Negotiator / Knowledge base  / Strategies

Negotiation strategies

A strategy is a plan for achieving a particular future. In our case, a successful agreement. In this article I will outline two strategies. Understanding the differences between them is an indispensable step towards the development of negotiation competencies. One could say it brings about a change in the way of thinking. Position-based Strategy comes down to shooting, pushing and defending. We shoot by making frequent offers, trying to find a term combination which will please our partner. We push by putting forward arguments (thus acting on the downside of relations and cornering our partner in a defense stance) and bargaining (an emotional process lacking considerations from all parties). We defend our position (because a reaction for an argument is defense), holding it firmly so as not to have it changed under any circumstances (this is interlinked to an egoistic paradigm, that our once established way of fulfilling our interests is the only and best way in the world). Subsequently, often barriers and tensions arise during the way to an agreement. Due to its character, this is a hard strategy. People with gentler psychic are susceptible to being ‘broken’, and could agree to terms which are undesirable. An agreement reached through this strategy is at a risk of being a compromise, meaning all parties are at a loss due to big concessions. This is caused by an inflexible approach to settling on terms. This strategy does not require much preparation, but will quite surely have poor effect on relationships. Interest-based Strategy is sometimes referred to as problematic because a negotiator approaches the process to finding an agreement similarly as to problem solving. Parties know what needs they have and are open to non-standard solutions to satisfy them. Expand the pie is a phrase linked to this strategy. It assumes that in any situation, a beneficial solution to all sides can be found through creativeness and sideways thinking. We distinguish interests from means of reaching them (position in some sense). By keeping to our interests and having an open mind as to ways of their fulfillment. Subsequently, talks are held in an open atmosphere and focus on finding a solution through a joint process of communication and decision making. This strategy is often named ‘based on rules’ because there is an inside framework of the process. For example, when looking for options of possible agreement, parties keep to objective criteria. As a result of this strategy, we have good chances of reaching an agreement satisfying all sides meanwhile improving relationships. This strategy requires good preparation. Poor preparation can cause talks to detour to positions. Reality Along the development of negotiation practices, position-based negotiations are losing their effectiveness due to a raising number of professional negotiators. Business negotiations which are interest-based are more common and end in more lucrative agreements.

Negotiator / Knowledge base  / Cultural differneces – Europe

Examples of cultural differences – European countries

In this article I will outline several characteristic traits emerging from cultural differences, which we will come across when negotiation with four sample nations. The French First and most important skill in negotiations with the French is knowing their language fluently. This is one thing which can rule us out of the game. However, if we represent a company which has offices in France, this argument could be very useful in getting them to want to negotiate at all. Secondly, being punctual is important. Failure to respect our partner’s time can even lead to calling off the negotiations. Generally, the French are strictly interest orientated and leave emotions at the door. The German One thing we can be sure of is that a German negotiator has done all their homework and prepared exceptionally well. They will acquire information about us and detailed information about the organization we represent. Moreover, we can expect our partner to have expert industry knowledge and analyze the subject of transaction with scrutiny. If the subject is a product, it should at least match the German quality standards. They are great engineers and expect the same from their suppliers. It is important for them to be approached professionally, including an in-depth needs analyzes. As for the culture, we can expect and should be ready for nothing less than professionalism. High etiquette, being punctual and straight-to-the-point conversations. Great Britain First of all, we should carefully check with whom we will be dealing, because chances are they will not be British. Our partner can turn out to be Scottish or Irish – both would be offended to be called British. Moreover, due to a high number of immigrants, don’t be surprised if our partner will be of a representative of a different country. In such cases, it is a good idea to get to know both cultures, because we don’t know if they have already assimilates a British style, or still have their native one. The British don’t like to inform people a about their lack of decision making power, if that is their case. They easily make an impression of high authority, so it is usually difficult to tell their real plenipotentiary. Secondly, talks on interests are preceded by and followed by small talk, which is why being up to date with the news will be of benefit. The talks about interests are held in a high manner culture. The Italians Naturally informal, open and expressive. Firstly, they love to bargain, especially in the aspect of price. Therefore, be prepared with an adequate first proposition and carefully prepare to explain why the price is what it is. The Italians have a Mediterranean way of being. This means they have an easy-going approach to time and are usually late for meetings. Also, it happens that they reschedule or call off a meeting without informing the participants. They like to talk about their families and the politics, prior to talking about interests. Their emotions can be dynamic, as they go from being calm to loud and expressive in seconds. They tend to make decisions after a lengthy consideration or in the last moment. Variation is an appropriate way to sum-up the Italian style.

