10. NEGOTIATION TECHNIQUES FOR NEGOTIATING AGREEMENTS WITH COMPANIES, ENTITIES AND INSTITUTIONS
When we negotiate, we are trying to overcome a disagreement (disagreement) with another person. But disagreement isn't necessarily a conflict, it's simply a situation where we don't think the same way about a given issue. The good negotiator is the one who manages to transform a phase of disagreement into a positive understanding for both. In reality, negotiation is the only relational dynamic that allows one to achieve the satisfaction of one's needs without having to resort to conflictual dynamics. As the World Economic Forum points out in its report 'future of jobs 2020', negotiation techniques are part of the top 10 skills considered necessary in the world of work. Moreover, they are part of what will be a reskilling path that companies will have to follow. Negotiation techniques, in fact, are a tool that can never be replaced by a machine and that needs constant study and updating. For this reason, HR managers know that they have to organize training programmes that enable their employees to remain competitive in business negotiations. 1.1 Negotiation techniques: basic steps Negotiation follows several stages: Preparation; Discussion; Negotiation; conclusion of negotiation Preparation: studying the client and preparing for the negotiation Initially there is a preliminary phase, in which the client, his history and above all his needs and requirements are studied. In preparation, it is important to gather information about the other party, its needs and the problems it faces on a daily basis. Arriving unprepared at the moment of negotiation can jeopardize the success of the negotiation. A useful element to make clear from the outset in order to create a more relaxed and receptive atmosphere is the tone of voice you want to give to the negotiation. Do you want to conduct a negotiation in an informal manner? Or do you prefer to be more serious and posed? Whatever communication register you choose, make sure it is in line with your interlocutor and carry it through during the negotiation. Discussion: giving value to your proposal After having defined the first details and having studied the other party, move on to the discussion phase. During this moment, it is crucial to make the client understand that you are his best choice and that you are bringing added value with your proposal. In the discussion, it is not only crucial to make your own value clear, but also to understand the needs of the other party. Therefore, listening to the other party's needs and knowing how to use them to drive the negotiation forward is a winning negotiation technique. Feeling understood creates trust and establishes the desire to continue the relationship. Bargaining: deciding the right monetary value for a product or service The bargaining part is crucial when it comes to prices. Trying to extract a favorable price is natural, but one should not sell out one's service. Negotiation must always be respectful. Knowing how to haggle is one of the most important negotiation techniques, because it will define the success or otherwise of the sale. Conclusion of the negotiation: the final moment Negotiation, if successful, leads to the closing of the negotiation and the sale or purchase of a product or service. If it has been carried out strategically, usually, both parties come out satisfied and can establish a profitable and lasting business relationship. 2. Twelve important negotiation skills: 1. Communication. Essential communication skills include identifying nonverbal cues and verbal skills to express yourself engagingly. Skilled negotiators can change their communication styles to meet the listener’s needs. By establishing clear communication, you can avoid misunderstandings that could prevent you from reaching a compromise. 2. Active listening. Active listening skills are also crucial for understanding another person’s opinion in negotiation. Unlike passive listening, which is hearing a speaker without retaining their message, active listening ensures you engage and later recall specific details without needing information repeated. 3. Emotional intelligence. Emotional intelligence is the ability to control your emotions and recognize others’ feelings. Being conscious of the emotional dynamics during negotiation can help you stay calm and focused on the core issues. If you’re unsatisfied with the current negotiation, ask for a break so you and the other party can return with refreshed perspectives. 4. Expectation management. Just as you should enter a negotiation with a clear goal, the other side also likely has its own defined expectations. If you believe you might not be able to agree to each other’s terms, you could try adjusting your expectations. Skilled expectation management involves maintaining a balance between being a firm negotiator and a collaborative one. 5. Patience. Some negotiations can take a long time to complete, occasionally involving renegotiation and counteroffers. Rather than seeking a quick conclusion, negotiators often practice patience to properly assess a situation and reach the best decision for their clients. 6. Adaptability. Adaptability is vital for successful negotiation. Each negotiation is unique, and the situation may change from one day to the next. For example, an involved party may change their demands abruptly. While it’s challenging to plan for every possible situation, a good negotiator can adapt quickly and determine a new plan if needed. 7. Persuasion. The ability to influence others is an important negotiation skill. It can help you define why your proposed solution benefits all parties and encourage others to support your point of view. In addition to being persuasive, negotiators should be assertive when necessary. Assertiveness allows you to express your opinions while respecting the other side’s perspectives. 8. Planning. Negotiation requires planning to help you determine what you want and how the terms will be fulfilled. You should consider the best possible outcome, your least acceptable offer and what you will do if an agreement isn’t reached. Preparing, planning and thinking ahead is crucial to a successful negotiation. The best negotiators enter a discussion with at least one backup plan, but often more. Consider all possible outcomes, and be prepared for each of these scenarios. This is the “best alternative to a negotiated agreement” (BATNA) for negotiators. 9. Integrity. Integrity, or having strong ethical and moral principles, is an essential skill for negotiations. Being thoughtful, respectful and honest allows the other side to trust what you say. As a negotiator, you should be able to follow through on commitments. To demonstrate trustworthiness, avoid over-promising. 10. Rapport building. The ability to build rapport lets you establish relationships with others where both sides feel supported and understood. Building a rapport requires communicating your goals and understanding the other side’s wants and needs. Rapport helps ease tensions, promotes collaboration and increases the likelihood of reaching an agreement. To build rapport, showing respect and using active listening skills are critical. 11. Problem-solving. Negotiation requires problem-solving to see the problem and find a solution. If a price is too high, how can it be lowered? If a resource is in short supply, what can be done to increase it? Finding unique solutions to problems may be the determining factor in compromise.