Negotiating Skills
Negotiating Skills
NEGOTIATING SKILL S
Introduction
Successful negotiators demonstrate a wide range of skills and abilities, all of which
can be learned and developed through preparation and practice . Some of those skills
and abilities are :-
Whether you get the result you want or not in each negotiation in which you take part,
it is important to analyse your performance and take note of anything which will help
you to improve your performance next time around .
• Types of negotiation
• Approaches to negotiating
• Preparatio n
• Phases of negotiatio n
• Effective skills, strategies and tactics
• Self-presentation
Approaches to Negotiatio n
Mainstream Negotiation
• Pressure Bargainin g
• Joint Problem Solving
Mainstream Negotiatio n
In this approach to negotiation, each party gives itself room for manoeuvre to get
movement from the other, but has also set itself limits . Each party intends to find a
deal . This type of negotiation accounts for 90% or more of negotiating activity . Most
negotiations begin, or are expected to begin, in this way and move through pressure
bargaining and or joint problem solving at various points, as appropriate .
Pressure Bargaining
This is where one party, or both, seeks an outcome through coercion rather than any
other approach . Very little willingness to move from the initial position in anything is
shown while demands for the other party(ies) to make concessions are heavy .
This is also known as "principled negotiation" . The objective is to enable both or all
parties to create new solutions to jointly-identified problems, rather than to find a
compromise within their respective mandates . Joint problem solving requires a high
level of trust between the parties and a commitment to finding the best solutions to
jointly-agreed objectives and within jointly-agreed constraints . The results may,
therefore, be very different to the solution initially preferred by either participant .
Consequently, a considerable degree of flexibility is also required within the
respective mandates .
In addition to being able to identify these types or styles of negotiation, you may also
come across one or a combination of these approaches :-
Compromise
This is seen as a "fair" way to reach agreement . It is often used as a way to break
deadlock and is seen as a quick and easy way to settle .
Bargaining
The difference between bargaining and compromise is that in bargaining, several
issues are linked together and used to achieve agreement rather than each party
systematically conceding on one issue at a time, and in turn . It is a slow process . It is
generally held that the slower you move, the more value the other party is likely to put
onto your concessions . An important guideline to remember is that if you move
quickly from your position you are likely to undermine its credibility .
Coercion
This can be described as the use of brawn rather than brain in the negotiation .
Consider all the implications of this approach beforehand . Threats in the early stages
will positively discourage the other party from helping or moving towards you and it
may turn out in the long run that you need them more than they need you .
Emotion
Appealing to others' emotions can have a powerful effect in the right circumstances .
However, beware of letting your own emotions control your approach to negotiation .
Remember, too, that there is a difference between appealing to someone's emotions
and just saying "Oh, pleeease . Go on."! ! ! !
Logical Reasonin g
This is when you support each of your arguments and/or proposals with clearly
described research, detail, reasons and explanations . Consistency in the reasons and
explanations used is crucially important .
Preparatio n
There is no shortcut to this! Do it methodically and as fully as possible within the time
available to you .
At least, you need to know your negotiating objective and positions within that, and to
have some appreciation of the other party's objective and positions . Recognition of
your, or information about your client's, interests in the negotiation will be
enormously helpful, as will information about the personalities involved in the
process and their relationships . At all stages of preparation, think from the other side's
perspective aswell to make sure that you have as full a picture as possible .
Position s
• IDEAL This is what you would achieve if you could get everything
you wanted.
• REALISTIC The position you believe you can achieve with a well-
planned strategy and which will meet your key objectives .
• FALLBACK The worst position you are prepared to accept . If you cannot
achieve this you will pull out of the negotiation .
Interest s
Why do you wish to enter negotiations in the first place? What was the reasoning
which helped you and your client to establish your positions ? Why are these issues
import ant to you? Thinking about your interests will enable you to be more creative in
identifying all the options open to you and will therefore lead you towards the best
outcome in the circumstances .
Put yourself in the other side's shoes and ask the same questions . An understanding of
their interests will enable you to formulate options and proposals which are more
likely to be acceptable to them .
