1.0 INTRODUCTION

Negotiation is one of the most common approaches used to make decisions and

manage disputes. It is also the major building block for many other alternative dispute

resolution procedures. Negotiation occurs between spouses, parents and children, managers

and staff, employers and employees, professionals and clients, within and between

organizations and between agencies and the public. Negotiation is a problem-solving process

in which two or more people voluntarily discuss their differences and attempt to reach a joint

decision on their common concerns.

Negotiation requires participants to identify issues about which they differ, educate

each other about their needs and interests, generate possible settlement options and bargain

over the terms of the final agreement. Successful negotiations generally result in some kind of

exchange or promise being made by the negotiators to each other. The exchange may be

tangible (such as money, a commitment of time or a particular behavior) or intangible (such

as an agreement to change an attitude or expectation, or make an apology). Negotiation is the

principal way that people redefine an old relationship that is not working to their satisfaction

or establish a new relationship where none existed before. Because negotiation is such a

common problem-solving process, it is in everyone's interest to become familiar with

negotiating dynamics and skills.

Negotiation about operational matters may often be informal and about minor matters.

However, the cumulative effect of such issues may be very important. Consequently, attention

needs to be given to the ability of managers to handle such discussions. Negotiation is no

longer a skill, if it ever was, that can be seen to be just the province of specialists responsible

for commercial and employee relations issues. Negotiation is a key skill for business.

Negotiation is often viewed as unpleasant, because it implies conflict, but negotiating need

not be characterized by bad feelings or behavior. Negotiating has nothing to do with people or

relationships. Negotiation is the process by which two or more parties with different needs

and goals work to find a mutually acceptable solution to an issue.

The negotiation preparations is very important to make best negotiating where should

know the bottom line, research, research and research to collect the information, be prepared

the requirements and associated, adopt a mindset that is not adversarial and per - meet as

appropriate. There are three key strategies to keep in mind when negotiating, have a game

plan or strategy, begin with the right mindset and know what kind of person you’re dealing.

Then, four main negotiating styles that help to make best negotiation. There are ways to make

barriers to successful negotiation, should viewing negotiation as confrontational, becoming

emotional, possessing a bad attitude, focusing on personalities, not issues, not listening, and

principles in negotiation.

2.0 NEGOTIATION PREPARATIONS

Proper preparation in simple terms involves locating relevant information, if possible,

and then processing and using it to your benefit in a discussion. The infusion of this

information and analysis, both before and throughout the process, can help decision makers

make the right decisions and increase the probability of meeting or exceeding corporate

financial objectives.

When preparing to negotiate in addition to knowing what your alternatives are, you

should also determine what your bottom line is.  In other words, what is it that you would not

accept the deal and you would be willing to walk away from the deal?  At what point do you

decide that the deal is not worth it.  This may be price or something other factor. 

For instance if you have a deadline and the other party cannot meet your delivery date, then

would you walk away from the deal?  It might be that their delivery is a key component in

some other deal and if delivery is not made by a certain time, you cannot commit to it.

Are there terms that shift risk to you that you cannot accept?  No prudent person

would accept a deal if it would bankrupt their company unless they felt that the risk was more

than off-set by the rewards.  When I was working in the aerospace industry, the government

was issuing Requests for Proposals (RFPs) that required contractors to conduct preliminary

research and development work with hard deliverables rather than on the traditional cost

reimbursement basis.   Another division of my company accepted a fixed –price contract for

research and clean-up of a site that had “green engineering” where the specifications were not

set.  In fact, it turned out that they were not only not complete they were also not well thought

out at all.  After I had left the company, the parties got in a lawsuit, sued each other for over

twenty million dollars.  Both reputations and relationships were destroyed on this contracting

experiment.  This type of contracting fast fell out of favor, partially because the government

could not find foolish contractors to take the risk.

Determining your alternatives to negotiation, will help you also determine your

bottom line.  This is where your alternatives are better than the deal you are currently

negotiating.  When the deal offered is worse than what you can tolerate, don’t be afraid to

walk away.  If you accept the bad deal, you will probably regret it.  Knowing your bottom line

prior to negotiations can keep you out of trouble.

2.1 KNOW THE BOTTOM LINE

If you want something done right, do it yourself. Beware of hiring someone to

negotiate for you. Too often hired negotiators are little more than mediators. Their reward

stems from the reaching an agreement rather than the actual terms of the agreement.

Companies who hire real estate negotiators and reward them based on performance are asking

for trouble. The very people who should be protecting the operating viability of the company

are rewarded for something else, making the deal. People are human and incentives are

important. Attorneys pose a different challenge to their clients. Some attorneys enjoy the

process, the fight. They would rather fight to the end then compromise and settle. This is good

for their egos and billable hours.

Knowing your bottom line is important. The bottom line is the point that you should

either be prepared to walk away or to start bluffing seriously. In most cases, you should walk

away. The deal was not meant to happen. When you walk away the other party may reach out

to bring you back to the table. That is when you know they want the deal more than you do

and that you might be able to agree on your terms. Do not confuse goals with bottom lines.

