10 Key Lessons from the World of Negotiation - Part 2

Negotiating is not simply an act of joint problem solving. Although it undeniably does assist in removing a problem from the negotiation table, this is a somewhat limited view of what negotiation can achieve. By defining negotiation as mutual problem-solving it is given an inward focus towards removing the problem and therefore is past or present related. When negotiation is, however framed as opportunity finding the main focus becomes outward and is thus future orientated. The challenge then, is to stimulate the joint exploration of a wide array of opportunities. This will not only remove the problem from the table, but also present new possibilities than can be jointly exploited. From the opportunity finding perspective negotiation will then become a resourceful interaction that is targeted beyond the mere disposal of a problem.

LESSON 7 - NEGOTIATION IS PRIMARILY A PROCESS, NOT AN EVENT

With the possible exception of buying or selling a home, negotiation is a process. In the majority of business dealings, the parties rarely only negotiate once. There is often an element of continuity in their negotiation e.g. when they appraise staff performance, enter into future contracts, negotiate salaries and wages etc. What this means is that negotiators should consistently be aware that they should always negotiate in a way that will not negatively affect future negotiations. Although in a particular negotiation it may appear quite beneficial to victimise the other party, it must be borne in mind that this party will then be highly likely to seek revenge at the next negotiation. The gain achieved by ignoring the fact that the parties will negotiate again in the future rapidly becomes a liability.

For genuine Win More! Negotiation to take place it is crucial that negotiators always remain aware of the impact their negotiation strategies and tactics have on the relationship between the negotiating parties. This prevents negotiators from harming the other party, as they then appreciate that such an action may likely result in the counter party distrusting them. Otherwise, they might become an aggressor in future so as to reclaim that taken from them unfairly .

LESSON 8 - INFORMATION IS POWER IN NEGOTIATION

The more information a negotiator possesses about the issue at hand and the parties with whom they will be negotiating, the more powerful the power base of that negotiator. There is a meaningful correlation between the availability of good information and negotiating power. To begin a negotiation without having done the necessary research is unwise.

Research has clearly demonstrated that 75 percent of the utterances of good negotiators are in the form of questions that are focused on obtaining information. The thinking behind these negotiators is that questions invite participation, involve the other party and obtain information. In contrast, a statement often achieves the very opposite. Additionally, questions reveal a willingness to listen to the other party's views. The result is to create a climate where the other party feels sufficiently secure to share its interests and be attentive to the interests of its counterpart.

LESSON 9 - FRAMING IS A STRONG DETERMINANT OF A NEGOTIATION OUTCOME

Negotiators should note that decision-makers are apt to treat the prospect of gains differently from the prospect of losses . When asked to consider potential gains they are likely to be risk-averse, and opt for a guaranteed outcome. Contrarily, they lean towards risk-seeking when weighing potential losses. The manner in how negotiators frame their questions is therefore vital, as significant losses tend to appear much larger than significant gains.

What this means in practice is that negotiators must be very sensitive to the possibility that a negative frame (potential loss) could promote risky/destructive behaviour by the other party. Likewise, a positive frame (potential gain) could motivate the other party to opt for a mutually beneficial outcome. This is, however, unfortunately not as simple as it might appear, as there is a large body of evidence to indicate that most people are likely to be more strongly motivated by loss than by gain. Negotiators would be rash if they did not only tell the other party what it stands to gain by cooperating, but also what it stands to lose.

LESSON 10 - TRUST AND CREDIBILITY ARE THE CORNERSTONES OF WIN MORE! AGREEMENTS

In our increasingly hectic business world, negotiators often forget that importance of establishing their credibility and nurturing a trusting relationship. They lean towards being heavily content orientated and thus pay little attention to the contextual aspects of a negotiation. Their immediate aim is to get their teeth into the meat of the negotiation, forgetting that this is only appreciably possible within a climate of trust that inspires the other party to cooperate.

For a negotiation to meet the acid test of any negotiation, the agreement must be able to survive. It is essential that negotiators begin by establishing their credibility. Then, they should build the relationship, and only thereafter get into the nuts and bolts of the negotiation. This creates a framework where the other party will feel sufficiently secure to step out of its position and open itself to a joint opportunity finding interaction.

When parties suspect each other's credibility and do not trust each other, they will not tolerate the inevitable degree of exposure that creative negotiation necessitates. They will then lean towards becoming heavily loss orientated, very defensive and prone to thought closure.

The basic human rule of reciprocity decrees that negotiators who desire to move the other party from its preconceived position must first convince that party they are willing to expose their position. This will establish the trust required for that party to move outside its stated position.

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