DID YOU EVER FEEL YOU WERE OUTSMARTED AT THE NEGOTIATING TABLE

 

NEGOTIATION TECHNIQUES YOUR FORGOT TO PRACTICE

 developing NEGOTIATION  as a business skill can be  tricky & treacherous thing!   You mind lapses at the critical moment of reckoning!!!

Business skill building is a tricky & treacherous thing! You mind lapses at the critical moment of reckoning!!!  Then  your learning is just an adornment not a tool for success. The key to success is to sustain and reinforce through  constant re-learning and even a deliberate attempt to unlearn the stubborn old habits.

 

Here are some  tips to help the sales managers to meet the challenges of negotiating. "Challenge" means not taking things at face value. It means thinking for yourself. You must be able to make up your own mind, as opposed to believing everything you are told. On a practical level, this means you have the right to question You cannot negotiate unless you are willing to challenge the validity of the opposing position.

 

GREAT NEGOTIATORS AIM HIGH AND EXPECT THE BEST OUTCOME. 

Successful negotiators are optimists. If you expect more, you'll get more. A proven strategy for achieving higher results is opening with an extreme position. Sellers should ask for more than they expect to receive, and buyers should offer less than they are prepared to pay. People who aim higher do better. Your optimism will become a self-fulfilling prophecy. Conversely, if you have low expectations, you will probably wind up with a less satisfying outcome.

Don't be afraid to ask for what you want. If you don’t ask, you don’t get. Another tenet of negotiating is, “Go high, or go home.” As part of your preparation, define your highest justifiable price. As long as you can argue convincingly, don’t be afraid to aim high. But no ultimatums, please. Take-it-or-leave-it offers are usually out of place

 

BE ASSERTIVE AT THE ROUGH EDGES

Successful negotiators are assertive and challenge everything – they know that everything is negotiable. I call this negotiation consciousness. Negotiation consciousness is what makes the difference between negotiators and everybody else on the planet.

Being assertive means asking for what you want and refusing to take no for an answer. Practice expressing your feelings without anxiety or anger. Let people know what you want in a non-threatening way. Practice 'I' statements. For example, instead of saying, "you shouldn't do that," try substituting, "I don't feel comfortable when you do that." note that there is a difference between being assertive and being aggressive. You are assertive when you take care of your own interests while maintaining respect for the interests of others. When you see to your own interests with a lack of regard for other people's interests, you are aggressive. Being assertive is part of negotiation consciousness.

SHARE INFORMATION.

We often approach negotiation being very guarded and wary of showing our cards. Yet, while we believe this is a smart approach, it has a negative impact on our outcomes and inhibits trust. Experts in negotiating point out, people tend to be matchers and follow the norm of reciprocity, responding in the same way we treat them. If we want to be trusted, we must first offer it.

Studies have shown that revealing some information, even when it’s unrelated to the negotiation, increases the outcome. You don’t have to put all of your cards on the table at the outset. Simply putting something of yourself out there – your hobbies, personal concerns, or hopes – can set a positive tone that’s conducive to gaining agreement. 

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DON'T BE IN A HURRY. PAY ATTENTION TO TIMING.

 Timing is important in any negotiation. Sure, you must know what to ask for, but also be sensitive to when you ask for it. There are times to press ahead, and times to wait. When you are looking your best is the time to press for what you want. But beware of pushing too hard and poisoning any long-term relationship.

Being patient is very difficult in the hurry of sales negotiation; however if you rush, you are more likely to make mistakes and leave money on the table. Whoever is more flexible about time has the advantage. Your patience can be devastating to the other negotiator if they are in a hurry because they start to believe that you are not under pressure to conclude the deal. So what do they do? They offer concessions as a means of providing you with an incentive to say yes.

FOCUS ON THE OTHER SIDE'S PRESSURE, NOT YOURS. 