Your goals are what you want to achieve while your bottom line is what you need to achieve.

Whether you are negotiating over money, land, or any other commodity, interest, belief or

service it has a personal value to you. Before you relinquish it, you want to establish that

value so you don't sacrifice it for less. Your bottom line is not your goal or objective. It is the

worst case scenario that you would accept. Anything less and you would refuse.

Your bottom line has little to do with your cost in acquiring the item. It is the lowest

price you would be willing to accept. This might include among other things the actual

acquisition cost, the interest on the money invested while you owned it or the "carry cost", the

value of improvements you made to the item, the discounted future value you think the item

may have were you to keep it, any other cost you expended to acquire, hold or sell the item.

This is not your asking price. That is negotiable. This may not even be your non-negotiable

bottom line. This is your frame of reference when setting your bottom-line before the

negotiating gets hot and heavy. In the throes of the bid and ask you do not want to have to

decide a that time what your bottom line is. It is too easy to miss something or make a mistake

when calculating under duress. Do it in the quiet of the preparatory period when emotions are

in check and you have ready access to files and records.

Know your bottom line. It is critical to understand what you want beforehand. That way,

you'll know it's time to stop. I've seen lots of event planners continue negotiating beyond what

they need and, as a result, end up with nothing. Knowing your bottom line also prevents you

from agreeing to something that is unacceptable.

2.2 RESEARCH, RESEARCH, RESEARCH

Analysis of business targets

The first order of business in an assertion is to identify potentially infringing products

or processes and who is making, using, selling or importing them. Once targets are identified,

claims should be read on the offending products or activities of each target. The researcher

then needs to determine when they were launched, confirm they are still on the market and

explore whether related products of the target share the traits of interest. Where and how the

products are sold globally, and their sale price, is also important for determining the value of a

successful assertion. The state of the company selling the products is also important. Its

financial health, investment strategy, corporate structure and market share are all relevant.

Past, current and projected future product activity and strategy should be researched and

considered. Identifying the target’s affiliates is also critical to determining whether the target

or its affiliates hold patents that may be used in counter-assertion.

Information is power. Collect as much information before starting any negotiation.

Use conversations with the other party, website information, company annual reports, ets. To

help collect information. The sooner a meeting manager understand the other party’s

objectives, demands and requests the more prepared they will be for serious negotiating. For

meeting menagers research also includes fully documenting the value of the meeting.

Historical information will help a meeting manager effectively negotiate.

2.3 BE PREPARED

Gathering, analyzing and utilizing strategic information prior to and during a

negotiation allows your company to proceed with confidence into discussions that are

typically charged with both significant risk and reward. Bringing information to the

negotiation not held by the other party may produce a successful negotiation. The result may

be substantial revenue or a strategic business deal with tremendous benefit to the corporation.

Information that enables the decision maker to focus on deals with a greater potential for

success, or with less risk, saves time and resources. Before negotiating, know exactly what are

the requirements and associated priorities. Be ready to articulate what is important, its relative

importance and why it is important, and also anticipate what the other side will have on their

list. Compile a list of their wants and needs.

2.4 ADOPT A MIND SET THAT IS NOT ADVERSARIAL

The RINTtm preparation will create a focus that is centered on the other party, not

solely centered on you. The more a meeting manager can put themselves in the other party’s

shoes, the more likely the negotiation will be successful.

2.5 PRE-MEET AS APPROPRIATE

Even with the best preparation, surprises can occur during licensing discussions.

Invalidating art must be found, file wrappers reviewed, and new products analyzed. Research

should continue from the day the program is considered until the moment the deal is executed

– or dies on the vine. Unfortunately, many professionals have too much to do in too little

time. However, for those involved in transactions, gathering, analyzing and processing

information both before and during a negotiation or meeting is critical to setting proper

expectations and supporting the negotiation.

Most business development and licensing groups embedded in corporations have

financial targets they must meet each quarter. To meet these objectives, each transaction must

be handled carefully so as to minimize the chance that it will bog down (or fail completely)

after significant time and resources have been expended on the program. Many times,

negotiations fail because the parties have not properly scoped the opportunity and do not

sufficiently understand the assets, their value, and their importance to one side or the other.

This can create long delays or disconnects, and even kill a deal altogether.

3.0 THREE KEY STRATEGIES TO KEEP IN MIND WHEN NEGOTIATING

As we know, negotiation is a dialogue between two or more people or parties,

intended to reach an understanding, resolve point of difference, or gain advantage in outcome

of dialogue, to produce an agreement upon courses of action, to bargain for individual or

collective advantage, to craft outcomes to satisfy various interests of two people or parties

involved in negotiation process. Negotiation is a process where each party involved in

negotiating tries to gain an advantage for themselves by the end of the process. Negotiation is

intended to aim at compromise. Negotiation occurs in business, non-profit organizations,

goverment branches, legal proceedings, among nations and in personal situations such as

marriage, divorce, parenting and everyday life. The study of the subject is called negotiation

theory. Professional negotiators are often specialized, such as union negotiators, leverage

buyout negotiators, peace negotiators, hostage negotiators or may work under other titles,

such as diplomats, legislators or brokers.

