Как эффективно вести переговоры /english/
HOW TO NEGOTIATE
EFFECTIVELY
1. What is negotiation
Negotiation
is an essential part of the every-day business life. It can take place at any
time and in any place. Negotiation is a kind of meeting, but contrary to the
latter it may be held in some unexpected and uncomfortable place such as the
street or on the stairs.
There
are several definitions of negotiation. It is said to be “the process for
resolving conflict between two or more parties whereby both or all modify their
demands to achieve a mutually acceptable compromise”. Thus, it is “the process
of changing both parties’ views of their ideal outcome into an attainable
outcome”.
The
need of negotiation arises when we are not fully in control of events.
Negotiations take place to handle mutual differences or conflict of:
·
interests (wages,
hours, work conditions, prices: seller vs buyer)
·
rights
(different interpretations of an agreement)
The
aim of a negotiation is to come to an agreement which is acceptable to both
sides, and to preserve the overall relationships. While specific issues are to
be negotiated, common interest are yet still to be maintained. Negotiations do
not mean “war”. Negotiators can still be friends and partners.
2. The negotiation continuum
·
Overlap
The
situations of negotiation can be shown diagrammatically in terms of ideals
and limits.
Ideal Limit
HIM
Bargaining area
Limit Ideal YOU
The
limit may be the limit of negotiator’s authority, such as a minimum (e.g.
price) acceptable. If there is overlap it is possible to settle. The final
position within the bargaining area, where settlement takes place, depends on
the negotiators’ relative strength and skill.
·
No
overlap
The
aim of the negotiator is to achieve a result, i.e. to find a solution, within
the bargaining area. However, it is possible that both parties set limits which
do not provide overlap. In this case the negotiators have to move their limits,
otherwise the negotiation will be broken down.
Ideal Limit
HIM No deal
YOU
Limit
Ideal
·
Too
much overlap
The
opposite case is also possible. When one is careless and settles for less than
he could. In this case the limit of the opposite side should be found and the
ideal should be revised.
Ideal Limit
HIM
YOU
Limit Ideal Revised Ideal
3. The approach
There
are four main stages of negotiation:
·
Preparing
objectives, information, strategy
·
Discussing
(argue) and signalling willingness to move
·
Propose
and bargain
·
Close
and agree
While
preparing to the negotiation it is important not only to prepare supporting
arguments but also to define objectives. Objectives should be realistic and
attainable and have certain priorities. It is also necessary to investigate the
opponent’s plans and priorities, which can be rather difficult.
The
objectives should be classified basically as follows:
Like Ideal
but least important
Intend
Achievable, a range of possibilities
Must
The real limit
AREA OF NO DEAL
Like
Intend
Must
The
general strategy for negotiation is to have a negotiating team of three people,
who will also be involved in the preparation.
·
Leader The
person who will do the talking and conduct the negotiations
·
Summariser The
person who will ask questions and summarise for control
·
Observer The
person not involved in the actual negotiations, whose role is
to
watch, listen and record
80
% of the negotiating time is spent arguing. If it equals 100 % the negotiation
will break down. There are two kinds of arguing:
·
Reasonable
and constructive Debates, discussions
·
Unreasonable
and destructive Emotional quarrels
The
opponent may try to divert you by escaping into destructive behaviour. In this
case, your behaviour should be not to interrupt, but to listen and control your
feelings. Even if the battle is won, the war can be lost.
A
negotiator should be constructive in arguments and try to get information by
asking open questions or even leading questions. One thing should be tackled at
a time and the opponent should be made justify his case item by item.
It
is important to be non-committal and to state only ideals at first. Later, the
information about the negotiator’s position can be given, and later alternative
proposals can be made. Sometimes it is necessary to challenge the opponent, so that
he demonstrates his strengths.
Negotiation
means movement. It may be that both parties move on one issue. It may be that
each moves on different issue. The motive forces are twofold:
·
Sanctions The
penalty of not agreeing
·
Incentives The
benefits of agreeing.
In
both cases, the parties seek to protect their self-interests. They will show
willingness to move by sending signals.
The
opponent’s signals will show his willingness to move. So one should listen,
recognise his signals and interpret them, looking for the qualified words which
are evidence of willingness to move.
Another
very important point of negotiations is proposing and bargaining. Proposals
should be realistic in order not to cause argument and deadlock. The language
of the proposal signals one’s firmness. Weak language such as “we hope…, we
like…, we prefer…” should be avoided. Instead, a phrase “we propose…” is appropriate.
The
final step in a negotiation is closing and agreeing. There are two aspects to
it:
·
When
to close
·
How
to close
The
first is the most difficult moment to recognise. There is a balance between:
·
Closing
too early More concessions from the opponent could have been
squeezed
·
Closing
too late The opponents squeezed excessive concessions.
The
aim of closing is to get the opposition to stop bargaining and to make an
agreement. The final thing to do is to write down the agreement and agree what
is written down. It is necessary to do this before leaving the negotiating
table.
4. Characteristics of an effective negotiator
What
characteristics should one have to be an effective negotiator. The first and
the most important characteristics, from the standpoint of many executives and
managers of large corporations, is preparation and planning skills.
The
other very important characteristics are:
·
Knowledge
of subject matter being negotiated
·
Ability
to think clearly and rapidly under pressure and uncertainty
·
Ability
to express thoughts verbally
·
Listening
skills
·
Judgement
and general intelligence
·
Integrity
·
Patience
·
Decisiveness
5.
Conclusion
In
spite of the existence of negotiating theories, it is frequently difficult to
apply theoretical and conceptual knowledge in a practical situation. In order
to be a good negotiator, one should have negotiation skills as well as a
theoretical knowledge. But without a practical experience it is hard to
negotiate effectively.
Interpersonal
skills are very important in the negotiation, but what can help a negotiating
party while thinking what to do is not an elaborated theory, but rather is it a
simple analysis and intuition.
Bibliography
1. Raiffa,
Howard. 1982. The art and science of negotiation. Harvard University Press.
Pages 119-133.
2. Murcott,
Owen. 1991. IBS Management Training. Hanzehogeschool. Groningen.