Negotiator / Knowledge base  / Ethics

Business ethics in negotiations

Let’s take a step into the world of fantasies. Imagine that you have just successfully completed negotiations on a transaction of furniture to a new office. The talks were lengthy and in order to get all you wanted, you lied several times. The terms are greatly in your favor thanks to dirty tactics. What is more, your partner still thinks they did a good job. Theoretically, a success! You can’t wait to tell your boss about the results. In the evening you celebrate with a drink and go to sleep. The following morning you turn on the TV and see in the news that yesterday’s negotiation process was made public. Audio and video of the whole negotiations is public. How do you feel? How does the society perceive you? What perspectives has your career? A word on ethics   Ethics is a system of values, rules and standards used by people of a certain profession. Analogically to law, ethics is susceptible of interpretation. Ethics is judged as something we either do or we do not – one can’t be ‘mostly ethical’. Below I wrote a few tips on how to act ethically and a few reasons for why acting unethically won’t pay. How to act ethically? Here are three things which will help us negotiate ethically. Firstly, do not do unto your partner what you would not do unto a friend. Seeing your partner as a friend is an easy and practical projection. Consider your own behavior during negotiations and ask yourself a question ‘would I do the same if it were my close friend talking here with me?’. Secondly, act accordingly with the win-win strategy, because it is principal-based. This makes it easier to distinguish what type of actions are ethical and therefore, it will be easier to keep to them. Thirdly, have a partnership attitude – treat your partner equally. Treat a person just as you would like to be treated. When talking about interests, theirs should be just as important as yours. When receiving a proposition, it should be just as carefully analyzed as if it was your own. Why unethical action is dangerous? It is best if ethics are a result of our moral values. However, if we have problem with that and at any time will feel tempted to act unethically, do remember about a few things. Firstly, our behavior between roles most often interweaves. If we start using unethical behavior during negotiations, it is almost certain that within a short time we’ll find ourselves being unethical towards our family and friends. Secondly, if we start acting unethically then after some time we will end up rationalizing our own behaviors, which will make us perceive them as good. They may also end up as a habit. Thirdly, reputation plays a very important role for a negotiator. A potential uncover of our unethical actions will be notably adverse to the trust people give us. The question Ethics in negotiations is sometimes not unambiguous. If we are uncertain of our actions, it is helpful to pose this question: What would it be, if all of my actions were made public?

Negotiator / Knowledge base  / Profession

Negotiator – the Profession

In this article I will share with you two remarks concerning professional negotiators. I will outline what I believe to be the key competencies, so that you will know what to develop to be more effective. I will also write about the role of negotiators in judicial contexts so as to describe where I see a potential for better cooperation between lawyers and negotiators. Key competences One could present a long list of competencies useful for negotiators backed up with fine arguments, but I have selected four which actually will boost your skills. They are all interlinked. Firstly, listening. By listening I mean total focus of one’s senses and feelings on the speaker. Amongst the received information should be content and emotions, as well as needs which stand behind them. Secondly, understanding. We understand someone when our thoughts on something are close to what someone else thinks about the subject. The challenge is that the speaker has to translate their thoughts into words (in the process, some facts will be withheld and some created on the spot, for various reasons) and we then interpret those words through our filters. This makes a long communication channel, prone to mistakes. A negotiator with professional knowledge will be able to receive the message possibly close to the intention of the speaker. Thirdly, the ability to look from another person’s perspective. This means the ability to feel someone’s situation and look with their eyes. It is a powerful way to understanding. Fourthly, rapid learning. Every case is different, even when a negotiator works in a small field or segment. This is because people are different and negotiators work with people. It is important to be able to quickly get to know people. This means getting past their walls, with which people shield themselves from strangers. For example, we restrain from talking about private matters when meeting someone for the first time. Another thing is discovering a human being without their mask (from the authentic side, not through the image they create). Invaluable role of negotiations (and mediations) I will now focus on aspect of cooperation between lawyers and negotiators. Just as hard skills are losing their primary position in business in favor of soft skills, so are negotiations based on legal code in favor of negotiations based on psychology. Both are of course needed, but we should know when each is most suitable to use. It is natural that the person leading a case (e.g. a lawyer) will talk with parties to determine if going to court is necessary. If they manage to reach an agreement, that is good. If they don’t, the case is directed to court. The thing is this rarely works the other way around. If a case is in court and the end is nowhere nearer, why not ask a negotiator to talk to parties and see what can be done? It is possible that such an intervention will result in an agreement. Having connections among negotiators and mediators, I observe many cases which could be potentially resolved through negotiations based on psychology. Meanwhile, some cases go on for years.