The word of “strategy” is derived from the Greek word “stratcgos”; stratus (meaning

army) and “ago” (meaning leading/moving). Strategy is an action that managers take to attain

one or more of the organization’s goals. Strategy can also be defined as “A general direction

set for the company and its various components to achieve a desired state in the future.

Strategy results from the detailed strategic planning process” .

A strategy is all about integrating organizational activities and utilizing and allocating

the scarce resources within the organizational environment so as to meet the present

objectives. While planning a strategy it is essential to consider that decisions are not taken in a

vacuum and that any act taken by a firm is likely to be met by a reaction from those affected,

competitors, customers, employees or suppliers. Strategy can also be defined as knowledge of

the goals, the uncertainty of events and the need to take into consideration the likely or actual

behavior of others. Strategy is the blueprint of decisions in an organization that shows its

objectives and goals, reduces the key policies, and plans for achieving these goals and defines

the business the company is to carry on, the type of economic and human organization it

wants to be, and the contribution it plans to make to its shareholders, customers and society at

large.

There are three features strategy :

1. Strategy is significant because it is not possible to foresee the future. Without a perfect

foresight, the firms must be ready to deal with the uncertain events which constitute

the business environment.

2. Strategy deals with long term developments rather than routine operations, i.e. it deals

with probability of innovations or new products, new methods of productions, or new

markets to be developed in future.

3. Strategy is created to take into account the probable behavior of customers and

competitors. Strategies dealing with employess will predict the employee behavior.

Strategy is a well defined roadmap of an organization. It defines the overall mission, vision

and direction of an organization. The objective of a strategy is to maximize an organization’s

strengths and to minimize the strenghts of the competitors. Strategy in short bridges the gap

between “where we are” and “where we want to be”.

Strategy exist at several levels in any organisation- ranging from the overall business (or

group of businesses) through to individuals working in it. There are three strategy at different

levels of a business:

Corporate strategy- is concerned with the overall purpose and scope of the business to

meet stakeholder expectations. This is a crucial level since it is heavily influenced by

investors in the business and acts to guide strategic decision-making throughout the

business. Corporate strategy is often stated explicitly in a “mission statement.”

Business Unit Strategy- is concerned more with how a business in particular market. It

concerns strategic decisions about choice of products, meeting needs of customers,

gaining advantage over competitors, exploiting or creating new opportunities etc.

Operational Strategy- is concerned with how each part of the business is organised to

deliver the corporate and business-unit level strategic direction. Operational strategy

therefore focuses on issues of resources, processes, people etc.

Strategy is very important when we do negotiating. It is because, with good strategy, it will

make our negotiating becomes smooth and clear. With good strategy, it will help us to attract

others do negotiation with us. There are three key strategy to keep in mind when negotiating.

3.1 Have a game plan or strategy

Your game plan or strategy is a starting point a brief outline of what you would like to

accomplish and how. It is not a rigid rulebook to be appealed to throughout the negotiation,

no matter what. You are working another human being, someone who doesn’t appreciate

being “backed into a corner” any more than you would. Set a strategy, with clear goals and

possible tactics, but be willing to revise it as circumstances and your most important interests

warrant.

3.2 Begin with the right mindset

Mindset refers to the overarching idea that what we think--and particularly what we

think about ourselves--influences how we perceive the world around us and how we

experience that world.  Our thoughts, perceptions, and emotions shape our reality.  A perfect

example of this is the placebo effect; quoting again from yesterday's post, recent research has

shown that "A particular mind-set or belief about one's body or health may lead to

improvements in disease symptoms as well as changes in appetite, brain chemicals and even

vision..." 

A second definition of mindset is the process of understanding cognitive biases and

principles of neuroscience in order to leverage them and turn them to our advantage, rather

than be buffeted about by them.  Yesterday I wrote about a cognitive bias called the

"fundamental attribution error"--ascribing causality to personal characteristics when causality

actually lies with the situation--and how awareness of this bias and its impact on our mindset

can allow us to cope more effectively with setbacks.  I've also written about other heuristics

that can lead us astray, such as availability bias--"the tendency to judge the likelihood of an

event by the ease with which relevant examples come to mind"--and affective errors--"the

tendency to make decisions based on what we wish were true."  Recent research on

neuroscience and brain function provides additional insights into why we act the way we do,

and one of the best examples is David Rock's SCARF model, which "captures the common

factors that can activate a reward or threat response in social situations."

Most people go into negotiations thinking one of the two things:

“I have to win at all cost. I don’t want to look stupid. I have done my homework and,

by gosh, i know what X, Y and Z cost. I am not going to be taken advantage of!”

“Please, please, just be reasonable and give me X,Y and Z without hassle. I really

don’t want to fight with you over this.”

Do you see any problem with these approaches? Each one has faith in you but not the

other party. That belief immediately makes negotiation difficult. If you believe the

other party will try to take advantage of you, then you lose your biggest edge – the

perception that the other person will do anything they can do to help you. That’s the

mindset you have to start with. Believe me, people can tell whether you believe in the

best or worst of them. They will try to live up to either expectation.

