PARTICIPATING IN NEGOTIATIONS

BASIC: DEVELOP AND PRACTICE NEGOTIATION SKILLS

BOOKKEEPING NC III

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 PARTICIPATING IN NEGOTIATIONS

Ques tioning Techniques

Asking the right question is at the heart of effective communications and

information exchange. By using the right questions in a particular situation, you
can improve a whole range of communications skills.

▪ Good negotiators ask intelligent questions

▪ Be clear about the purpose your question serves before speaking
▪ Clarify statements and check your commitment
▪ As other parties answer your questions, check if they comply with your
agenda
▪ Keep questions short and simple
▪ Use silence, don’t just fill them
▪ If a question is worth asking then it is worth persisting with the probe until
you get an answer
▪ Phrase your question clearly and neutrally

Codes of Practice and Guidelines for the Organization

A code of practice is not the same as your terms and conditions of sale, which
are purely to cover the legal aspects of the sales transaction.

A code of practice should reflect as far as possible the way that you do
business, and also cover any issues of potential misunderstanding concerned with
your trading style, and even your business philosophy.

Your code of practice should state your organization’s position on the issues
that your customers might consider to be important criteria in the approval of
suppliers, so the example below is not an exhaustive or definitive list.

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 A code of practice is a good way to state clearly your organization’s position
on important subjects like equality, ethics, contracts, conflict of interest and duty
of care.

Organizations Policy Procedure for Negotiation

Organizations use policies and procedures to outline rules outl ine courses of
action to deal with problems. Organization' s policies and procedures to make
employees understand the organization’s views and values on specific issues,
and what will occur if they are not followed. Policies are general statements of how
an organization wants to behave and procedures define exactly how to do a task or
perform step by step. A policy can be security related also and that can be used to
identify risks and mitigate risks.

FIV E STA GES OF NEGOTIA TIONS

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Decis ion Mak ing and Conflict Res olution Strategies Procedures

Effective Negotiating requires a roadmap of where negotiations go wrong and a

good set of tools for resolving conflicts when they come up. Here are 5 tools you
should bring to the table.

1. Active Listening at the Negotiating Table

The best negotiators use active listening not only to resolve conflict but also
to gain more insight into how to produce satisfaction and maximize value.

2. Patience

Bringing patience to the table means keeping a cool head and finding
solutions that avoid losing out with pressured concessions when conflicts
arise.

3. Don’t Let Conflict Avoidance Get You Off Track

A great negotiator knows to address conflict in order to avoid an impasse and

can use tools to improve outcomes and strengthen relationships over time.

4. Understand W hich Negotiation Mode You Are In

Always be aware of which negotiation mode you are in or risk losing ground
now and in the future.

5. W hen a Molehill Becomes a Mountain

Master the art of managing conflict by understanding when it might provide

strategic advantage, when it might undermine your control and when it
might .

Dealing with Difficult People

▪ Hostile Aggressive:
o Stand up for yourself; use self -assertive language
o give them time to run down......avoid a direct confrontation

▪ Complainers:
o Listen attentively; acknowledge their feelings; avoid complaining
with them
o state the facts without apology.......use a problem -solving mode

▪ Claims:
o keep asking open ended questions; be patient in waiting for a
response, if no response occurs, tell them what you plan to do,
because no discussion has taken place

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 ▪ Superaggreables:
o In a non-threatening manner, work hard to find out why they will
not take action
o Let them know you value them as people
o Be ready to compromise and negotiate, and don' t allow them to make
unrealistic commitments
o Try to discern the hidden meaning in their humor

▪ Negativists:
o Do not be dragged into their despair.........Do not t ry to cajole them
out of their negativism
o Discuss the problems thoroughly, without offering solutions
o W hen alternatives are discussed, bring up the negatives yourself
o Be ready to take action alone, without their agreement

▪ Know-it-Alls
o Bulldozers: Prepare yourself; listen and paraphrase their main
points;
o question to raise problems
o Balloons: state facts or opinions as your own perception of reality;
find a way for balloons to safe face; confront in private

▪ Indecisive Stallers
o Raise the issue of why they are hesitant...Possibly remove the staller
from the situation
o If you are the problem, ask for help.....Keep the action steps in your
own hands

Problem Solving Strategies on How to Deal with Unex pected Questions and
Attitudes During Negotiation

Problem -solving negotiation follows the same

process involved in any sort of problem -solving.
There is first a definition of the problem, a search for
solutions to it, and then an evaluation of alternative
solutions against some set of criteria. However, the
process is dynamic, and all stages are subject to
refinement based on developing information and
reassessments. Thus, as a person reflects on
possible solutions to a problem, she may also begin
to redefine the problem, and any redefinition will
lead to new possible solutions. Similarly, as she
evaluates solutions and focuses on the most
promising ones, she may discover that her criteria
for evaluation are inappropriate, causing her to
develop new criteria. New evaluative criteria might
also lead to new ways of looking at the problem and
a new problem definition, or to a renewed search for
possible solutions to the problem.

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In dealing with unexpected questions and attitude, there are four things that
should be kept in mind. I call them the 4 Bs: be calm, be prepared, be focused and
be blunt.