Personalitie s
Find out as much as you possibly can, from as many sources as you can, about the
other people involved in the negotiation :
What is their reputation ?
What style do they tend to adopt ?
How hard/soft is their approach likely to be?
What do they look and sound like?
What is the quality of their relationships with others involved in the process ?
If you are going to be negotiating in a team, there are several guidelines to follow .
You should research and prepare together as much as is possible so that every team
member is equally familiar with positions and strategy and the reasons and interests
behind them . Agree the role(s) each of you will adopt - lead negotiator, note-taker,
observer and any other roles you feel will be helpful to the team .
Again, think about the other team and the roles you are likely to meet .
Think about how you will signal to each other if you need to adjourn for private
discussions or if one team member wants to interrupt another . Consider how you will
deal with a situation in which one of you is in difficulty . Think about each other's
natural styles and how they will each benefit the team and the task .
Make every effort to ensure that you don't go into a negotiation with anyone in your
team with whom you have not prepared, or at least briefed, or been briefed by. This is
doubly important if you are teamed up with anyone with whom you have never
negotiated before .
Once the negotiation proper begins, it will move through four distinct phases . These
can be called Opening, Testing, Moving and Closing . There are no specific timescales
or ratios to these phases . The skilled negotiator can identify which of these phases
they are in at any given time and use appropriate skills and strategies to be effective .
Opening
The purpose of this phase is to establish good working relationships between you and
the other parties and to manage expectations . Whatever happens in this phase will
influence the tone and atmosphere for the rest of the negotiation .
Testing
The purpose of this phase is to explore all areas where agreement might be possible .
Within this, you will need to manage the information you give to achieve that
objective aswell as asking for information from them .
• Ask plenty of questions and listen attentively to the responses and reaction s
• Use open, reflective and hypothetical questions to encourage the flow of
information
• Use silence to encourage them to speak mor e
• Don't accept "no" at face value - try rephrasing the question in different ways
• Ask the same questions several times over, phrased in different ways, to check
consistency of respons e
• Challenge their conclusions, facts, positions and assumptions
• Avoid backing them, or yourself, into a corner .
• Summarise periodically - prevent misinterpretation s
• Avoid being rushed or intimidated - take time to think and be clear on your
own objectives and fact s
• Remember, you don't owe them an answer to all their question s
• Look for - signals that they are unsure, feeling insecure or very firm in their
position ; inconsistencies in their arguments ; disunity or solidarity in their
team ; signals that they are ready or able to move .
Moving
The purpose of this phase is to get the deal done .
Closing
The purpose of this phase is to finalise agreement, determine how your decisions will
be implemented, plan how any future working relationships will operate, and manage
the transition from the negotiation back into the rest of life .
Questioning Skill s
Within these categories of question, there are five types most commonly used in
negotiation :-
Closed
• Open
• Hypothetical
• Leading
• Multiple
The first three types are helpful, when used correctly; the final two need to be used
with care.
• Closed questions - are those which demand either a "yes" or a "no" answer .
They are used when looking for confirmation of information, for acceptance of
facts or a summary, and for commitment .
• Open questions - are those which demand responses in the form of sentences .
They begin with the words "who", "what", "when", "why", and "how", and
are useful when looking for information, detail and clarification . Probing
questions also fall within this category - "tell me more about . . . .", or "why is
that important to you/this matter? "
Listening Skills
Awareness is half the battle. "Active listening" is the term used to describe the skills
of good, concentrated listening . The key things to practise are :-
Quieten your mind - difficult to do because the brain can process much
more information that can be spoken in a given period of time .
• Concentrate - on the person speaking, on the words they are saying and on
the way they are saying them, so that you hear a complete message .
• Show you are listening - it's much easier to speak to someone who looks as
if they are interested, who nods to encourage, whose facial expressions are
appropriate and who makes the right kind of listening noises - "ah-ha",
"mmm", etc . So, if you do this, you're likely to get much more information
than if you were looking down at your papers, scribbling down every word
or staring blankly at the speaker .
• Summarise - in your own words to confirm that you have heard and
understood everything .