3.3 Know what kind of person you’re dealing

This is the biggie, and it’s the subject i will spend the most time on here. Most people

make the mistake of assume in there is a single list of “tough negotiating tactics” that works

with everyone. When i first started negotiating multi-million dollar deals, i really felt i had to

have all these “hardball tactics” in place. I practiced saying, “Is that the best you can do?” in a

mirror with a serious face. Hardball was my style. I liked to negotiate fast and liked to win!

But there was something missing. I noticed that every time i went to negotiate, i had to roll up

my sleeves and out-think my opponet again. The process got combative, it just plain wasn’t

fun, and i don’t believe i always got the best deal i could. I was leaving out the human

equation- what makes different people tick.

What i am about to share with you works whether you love to negotiate or you hate it

with passion. It works whether you know whom you are negotiating with ahead of time or you

are suprised on the spot. It often results in your leaving the table with more than you came to

ask for! (That’s what my clients have told me, and it’s also my personal experience). The

challenge is what you’re about to learn does require practice and thought to execute well. Ask

yourself, what is the communication style of the other person and how does that affect how

she or he negotiates?

Not every person negotiates from the same point of view. Each person has a different

stake in a negotiation and you need to know what concerns the other party the most. You also

need to know what your own style is. Most people negotiate in the style they are most

comfortable with and they try to bring the other party around to their way thinking. This

doesn’t work, for reason that will become clear to you shortly.

4.0 FOUR MAIN NEGOTIATING STYLES

4.1 Connectors

The Connector is down to earth, warm, friendly and caring. Connectors are people-oriented;

they want you to like them. They usually have very open body language, are congenial, have a

nicely decorated office with family photos and plants, and are neatly dressed and friendly.

They will usually focus directly on you during the negotiation. Their hot button is stability,

and they get stability through personal courtesies. These people will offer you coffee, ask if

the room is all right, and make certain you are comfortable during the negotiation.

Atmosphere and style will be most important in connecting with this person.

Connectors often have a hard time with conflict and tend to crumble or to become very

brittle when "called on the carpet." They hate to feel used or unimportant. If you don't say

hello, if you cut people off, if you become snide or pushy, you will lose in negotiations with

Connectors. They want to connect with you personally. The more they like you and the better

you make them feel, the more flexible they become. To interact effectively with Connectors,

be open, honest and start with some small talk. Get to know them as people. Don't try to "fast

forward" to the negotiation itself. Be open when they aren't meeting your needs -- but don't be

accusatory. For example, if the price is high, be straightforward and say, "That is quite a bit

more than I planned on. I realize you are a very reputable hotel and I would love to be able to

work with you. What can we do together creatively to get that rate down?" Get Connectors

thinking about ways to help you.

Connectors often don't tell you what they are really thinking. Since they don't like

conflict, they will tend to keep strong disagreements or key points to themselves. They will

often end the conversation with a "We'll get back to you," meaning you will never hear from

them again. They can often harbor a grudge if they feel you have belittled them or treated

them disrespectfully.

4.2 Networkers

Networkers desire fun, excitement, and applause. They like to win arguments. They

like the big picture, and they are usually not good at details. Their office will be decorated

with pictures of trips, fun events and family. They will be congenial and friendly and may

spend 70% of the negotiation focusing on small talk. Over the phone, they will be chatty and

make you feel connected right away. They will often jump around in their conversation with

you. Their hot button is recognition, and they get recognition by being people-oriented. They

are great at networking and are usually well connected in their industry and company.

They will negotiate from their gut, and their positions will be based largely on how they feel

about you. The more they like and trust you, the more flexible they will be. If you ask them to

focus on too many details, or try to get them on nitty gritty points they will shut down.

Networkers, show them how this negotiation will benefit them and their company.

Even when you are asking them to make tough decisions, point out why it is better to make

this difficult decision now than to wait. Second, most the people attending are from large

Fortune 500 companies, and this gives you marketing exposure to all of those companies

without you having to spend any advertising money. "Third, if everything goes well, I will be

happy to write a recommendation letter that you can use with other prospects to show your

company's skill in coordinating a large event." Notice how many times you have emphasized

why the other person is smart for wanting to secure the advantages of closing this deal. This is

recognition. Networkers like to close the deal on the spot. Remember since they are not

usually good at details, they are probably not your best contact people once the negotiation is

done. You want to leave with the name of the person you can contact to follow up on all the

details. Be sure to get everything in writing immediately; Networkers often change their mind

and/or forget what they just agreed to.

4.3 Producers

This is probably the best known -- and most feared -- style for negotiation.Producers

are direct, to the point, goal oriented and frequently in a hurry. They think fast, move fast and

talk fast. Over the phone, they will be abrupt and cut to the chase. They may well interrupt

you. Their office is usually neat with several strong stamps of personality-golf trophies, work

trophies, elegant pictures or statues. They usually dress with an eye to presence or force. They

don't walk into a room, they stride in and offer a strong handshake. They make great eye

contact and can almost seem to bore in to you. Not surprisingly, their hot button is power, and

they get power through control. They tend to shoot straight and not mince words. They want

you to give the big picture and they will rapid-fire questions at you to get the answer. They

want the best deal possible, and pride themselves on their ability to get what they want or

need.