We have a tendency to focus on our own pressure, on the reasons why we need to make a deal. It's the old story about the grass being greener in the other person's backyard. If you fall into this trap, you are working against yourself. The other side will appear more powerful. When you focus on your own limitations, you miss the big picture. Instead, successful negotiators ask, "what is the pressure on the other side in this negotiation?" you will feel more powerful when you recognize the reasons for the other side to give in. Your negotiation power derives in part from the pressures on the other person. Even if they appear nonchalant, they inevitably have worries and concerns. It's your job to be a detective and root these out. If you discover that they are under pressure, which they surely are, look for ways to exploit that pressure in order to achieve a better result for yourself.

SHOW THE OTHER PERSON HOW THEIR NEEDS WILL BE MET. 

Successful negotiators always look at the situation from the other side's perspective. Everyone looks at the world differently, so you are way ahead of the game if you can figure out their perception of the deal. Instead of trying to win the negotiation, seek to understand the other negotiator and show them ways to feel satisfied.

A known philosophy of negotiation includes the firm belief that one hand washes the other. If you help the other side to feel satisfied, they will be more inclined to help you satisfy your needs. That does not mean you should give in to all their positions. Satisfaction means that their basic interests have been fulfilled, not that their demands have been met. Don't confuse basic interests with positions/demands: their position/demand is what they say they want; their basic interest is what they really need to get.

 

NEGOTIATION IS NOT ABOUT GOODY-GOODY MORALS

Don’t absorb the counter parties  problems. In most negotiations, you will hear all of the other side’s problems and reasons they can’t give you what you want. They want their problems to become yours, but don’t let them. Instead, deal with each as they come up and try to solve them. If their “budget” is too low, for example, maybe there are other places that money could come from.

Don't give anything away without getting something in return. Unilateral concessions are self-defeating. Whenever you give something away, get something in return. Always tie a string: "I’ll do this if you do that." otherwise you are inviting the other negotiator to ask you for additional concessions. When you give something away without requiring them to reciprocate, they will feel entitled to your concession, and won't be satisfied until you give up even more. But if they have to earn your concession, they will derive a greater sense of satisfaction than if they got it for nothing.

 

 

ANTICIPATE COMPROMISE. BE FLEXIBLE

 

You should expect to make concessions and plan what they might be. Of course, the other side is thinking the same, so never take their first offer. Even if it’s better than you’d hoped for, practice your best look of disappointment and politely decline. You never know what else you can get.

You know your goals and you know where you need to be, so map out multiple ways to get there. If you are going to maintain control of the negotiation, you must be flexible. Giving the other side options will allow them to feel as though they have some control, which will help you reach one of your desired outcomes. Perhaps you can be flexible on terms, a start date or maybe even price. Whatever your goals, there is room for flexibility. Review your biases and adapt as new information enters the conversation to keep from creating a standoff that could lead to an impass.

 

 

ALWAYS BE WILLING TO WALK AWAY. 

 

Never negotiate without options. If you depend too much on the positive outcome of a negotiation, you lose your ability to say no. When you say to yourself, "i will walk if i can't conclude a deal that is satisfactory," the other side can tell that you mean business. Your resolve will force them to make concessions. Clients often ask me, "ed, if you could give me one piece of advice about negotiating, what would it be?" my answer, without hesitation, is: "always be willing to walk away." please note that i am not advising you to walk away, but if you don't even consider the option of walking away, you may be inclined to cave in to the other side's demands simply to make a deal. If you are not desperate - if you recognize that you have other options - the other negotiator will sense your inner strength.

 

Stick to your principles. As a business negotiator, you likely have a set of guiding principles and values that you just won’t compromise. If you find negotiations crossing those boundaries, it might be a deal you can live without. . At the close of any meeting (even if no final deal is struck) recap the points covered and any areas of agreement. Make sure everyone confirms. Follow-up with appropriate letters or emails. Do not leave behind loose ends.

 

 

THE WAY AHEAD:

 

The ability to negotiate successfully in today's turbulent business climate can make the difference between success and failure. Negotiation is one of the most valuable life skills you’ll ever develop. Consider the time you invest in collaborating with new hires, other team members, clients, vendors, and sales prospects and even family members and friends. In all of this, I expect you’ll notice that negotiations are an important part of helping you get the most out of every interaction.