When we meet someone for the first time, we make judgements about them and what
we assume them to be like within a very short amount of time - between 4 - 40
seconds - and a lasting opinion of them within four minutes . Our opinion then
influences the way in which we respond and behave towards that person until
something happens to make us change our mind .
In a negotiation, it is essential to project the most appropriate image for the situation
within those first few minutes . We must reinforce this initial impression throughout
the negotiation, not only by demonstrating technical expertise and/or thorough
preparation but also by effective self-presentation .
The information on which we base our judgements is all visual . We take into account,
in the following order :-
Colouring
Gender
Age
Size
Facial expression
Eye contac t
Hair
Build
Clothes
Movemen t
Think about people you have judged negatively on first meeting them :-
- How did you interpret their appearance / manner ?
- How did your judgement affect the way you behaved towards them?
- Have you found your initial judgement to be correct?
Others judge you on the basis of how your appearance and manner fits with or
contradicts their expectations of someone in your position in this situation . Always
pay attention to the things over which you have immediate control - present as
positive a visual impression as possible . Be consistent . A discrepancy here can affect
others' feelings of comfort with and trust in you, and therefore the temperature of the
negotiation .
Dress
This can be easier for men to get right than women, who must make choices about
skirt lengths, colours and necklines .
MEN
Your tie, shirt and socks all send messages out to the people whom you are
meeting . Colours, designs and motifs can express your individuality, advertise
your school or college or your political affiliations . Be aware of this and
consider the opinions which may be formed in the minds of others as a result
of your choice of clothes .
WOMEN
• Wear something comfortable and which looks good . Err on the conservative
side when choosing colour and/or style for a meeting with new people .
• Beware of necklines which gape as you lean forward.
• Skirt length is a matter of personal choice . However, short skirts can be
perceived as sexually provocative if you keep crossing and recrossing your
legs . Therefore, sit comfortably from the outset and avoid changing position
too much.
JEWELLERY
• Again this is a matter of personal choice . The one guideline is, do not play
with it.
Posture
STANDING
• Up right and relaxed, preferably with arms and hands loosely at your sides, o r
hands clasped loosely at waist height . Beware of invading other people's
personal space.
SITTING
• Again, remain upright and relaxed . Sit well back in your chair and do not
slouch .
• Try to keep your hands and forearms on the table . Steepled hands can suggest
strength and confidence . Open palm gestures can signal honesty .
• Do not - stare at the floor or your shoes ; gaze out of the window/up at the
ceiling ; wriggle, fidget, play with jewellery/buttons/pen/keys .
On the telephone, more than half the source of information is unavailable . However,
the sound of the voice is still significantly more important in conveying the message
than the words spoken . Make sure that what you say is congruent with how you sa y
it.
• Be clear in your own mind of the points you want to make and the outcome
you seek .
• Use phrases such as "I need. . . ", "I think . . . ", "it seems to me . . . " rather than
you should . . . ", "everyone knows that . .. ", "obviously . . . ".
• Again, beware of using verbal qualifiers when speaking, eg :- really, basically,
in fact, you know, actually, just - they detract from the impact of what you say
and suggest nerves, lack of preparation and lack of competence .
• Try to use "and " in place of "but " whenever you remember - it gives a more
positive and constructive tone to what you say .
• Listen to everything the person on the other end of the `phone is telling you -
listen consciously to the tone of their voice, how they phrase what they say,
the pauses they use, their breathing pattern . Use this information to help you
choose how to respond to them .
• Talk about issues and behaviour, not personalities - avoid criticism and put-
downs .
• Be constructive in comments and suggestions you make - always seek to
make progress in the conversation or the matter .
• When speaking on the `phone, use body language which suggests competence
and confidence :
- upright, relaxed posture
- calm, appropriate gesture s
- even, appropriately projected voice
- keep feet stil l
• Try to avoid:-
- gripping the receiver or your pen so tightly that your knuckles become
white!
- frowning or scowling while speaking - these facial expressions are
communicated in the sound of your voice .
• Above all, remember to breathe - calmly and deeply!
Classical Tactics in Negotiatio n
The following list is taken from "It's A Deal" by Steele, Murphy and Russell
(McGraw Hill), and describes 41 tactics which you might come across in negotiation .