Negotiator / Knowledge base / Preparation

Step 1 – preparing for negotiations

  There are two powerful reasons why this article is worthwhile your attention.

1. By preparing, we create a future which we wish to come true. By not preparing, we limit our influence on reality thereby leaving our future in the hands of fate. If you want to be successful as a negotiator then you must have influence on your reality so that you can create constructive agreements.
2. Our brain does not distinguish between reality and the imaginary world. By projecting future events, we live through the negotiations in our minds, subsequently feeling more at ease when they occur (which means we have a greater potential for efficiency).

Preparation is important. Below you will read how to go about it.    “Why?” – is the only good question to start your preparations. Why do you want to negotiate? – What other options are there to resolve the case? Why do you want to negotiate with these people? – Perhaps there are other, better partners? How will these negotiations bring you closer to achieving your broader professional or life goals? The answers will reveal a purpose of putting work into reaching an agreement, which is crucial for your motivation. If you are convinced and decisive to pursue the negotiations, you can go onto setting goals. Think about what exactly you want to achieve and why. This way your interests will emerge. Make note that an interest is what you want to achieve, not the means of reaching it. Let’s take an example. You run a chain in the catering business and your interests are to make an expansion. You meet with a premises owner with the intention to buy his place, which is a mean of reaching your goals. This is an important distinction because the premises owner might not want to accept your offer but he might be a person who can open a different possibility for you – eg. he might know an investor willing to buy the place and open a franchise restaurant of your business. What should be analyzed? The next thing to think over is your situation. Analyze your areas and BATNA. By clearly stating what you’re left with if the negotiation break, you can determine your shore lines. (read about negotiation phrases here) Consider what you know about the other side and what you can predict about it. This concerns the people with whom you will be leading talks as well as the situation which they are in. Who are the negotiation of the other side? What negotiation have they led in the past? If there is sufficient information, estimate BATNA of the other side. Based on that you can foresee estimated ZOPA values. Having gathered all of the information above, you have everything to begin constructing the strategy, which will mark your preparations complete. Professional negotiators know that the work input into preparation has a direct impact on the course and result of negotiations. Taking advantage of their experience safes time, mistakes and money.   NEGOTIATION PROCESS: How to begin negotiations? Preparing for negotiations. Information exchange in negotiations. Relationship building in negotiations. Influence and persuasion. How to made concessions in negotiations. Agreements.

Negotiator / Knowledge base / How to begin negotiations?

How to begin negotiations?

