Practical Negotiation Principles

Monday, September 26, 2005

Practical Negotiation Principles

By Larraine Segil and Avi Goldstein

The need to resolve issues and craft agreeable solutions, usually through some form of negotiation, is at the core of much organizational communication. Although the situations giving rise to these workplace encounters differ widely, familiarity with basic negotiation skills will improve the chance of securing a fair and workable solution that satisfies all parties.

The word "negotiation" often conjures up images of international treaties, corporate mega-deals or the purchase of a used car. What's often missed is the subtle negotiating we all do on a regular basis. The everyday agreements we reach in cooperation with those around us. The informal influence we exert to make decisions and get things done. And even the deliberate framing of messages in which the goal is to induce some change in attitude or behavior.

Although not as formal or structured as what most people think of as negotiations, these day-to-day encounters could well be considered in the same category.

No matter the context, medium, or formality of the situation, whenever we are attempting to arrange or settle matters by some level of mutual agreement, an application of key negotiation principles will help make our communication more effective and our interactions more productive.

Over the course of more than 20 years of consulting on organizational and individual negotiation capability, we've found the following guidelines for negotiation particularly helpful.


Test your assumptions

Assumptions drive results by shaping our actions and goals. As you engage with your counterpart, consider what assumptions you might be making. For example, key facts that you are taking for granted, conclusions that you're reaching, motivations that you're attributing to your counterpart, and the goals that you're aiming for.

How are these assumptions influencing you and your counterpart's behavior and communication? What might each of you do differently if one or more of your assumptions were proven incorrect?

In action: As you consider and clarify your own assumptions, ask questions to clarify the assumptions that your counterpart is making, testing to see how your assumptions line up with theirs. Jointly explore differences in assumptions, and their reasons and implications. The time taken to clarify and align assumptions will help to avoid the frustration caused by disconnects lingering below the surface of a conversation or negotiation.


Pay attention to process

Negotiators and communicators alike should pay attention to the process they employ to reach their goals. The process - how an agreement is reached - is often as important as what the agreement might be, i.e. how something is communicated is often as critical as what is being communicated.

A good process improves outcomes by enabling constructive engagement, promoting clarity and nurturing relationships. This is especially important when dealing with complex issues; when an ongoing relationship is involved; or when the cooperation of a counterpart is necessary to implement an agreement - all very common conditions.

In action: Explicitly consider the series of activities you will engage in as you go about your negotiation. What do you need to do to prepare? Who needs to be involved at various points? How will you engage with your counterpart? What information will you share? Who needs to be informed of the outcome? Such considerations of "process" don't have to be overly complicated, but they should be methodical and systematic.


Foster two-way communication

Driving results is an uphill battle when communication styles tend toward delivering directive messages. In today's complex organizations, unilateral persuasion is simply not a sustainable option for effective communication. Rather, communication must be informed by a mindset of engagement and modesty - a willingness to explore, learn and problem solve, rather than explain, instruct and pronounce.

In action: Balance advocacy and inquiry as a communicator. Don't just explain your view; ask questions to clarify your counterpart's as well. Doing so will lend interpersonal interactions a constructive spirit of creative, joint problem-solving, helping you to discover and create new value while building closer relationships.


Separate people from problems

Relationships often get tangled up in negotiations and sensitive communications. One of the best ways to preserve and improve relationships while solving difficult problems is to separate one from the other, and to be unconditionally constructive on both.

That doesn't mean that one ought to be soft on the problem at hand. On the contrary, the problem should be attacked directly and firmly, but as an entity distinct from the people involved.

In action: Discuss any salient people issues explicitly, but separately, making sure not to confuse these issues with the substance of the problem at hand. Never try to fix relationship problems with substantive concessions or vice versa. Be uncompromising in your separation of people from the problem.


Explore interests, not positions

Clarify and prioritize interests (needs, concerns, fears - "why"), as opposed to positions (offers, demands, requests - "what" or "how"). Consider what your interests are and what your counterpart's underlying interests might be.

By exploring and discussing interests instead of positions, you'll be able to come up with a wider range of possible options for agreement and, very likely, discover more value than by haggling over opening positions, concession by concession.

In action: Identify which interests you share, which are competing, and which are simply different. If you encounter positions or demands, ask "why?" or other open-ended questions to get to the root of each position. Think of ways to take advantage of shared or complimentary interests and ways to mitigate the effect of competing interests.


Employ objective standards

Objective standards ought to be employed as both swords and shields, to help support reasonable options for agreement and to protect against options that would be unhelpful or even detrimental.

To build your arsenal, brainstorm objective standards and collect supporting data to help choose impartially from among possible options. Make sure you introduce relevant standards during the course of negotiation. Standards produced as validations of an already made arrangement are not very persuasive and in some cases might feel excusatory or coercive. Rather try to introduce criteria that both parties can use to make a choice.

In action: Look for existing standards (for example, precedents, studies, market data, industry practices, etc.) as well as standards you could generate (for example: third-party testimonials). Avoid preparing standards that support only your perspective; consider what objective standards would support your counterpart's perspective as well.


See agreement as the beginning

Consider the boundaries of what you are willing to commit to with an eye to the future. Remember that agreement is just the beginning. Soon after your signature, handshake or verbal OK, you or someone else will be responsible for acting on or adhering to the agreement.

To make sure that any commitments made are clear, realistic and operational, make a list of implementation issues or topics to discuss before commitment, and discuss the procedure by which agreements will be implemented.

If necessary, consider different, gradual levels of commitment (a follow-up meeting, a tentative agreement in principle, etc.).

In action: Be clear about what level of commitment you are seeking from your counterpart. Are you looking for a firm deal or just exploring options? As you near commitment, make sure you consider who's going to be impacted by your agreement and consult or inform (or even negotiate with) them as appropriate.


Set the standard

The role of communication professionals is to be a standard-bearer of the skills of good internal and external messaging. Approach interactions and the construction of messages, both formal and informal, with these principles of negotiation in mind.

This will enable you to carry that standard both for the relationships that you manage every day within your organization, as well as those in which you are representing your organization.


Top tips for Negotiation:

1. Consider and clarify your own assumptions as well as those of your counterparts.
2. Agree on a process to follow to give negotiations a clease sense of purpose and direction.
3. Think about who else needs to be involved in the negotiation process.
4. Make sure that the problem at hand is dealt with separately from people-related issues.
5. Be inquisitive: try find out what it is your counterpart is trying to achieve and why.
6. Be clear about the unspoken interest or outcomes that could influence negotiations.

Blogged on 6:32 AM by Upay

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