 

These negotiating techniques and tricks hold true for your team as well. Your team represents your business and most likely needs to negotiate to fulfill the requirements of day to day responsibilities. How many members of your team would say they excel at, and can’t wait to get involved in their next negotiation? How about you? Can you say that you excel and enjoy a good negotiation? Move to the next level Become a sales leader empower your team.

 

With best wishes

Dr Wilfred Monteiro

 

 

THE WALK AWAY POINT IN SMART NEGOTIATING

Never fear to negotiate but never negotiate out of fear 

President John F Kennedy

 If you are too anxious to close a sale, you lose your ability to say NO to unreasonable buyer demands. Don't place yourself in a position where you accept a less than satisfactory outcome, just to close a deal.

Your willingness to walk away can help you to close a sale. Here's how:

Walking away may force the buyer to soften its position.

Did you have a customer ring you up in the office and telling you "... last week we met could we reduce the price by just 10% and you can have the order..." You are excited and want to say yes but you keep up your guts. You counter "... I will reduce the price by 10% only if you double the order..."  And wow presto he agrees. You have lot of pluck you say"... could you send me the email today so I can get the sanction from the boss before he leave for tour for a week..." (all in your imagination) And lo and behold the email arrives!!!

Seems highly optimistic and ideal... but what if you said YES to the first "generous" offer from his end. This would be THE END 

Your willingness to walk away demonstrates your commitment.

Savvy negotiators are always testing you to see how committed you are to your position. In order to convince them, you may have to resort to strong measures – including walking out. Otherwise, the buyer may continue to believe that you will offer more concessions. When the buyer sees that you are totally committed to your position, he will back down and you will close a profitable sale.

This lesson was lasered onto my consciousness during my sales career, when one of my prospective clients reneged on a promise to sign our contract. Without saying a word, I packed up my briefcase and walked out of his office.

"Where are you going?" he called after me.

"I'm leaving," I said. "You lied to me and I don't want to do business with you."

He chased me all the way to the elevator bank and begged me to return. He knew he had pushed me as far as I would go, and he agreed to sign the contract.

Afterwards, he asked me, "Ed, if I hadn't followed you, would you have come back?"

"I guess you'll never know," I told him.

Walking away can help the buyer sell your position to their boss.

Buyers may have to justify their concessions to someone higher up on the food chain. Now they can tell the boss, "See, we had to make those concessions or the seller would have walked away from the deal."I am not saying that you should always walk away from a sale. But if you don't even consider the option of walking away from the negotiation, you may be inclined to cave in to the buyer's demands simply to make a deal.

You must be prepared to say "Next!" or your customers will sense your uncertainty. The willingness to walk away from a sale comes from having other potential sales in the lineup. When you know that your sales career doesn't hinge on this one deal, you can exude confidence. If you are not desperate – if you recognize that you have other options – the buyer will sense your inner strength. Your willingness to walk away is one of the greatest bargaining chips you have.

 

Negotiation Walk away is the alternative that a negotiator will act on if they are not successful in a negotiation. A walk away may be an alternative supplier or buyer, to manufacture the product or deliver the service in-house, to wait or simply do nothing i.e. to go without. The walk away answers the negotiation question: “What will you do if you don’t agree this deal?”

 

Some good Reasons to Walk Away from a 

Negotiation

 Reason 1 You only have one contact in the account and this person won’t let you speak to anyone else.

You’ve ended up being trapped by the gatekeeper. This is usually a person with the responsibility for procuring a product or service on behalf of others within the organization but they don’t actually own the business problem themselves. This makes it hard if not impossible to sell on the basis of value. Their job is usually to get the best possible price for a solution that meets a minimum specification. He or she doesn’t want you to talk directly to line of business managers as that would allow you to position the strengths and advantages of what you offer, and why it’s worth paying more. If you can’t find a way to speak to at least one person who actually experiences the pain or would see the gain from addressing the issue in question, then walk away.