Recognise them and respond appropriately. Choose according to the situation, the
strength of your position, the personalities involved and the approach adopted by the
other side . Above all, choose consciously and be alive to all the potential
consequences of your choice .
1 . Building Block s
You may ask for only some of your requirements . The other party may give ground
more readily with raised expectations . Conversely, you may ask for prices or
quantities higher than you need and then negotiate down the quantity and keep the
price agreed .
2. Russian Fron t
Hinting that failure to agree will necessitate the re-opening of a whole range of
aspects already agreed .
3. Back Burner
Putting off to another meeting or later stage that had not been planned for .
4. Headach e
"Not today, I have a headache . . . . . you would never be unreasonable, would you? "
5 . Linking Issues
Linking issues that had previously been separate . Offering concessions when there is
apparent deadlock .
6 . Armageddon
Suggesting that failure to concede will have catastrophic consequences .
7. Broken Record
Repeating over and over again the point you are making to get the other party fed-up .
8. Trojan Hors e
Offering a "too good to refuse" incentive.
9 . Pre-emptive Strik e
Making a definitive offer before the other party is ready, in the hope of causing panic
and acceptance of the offer .
10 . Casino
The pure gamble - "You have got to be joking ."
11 . Messenger
Using an absent third party to deliver unpleasant parts of the negotiation . Useful
for\putting down an marker without being personally responsible for it .
12 . Defence in Depth
Using several levels of management before the final decision maker .
13. Physically Disturb Them (PDT)
Using body language to make them feel uncomfortable .
14. Brinkmanship
Going to the edge to get the other party to go over . Beware of bluffing - you may be
called.
16. Silenc e
People cannot handle silence - they will make concessions .
17. Reassessin g
Take a break - to reassess ; to do some calculations .
18. Deadlines
These can be imposed or agreed and can encourage parties to concentrate on creative
solutions but at the same time to realise that concessions are necessary . Beware of this
leading to precipitate solutions .
20 . "Why? "
Never be afraid to challenge the other party, especially at the earlier stages when
positions are being defined . Where you are involved in an ongoing relationship you
will acquire the reputation of someone who demands a well-presented case .
23. Dumbstruck
Look astonished or even horrified, but say nothing . This puts th onus on them to
explain or even excuse, so weakening their position and also giving you time to think .
A more emotional approach than just remaining silent .
26. Dunc e
Undermine the other party's faith in their case by claiming that they have not done
their homework and have got the facts wrong - they were not well briefed .
33 . Fogging
Nothing more than pure waffle to confuse the issue or buy thinking time .
35. Charit y
An appeal to the other party's "better nature" . Essentially an emotional appeal to the
other party as a person rather than as a representative of their client or organisation .
36. Deliberate Misunderstandin g
A ploy to buy time after a complicated proposal, case or explanation . "Could you just
run through that again?" either gets you time, or discourages the other party to from
using such a complication .
1 . Be clear in your own mind of the points you want to make and the outcome you
seek.
2 . Use phrases such as "I need... ", "I think. . . ", "it seems to me . . . " rather than "you
should... ", "everyone knows that ... ", "obviously... ".
3. Beware of using verbal qualifiers when speaking , eg:- really, basically, in fact,
you know, actually, just - they detract from the impact of what you say and
suggest nerves , lack of preparation and lack of competence .
4. Try to use "and" in place of "but" whenever you remember - it gives a more
positive and constructive tone to what you say .
5. Listen to everything the person on the other end of the `phone is telling you -
listen consciously to the tone of their voice, how they phrase what they say, the
pauses they use, their breathing pattern . Use this information to help you choose
how to respond to them .
6 . Talk about issues and behaviour, not personalities - avoid criticism and put-
downs .
8 . When speaking on the `phone, use body language which suggests competence and
confidence:-
- upright, relaxed postur e
- calm, appropriate gesture s
- even, appropriately projected voice
- keep feet stil l
Try to avoid :-
- gripping the receiver or your pen so tightly that your knuckles become white !
- frowning or scowling while speaking - these facial expressions are
communicated in the sound of your voice .