Before entering into any negotiation, it is essential to first identify both your own goals and those of your counterpart. Next, research should be undertaken into areas where common ground can be found (your ZOPA), as well as finding alternatives (BATNA).
Know what your opponent wants before beginning negotiations so that you can craft counteroffers which meet both parties’ interests.
Negotiation Styles
Your negotiation style depends on the circumstances; competitive, positional approaches may work when trying to gain access to limited resources, while win-win integrative styles might work better when discussing abundance.
Hard-bargaining tactics used by your counterparty may hinder negotiations or unnecessarily extend them. To counteract these strategies, make sure you have a firm grasp on your goals and best alternative to negotiated agreements (BATNA), as well as remain calm and confident throughout.
An aggressive negotiating style can be useful when there is a clear advantage or you’re engaging in one-off transactions like buying a car. Avoiding negotiations should always be avoided to preserve relationships and prevent resentments on either side. If a negotiator avoids an issue altogether, take steps to address it and find out why they’re being so dismissive of it.
Negotiation Tactics
Negotiation tactics refer to the actions and techniques taken to implement and achieve our strategy of negotiation and secure successful results. They should not be confused with negotiation strategies which involve higher-level decision making with regards to an overall approach and desired results.
Reciprocity is a psychological principle that operates off of the notion that when you do something nice for someone else, they feel obliged to return the favor and reciprocate in kind. Reciprocity should always be used with caution as its use could backfire and leave you vulnerable during negotiations.
“Take it or leave it” strategies can also be an effective negotiation tactic, where one side feigns disinterest in reaching an agreement and demands concessions as compensation for this perceived weakness. But be wary; overusing this tactic could backfire and undermine trust if done too frequently; consider instead employing strategies aimed at building mutual value creation for greater results.
Negotiation Goals
Clear negotiation goals can make all the difference in successful negotiations. Starting the process with clear goals or objectives increases your odds of bringing home a win for your company.
Before engaging in any negotiations, it is crucial that you identify and assess both your personal interests as well as a negotiated agreement (BATNA), also known as your negotiation objectives. This is known as setting your negotiation objectives.
As part of your preparation, it’s beneficial to gather information about the counterparty’s interests and priorities as well. For instance, in an employment negotiation you might ask a job candidate about her top priorities – though this might sound counterintuitive, disclosing your own interest can elicit reciprocity while opening up new possibilities for creating value through negotiations.
Avoid hard bargaining tactics that reject compromise or force the other side into retreating. Some common strategies include the “take it or leave it” tactic, in which one party prevaricates that they no longer care about reaching an agreement and is willing to walk away.
Negotiation Techniques
Negotiators use negotiation techniques to strengthen relationships and find more substantial deal solutions. Some strategies focus on effective communication while others involve careful preparation and an appreciation of other parties’ goals.
Education of your counterpart’s interests and concerns, recognising their emotions, and collaborative problem-solving are all effective negotiation techniques that can lead to more fruitful negotiations. Furthermore, understanding their view on the situation as well as framing any discussions around a win-win solution are also effective strategies.
Establishing a zone of possible agreement, or ZOPA, can be an effective strategy in negotiations. By setting aside certain terms that neither you nor the other party is willing to accept, this allows negotiations to move forward without reaching an impasse; additionally it gives both parties something solid on which to fall back should negotiations become difficult or emotional; additionally it helps avoid anchoring bias which causes your initial offer to set the tone for further talks.