They often enjoy the "game" of negotiating as it stimulates their intellect. They thrive

in the negotiation environment. The good news is you do not need to be mincemeat to succeed

with Producers. They are usually not out to eat you up, but they are out to get a good deal.

Realize that this is the one personality style that will not usually take the first deal offered. If

you offer them your best deal and refuse to budge, you disappoint them, because you don't

give them an opportunity to use their skill. So offer a good deal, but be prepared to make

small concessions. Let Producers talk first. If you feel boxed in, be direct about it. For

example, you might say, "Look we both want what is best for our companies; that's why we

are here. I also realize that neither of us wants to take advantage of the other person. So share

with me, why if you were me you would take the deal you just offered." Make them think

from your perspective. They will enjoy the challenge and will often chuckle or back down

when you say something like this.

If you are a Connector, then a Producer will be the hardest style for you to negotiate

with. Producers will give up personal courtesies (in other words, what is most important to a

Connector) in order to "get to the bottom line." They are there to make a deal first and a

relationship second. Be open, direct and call them on their bluffs in a friendly way. Don't try

to punch back. I once had a client call and say they wanted to book me for a speaking

engagement but they could only pay 1/3 of my fee. Now, I had been working with this

prospect for almost 2 years so I knew she knew our pricing and value, yet she was insistent.

Instead of being angry or trying to justify my pricing, I said, "Look, I know you realize the

value of our programs, because you have been working with me for two years. I also realize

you might be working with budget constraints. I want to work with you and I also want to be

fair to my clients across the country. "Quite frankly you have stumped me. I am having a hard

time rationalizing how to do this event at the pricing we are talking about. Can you brainstorm

with me on how we can make this work?" By using that approach, she never had to defend

her offer and I never had to defend my pricing. Instead we took our energy and focused it on

how to get the event done. We ended up finding some creative budgeting ideas that made the

deal work!

4.4 Analyzers

Analyzers tend to be straightforward. They desire accuracy and want the details first

then the big picture. They generally don't like a lot of chitchat. They want to get to the meat of

the discussion. Their office is likely to be bereft of any personal touches, but it will probably

feature stacks of data and information. Over the phone, Analyzers tend to talk slower than the

other three groups, and may insert long pauses during the call. They are likely to remain non-

emotional during a negotiation. Their hot button is accuracy and they get this by collecting

data. They want to make sure all the facts are in place before they make a decision. They don't

like "fluffy" negotiations.

Broad, sweeping statements annoy this person. Give them the facts -- and make sure

they add up. Whatever you hand them will be read closely, either on the spot or after you

leave. Analyzers do not like to finalize a negotiation on the spot. They like to be able to mull

the decision over and give you an answer by email, letter or phone.

They need space in order to make a decision. If you try to "strong-arm" an Analyzer

during negotiations, you will lose. So what I recommend we do during this meeting is find out

whether we are in the same ball park to look at speaking further about how we might work

together." Then give the facts you do have and let the Analyzer proceed from there. If you end

up working with an Analyzer, always have your information ready before you call or visit.

Analyzers will often focus on what could go wrong, even if it's unlikely to. They may

seem to make a mountain out of a molehill. Actually, they are just trying to be accurate.

Appreciate that desire for accuracy; show why the risk is worthwhile, or demonstrate why it's

worth taking. Focus on the positive and emphasize "hard numbers." Putting it all together

Once you start noticing and looking for the personality styles, you will be able to spot them

easily. And once you stop worrying about you and focusing on what the other person is trying

to do, negotiations become less about winning and more about connecting. The bottom line:

Make sure you add value to the other person. This is why it is so important to be able to read

the other person's personality style and speak from his or her perspective. If you ignore

someone's hot button or try to pull him or her over to your style of communication, you will

lose. Have a game plan and be flexible with it, read the other person effectively, and add

value by speaking from the other person's perspective. If you do this, you will find that

negotiations are really "brainstorming sessions" with another party.

5.0 BARRIERS TO SUCCESSFUL NEGOTIATION

Barriers are those obstacles that stand in the way of a successful negotiation. Barriers

can be classified into barriers that have been created, real barriers and perceived barriers.

There are many reasons that negotiation go awry or worse rather than being successful as

have been target. Meeting managers can ensure that their negotiations are more likely to be

successful by avoiding these few common barriers to successful negotiations.

Viewing Negotiation As Confrontational

Negotiation need not be confrontational. In fact effective negotiation is characterized

by the parties working together to find a solution, rather than each party trying to win the

contest of wills. Keep in mind that the attitude that you take in negotiation (eg. hostile,

cooperative) will set the tone for the interaction. If you are confrontational, you will have a

fight on your hands.