Ice breakers? Throwing in a joke? Negotiations begin with the first interaction between sides and this is of great meaning. With the first gesture or word  that our partner receives, their mind beings to construct an image reflecting how it perceives us. The first pieces of information their perception assimilates are the most important because they have an effect analogic to anchoring – based on them further images will be created. If for some reason we make an undesired impression, correcting our image will be time consuming. The beginning of negotiation has to be integrated with our strategy. As we use a different strategy when buying a car than when making an annual deal for our contractor, we will desire to be perceived in different ways  in both cases. For this reason, it is wise to firstly think up a strategy and then determine how we wish to be perceived. Based on that we can plan how to begin our negotiations. Below I present some practical things, which are worth taking into account. You can treat them as tips:

• When talking with someone for the first time we can effectively establish a relationship if we satisfy his basic human need of acceptance. Subconsciously, we seek acceptance in every human we encounter. We can accept someone along with their emotions by proper communication.
• Find common ground. Anything that you and your partner has in common can be used to build relationship. The rarer the thing, the stronger it can bind. For example, we usually feel stronger emotions coming across a person with whom we share a passion for African herbs than to something as popular as
• Take care of body language and intonation. These two elements make 93% of the message. Remembering about such elements as a smile, straight back, chin one centimeter above the horizon and a calm and firm voice is a basic matter (as long as our strategy does not state differently).
• Focus on the person and his attitude. Thanks to developed listening competencies as well as a good eye for body language and sensitive empathy you can gain valuable information. For example you’ll feel if your partner wants to jump to the concretes or start with a small talk and get to know you better.
• Set the time frame. This depends on the type of negotiations but in most cases it is good to determine how long you would like to hold the talks and if you consider staying more time if the need arises.
• During the first few minutes mention your partner’s name twice. There are two reasons for doing this. Firstly, a person’s name is the most dear words they could hear – by saying them to your partner, you act for the benefit of your relation and gain respect. Secondly, you will memorize their name.
• During the first few minutes get your partner to say numerous ‘yes’. This way their mind learns that you are a person with whom it can agree. Also, its memory makes an account of these ‘agreements’.

  NEGOTIATION PROCESS: How to begin negotiations? Preparing for negotiations. Information exchange in negotiations. Relationship building in negotiations. Influence and persuasion. How to made concessions in negotiations. Agreements.

Negotiator / Knowledge base / Goals in negotiations

Goals in negotiations

The past three decades have brought about drastic changes in negotiations. They happened as a result of the market situation – the change of forces between supply and demand. Several years back when there was a surplus of demand, people often made agreements based on the circumstances. Currently, as the supply is in excess and sides have more possible options do choose from, negotiation require more consciousness of our needs, goals and interests. It used to be common to have single-shot negotiations, during which the maximization of profit was a goal in itself. Nowadays trends are dictating negotiations based on trust and cooperation. This is due to the surplus of supply over demand and a conviction that there is enough resources in the world to go around. In terms of the above context we can take a look at what goals business negotiations have. The prime goal of negotiation is to change the reality – ours as well as other sides’. The assumption is that by cooperating we can inflict stronger change which will have good results for all sides, rather than if we worked alone (apart from the level of dependency between sides). As long as sides are aptly chosen, this is a fact. Another basic goal is building trust and relationships. Thanks to this, possibilities which result in collaboration will be accessible for us in the long term and it is probable that new ones will arise. We have a time of negotiations based on relationship and cooperation. The challenge which appears is to negotiate a satisfying agreement while simultaneously building a strong relation with our partner. Simultaneously means making both things true. Those who have the capacity to practice such an approach achieve more because not only do they get what they need, but also establish a coalition which leads to access to new people, experience, ideas and knowledge that can give an unexpected twist to your future actions. The practice of negotiations based on relations and cooperation requires a different set of competencies that single-shot negotiations. A major role is played by skills such as communication, broad vision, emotional intelligence and convincement in good faith. Establishing relationships is easier when we show curiosity in other people and have a tactful sense of humor. All other goals are set by us in respect to our situation and based on the information we hold. During the process it is important to remember about clearly answering two questions: ‘which of my interests will I realize by means of this goal?’ and ‘which of my needs does this interest satisfy?’. If we can answer the above question in for ourselves in a convincing way, it means the direction in which we are heading with our goals should be consistent with our true needs rather than emotionally biased.   NEGOTIATION ESSENTIALS What are negotiations? Key phrases in negotiations. The basic of basics in negotiations. Principles of negotiations. Goals in business negotiations. Stages of negotiations. The process of business negotiations. Trust in negotiations.