding future conflict

[section on what to do if the opponent applies a hard bargain style] 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.

Negotiation strategy

In order to achieve the best possible output, you should never walk into a negotiation unprepared. Negotiators with a clear goal consistently outperform those without one. A solid communication plan will help you accomplish an effective negotiation, ensuring the prime goal whilst maintaining a continuous relationship with the opponent. The amount of preparation needed is proportional to the significance of the deal and the stakeholder you are addressing.

The first thing you should do in preparing for a negotiation is to clarify your goal.

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, most research suggests that 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 too 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 cant accept your reservation value, you should implement the BATNA.

Being well informed on the project subject matter will create a strong foundation of confidence and keep the opponent on their toes.

Educate yourself on the other party of the negotiation so you can capitalize on?

Many negotiators develop a negotiation pattern so if you know you are dealing with an experienced negotiator you may find it helpful to talk to business associates for clues on how to deal with the person in question.

Don't appear weak as it by not knowing the details the topic being discussed as your opponent may sense this and ...bluff.. Many negotiators will exploit your lack of knowledge and try to make you feel uncertain about your case.

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 the stakeholder during the negotiation, he or she will feel as though your decisions are less risky and thus more acceptable.

When experiencing a frustrating/difficult 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.

Sometimes, 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.

Effective negotiators are able to both capture and create value in a negotiation. Most negotiations involve multiple issues, which forces the negotiators to be creative and make trade-offs. Both parties can strike a better deal by trading across the issues of the discussion. This is known as logrolling and it requires you to have a clear vision of your own as well as the opponents preferences. These trading elements should be kept in the forefront of your mind throughout the discussion, but are most efficiently used towards the end, when you want to close the deal.

Active listening

Negotiation is about changing someone’s mind, but how can you change their 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.. be bad :(.

Ask open-ended questions like why, as opposed to being assertive. Don’t be afraid to ask. Pay attention to nonverbal communication in order to detect hidden messages. Many people are under the influence that if you want to be persuading you need to be talking, but in reality the case is that.... Learn what matters to the opponent.

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 on going projects.

BATNA

You should always be aware of a viable second option should the negotiation fall short??. The Best Alternative To A Negotiated Agreement, BATNA, is the fallback solution you.... Having thought this through in advance will protect you from making the wrong choice and walking away a suboptimal solution. Having constructed a strong BATNA in advance will also give you confidence. 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. [edit edit! this is a wild mess]

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

Closing the deal

Pay attention to what the opponent signals through their body language. Be patient.

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 not sufficient to accomplish what you want to do. Don’t underestimate the role emotions have in a negotiation as it can have a critical impact on the outcome of the argument. This includes both your own emotions as well as the emotions of your counterpart. You have to be empathic and understand what your opponents interests are and what is important to them at a fundamental level. Try to also to understand external constrains that the counterpart may have. Who is your stakeholder answering to?

Your?

In general a good advice would be to try to separate the person from the argument.

Intense emotions can cause you to lose perspective. Should you feel ambushed by a rush of emotions during a negotiation there are a few steps you can do to release tension. First of all: (POV)

Their?

Your opponent may be conducting a hard bargain technique to save face. He or she may have an idea of who they want to be as a business negotiator and want to establish/maintain a reputation by taking a firm stand/holding out on your proposals.

Calling out irrational behaviour can cause the opponent to lose self-esteem, which can trigger anger (or embarrassment) 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. [can be good too though, write about it here]

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 hold 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 interests and believes. Sometimes we may have negative thoughts which we start assuming are shared with others.

Nonverbal communication

Strong negotiators master both verbal and nonverbal communication. 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 which is communicated. Consequently, the project manager will benefit from having conscious knowledge of the things being said through visual cues. The nonverbal communication covers everything we say through the use of gestures, paralanguage, body language and so on. [maybe more on this?]

In order to successfully negotiate you should be aware of the nonverbal messages you emit as it can be a quite powerful tool if you learn to master it. You can use your body language to convey confidence or honesty, and thus form the type of relationship you wish to have with the person you discussing with. Your opposing negotiator will be aware of your body language either way and if you are not careful they may leverage their position from what they interoperate causing you to walk away with less than initially planned. As the negotiation becomes heated your body may response with a tense body language. Pay attention to what caused you what made you tense, and take a brake.

Things to be aware of

Arm movement. Pay attention to your hands and try to keep them in a neutral position. Restless arm movement will make you appear less confident.

Eye contact. Avoiding eye contact signals unease and lack of confident. However, too much eye contact may make you appear aggressive and intimidating so keep in mind that it is natural to look away when processing new information.

Validation/other. You can affect the opponents satisfaction with the negotiation by influencing their expectations to what they will get through the use of nonverbal communications. If your reaction to a proposal is cooperative and you nod, smile and ... your counterpart will raise their expectations. If you're not prepared to meet the demands they have you will end up with a disappointed counterpart and.. thus no win-win. Conversely, if you meet an offer with a surprised look and squint eyes, possibly even laugh at their proposal, you can lower their expectations. If you

Don't celebrate prematurely 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. A huge smile signals that

References

1 A Guide To The Project Management Body Of Knowledge (Fifth 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)

5 http://onlinelibrary.wiley.com/store/10.1111/j.1571-9979.1998.tb00156.x/asset/j.1571-9979.1998.tb00156.x.pdf;jsessionid=F7F79762F25A4C3C02BFAC1842E854F5.f04t01?v=1&t=jducngb5&s=b4583d8061d7959bb733c14b1366990a0d338aa9 (pdf)

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