Trying To Win At All Costs

If you "win" there must be a loser, and that can create more difficulty down the road.

The best perspective in negotiation is to try to find a solution where both parties "win". Try

not to view negotiation as a contest that must be won.

Becoming Emotional

It's normal to become emotional during negotiation that is important. Often

negotiations are fraught with blame and a focus on personalities. In a negotiation, as in any

relationship, each party contributes for the better one or the worse. Blaming others for

difficulty only further ignites a situation and creates more emotions. Choose words carefully,

speak clearly and positively. Maintaining coolness is must. However, as we get more

emotional, we are less able to channel our negotiating behavior in constructive ways.

It is important to maintain control.

Not Trying To Understand The Other Person

Since we are trying to find a solution acceptable to both parties, we need to understand

the other person's needs, and wants with respect to the issue. If we don't know what the person

needs or wants, we will be unable to negotiate properly. Often, when we take the time to find

out about the other person, we discover that there is no significant disagreement.

Focusing On Personalities, Not Issues

Particularly with people we don't like much because people have a tendency to get off

track by focusing on how difficult or obnoxious the person seems. Once this

happens, effective negotiation is impossible. It is important to stick to the issues, and put aside

our degree of like or dislike for the individual.

Blaming The Other Person

In any conflict or negotiation, each party contributes, for better or worse. If you blame

the other person for the difficulty you will create an angry situation. If you take responsibility

for the problem, you will create a spirit of cooperation.

Not listening

Focusing on what should be said next instead of listening intently to the other party

may erect these barriers. This may cause one or both parties may fall prey to one or more of

the barriers. Negotiating becomes easier with practice. Awareness of potential barriers is one

key to avoiding the problem.

5.1 Effective communication in negotiating

Communications can be blocked by many things ranging from poor equipment to inept

speakers. But the most effective barriers are the internalized psychological barriers that keep

people from hearing what is being said. People hear what they expect to hear. That is, they

filter what they hear to meet their expectations. These filters are created by their past

experiences, how they were raised, their education, and their needs

To be effective, communicators which is negotiators, we must look for and remove

barriers that block their message from being heard and understood. All negotiators must be,

by definition, skilled communicators. That means they must listen as well as speak clearly.

This is because, as a negotiators, you must able to hear, to be heard and understand each

other. They do not need to agree, only to understand. Agreement may come later. When

negotiating with another person, it is important to observe how they are reacting to what you

are saying to make sure they are listening and understanding the message that you delivered.

A good way to do this is to watch the listener's eyes. If they stay focused on your eyes, that

usually means they are intently listening. If however, the wander or disconnect, it usually

means that their mind is racing ahead to formulate what they are going to say, that they are

not believing on what you are saying, or that they are thinking about the hot date they have

that evening. 

A very effective way to do this is to simply stop speaking until they realize that you

are no longer speaking. Then resume as though nothing has happened. Or, depending on the

situation, you may actually want to call their attention to the fact that they weren't listening

and ask them why. Other than that, as negotiators you also need to put some careness to have

more concern from people that you try to negotiate. For example, a person that you want to

negotiate text to you saying that , "I'm really sorry, my daughter is very sick and I'm

distracted. " To this I said that I was sorry to hear about her daughter and we put off further

discussions until the personal problem was resolved. In understanding her personally need, we

dealt with each other as real people. This helped us to overcome some of the tougher issues

we were facing as we had built up a level of trust and respect. The point is that unless

communications are being heard, they should be forestalled until the other person is ready or

capable of hearing what you have to say. 

6.0 TIPS FOR SUCCESSFUL NEGOTIATIONS

Starting a negotiation with applying principles in negotiation will results a positive

negotiation. Other than that, we need more tips to get more successful negotiations. Here are

some tips that will help to get successful in negotiation.

Be inquisitive

Ask questions before and during the negotiation. Skillful questions can reveal valuable

information and transform a negotiation from an adversarial conflict into a

partnership. Start with open-ended questions and move to narrower, more direct

questions. To be more polite, once a question is asked, be quiet and listen carefully.

Restate the response to confirm and clarify. The questions to uncover is about what the

other person’s concerns and needs might include some of example for the questions

- What do you need from me on this?

- What are your concern about what I am suggesting or asking?

- Why is this important to you or to your organization?

- How do you view our business or unappealing?

Share information

Both parties are rely on each other to be forthcoming with information. It is important

to state needs upfront. Offer the underlying reasoning for what is needed and why it is

important.

Be prepared for any disagreement

There will be disagreement and disappointment during any negotiation. Disagreement

involves the issue not the relationship. But how people disagree will affect

relationship. Seek common or set the point aside until later.

Expect the unexpected

When you confronted with an unexpected demand, it is perfectly acceptable to ask for

time to consider the request. Other than that you can try to bundle it with the proposal,

and be prepared to counter with an alternative.

Prepare options beforehand

Project how the negotiation may proceed is by using the best and the worse case.

Prepare options in advance. Place yourself in the other party’s shoes and anticipate

why the other person may resist the proposal, and be prepared to counter with an

alternative.