Reason 2 A competitor has obviously written (or helped to write) the RRP / specification.

There are always tell-tale signs when one of your competitors has helped write the specification. You’ll find requirements written in a way that makes it very hard for most vendors to meet – with the exception of the competitor of course! If the buyer is this far along their buying cycle, you’ve missed the opportunity to influence their thinking, and winning the deal is going to be a long shot. Many software and hi tech equipment manufacturers have a no bid policy for ‘blue bird’ RFIs and RFPs (i.e. the opportunities that sales people only find out about when the RFI / RFP arrives in the mail).

Reason 3 A customer already has a product or service similar to yours and you can’t identify a compelling reason for them to change.

You’ll come across some people in business who will engage and talk and talk for hours and hours – because they have a particular interest in a given area or they want to find out what’s available in the market. As sales people, we like talking to people who like talking to us! Unfortunately, this type of ‘buyer’ can be a huge time sponge. The key here is to get them to identify a clear and compelling reason to change to your solution from what they have now. Then you have to get them to sponsor you to another decision maker or senior influencer to test this reason out with them. If you can’t do both these things you have to politely disengage.

Reason 4 There’s no budget allocated for the project and you haven’t been able to identify a business challenge your solution addresses, with sufficient upside.

Just because there’s no budget currently allocated doesn’t mean you walk away from the opportunity. Some of the most profitable sales come from situations where initially the customer hasn’t fully recognized and quantified the business challenge they face and don’t yet have a budget allocated for a solution. You have to get to the senior people in the organization who own the business issue and work with them to put a number on what it would mean to solve the problem or take advantage of the opportunity. However, if that number turns out to be too small to make the business case, then there is no opportunity for you.

Reason 5 The opportunity is too small to warrant the sales effort.

As sales people we are hard-wired to go after any opportunity where it looks like there’s an easy deal to be done. We forget there are only 16 working hours in a day (only joking) and we have to focus on the deals that are big enough to get us to quota and beyond. No matter how low hanging the fruit appears to be, all sales that require a sales person to close them will take time to take through the sales process – especially when it’s a new account. You have to ask yourself, is the margin on the deal worth the time and effort?

Reason 6 Your product or solution is a poor fit for the customer’s requirements and will require extensive customization or development effort just for this account.

We’ve all heard stories of the sales person who used PowerPoint to add a new field or button to a screen grab of a software product, to indicate that a certain feature is available! Usually, of course, the promise to develop new functionality to win a large deal is made with the full knowledge and support of senior management. As sales people, we could take the view that if we can persuade management to go along with this then we’ll get the deal done and the commission in our bank account! However, projects sold on the basis of huge one-off development work are rarely delivered successfully and often turn into a financial black hole. If we’re interested in building profitable, long-term customer relationships that deliver ongoing commission for us, we have to resist the temptation to sell what we don’t yet have! We can either persuade the customer that what we offer is so valuable they can do without the feature we don’t have, or we can walk away from the deal.

CONCLUDING

 We’ve been looking at negotiation skills that set extraordinary salespeople apart from average ones. Nobody wants to walk away, but you must be comfortable in doing so at any point during the negotiating phase. More importantly, the other party must know you’re comfortable walking away.

Yes, the next step is negotiating with the other person, but that does not necessarily mean you should. Before you enter into any negotiation, you must know what your walk away point is and be comfortable at doing just that – walk away should the need arise.

Far too many negotiations are not completed well, due to the salesperson giving away too much. Keep in mind that sometimes the most profitable deals you’ll ever negotiate are the ones you don’t complete. By this I mean that it is best to not attempt to negotiate a deal where the outcome is simply not going to be beneficial.

The point at which you will walk away is something for you to merely keep in the back of your mind. You have to be careful to not simply default to a level slightly above your walk away point. In fact, you want to reach an agreement that is nowhere close to your walk-away point.

