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.