How to negotiate effectively
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Negotiating effectively is a skill that blends preparation, communication, psychology, and strategy. This week we bring you a clear set of guidelines to help your negotiation skills.
First of all, prepare thoroughly: Know your goals: Define your desired outcome and your bottom line. Understand the other party: Research their needs, constraints, and goals. Know your BATNA: Best Alternative to a Negotiated Agreement—this gives you leverage.
View negotiation as collaboration, not confrontation. Be ready to listen more than you speak.
Ask open-ended questions: “What’s most important to you in this deal?”. Frame proposals in terms of mutual benefit.
Use silence effectively—don’t rush to fill gaps in the conversation, stay calm and confident.
Make small, strategic concessions—don’t give too much too fast. Trade, don’t give away: If you concede something, ask for something in return.
Look for win-win solutions. Use “What if…” scenarios to explore options without commitment. Consider non-monetary terms if you are stuck on price.
Don’t let your emotions take over. Recognise and control your emotional triggers. If things get tense, take a break or slow the pace. Use empathy and acknowledge the other party’s perspective even if you disagree.
Close with Clarity…summarise the agreement clearly and confirm mutual understanding. Follow up in writing to avoid misunderstandings.
Negotiation is rather like a seesaw. Too much weight at one end tips the balance…Ideally, you meet in the middle to keep the balance.
Doing your prior homework is also important to the process. What is truly at stake, and what are the implications for both parties, particularly when trading concessions.
Homework also allows for confidence…Key to your success!
“I’ve grown up a little bit. I understand the importance of the negotiation. It is a collective act.” Thom Mayne