Don’t argue

Negotiating is about finding solutions not to trying to prove the other person wrong.

Where possible use objective criteria for decision making.

Counting when appropriate

Don’t point out that the other party has not done any compromising. Always leave

room for additional negotiations.

Trade small concession for something in return

Whenever asked for a small concession in the negotiations, ask for something in

return. Propose the following questions in turn. For example : “if we can do that for

you, what can you do for us?”. Don’t give up something without asking for something

in return. Foster use the terminology “free gift”. By asking for something in return

often the other side will make a concession.

Watch the balance

The negotiating process starts with a client and a seller. Depending on the

negotiations, the balance may begin to shift between which party wants it more, where

it represent a successful close to the transaction and the negotiations.

Don’t leave the other person feeling as if they have been cheated.

Everyone speaks about the value of the relationships in the hospitality industry.

Negotiation is about arriving at a solution not squeezing blood from turnip. If the other

party feels they have been taken advantage of it will hurt the overall relationship. Most

negotiations should leave both parties feeling satisfied with the outcomes. Give up

concessions that don’t really matter in order to create a feeling of goodwill.

7.0 NEGOTIATING HAZARD

Negotiating hazards represent opportunities where the negotiation process can be

vulnerable and risky. The instant someone feels cheated, misled or taken advantage of, your

opportunity to negotiate with her/him is over. Negotiation hazards tend to occur when you are

taking a particular strategy too far. Many rookie negotiators have a tendency to push the

envelope a little too far. Their ambition as beginners is understandable, but it will rarely result

in a win–win situation. Negotiating rookies want to be the victors, like they are hunting prey.

Even if the other party consents, they are likely not doing so without some serious

repercussions. High-pressure tactics will most often be read as offensive, condescending,

obnoxious and insulting. Then, trust is lost and ultimately the ability to negotiate is lost, too.

You can always tell that you’re going too far if your prospects find something you say or do

alarming, or if they seem uncomfortable in your presence. Always be sensitive to the mood

and rapport of the meeting so you don’t find yourself in this situation in the first place.

7.1 Timing

Negotiating first thing is first of all affected by the rest and wakefulness of the other person. If

they are not fully awake, as many of us are not, then they will be less challenging in their

argument. If they are well-rested and awake, then you will have better attention. By late

morning, the day is in full swing and either a sense of achievement and goodwill will have

been developed by what has been done, or stress and frustration will have developed at what

has not been done or the additional load that has been taken on. Late morning, thoughts may

be turning to lunch as the energy intake from breakfast is depleted and cognitive ability and

attention span may be reduced. In the post-prandial period after lunch, we feel sleepy as our

digestive systems have more need for blood than our brains. This less alert may be a period

when we are susceptible to suggestion (or maybe just not interested in negotiation).

Don’t be caught negotiating when there is a high degree of anger on either side.

Besides that, try to avoid a high level of stress when you negotiating. Stress is your body's

way of responding to any kind of demand. It can be caused by both good and bad experiences.

When people feel stressed by something going on around them, their bodies react by releasing

chemicals into the blood. These chemicals give people more energy and strength, which can

be a good thing if their stress is caused by physical danger. But this can also be a bad thing, if

their stress is in response to something emotional and there is no outlet for this extra energy

and strength. This class will discuss different causes of stress, how stress affects you, the

difference between 'good' or 'positive' stress and 'bad' or 'negative' stress, and some common

facts about how stress affects people today. Also don’t be caught negotiating when there is

preoccupation with something else and tiredness on one side or the other. Avoid negotiating

during these situations. If they arise during negotiations a time-out/rest period is in order, or

perhaps rescheduling to a better time.

7.2 Finalize the agreements

Don’t leave detail hanging. It is often amazing how two people sitting in the same

room can have different perspectives concerning what was agreed upon. To ensure that

everyone is clear, summarize the agreement verbally or shortly afterward in a letter of

agreement. There is a chance that the other party may not be negotiating in good faith or from

the same principles that you are. It is natural when you’re negotiating with a person you don’t

know very well for her/him to regard you with some suspicion. In a negotiation setting, it will

be the other party’s instinct to assume the worst about your motives. There could be a million

legitimate reasons why we have to hold out on an offer, but instead of considering what any

of those reasons might be, people are much more inclined to draw negative conclusions.

For example, if you cannot agree to his terms, your negotiation partner may

automatically “decide” that you’re greedy, demanding or unreasonable without even stopping

to consider what other factors might be at work in your inability to agree to his terms.

Because of these suspicious tendencies, it is imperative that you reduce the likelihood of

misunderstandings in your negotiation efforts by clearly stating what you need. It would be

horrible to lose out on a deal altogether just because someone misunderstood you and deduced

that you were untrustworthy. Conversely, if you can give clear reasons why your stance is

what it is, your negotiation counterpart has the opportunity to process this information and

respond more favorably. In this way, you enhance understanding, open communication and

trust.

