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Negotiation is a skill that you can learn and develop through practice and experience.

How can I get better at Negotiation? The guide to Improvement

July 14th, 2020
Benchmarking

How can I get better at Negotiation? The guide to Improvement

July 14th, 2020
Benchmarking

Negotiation is a skill that you can learn and develop through practice and experience. By framing the process correctly and by searching in advance for creative options, you will be able to find solutions that satisfy the interests of all parties.

Stay with Maadico to find out how you can get better in negotiation.

How can I get better at Negotiation?

Many people shy away from negotiation because they think it implies conflict. In fact, negotiation is what you make it. When undertaken with confidence and understanding, negotiation is a creative interpersonal process in which two parties collaborate to achieve superior results.

Why should I be a Master in Dealing with People?

When you become skilled in negotiation, you can be of real value to your organization. Negotiation allows you, for example, to secure cost-effective and reliable flows of supplies, enhance the financial value of mergers and acquisitions, settle potentially damaging disputes with government officials or union leaders, and resolve internal conflict constructively. Negotiation is increasingly recognized as a core competency. Many companies develop their own approaches and methodologies and offer training and mentoring programs for negotiators.

Learn your Art in Negotiation

Developing the skills needed to be a successful negotiator can take time, so be patient. Try to learn from every negotiation you undertake, both for your organization and in your life outside work. If you need any further help you can reach Maadico consultants and be a master in negotiation.

Understanding the basics of Negotiation

Good negotiators are made rather than born.  Although some may be naturally gifted and intuitive (possessing, for example, the ability to empathize with others), most have developed their principles and tactics over time and recognize that negotiating is a largely rational process. To be a successful negotiator, you have to feel psychologically comfortable in the negotiation situation. This means being able to tolerate uncertainty, deal with unexpected behavior, take measured risks, and make decisions based on incomplete information.  You need to think about solving problems and creating opportunities rather than winning or losing: if you are confrontational, you are likely to have a fight on your hands. And if you “win” there will necessarily be a loser, with whom you may have to work in the months to come.

How can you build a Foundation?

Do’sDon’ts
Keeping an open mind to learning new techniquesBelieving that negotiating is an innate ability
Treating negotiation skills as a mixture of rationality and intuitionNegotiating from a fixed viewpoint
Developing trust slowlyAppearing too eager
Expressing empathy while negotiating assertivelyBehaving assertively without expressing empathy
Having a strategy and sticking to itChasing haphazard opportunities

Defining Negotiation styles

Distributive style

There are three styles of negotiation: distributive, integrative, and mixed-motive. Negotiators that mainly use the distributive style view negotiations as a competitive sport, a zero-sum game with a winner and a loser. Such negotiators compete fiercely for the distribution of the outcomes (the size of the pie) and engage in value-claiming behavior. These negotiators use competitive actions in an attempt to gain a win-lose outcome in their favor. They dismiss the value of building relationships and trust as naive, tend to make excessive demands and use threats to obtain concessions, and exaggerate the value of the small concessions that they make. They also conceal their needs, do not share information, do not look for possible creative ideas, and even use deceptive tactics.

Integrative style

In contrast to value-claiming negotiators, integrative negotiators believe that the size of the pie is not fixed and can be expanded, and that the negotiation process is able to produce a win–win solution. The integrative style of negotiation is designed to integrate the needs of all the negotiators. Negotiators engage in value creation behaviors.  They invest time and energy in building relationships and nurturing trust, share information openly, and are cooperative, flexible, and creative.

Using mixed-motive tactics

The true nature of effective negotiations is often mixed, requiring both cooperative and competitive tactics. The rationale for this is that, through cooperation, negotiators create value; they put money on the table. Following this, once the value has been created and the money is on the table, the parties have to split it between themselves. In order to secure the most profitable split, a negotiator has to switch from the cooperative model to the competitive mode. For a better outlook, visit HBR.

Negotiating fairly

There are several categories of fairness that contribute to creating successful negotiations. Distributive fairness relates to the distribution of outcomes (the splitting of the pie). Negotiators use three different principles of distributive fairness:

Equality

This states that fairness is achieved by splitting the pie equally.

Equity

This states that the outcome should relate to the contribution made by each party. 

Needs

This states that, regardless of their contribution, each party should get what they need.

Clarity

Be certain that the final decision is clear, without any potential misinterpretations.

Consistency

Make sure that you apply the fairness principles (equality, equity, or needs) in the same manner throughout the negotiation process.

Consensus

Confirm that all parties in the negotiation are in complete agreement on the method of slicing the pie.

Simplicity

Ensure that all negotiating parties can understand and describe the pie-slicing procedures you use to guarantee smooth implementation.

Satisfaction

Make sure that all parties are happy with the results—they are then more likely to follow through with the agreement.

Justifiability

Make sure that all parties are able to explain why you are slicing the pie this way to someone else.

Creating a fairness frame in Negotiation

In addition, a negotiator’s level of satisfaction and willingness to follow through with an agreement is usually determined by their perception of the level of fairness of the procedure (procedural fairness), and also the way they feel they have been treated by the other party (interactional fairness).

Fairness is a subjective issue. When negotiating, if you first define what you consider to be fair, you can then use this “fairness frame” as a bargaining strategy in your discussions with the other party. Alternatively, if you state the importance of fairness at the beginning of the negotiation process, it may encourage the other party to be fair.

Define what you consider to be fair—you can then use this fairness frame as a bargaining strategy in your discussions.

What Maadico Offers in Negotiation

We at Maadico Offer a wide array of services related to the different Industries. we help your company with its agilitymarketing and saleSustainabilityDigitalization, and more. Contact us below for more elaborate information.

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