COLLABORATIVE NEGOTIATING STRATEGIES
I believe there are two ways to
negotiate: manipulatively and collaboratively. You could call it "win-win"
versus "win-lose." From which perspective do you currently operate?
Manipulative negotiating sees the participants as adversaries. Tactics include
exerting power, using subterfuge and hiding your own nonverbal communications.
There is a lot of mistrust, tension, and suspicion. The Manipulative
Negotiator's goal is to win. There are usually hard feelings on somebody's
part--typically the loser. The focus is on single answers and positions--"This
is what I want!" It's hardball negotiating. If you are making a one-time
negotiation and you're not going to see the people anymore, perhaps you can get
away with it, but it's not a healthy business practice.
The collaborative negotiator sees the participants as problem solvers looking
for a mutually satisfactory solution. It's a process that both parties can walk
away from and feel comfortable that neither one was "had." It relies on trust,
openness, credibility and honesty. The goal is a wise and fair outcome for all
parties. The focus is on multiple options. There are many ways to satisfy both
parties' needs, not just one.
Everybody should have a negotiating philosophy. Many people enter important
negotiations without having a clear idea of what they would like to accomplish.
A negotiating philosophy could be that you want to go for low price; or you may
be willing to pay going rates, but you want to get as many additional amenities
as possible. Here's my personal negotiating philosophy: "When two people want to
do business with each other, they will not let the details stand in the way.
However, when two people do not want to do business with each other, the details
will rarely pull the deal together." If somebody wants to do business with you
he is more apt to compromise and less apt to seek unreasonable compromises from
you.
There are six major steps to Collaborative Negotiating.
PLAN -- MEET -- STUDY -- PROPOSE -- CONFIRM -- ASSURE
Planning is all the behind-the-scenes research and preparation that you do
before you come face-to-face with the other party in the negotiation process.
The Meeting Phase is where it all begins. Here's where both parties determine
how agreeable they are going to be with each other. You both are positioning
yourselves -- you're both trying to project credibility, authority, power, and
the ability to back up your promises. Remember, when two people want to do
business with each other they will not allow the details to stand in the way. In
the meeting phase, both parties determine from the way the other looks, talks,
and behaves -- "Do I want to do business with you?"
The Study Phase is where the negotiating parties exchange crucial information
about what they are trying to accomplish -- their end results, goals, needs, and
objectives. Each determines all the parameters of the other person's current
situation. There is a danger here. Do not focus too heavily on specifics. Look
for the big picture. Do not start looking for "answers" too early, before you
understand what the other person is trying to accomplish.
The Proposing Phase is where you clarify all the specifics. Who's to do what,
when, where, how and why? This is where you get commitment and implementation,
and sign contracts. This is also where contract details are negotiated and some
of the fine points of negotiations come into play.
The Assuring Phase is making sure that everything comes off as planned and that
everybody lives up to his end of the agreement. Here's where the goods or
services are delivered as promised, and payment is made.
These steps can occur all together, one at a time, or some can be skipped.
Now let's look at several specific actions you can take during the six steps of
Collaborative Negotiating.
1. Develop a negotiation strategy that clearly spells out what you will and
won't do during the negotiations.
2. Collect as much background information as possible beforehand on the people
and companies you'll be facing in the negotiation process.
3. Evaluate your competitive exposure. What are the odds that another supplier
or meeting planner will come up with a better offer than the one you are making?
This information can help establish your maximums and minimums.
4. Prepare and role-play with colleagues prior to your initial negotiation
meeting. It provides you with confidence in facing questions and situations you
are now prepared to handle.
5. Make sure that your clothing, grooming, materials, handouts, preparation and
depth of knowledge project credibility, authority and strength. This is where
you start creating the "confidence" factor because people do "judge books by
their cover." People will not negotiate seriously with you if they don't believe
you have the power and credibility to make decisions.
6. Tailor your pace and presentation to the individual differences of the other
people. People who are very relationship oriented and low in assertiveness are
called Relaters and are primarily interested in relationships. Those who are
"people" oriented and highly assertive are called Socializers and are interested
in recognition. Task oriented, highly assertive people are Directors who are
concerned about results. Less assertive, task oriented people are Thinkers who
like structure.
Be flexible in your "approach" with the differences in people. It will reduce
relationship tension and subsequently increase interpersonal trust, credibility,
cooperation and productivity.
7. Take time to study all dimensions of the other person's current situation.
Ask questions and listen with your ears and eyes. Try to determine the end
results the other person is attempting to accomplish, not solely his position or
demands. However, it would be important to find out the decision-making criteria
(must haves vs. should haves vs. nice to haves) of the other person. This will
provide you with his/her negotiation limits.
8. When presenting your desires/demands, try to relate them to the end results
the other person is attempting to achieve. Show how your requests will also
benefit the other person.
9. Negotiate the points of difference. Do not always go for low price (unless
that's your negotiation philosophy). Look for other points to negotiate.
10. Do not attack the other person's position (specific demands) -Look behind
them (objectives/end results).
11. Do not defend your position. Invite criticism and advice, e.g., "What would
you do if you were in my position?"
12. At the conclusion of your negotiations, make sure all parties fully and
clearly understand who is to do what, when, where, how, and why.
By following the strategies presented in this article, you should significantly
improve the outcomes you generate from your negotiations. Furthermore, your
counterparts in the negotiation sessions will feel much better about you, the
process, and the outcomes. Together you'll both feel that a "fair" position was
reached that was in the best interest of both sides -- a "win-win" outcome.
That's the bottom line benefit of Collaborative Negotiating!
ARTICLE TAGLINE FOR DR. TONY ALESSANDRA
Dr. Tony Alessandra has authored 13 books, recorded over 50 audio and
video programs, and delivered over 2,000 keynote speeches since 1976.
The ideas in this article, and many others, are adapted from Dr. Alessandra's
book, The Sales Professional's Idea-A-Day Guide (Dartnell).
If you would like more information about Dr. Alessandra's books, audio
tapesets and video programs, or about Dr. Alessandra as a keynote speaker
for your group, call (800) 222-4383 or visit his website at http://www.alessandra.com.
Sales
Training Articles