Among the various skills making the difference between an average performer and an outstanding one, lies Negotiation.
Too many people overlook the importance of developing these crucial skills and those who do it, sometimes forget to apply Benjamin Franklin’s philosophical quote: « by failing to prepare, you are preparing to fail ».
Each time we need other persons’s cooperation to reach our goals, we are lead to negotiate. Because, if we did not need anybody else in order to reach our objectives, why in the world would we have to negotiate? We negotiate to improve our situation, not to make it worse off.
There are 4 elements of importance for each of us:
- To make a good deal (extract as much value as possible from the discussions)
- To establish and maintain a viable relationship (helping avoid one shots)
- To keep a good self-image (varying in importance across cultures)
- To have experienced a fair process (even if it is very subjective)
The PCCC structure gives a 4 steps process helping prepare and lead a non commercial Negotiation. For commercial ones, Negotiation is one specific step in the sales process, as shown below:
If we are not in a commercial situation, negotiation covers the whole process. As a first overview please, have a look on the following table:
The next table gives an overview of tools and techniques that are used in Negotiation:
Since there are many elements to discuss, let’s focus here on some key messages:
1) Be well prepared: failing to prepare will force us to improvise and refrain us from taking mental distance. Robotisation does not make any sense either. There is a relevant balance to find. Preparation is a step not to be overlooked or taken lightly.
2) Try first to cooperate: if this does not work, we still can change strategy and get back to competition, the contrary is not true because people will not believe us due to a lack of trustworthiness. Try to establish a climate of confidence. Moreover, cooperation can allow to extract more value from negotiations. Cooperation is the first building block of any constructive interpersonal situation. And remember, if your don’t need your discussion partner, you don’t have to negotiate.
3) Multiply the number of discussion topics: let’s avoid the myth of the fixed pie which only encourages people to compete for the biggest piece of value and overlook real opportunities to expand. Don’t let yourself be locked into a discussion with one single subject. Add your own ones, be creative. At the beginning of each part of the negotiation, establish the list of your topics and don’t forget to ask theirs. Any latecomer can be dangerous.
4) Keep increasing both the quality and the quantity of information: information is the essence and the fuel of negotiation. Don’t guess, discover. Don’t assume, suppose, think, believe, verify. Try to refrain from telling, asserting, saying. Change paradigm.
5) Foresee a BATNA (Best Alternative to a Negotiated Agreement): failing to be prepared to switch to a BATNA will force us to accept unfavourable conditions and extract less or no value. Defining a BATNA should even be done before building the main plan.
6) Don’t give away, exchange: if you give it for free, it has little or no value. Moreover, it sends the signal to interlocutors that there is still a lot of value to negotiate. Making each concession a deserved effort is an interesting approach. It does not mean we don’t want, it means we count on reciprocity.
7) Balance fluxes: there are at least 2 elements involved into this process. The first and most important on is, once again, information. If you have more information than your discussion partner about the situation, it gives you a competitive edge. If your interlocutor has more information than you about the situation, you could be in danger. The second one is concessions. Use reciprocation and avoid situations where you will give more than what you will receive. What is given for free have little or no value.
8) Practice breaks: as long as you don’t use this technique in order to manipulate your discussion partners, it is a very good idea to take mental distance, once in a while, or even, frequently. Next to being useful for stress and emotions, it allows to take stock of the situation and integrate new elements while avoiding any rush.
9) Reasonable ambition: too much ambition could cause interlocutors to walk away and destroy trust, not enough ambition encourages discussion partners to immediately accept and us to want to withdraw our proposals
The more you’ll apply these principles, the better you’ll negotiate. So why not start now?
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