Leadership Series: The Art Of Negotiation
Updated: Jul 12
In business, everyone wants a good deal, right? But what is a good deal and what skills are needed to achieve that?
Firstly, both parties or negotiators should benefit from the deal. That is called a win-win. Why are win-win situations the best, you might ask? Well, simply put, because they will help ensure that both companies continue to do business and collaborate in the future. That can lead to longer-term relationships and affect your bottom line positively – more profit!
It should be noted that there are some negotiators who use aggression as a tactic. For these situations, remaining calm will be a great asset.
Clear Communication
Have a clear strategy of what you want to achieve. This will help you to communicate effectively during the negotiation. This involves clearly explaining what you expect and any concerns you may have. The other party will be more trusting when there is open and honest communication.
Be sure to prepare good questions that you can ask during the negotiation. What is a good question? Open-ended questions. These are questions where the reply is more than just a ‘yes’ or ‘no’ response. For example, ‘what resources do you have available for this project’? This is much better than, ‘are there enough resources available?’.
Be adaptable
Before the negotiation, have a clear idea of what you want from the deal and prepare to be adaptable by making a list of possible obstacles that the other party may come up with to your proposal. This way, you can plan in advance how you will response to these. However, a good deal can still be made if you have to make some concessions. Be open to the idea of making concessions and consider beforehand what these might look like.
Active listening
What is active listening? According to the Harvard Business Review, active listening is when you not only hear what someone is saying, but also tune into their thoughts and feelings. This will help the conversation to be a non-competitive, two-way discussion. And that will increase the likelihood that you and the other party reach an agreement.
Patience
This one is key. Sometimes we want to reach a resolution quickly, however some negotiations may take longer as the other party comes back with counter-offers. This is an opportunity to hone negotiation skills and re-consider the situation and goals. It may be necessary to compromise in order to get a result that is satisfactory to both parties.
In summary, communicating clearly, being adaptable, asking open-ended questions and showing patience will help you boost your negotiation skills.
Would you like to learn about some other skills that are related? Have a look at our articles on being approachable and mastering charisma.
Being trustworthy is another important leadership skill you may want to read more about.
Vocabulary
Win-win
(noun)
Meaning: A situation where the result is good for everyone.
Example: 'The company hopes to achieve a win-win in the upcoming negotation with our supplier.'
Bottom line
(noun)
Meaning: The most important fact in a situation.
Example: 'The bottom line is that we need a profit increase of at least 10% by January.'
Concession
(noun)
Meaning: Something that is allowed or given up in order to reach an agreement.
Example: 'Each side agreed to a concession and an agreement was reached.'
Counter-offer
(noun)
Meaning: An offer that is made by one side in a negotiation when the offer by the other side was considered unacceptable.
Example: 'The request for a hybrid working model was met with a counteroffer.'
Hone
(verb)
Meaning: To make something better or perfect.
Example: 'He honed his speaking skills by taking on more public speaking assignments.'
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