I can’t emphasize enough why you need to hold firm to your walk-away point.If the customer gets any sense that you will not actually walk away when you start to end the discussion, they will simply push aggressively to get you to give them a better deal.Your goal is to never have to walk away, but at the same time, should it be necessary, you must be able to do it confidently.

 

QUANTUM IMPROVEMENT IN SALESFORCE PERFORMANCE ...we can show you the way

 

NEGOTIATING IS ALL ABOUT THE SPUR OF THE MOMENT ? OR CAN SOME FORETHOUGHT AND FORESIGHT GIVE YOU A DEFENSE ARMOUR?

THE COMMON NEGOTIATING  MISTAKES

  YOU CAN MAKE (AND REPEAT)

1.     LACKING CONFIDENCE.

Some people think it takes a bold or brazen personality to negotiate a deal, and others think experience is required. Instead, negotiations takes tenacity and preparation.Before you start the process, make sure you’ve identified mutually desirable terms, anticipated possible objections, and determined what motivators or ‘hot buttons’ will resonate with your opponent. Projecting confidence also means having a heart, which is often endearing and gives the opposition a less defensive stance.

2.     NOT BUILDING RELATIONSHIPS FIRST.

One of the biggest mistakes individuals make in negotiations is not getting to know their opponent. Slow down and make connections with people and you’ll glean useful information that can be used to identify what they value in life, what motivates them, and what annoys them.You might be surprised how well you can leverage what you learn through a genuine conversation with someone.

3.     DEFEND OR ATTACK. 

Try to understand any moves the other party makes. If they do something you don't understand, don't get defensive. Say, "That's one way we could do it. What other options do we have?" If you attack their ideas or motives, you lose your credibility. If someone attacks you, instead of defending yourself, say, "I'm sure you have good reasons for saying that. Can you help me understand them?"

4.     ASSUMING THAT SOMETHING IS NON-NEGOTIABLE.

When you think like a negotiator, everything is negotiable, When you decide that the terms for anything can be changed in your favor, a world of opportunity presents. Rules can be modified if you simply propose an ethical, viable, and mutually beneficial alternative solution. Powerful negotiators are rule breakers.

5.     LOOSE YOUR COOL AND CALM BY PROVOCATION 

 A good tactic of tricky negotiators is to let the counter party loose their cool and calm ...which in turn numbs their mind to calculate and reason. Getting angry or frustrated because things don't go your way doesn't help at all; it only gives the other person an advantage. Don't try to gain leverage by putting other people down. Stay focused on your outcome—closing the deal.

6.     TAKE THE FIRST OFFER OR COUNTEROFFER TOO GLADLY.  

When a prospect gives you their first offer or counteroffer for your product or service...ALWAYS show a lack of preference without outright rejecting  it. Chances are they'll make a higher offer the second time around or least you still have the first offer

7.     NOT ASKING FOR WHAT YOU WANT

It sounds simple, but the key to successful negotiations is asking for what you want. Fear of rejection or the fear of looking greedy can get in the way. But know that rejection will happen.Rejection is never personal. It’s merely a reflection that you did not present a viable argument substantiating why you should get what you want. Your offer was rejected, not you.When you get a no, it means the other person needs more information."Take heart in knowing that people say no an average of three times before they say yes,The only way to master the art of rejection is to get rejected and keep asking.

8.     MAKE NEGOTIATING A BLAME GAME:

  If a problem arises, even if it's the other person's fault, don't place blame. The other person will only become defensive. Instead, concentrate on finding a workable solution.

9.     TALKING TOO MUCH.

Talking too much is a sure-fire way to kill a deal. In fact it’s not unusual for a salesperson to talk so much about a product or service that they talk you right out of the purchase.Never underestimate the power of silence...There’s an old adage: ‘He or she who speaks next loses.’ When discussing a deal, if you simply stop talking and get comfortable with the awkwardness of silence, your ability to win your argument, sell the product, or a get concession in the negotiation increases significantly.Present your most compelling arguments first. If they agree with you, move on. If they disagree, try to understand their objections before offering additional arguments.

