Mastering Negotiation: 5 Keys to Success
Control of the Negotiation Process: Avoiding Common Pitfalls
A common error in negotiation is the lack of a clear definition of success. This can lead to manipulation and an ineffective negotiation strategy. A well-defined goal is crucial for a win-win outcome. A good result in a negotiation typically exhibits the following characteristics:
1. Best Alternative to a Negotiated Agreement (BATNA)
In a successful negotiation, the agreed-upon outcome should be superior to each party’s best alternative if they were to act independently. This ensures that the agreement is mutually beneficial and resolves the conflict more effectively than other options.
2. Satisfied Interests
It’s important to distinguish between interests and positions. For example, two siblings might both want an orange (position), but one wants the peel for baking and the other wants the juice. Understanding the underlying interests is key to finding mutually beneficial solutions. Focusing solely on positions can lead to impasse, while addressing interests allows for creative problem-solving and win-win outcomes.
Example: A finance manager might want to minimize borrowing, but also has an interest in staying informed about new products and economic projections. Incorporating these additional interests can add value to the negotiation.
A negotiation process that focuses only on positions or demands leaves parties unsatisfied with both the process and the outcome.
To ensure a successful deal, it’s crucial to:
- Secure your own interests.
- Ensure the agreement is acceptable to the other party.
- Ensure that stakeholders involved in the negotiation can support the agreement to avoid potential sabotage.
3. Optimal Choice Among Multiple Options
Exploring a wide range of possible solutions is essential for a successful negotiation. This requires all stakeholders to contribute and consider various options creatively.
Example: Instead of arguing over the price of a product, a supplier and customer could explore options like smaller delivery batches or joint advertising efforts to create a mutually beneficial outcome.
4. Legitimate Result
A legitimate agreement is based on objective criteria. Using data and evidence to support arguments helps prevent positional bargaining and coercion.
Example: When negotiating a salary increase, presenting statistics on comparable salaries in similar firms can provide a legitimate basis for discussion.
The legitimacy of an agreement is often demonstrated through reciprocity. For example, in a construction contract, penalties for late delivery could be balanced with bonuses for early completion.
This approach:
- Prevents positional bargaining and protects against coercion.
- Leads to a lasting agreement and strengthens the relationship.
- Encourages the use of objective criteria.
5. Clear, Realistic, and Sufficient Commitments
A successful negotiation results in clear, realistic, and sufficient commitments. Each party should understand their responsibilities and be confident in their ability to fulfill them without jeopardizing their own interests.
Suitable commitments are:
- Clear and Operational: Each party knows what they need to do.
- Realistic: Both parties can fulfill their commitments without undue hardship.
- Adequate: The commitments cover all necessary aspects to achieve the desired outcome without requiring further negotiation.
By focusing on these five key elements, you can significantly improve your chances of achieving successful negotiation outcomes.