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.
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