10. USE CHEAP MANIPULATIVE TACTICS.

 Great negotiators do not use tricks or manipulation. Avoid bluffing or misleading the other person. Be honest and sincere. Negotiating in the classic diplomatic sense assumes all parties are more anxious to agree than to disagree.

11. FORGET TO NEGOTIATE ON NON-CASH DEAL COMPONENTS. 

For instance, you may offer a far superior credit policy or better payment terms than your competitors. You may also carry a far better guarantee. Your prospect may not know this. Do you assemble merchandise where your prospects are located? Do you offer same-day delivery? Does your company have superior expertise that your prospect can benefit from? If so...let your prospect know!

12.  STAY ON... AND DON’T  WALK AWAY FROM A BAD DEAL. If a deal isn't right—walk away from it. Never get emotionally involved in completing any deal. Some deals just aren't worth the time and effort. Another prospect will always come along.You must never try to make all the money that is in a deal. 

13 TRYING TO GRAB EVERYTHING...Let the other fellow make some money, too, because if you have a reputation for always making all the money, you won't have many deals 

Best of luck

Dr Wilfred Monteiro

A handful of personal characteristics and social attributes contribute to successful negotiations. Just like world class sport stars, good negotiators spend significant time analyzing the way that they negotiate - particularly under pressure.

WHAT MAKES A GOOD NEGOTIATOR 

BECOME A GREAT ONE?

NEVER FEAR TO NEGOTIATE BUT DON"T NEGOTIATE OUT OF FEAR

Have you ever wondered what it is that makes a world class negotiator?What are the key characteristics that helped to determine the negotiation success of Henry Kissinger (the middle east crisis in the 70’s) or Sardar Vallabhai Patel (post independence merger of princely Indian states) A handful of personal characteristics and social attributes contribute to successful negotiations. Nobody has all the traits of a world-class negotiator, but these skills are worth developing if you hope to improve your negotiation skills and your life.

1.     GOOD NEGOTIATORS HAVE A WIN-WIN ATTITUDE. 

The best way to achieve this is to look at the sale from the other party’s perspective. What are their risks, hesitations, concerns? By determining those before you reach the negotiating table, you can better create win-win solutions for both sides.

2.     BI-FOCUL LENS TO VIEW BIG PICTURE AND NITTY GRITYY.

Probably the most critical characteristic of world class negotiators is their ability to understand what it is that all parties to the negotiation want. The ability to see past the 'demands' of your counterparties and really understanding why it is that they are negotiating with you is an essential element that will help you to understand what common ground exists between parties.

Equally important is to understand all the individual elements that will ensure the adoption and implementation of an agreement by all the parties. The key tool at your disposal to facilitate an understanding of both the big picture and the supporting detail is the effective use of questioning.

3.     GOOD BUSINESS SENSE AND REALISM:

Great sales negotiators get a good read on what might happen and what might not. They understand what's in the field of play and what's beyond. They make good decisions, and offer trades and ideas, that often work. Realistic negotiators are also less prone to reacting negatively when they don't get what they want or think they deserve.

4.     THE RULE OF RECIPROCITY AS BOTH ETHICS AND TACTICS

A common misconception is that in order to be a tough negotiator one has to be a rude negotiator. One can be tough on the issues whilst treating the people involved with dignity at all times.

The rule of reciprocity states that we will return to others the form of behavior exhibited towards us. It is folly to think that we can run roughshod over other without them resorting to means to reclaim their dignity. Remember that very often victims become aggressors.

5.     DEVOTING TIME TO STRUCTURED PREPARATION.

The success of your negotiations will depend in large part on the quality of your preparation. We often make the mistake of thinking that we don't have enough time to spend on preparing for negotiations. Our research indicates that the primary contributor to eliminating misunderstandings & shortening the negotiation cycle - therefore saving you time - is the quality of your preparation.

You will most definitely benefit significantly from your upfront investment in preparation - try to spend at least as much time preparing for negotiations as you expect to be involved in actual negotiation - ideally spend as much as 3 times more time in preparation as you expect to be involved in actual negotiation.

