Negotiate. Everyone has had to use negotiation at some point in their lives. Negotiate working conditions, negotiating with parents arrival time home, negotiate the purchase of a car, or even when we try to haggle a street vendor. Of course, in business negotiation processes are key to the economic growth of any entity of any kind.
This article discusses the different strategies, tactics and negotiation techniques, oriented business world but perfectly extrapolated to other areas of life.
We can define negotiation as the process of interaction established between various parties in order to reach an agreement. The agreement involves conflict resolution or improvement in management. Negotiation occurs when certain differences between the parties, either position, views or interests are presented. If one of the two parties is not interested in trying to reach an agreement, negotiation does not occur.
A good negotiator is one who develops a wide range of skills to interact optimally with both individuals and groups.
The negotiations are not only technical, but is related to personal development. The most important skills you must have a good negotiator are: emotional intelligence, creativity, active listening, empathy, assertiveness, preparation, interculturidad and the ability to know how to manage time properly.
Trading strategies refer to actions aimed at achieving the objectives during the negotiation process. Below we present the different trading strategies to stand out.
This strategy is to try to reach an agreement that is beneficial to all parties involved. There are exceptions because on numerous occasions, in personal or professional life, there are people who inevitably end up winning or losing in the negotiation process. This strategy will prevent or reduce potential conflicts or resentments losers, especially in organizational settings where people maintain frequent contact.
>> Related article: Nonviolent Communication
The characteristics of this strategy are:
- Benefit for all parties.
- There are no opponents.
- It creates a climate of confidence.
- Good results. This strategy is not a maximum benefit but good enough to consider that both sides have come beneficiaries.
- Increases commitment. Everyone involved will be satisfied with the result. This, in turn, promotes the commitment and fulfillment of the agreement by each of the parties.
- Based on collaboration. The climate of trust that is generated with the application of this technique makes it possible, during the course of the negotiations, it can be expanded collaboration.
- Improving professional relationships. The trading strategy makes personal relationships between those involved improve, restoring the desire to maintain active professional relationships to continue to benefit from them in the future.
This strategy involved in the negotiation process in competition. The tentative agreement meets the needs and interests of the winner, at the expense of the loser.
The characteristics of this strategy are as follows:
- Benefit to one party.
- Opponents are opponents that have to win at all costs.
- It generates a climate of confrontation, competitive.
- Maximum results for one of the parties. While one party obtains maximum results, the loser does not get any benefit.
- Decreases commitment. A risk associated with adopting this strategy is that while one party gaining by pressing out the opponent, it can resist or refuse to fulfill their part of the agreement.
- Professional relationships difficult. Those involved distrustful of each other and use pressure techniques to get the most desirable results.
Finally, indicate that the strategy of “win-win” is basic in those cases where you want to maintain a professional relationship for future occasions, making stronger the ties that bind both parties. Also, the most favorable cases to apply the technique win-lose should apply only to isolated negotiations, since it is very damaging to professional relationships, often being the losing party does not want to negotiate again.
>> Related article: The significance of the handshake.
Tactics refer to the actions that each party involved in the negotiation process run in order to achieve their goals.
It is easy to confuse tactics with strategy. While strategies are characterized by intervening as a general line of action, tactics are the set of actions which specify that strategy. Thus, the use of different tactics, with a common goal, make a strategy. There negotiating tactics applicable to any time of the negotiation process.
A popular classification for the tactics applied in the negotiation process distinguishes in:
Development tactics: they serve to determine the strategy to choose, can be collaborative (win-win) or confrontational (win-lose). They are tactics that do not harm the relations between those involved. Examples:
Provide information or otherwise expose only deemed necessary.
Be the first to give or wait for the other party is who does it.
Pressure tactics: sun they serve to defend one’s position and weaken the opposition. Examples:
Wear: not abandon our position and burn contrary to surrender. Not assign or make concessions.
Offensive: persionar and intimidate attacking the opposite and rejecting its proposals. a tense climate generated incomde contrary.
Deceit: unethical, but is based on providing false information or appear moods that are not, give unrealistic views in order to get what you want. In the long run, tactical inadvisable. Better prepare more professionally negotiation.
Ultimatum: force the other party to take a decision without giving rise to reflection. It is typical to say phrases like “take it or leave it”; “I have other people interested, so you must decide”.
Increasing demands: when the opponent gives in on some aspect continue making requests. Thus, the opponent will try to close the deal soon to avoid new demands.
During the negotiation process and applying professionalism we can apply two techniques:
1. Articulate proposals:
This technique allows all parties to achieve optimal results (collaborative negotiations or engagement) or one of the parties most benefit out (competitive and accommodative negotiations). A proposal is nothing more than trying to achieve a balance between their own interests and those of others. It’s a fair compromise between what I want (condition) and what the other person wants (supply). To apply this tactic must be able to submit proposals that are fair and balanced.
Both to articulate the condition and offer proposals can be abstract or concrete. They are abstract proposals when they do not provide too much information about what is being demanding or offering. Yes concrete proposals detailed information about the conditions or offers.
By combining the use of abstract and concrete proposals they are obtained different types:
abstract-abstract proposal. Adequate preparation for the negotiation and testing opponents. It is very useful to identify the interests of others, being valid for any type of negotiation. “Buyer … I make a good discount.”
abstract-concrete proposal. Ideal for accommodative negotiations in which priority is given to the interests of others, when you have less power than the other party. “Buyer … I make a discount of 10%.”
concrete-abstract proposal. Suitable for very competitive negotiations or when you have more power than the other party. “If you make a purchase of 1000 units … I make a discount”.
concrete-concrete proposal. Suitable when you want to close the negotiation process. It is suitable for all types of negotiations. “If you make a purchase of 1000 units I make a discount of 10%.”
2. Negotiate interests:
When the parties insist on maintaining its position and its arguments above all, no intention of yielding under any circumstances, a conflict that can end the warring parties is generated. The positions taken or positions are openly expressed before trading. In addition to the positions involved also have certain interests. There are often hidden interests that are not easily perceived by the negotiating parties. Thus, negotiations will be guided by both the positions and the interests of each.
It is important to note that if the negotiation is proposed based on a unique position, the process will be stalled and will result in blocking ending haggling negotiation.
Step technique: Divide a negotiation parties and proceed step by step. Each party gets benefits in each step, so they are willing to move to the next.
Package technique: Once both parties identify their interests reach an agreement creating a “package” of conditions that can be exchanged.
Enlargement technique: Accept negotiation elements that initially were not taken into account. It is used especially in extremely collaborative negotiations.
Keys to a good negotiation.
The aspects that make the negotiation is successful and good results are obtained for both parties are:
Planning. It is highly recommended to prepare in advance the negotiations. When working with total control of the information and the situation is gained in confidence and security to overcome unforeseen circumstances. It is also important to have very clear objectives to be achieved.
Thoroughness. It is especially productive being perfectionists with retailers and trading conditions and leave nothing to chance. This ensures that agreements to develop normally and possible conflicts or tensions are avoided.
Respect for others. As we know, there are no enemies in the negotiation process, are partners with whom you come to a solution that meets the demands and interests of all. Respect favors the creation of a climate of collaboration.
Empathy. Knowing the interests of the negotiators, along with their strengths and weaknesses, it helps to find the best solution.
Confidence. It is essential for a good bargain. Since starting the negotiation you have to try to create a climate of confidence between the parties.
Flexibility. Only those who have the ability to adapt to the new characteristics of a given situation will find alternative solutions.
Creativity. The best weapon to overcome trouble spots.
Assertiveness. It is important to say no, avoid misunderstandings, establish effective communication, etc.