7.3 Good guy/bad guy

This tactic is common whenever negotiating with two people. One of them appears to

be mean and hardnosed. The other is warm, friendly, and very sympathetic. The good guy/bad

guy routine can cause a person to be psychologically drawn to the ‘good guy’ and what to

please that person. Counter the tactic by letting the other party know you realize what they’re

doing. Typically, they will back off of this well-known strategy.

7.4 Ask my manager

Ensure that you are negotiating with a decision maker. In early stages of negotiations it

may be acceptable to allow negotiation points to go back to a ‘higher authority’. However,

ultimately this wastes time. If the other party is relying upon a ‘higher authority’, request that

the ‘higher authority’ participate in the negotiations or set a one or two day deadline for their

approval or revisions. Foster suggest asking the question at the outset. ‘Do you have the

authority to negotiate terms that differ from your standard contact or is there someone you

have to go to far approval?’ (Foster, 2007, pp.71-72). This will allow a meeting manager to

include the ‘higher authority’ in the negotiations at the outset.  

At the beginning of many negotiations, someone will typically ask, "Who are the key

stakeholders on your side, and is everyone needed to make the decision in the room?" For

most entrepreneurs, the answer, of course, is yes. Who besides you is ever needed to make a

decision? Isn't one of the joys of being an entrepreneur that you get to call the shots? Yet in

negotiations, particularly with larger organizations, this can be a trap. You almost always

want to establish at the beginning of a negotiation that there is some higher authority with

whom you must speak prior to saying yes. In a business owner's case, that mysterious

overlord could be a key investor, a partner, or the members of your advisory board. The point

is, while you will almost certainly be making the decision yourself, you do not want the

opposing negotiators to know that you are the final decision maker, just in case you get

cornered as the conversation develops. Particularly in a high-stakes deal, you will almost

certainly benefit from taking an extra 24 hours to think through the terms. For once, be

(falsely) humble: pretend like you aren't the person who makes all of the decisions.

7.5 The nonstop negotiator

A nonstop negotiator does not view a signed contract as the end of negotiations.

Rather, they see it as just the start of negotiations. The nonstop negotiator will keep coming

back with additional requests. The nonstop negotiator is counting on the other party having

psychologically ‘moved on’ and expects to find the other party vulnerable to their requests.

7.6 Work it out later

The other side says, ‘that’s not a big problem. We can work that out later.’ When

‘later’ arrives, there is time pressure to complete the negotiations. People become flexible

when they’re under time pressure, and they will make concessions. Time is one of the factors

that always affects the outcome of negotiations. Work to resolve all the issues well ahead of a

deadline. It is natural when you’re negotiating with a person you don’t know very well for

her/him to regard you with some suspicion. In a negotiation setting, it will be the other party’s

instinct to assume the worst about your motives.

There could be a million legitimate reasons why we have to hold out on an offer, but

instead of considering what any of those reasons might be, people are much more inclined to

draw negative conclusions. For example, if you cannot agree to his terms, your negotiation

partner may automatically “decide” that you’re greedy, demanding or unreasonable without

even stopping to consider what other factors might be at work in your inability to agree to his

terms. Because of these suspicious tendencies, it is imperative that you reduce the likelihood

of misunderstandings in your negotiation efforts by clearly stating what you need. It would be

horrible to lose out on a deal altogether just because someone misunderstood you and deduced

that you were untrustworthy. Conversely, if you can give clear reasons why your stance is

what it is, your negotiation counterpart has the opportunity to process this information and

respond more favorably. In this way, you enhance understanding, open communication and

trust.

8.0 SUMMARY

The act of negotiating is enough to make many people-including meeting managers—panic.

Negotiating is a skill that can be developed through experience, knowledge and preparation.

Negotiation itself is a careful exploration of differing positions, with the goal of finding a

mutually acceptable solution that gives both parties as much as possible. The aim of win-win

negotiation is to find a compromise that is acceptable to both parties, and leaves both parties

feeling that they’re won, in some way, after the negotiation.

REFFERENCES

1. http://www.positivearticles.com/Article/Negotiation-Hazards/16254

2. http://changingminds.org/disciplines/negotiation/articles/right_time.htm

3. http://www.pcma.org/Documents/Negotiations%20%20PMM%20PostScript%2048.pd

4. http://www.mtstcil.org/skills/stress-definition-1.html

5. https://beyondthebar.westlegaledcenter.com/legal-negotiation/preparation-before-

negotiation/

6. http://www.how-to-negotiate.com/negotiating-your-bottom-line.html

7. http://meetingsnet.com/negotiatingcontracts/top-10-negotiation-tips

8. http://ezinearticles.com/?Six-Steps-For-Negotiation-Preparation&id=413338

9. http://www.au.af.mil/au/awc/awcgate/army/usace/negotiation.htm

10. http://en.wikipedia.org/wiki/Strategy

11. http://tutor2u.net/business/strategy/what_is_strategy.htm

12. http://en.wikipedia.org/wiki/Mindset

13. http://www.selfgrowth.com/articles/three-strategies-to-stop-negotiating-and-start-

progotiating

14. http://www.cga-canada.org/en-ca/AboutCGACanada/CGAMagazine