6.     WILLINGNESS TO EXPERIMENT & CREATE OPTIONS

Negotiating is a very dynamic process because no two people are alike. What works extremely well in one situation can backfire in another. That's why great negotiators practise using a variety of concepts and techniques. They experiment with different strategies, solutions, and tactics. And a small failure does not prevent them from experimenting with new ideas in the future. What a lot of people would like to describe as business negotiation is often no more than one dimensional haggling about price. Our research suggests that more than 50% of negotiators struggle to create or uncover options outside of this one dimension.

7.     EMOTIONAL CONTROL  WITH  ARMTWISTING ADVERSARIES

Sellers can get excited when negotiations seem to be going well. After all, they're close to a sale. Conversely, some lose their focus and temper when things take a wrong turn. Sales negotiators who control emotions can remain in control of the negotiation. If you can't, the other party can easily take control just by pushing your buttons.

8.     HAS THE ABILITY TO WALK AWAY. 

Most small business owners put themselves in a position where they’re unwilling to walk away from a sale because they feel they desperately need it. This is a mistake. When you hold that mindset, a customer has a better chance of taking advantage of you. “Every deal has to make good business sense,”

9.  INDIFFERENCE TO A FAILED NEGOTIATION:

This is more than just a willingness to walk away from an agreement that leaves you with unfavorable terms. True indifference means you really don't care—and while you might "want" the deal, you certainly don't "need" it. Another good one is always around the corner. If this is your belief, it's like having built-in leverage in the negotiation.

CONCLUSION

 Continuously develop your skills. Just like world class sport stars, good negotiators  spend significant time analyzing the way that they negotiate - particularly under pressure.

 It is only once you have built an understanding of your own weaknesses & strengths that you can implement measures to improve your negotiated outcomes. World class negotiators never stop refining their skills because they realize that one can never reach perfection. The world within which we negotiate today can often seem much more complex for the global Indian businessman crossing boundaries of caste creed and culture.

Sadly, many managers enter a negotiation without having clearly defined the optimal goal they are aspiring to achieve in that negotiation, or aspire to a goal which is far too low.

7 KEYS TO BEING

 A BETTER NEGOTIATOR

KEY NO 1 - KNOW YOUR ASPIRATION BASE

Sadly, many managers enter a negotiation without having clearly defined the optimal goal they are aspiring to achieve in that negotiation, or aspire to a goal which is far too low. This inevitably results in an outcome that is way beneath what could have been achieved, as their low aspiration target is very likely be eroded by the concessions they will need to make to advance the negotiation. Their underlying psychology and expectation often results in little more than a split-the-difference exercise.

Negotiators need to appreciate that the initial target they set is the outer limit of what they could achieve, and that there is no way in which the outcome will extend beyond this target; it will in fact only move the other way. Furthermore, they also need to appreciate that their aspiration base set the other party's minimum expectation.

KEY NO 2 -KNOW YOUR REAL BASE

As important as it is to develop a high aspiration base, negotiators must also know when to walk away from the negotiation. Not clearly defining this point beforehand inevitably results in a tendency to stay in the negotiation beyond the point where it is meaningful. Trying to ascertain this point as the negotiation unfolds is highly dangerous as it may then be psychologically very difficult to act against the flow.Know what it is that you must have if the negotiation is not to be a self-destructive exercise.

KEY NO 3 - KNOW YOUR BEST ALTERNATIVE TO A NEGOTIATED AGREEMENT

Before entering a negotiation it is imperative that a negotiator determines what his/her BATNA would be should an agreement not be possible.

• Where would a walk-away leave him/her in terms of satisfying his/her interests?
• What alternative way/options would there be for satisfying his/her interests?

 Unless negotiators are very clear on whether they can walk away from a negotiation and what options would be available to them if they should, they will inevitably find themselves heavily pressurised to reach an agreement, as they will then be pessimistic about the consequences should the negotiation not succeed.

 A good BATNA allows a negotiator to be firm when negotiating, and provides the power and confidence needed to walk away from a negotiation when an agreement that is mutually beneficial is not possible.

