Twelve Principles of Effective Negotiations

Shahid H. Raja
6 min readFeb 6, 2016

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Introduction

Whether having discussions with colleagues or subordinates, conducting meetings, communicating with the public or with different stakeholders, negotiations are part and parcel of the daily routine of a public servant. To have harmonious interpersonal relations among colleagues and with the stakeholders, mastery of effective communication and particularly negotiations skills is extremely essential

Negotiations Strategy

Negotiations are a structured process whereby two or more parties try to understand the respective views of others and amicably resolve issues. These are different from informal haggling, third-party mediation, or court arbitration, though negotiations may contain elements of all these forms of interaction. To gain maximum advantage, the parties involved must have a clear strategy before starting the negotiation process. This strategy could be built around the following twelve principles.

1. Get the mandate and guidelines

2. Gather maximum information

3. Build trust first

4. Start with selective information

5. Composite dialogue

6. Make the first offer

7. Do not give too many reasons

8. Summarize what the other side has said

9. Go for a win-win solution

10. Look for positives

11. Use emoticons

12. Keep the door of further negotiations open

Let me explain them in a bit of detail

  1. Get the Mandate and Seek Guidelines

Enter negotiations after having the mandate to do so from the competent authority. Seek also the guidelines about the trade-offs as well as the thresholds from the competent authority. In case of sensitive negotiations, do have a safe exit by saying your commitment is subject to final confirmation from the authority

2. Gather Maximum Information

Gather maximum information about the issue to be discussed or negotiated. Know the respective strengths and weaknesses-where do you stand and where does the other party? One of the most crucial pieces of information you must gather is your and opponents’ “BATNA” -the Best Alternative to a Negotiated Agreement” which refers to what you have to fall back on if the negotiation results in no deal. If you are in a strong bargaining position (have a strong BATNA), your confidence level will be high. However, if your BATNA is weak as compared to the opponent, use diplomacy.

Marshall your arguments with facts and figures-they impress everyone. To find out the legal position of the case the other party is making. Before entering the negotiation, determine your target point, which is your ideal situation. Balance this with a reservation price, which is the point that you won’t cross. If you’re able to sell, this would be the minimum you’re willing to part with your assets. And if you’re able to buy it, this would be the maximum you’re willing to spend. Don’t be caught off guard by anything the other side proposes, and don’t get manipulated beyond your limits.

3. First Build the Trust

Do not open the negotiations with a cold start. Warm the environment by making small comments. Weather is still the best bet. Tell personal anecdotes showing common human failings. Never try to impress others by name-dropping or bragging. Do enquire about and listen to other party’s stories with the same attention. However, do not waste too much time unnecessarily prolonging this session If you and your team are meeting with representatives of another company, consider meeting them for drinks or dinner the night before the negotiation. If it’s just you, and you’re going to see your boss negotiate a raise, ease into it with some chit-chat. It’s about building trust and easing tension.

4. Start with Selective Information

Take the initiative and tell the other party some facts and figures to gain their trust. Let the other party come up with their part of the information sharing. Point out any inaccuracies in their facts and figures, and admit yours if pointed out. A negotiation isn’t simply offering a deal and accepting either a “yes” or a “no” after a chance to persuade the other side. According to Siedel “Good negotiators are the ones who walk into a deal in listening mode.” He, therefore, recommends that you ask plenty of questions to understand where the other side is coming from and what they’re trying to get out of the deal. You should be trying to gain the upper hand through the accumulation of knowledge regarding the deal at hand.

5. Composite Dialogue

Put all the issues on the table and discuss one issue at a time within this overall framework of composite dialogue. It will provide opportunities for all the parties to trade off the less important ones with the crucial ones. It will also keep the focus of the parties on the big picture and avoid wasting time on trivial issues

6. Make the First Offer

When the time comes, make the first offer to take the lead in this battle of nerves. It will give confidence to the other party and give you time to marshal your arguments. Remember! The first offer is not the final position you are going to take; it is subject to compromise

7. Do Not Give Too Many Reasons

Never try to give more than two/or three reasons to justify your stand. Every reason must be solid enough to stand on its ground. Other parties will attack your weakest point the most if you give too many arguments. The same applies to you when they give their arguments

8. Look for Common Grounds

Try to find out the common ground where an amicable compromise can be reached. Small wins can create scope for bigger gains. Listen to the views of opponents attentively to find positives in their arguments, not just for rebutting every argument they are making

9. Summarize Periodically

Keep on summarizing what has been said during the meeting. It will give you the initiative, command, and time to argue. It will also remove any ambiguity about the standpoints of the respective parties

10. Go for Win-Win Solution

Enter negotiations with a positive frame of mind and not for 100% kill. Try to go for a win-win solution rather than a zero-sum game. Identify the opportunities/benefits of the agreement for both.

11. Use Emotions

Emotions play an important part in the negotiation process, either positively or negatively. Negative emotions can result in the breakdown of the negotiations but may help attain concessions. On the other hand, positive emotions often facilitate reaching an agreement and help to maximize joint gains. Positive and negative emotions can be strategically used to influence outcomes in some organizational contexts. Emotions are a very powerful tool but do not overkill by resorting to emotional blackmailing or overt sentimentality

12. Keep the Door Open

In case of deadlock, take a break and keep the door of further negotiations open till the final. Remember, deadlock is the best opportunity to break open the door

Conclusion

Negotiations are science as well as art. You can learn the basics of the science of negotiations fairly easily through hard work. But having command during the negotiation process is an art that demands, hard work, passion, and patience. However, successful negotiations are those which ensure a win-win situation for all parties.

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