Negotiating and Decision Making (Part 2)

Problem Solving

When you are researching, you will have to find out ways to solve the other side’s problem as well as your own.

This includes the values and outcomes they are looking for. It is also helpful to discover some negatives in their business past.

1. All of these bits of information require asking them open-ended questions during the negotiation process. Ask things like “how will this help you” and “tell me more about that”.

Instead of getting an answer and moving on, keep asking questions until you fully understand. This technique will create a positive environment and show that you care about their problems and their needs.

2. In real life, absolute distributive or integrative negotiations are rare. Rather, these negotiations are a combination with varying degrees of each type. You may be able to find multiple ways to reach an acceptable outcome.

  • Gather as much information as possible
  • Identify items of value
  • Do not become competitive or force compromise. Compromising detracts from both sides.
  • Focus on the desired outcome for both sides

Let the Other Person Win

Identify common issues – Increase communication by showing how you are similar to the other person. It will increase trust and build a relationship.

Maintain the relationship – When something negative comes up, associate it with the terms of the deal and not the other person.

Show the other person how the deal helps them – Be ready to prove that your deal will help their business. Be able to show them and not just tell them.

Understanding their Methods

Many high-ranking business professionals quantify information and develop precise formulas to determine outcomes. If the other side does this, pay attention to the rationale and the formulas they have developed. Know how the other side reached their conclusions. Their method is likely to stay fixed, but the outcomes and numbers are not necessarily going to stay the same because they are more easily changed.

Rules to follow when trying to get at the final numbers:

  • Know the guidelines, the goals and who is involved with the deal
  • Strive for communication – Ask questions
  • Question their numbers and assumptions – Do not accept everything they give you
  • Establish your uniqueness – Show them why your product is the best option and how it will help their bottom line and overall business.
  • Focus on risks and benefits – Do not threaten or put pressure on the other side, but remind them of the risks of going with a competitor tactfully and through questioning rather than direct statements.

Achieving Results

Several methods will help to achieve the results you desire AND maintain or improve your relationship with the other party.

Find objective methods to determine the benefits of solutions. – This will allow both parties to trust and value the terms to be agreed upon.

Concentrate on what you want to achieve, not where you stand on an issue. – This is a means of opening your mind to other options and ways to achieve your goals.

Focus on Issues, Not Personality. – Avoid personal attacks. Your interest is in improving a relationship and achieving your desired results, not frustrating or offending the other party.