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Business is negotiation. You will negotiate to buy, to sell, to conclude contracts with suppliers, to fix the staff salaries and so on. What is more, you have to negotiate with regulators, Banks, Insurances. It means that the business life is a permanent negotiation with others people who are defending their own interests.
2-PREPARATION
Preparation is a must.
Your goal is to win the bargain. Despite your possible weaknesses, you must assert that your goal is to win because otherwise you should place yourself in a loser position. A limited result could coincide with a common interest. It's that people call the win-win principle. You must position on your plan the win-win result and you must define it in a written sentence. You can just get the minimum issue: It's your bottom line. You have also to define it on your paper. What should happen if the negotiation is a failure? You must clearly define your BATNA. It means the Best Alternative to a Negotiated Agreement. You must clearly examine this option. Of course, your Batna must always be a lower issue than your bottom line. If you have a good Batna, it means that a failure in the negotiation will not hurt you too much. Consequently, you can lift your bottom line! On the contrary, if your Batna is a bad issue, it means that you must lower your bottom line. In the same way, you have to evaluate the BATNA of your opposite party. This examination determines the balance of power and consequently dictates the tactics you will adopt during the negotiations.
231-Balance of powers:
It just result from the examination of your case, goals and best alternative. Clearly, the balance of power is not in your favor if you have more to lose than your opponent in case of a failure of the negotiation. Do not confuse this balance with the quality of your case. May be, your files are not good but if your opponent has a big loss to expect in case of failure, the balance of power weights strongly in your favor, despite the weakness of your files.
232-Movements:
There are two main strategic movements depending on the balance of power: The balance of power weights in your favor: Attack and be aggressive. Try to destabilize the opponent and to get the deal closed in a short time!
The balance of power does not weight in your favor: Appease or attempt to convert. the following drawing illustrates the two situations.
You are the blue line. In the first situation, you attack in front to break off the opponent line. In the second situation, you wait and try to circumvent the opponent by the sides:
233-Detailed scenario:
According to all this previous studies, you must write a complete scenario describing all the arguments you will use and all the events you will produce: Starting from the negotiation room, asking for a suspension, asking for a drink and so one. Of course things never run off as you have described but try to precise everything in taking in account the opposite arguments. It means that you must write your arguments and also those that you expect from your opponents: To do that use extensively mind mapping. We shall examine these negotiating techniques in the next chapter but right now your preparation is not yet finished.
24-Psychological preparation
You know your case. You have define your goals and your strategic movements. You have to be psychologically prepared. Negotiation is hard business. You have to use your personal development resources! -Firstly, try to know your negotiator opponent. If you don't know him, get information about his reputation. As a boss, you have to negotiate with a boss. On the other hand, being a small biz, you can't expect to negotiate with the boss of a big corporate. However, you have to make sure that your opponent is empowered to conclude a settlement. It's not easy because this accreditation to conclude or not is part of the negotiating techniques. -Secondly, try to see the place where the negotiation will take place.
In business, these matters are only important for superficial people and beginners. We ask you to see the place only for your psychological preparation. Then, as we have learnt, relax and vision. Visualize your file, the opposite negotiator, the place and then imagine yourself speaking, persuading and finally winning the deal. Visualize in detail your chain of arguments and all your scenario.
3-NEGOTIATING TECHNIQUES
When they deal with negotiations, business schools emphasize on the quality of the relationship between the two parties. The negotiation is mainly described as a conversation between polite persons. The two parties explore their common interests and try to reach the win-win option.
31-Attack
The balance of power is clearly in your favor. Don't hesitate: Attack immediately once the negotiation is open.
Of course, even when the balance of power is clearly on your side, things are not always so easy and we have to envisage all the type of situations
311-Opening:
As in chess game, the opening is very important in any negotiation. As the balance is for you, begin by stating your upper position and make clear that it is also your only possible solution. You have to opt for an aggressive opening but it's better for everybody to avoid to make threats, menace, insult and so on.
312-Middle course:
Usually, during the middle course, each party tries to concentrate on the core of common interests. Negotiation then comprises common thought and not confrontation. Try as much as possible to change from being an opponent to advisor analyzing with him his own options. In the event of deadlock, proceed as follows: Re-clarify the common aims. Reformulate the questions that have been badly posed. It is sometimes just necessary to call things otherwise to free the situation. Faced with an option, rather than refusing it, propose another option. Remember, as a last resort, the negative consequences of failure for the other party. Always stay calm when your opponent becomes aggressive. Disassociate yourself to remain in control of your emotions. However, most negotiators try to manage a crisis during the middle course. When they feel that things are not doing in their way, they suddenly menace to leave the negotiation and so on. This crisis is a part of the negotiation and must be carefully prepared and managed. As the balance is on your side, you have interest to take the initiative of the crisis.
32-Appease
321-Opening:
It's not your interest to attack. Just start with your upper position but try to explain it as fairly as you can. Insist on the idea that your goal is to find a common agreement with a high value placed on the constant relationship between you and your opponent. Play the good Guy. Be courteous but nevertheless be firm to deter the aggressiveness of the other party.
322-Middle course:
Do not hesitate to make one sided concessions with the expectation that the opponent will reciprocate. You don't lost anything because anyway you should have been quite obliged to make these concessions. Consequently, go to the win-win position and try to defend it. Always say that you are seeking for solving a problem and not to gain a benefit. Explore and take in account the problem of the other party. Your fellow should now be the naughty. Let's him complaint and try to place you above the fight just as if you were a mediator between two parties! If you are under a strong pressure, use the following tips: Say that you do not understand, come back in the previous discussions, make your best to keep the debate unclear and confuse. By the end your opponents can lose the follow of their arguments and concede a card just because they have been too much confused! On the other hand, prepare to face a crisis. The opponent will say that they are losing their time, that you are incompetent, that they have never experienced a so stupid bargaining. No matter. Keep cool and play the outrageous dignity. Give a feeling of culprit to your opponents. Bored by this feeling, they can left you more advantages than you expected!
Lesson summary
Business life is a permanent negotiation with others people who are defending their own interests.
You have to know your files, to define you goals and to schedule a strategy.
Any negotiation must be carefully planned: There are two main strategic movements depending on the balance of power: The balance of power weights in your favor:
DO IT YOURSELF:
Just like for the programming communication, you have to find some opportunities to
You can perform the following exercise: Read the survey about Ecology in "global leader" and meet a friend or a relative who is interested by this topic. (Today, many people are aware about ecological problems). Ask your interlocutor what is his point of view about the global warming. Knowing it, try to defend the opposite point of view. Make your best for persuading him as if it was a real negotiation! Then, repeat the same exercise with four successive interlocutors! Take notice of the progress you have made since the first discussion. Analyze your strengths and your weaknesses. This analyze is not related to the content of the case but to your ability in persuading! Report these results on your log. Count about five hours to perform these five exercises.
Eddie's First Law of Business: Never conduct negotiations before 10 a.m. or after 4 p.m. Before 10 you appear too anxious, and after 4 they think you're desperate. Truman's Law: If you cannot convince them, confuse them Helga's Rule: Say no, then negotiate.