Negotiation is the process of
communicating back and forth for
the purpose of resolving conflicting interests, coming to a joint decision,
reaching an agreement that satisfies interests of each side to the extent
possible, or closing a business deal. Negotiation also refers to resolving
matters of dispute or bargaining on some product.
Selling: 3 Components
Effective negotiation both creates the
best-possible win-win solution in an efficient way and
relationships between the negotiators.
"If you come to a
negotiation table saying you have the final truth, that you know nothing but
the truth and that is final, you will get nothing." ~ Harri Holkeri
Great negotiators build strong, durable,
win-win relationships because they have an obligation to help their
counterparts in negotiations come out winners. They choose the best
attitude for a
successful negotiation that results in long-term rewarded collaboration.
For example, if you are in
friendly trust-building negotiation that left the other person feeling that
he or she won provides you with the opportunity to work with the
and the customerís referrals over a long period of time.
To be a great negotiator, donít look at those
you negotiate with as opponents, approach them as counterparts to cultivate
mindset and feel a personal obligation to create success for both
Agreement vs. Fair Agreement
Being fair is not enough if you wish to reach a
wise agreement. You must look beyond the obvious and focus on satisfying
underlying needs of each side to the fullest.
A well known story about sharing an orange
illustrates this principle. Two people have only one orange but both want
it. Initially, they decide that the best they can do is split the orange in
two halves. To be sure that itís fair, they decide that one will cut and the
other will choose. As they discuss their underlying needs in the
negotiation, however, they find out one wants the orange to make juice and
the other needs it for the rind because he wants to bake a cake. Thus they
have found the way to satisfy the needs of each side to the extend possible.
Separate the People from the Problem
Egos and emotions should not be entangled with the
objective merits of the problem and, thus, impede negotiations. Before
working on the substantive problem, disentangle the
people problem from
it and deal with it separately.
Solving People Problems
The participants should come to see
themselves as working side by side attacking the problem, not each