Negotiation tactics

Negotiation tactics

There are many different ways to categorise the essential elements of negotiation.

One view of negotiation involves three basic elements: process, behaviour and substance. The process refers to how the parties negotiate: the context of the negotiations, the parties to the negotiations, the tactics used by the parties, and the sequence and stages in which all of these play out. Behaviour refers to the relationships among these parties, the communication between them and the styles they adopt. The substance refers to what the parties negotiate over: the agenda, the issues (positions and - more helpfully - interests), the options, and the agreement(s) reached at the end.

Another view of negotiation comprises four elements: strategy, process, tools, and tactics. Strategy comprises the top level goals - typically including relationship and the final outcome. Processes and tools include the steps that will be followed and the roles taken in both preparing for and negotiating with the other parties. Tactics include more detailed statements and actions and responses to others' statements and actions. Some add to this persuasion and influence, asserting that these have become integral to modern day negotiation success, and so should not be omitted.

Adversary or partner?
The two basically different approaches to negotiating will require different tactics. In the distributive approach each negotiator is battling for the largest possible piece of the pie, so it may be quite appropriate - within certain limits - to regard the other side more as an adversary than a partner and to take a somewhat harder line. This would however be less appropriate if the idea were to hammer out an arrangement that is in the best interest of both sides. A good agreement is not one with maximum gain, but optimum gain. This does not by any means suggest that we should give up our own advantage for nothing. But a cooperative attitude will regularly pay dividends. What is gained is not at the expense of the other, but with him.[2]

Employing an advocate
A skilled negotiator may serve as an advocate for one party to the negotiation. The advocate attempts to obtain the most favourable outcomes possible for that party. In this process the negotiator attempts to determine the minimum outcome(s) the other party is (or parties are) willing to accept, then adjusts their demands accordingly. A "successful" negotiation in the advocacy approach is when the negotiator is able to obtain all or most of the outcomes their party desires, but without driving the other party to permanently break off negotiations, unless the best alternative to a negotiated agreement (BATNA) is acceptable.

Skilled negotiators may use a variety of tactics ranging from negotiation hypnosis,[citation needed] to a straightforward presentation of demands or setting of preconditions, to more deceptive approaches such as cherry picking. Intimidation and salami tactics may also play a part in swaying the outcome of negotiations.[citation needed]
Another negotiation tactic is bad guy/good guy. Bad guy/good guy is when one negotiator acts as a bad guy by using anger and threats. The other negotiator acts as a good guy by being considerate and understanding. The good guy blames the bad guy for all the difficulties while trying to get concessions and agreement from the opponent.
Another negotiation is leaning back and whispering. This establishes a dominant physical position thus intimidating your counterpart.

The Getting to YES approach
Getting to YES: Negotiating Agreement Without Giving In is a best-selling 1981 non-fiction book by Roger Fisher and William L. Ury. Reissued in 1991 with additional authorship credit to Bruce Patton, the book made appearances for years on Business Weeks "Best Seller" list. The book suggests a method called "principled negotiation or negotiation of merits." This method consists of four main steps: separating the people from the problem; focusing on interests, not positions; generating a variety of possibilities before deciding what to do; and insisting that the result be based on some objective standard.

Source: Wikipedia

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Top Twelve Tips for Business Negotiations

Top Twelve Tips for Business Negotiations
by Ian Nock
The first rule that you must always keep in mind when trying to land a business deal is that everything on the table is negotiable. It does not matter which side of the table you are on as long as you have the right skills to negotiate and get what you want out of the deal. Some business people are born with an innate ability to convince customers to buy their goods. Well, if you are not born with this golden gift you have only one option left; learn how to talk your way into the right kinds of deals. Negotiation skills cannot be learned overnight but they can be incorporated into our everyday routines making them second nature in the long run. Below are a few tips that can turn you into a business mogul in no time.
Learn the BP motto- Be Prepared
This may sound simple and very unhelpful for someone in an intense business negotiation but the truth is that it is what underlies all the decisions they make when they get to the hot seat. Ever heard the phrase “never underestimate the enemy?” well it is true in business negotiations as well. Being prepared is not just about simple things like looking the part and arriving on time. Know the other party, what they want out of the deal, what they consider as their priority, what you need to ask them, what they are likely to ask you and you cannot know any of this without prior research. Learning to prepare yourself well in advance always gives you the upper hand at any negotiation table.
Have a standard tailored response
Sometimes having elevator speeches (short summaries of your points) is much better than a wordy and not very concise response. After knowing who your negotiation partners are, figure out what language style they relate to best and what appeals to them speech-wise. Will they respond to more formal phrases or informal ones? This coupled with the right body language will bring more chance of success in reaching your negotiation goals.
Be an ardent listener
Don’t be a good listener or an OK listener. Always be an ardent listener. Listening closely to those you are negotiating with can help you pick up on hidden undertones that you may otherwise miss out on.
Never unilaterally disarm
Always remember that you are in the negotiation to get something out of it too. For this reason you must tailor your negotiation style in such a way that you never offer too much yourself without anything in return.
Do not fixate around your opponents offer
When buying something from your business partners do not let your bargaining tactics be dictated by an impromptu offer they may make. Make your own offer heard so that at the end of the bargaining you reach a win-win situation.
Time it just right
Making a pitch is as crucial as the last moments before shooting a ball in a football game. If your timing is right you will never miss. Choose the right moments to throw in a pitch during the negotiation.
Know your walk away point
As much as it is a negotiation, you must know when the deal is just not good enough to fulfil your objectives. Walking away from an offer can earn you respect amongst your peers if fuelled by the right reasons.
Culture difference
Whatever negotiation method you come up with, keep in mind that your business partners will not always share your cultural background. Find out what is done in their culture and use it. You might surprise them pleasantly. For instance, the position of participants and their rank around a meeting table is extremely important in Japanese culture.
Control the environment
Using a combination of people skills and an ability to organise yourself well, you can control the negotiating environment to work in your favour. Negotiating over a business lunch or simply offering drinks such as water can provide you with the best reason for your partner to seal the deal faster.
Do not be too hard lined
Business involves a lot of give and take, and sometimes you must just be willing to compromise. Just be sure to have a no-no zone otherwise the other party can use that as your Achilles heel in future negotiations.
New opportunities
A wise business executive goes into a negotiation with clear benefits that he needs at the end of it. This must however not blind you to new possibilities that may arise during discussions.
Have a blueprint
If you know where you are going it does not matter what road the negotiation takes. Plan ahead and have clear goals and you will definitely make it.
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