A BATNA is the best outcome a negotiator can expect if the negotiation results in an impasse. It is the standard against which any proposed agreement should be measured as it determines what a minimally acceptable agreement is. In the case of an employment offer, the BATNA could therefore represent an alternative offer.

KEY NO 4 : EXPLORE THE  ZONE OF POSSIBLE AGREEMENT 

The seller wants to get the maximum amount possible for their proposal, but generally may also set a limit for the least amount they will accept. The least amount they are willing to accept, is known as the seller's 'Reservation Price'. This is the amount where they draw the line, also know as the 'walk away' from the deal point.

The buyer, on the other hand, wants to pay the least amount possible, but may consider a higher amount that they might be prepared to pay as well. The maximum amount they are prepared to pay is also known as the buyer's 'Reservation Price' or 'walk away' from the deal point.

The differences between these respective lows and highs of both the seller and buyer, are their range of expectations. When you have a common ground or overlap between these two different ranges, this is known as ZOPA or the Zone of Possible Agreement.

Of course, common sense dictates that if there is no overlap in the expectation ranges of the seller and buyer, agreement becomes highly unlikely. Similarly, even where ZOPA exists, the agreement might still not materialize,when the parties are unable to agree regardless. The letter 'P' in ZOPA meaning a possible agreement, will more probably occur, but it's not a definite

KEY NO 5 - FOCUSING ON INTERESTS RATHER THAN POSITIONS

Life is far easier when people have the sense to see things our way It can be troublesome if the short-term objective of minimizing conflict gets in the way of developing and achieving long-range goals. Interest-based negotiation techniques can help us focus our energy on the process and guide that process towards yielding a satisfactory result.

Most negotiations are repeat performances. We tend to deal with the same bankers, suppliers, clients, directors, managers, etc., for a long time. It is important to recognize and give proper weight to the context in which a negotiation is taking place; if it is within an on-going relationship, the significance of that relationship must be considered.

We can take positive steps to prepare for the decision-making process and we can monitor our own behavior - and that of other participants -- as the process goes forward. By following a few common sense rules we can reduce conflict and turn it into cooperation and reach solutions that really work for all the participants.

When preparing for a negotiation, or after it has begun, don't just ask "What do they want?" It is also important to ask, "Why do they want it?“

 It is equally important - and often more difficult - to ask the same questions about your own views. Many successful negotiators find they will be more successful if they focus on understanding their interests as they enter discussions. If they haven't started out with a perfect package, the ideas of others may actually improve their final result.

Negotiators who arrive with a complete package can create real problems. Modifications to their ideas might be taken personally, they may be stubborn, and reaching a satisfactory resolution is made more difficult.

KEY NO 6 - FOCUS ON INTERESTS NOT POSITIONS

Focusing on interests rather than positions makes it much easier to concentrate on the real problem at hand and not to become person focused.

 To succeed in a negotiation it is often necessary for a negotiating party to make itself vulnerable by first sharing its interests and reasoning before proposing a solution, thereby creating the trust needed for the other party to feel sufficiently secure to share its interests.

That the interests of the negotiators do not necessarily coincide with those of the constituency they represent .

KEY NO 7  - CHECK YOUR ASSUMPTIONS - THEY TEND TO BE WRONG

One of the greatest dangers negotiators face is their tendency to assume certain things without checking that these assumptions are correct.

This very often not only leads to the other party being framed in a particular way, but also results in inappropriate attitudes and behaviour that prevent a mutually beneficial agreement from being concluded.

Where two parties, a developer and an environmentalist, are for example negotiating an industrial development near a very sensitive wetland, and the developer believes the environmentalist is, as are all environmentalists, part of a lunatic fringe that is hell-bent on preventing all development, this will strongly influence how the developer approaches the environmentalist. Although the developer's assumption may be totally unfounded, it unfortunately could, as all too often happens, become a self-fulfilling prophecy, as it is likely to compel the environmentalist to act accordingly.