▪ Be Calm . No matter how others act, what strategy they use or what behavior
they demonstrate, we need to stay in control. This is especially true when we
feel blindsided or surprised. If we react without thinking, in anger or with
emotion, we will almost certainly regret it later.

▪ Be Prepared. Forewarned is forearmed. The more we know and prepare for a

negotiation, the less likely it is that we will be surprised. It also improves our
confidence in managing difficult negotiators.

▪ Be focused. Remain focused on your objectives and don’t let styles and
behaviors take you off track. Take the view that the style being used by the
difficult negotiator results from past learning. That is, the y use it because
they believe it has worked for them in the past and will work for them now.
W e need to understand what it is they want to achieve and help them achieve
it. Help them see that the behavior isn’t advancing their interests. Keep the
discussion focused on everyone’s needs — especially your own.

▪ Be blunt. If they’re tough, we need to be assertive in equal or greater

measure. W e should always be unconditionally constructive and respectful.
That doesn’t mean that we let others walk over us.

Flex ibility

Unfortunately, negotiations don’t always pan out according to Plan A, which is why
it’s important to always have a Plan B up your sleeve.

A flexible mindset requires a willingness to quickly change course and move on

when required; most stalled or failed negotiations happen because one or both
parties is unable to do so. Fortunately, a negotiator’s toolkit contains tactics to get
negotiations back on track through the discovery of areas of shared interest or
common ground.

Being flexible doesn’t necessarily mean abandoning your ultimate goals or targets.
Instead, it’s about being willing to ch ange (and potentially change again) the route
that will get you there.

Empathy

A key pillar of effective communication involves putting yourself in the other

person’s shoes to better understand their perspective.

Considering the other party’s motivations, challenges, history, and pressures will
help you not only comprehend the context behind their negotiating position but
also enable you to propose solutions that play to these factors and better appeal to
the other party.

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Part of being empathetic is to listen carefully and respond appropriately when the
other party shares information with you. Poor listeners miss opportunities.

Interpers onal Sk ills to Develop Rapport with Other Parties

Interpersonal skills are the skills we use every day when we communicate and
interact with other people, both individually and in groups.

Interpersonal skills include:

▪ Communication skills, which in turn covers:

o Verbal Communication – what we say and how we say it;
o Non-Verbal Communication – what we communicate without words,
for example through body language, or tone of voice; and
o Listening Skills – how we interpret both the verbal and non -verbal
messages sent by others.

▪ Emotional intelligence – being able to understand and manage your own and
others’ emotions.

▪ Team -working – being able to work with others in groups and teams, both
formal and informal.

▪ Negotiation, persuasion and influencing skills – working with others to find

a mutually agreeable (W in/W in) outcome. This may be considered a subset
of communication, but it is often treated separately.

▪ Conflict resolution and mediation – work ing with others to resolve

interpersonal conflict and disagreements in a positive way, which again may
be considered a subset of communication.

▪ Problem solving and decision -making – working with others to identify,

define and solve problems, which includes making decisions about the best
course of action.

Good interpersonal skills are the foundation for good working and social
relationships, and also for developing many other areas of skill.

It is therefore worth spending time developing good interpersonal skills.

Communication Sk ills (verbal and lis tening)

Effective communication is crucial to negotiation, persuasion and relating to

different human behaviors. The ability to lis ten, ask the right questions at the right
time and come across with confidence and credibility is an important part of the
subtle mix of skills needed to succeed in our complex world.

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Obs ervation Sk ills

In a negotiation, you must be aware of what motivates you to adopt certain actions
during the negotiation, and you must be observant of the opposing negotiator’s
body language.

Perceiving how other people are feeling is a critical component of emotional

intelligence, and it’s particularly key in negotiations (as Adam Galinsky and his
colleagues have found). So, tune in to your counterpart’s body language, tone of
voice, and choice of words. W hen her verbal and nonverbal cues don’t match up,
ask questions. For example, “You are telling me you like this outcome, but you
seem uneasy.

Is something making you uncomfortable?” Or “ you say you’re angry, but you seem
somewhat pleased. Are you truly upset about something? Or are you trying to
intimidate me?”

Asking pointed questions based on your perceptions of the other party’s emotional
expressions will make it easier for you to understand her perspective (a task people
are shockingly bad at, according to research by Nicholas Epley). It will also make it
difficult for a counterpart to lie to you; evidence suggests that people prefer to tell
lies of omission about facts rather than lies of commission about feelings.

Negotiation Sk ills

Negotiation skills are qualities that allow two or more parties to reach a
compromise. These are often soft skills and include abilities such as
communication, persuasion, planning, strategizing and cooperating.
Understanding these skills is the first step to becoming a stronger negotiator.

The skills you’ll need depend on your environment, your intended outcome and the
parties involved. Here are a few key negotiation skills that apply to many
situations:

▪ Communication : Essential communication skills include identifying

nonverbal cues and expressing yourself in a way that is engaging. It is
important to understand the natural flow of conversation and always ask for
feedback. Active listening skills are also crucial for understanding the other
party. By establishing clear communication, you can avoid
misunderstandings that could prevent you from reaching a compromise.

▪ Persuasion: The ability to influence others is an important skill for

negotiation. It can help you define why your proposed solution is beneficial
to all parties and encourage others to support your point-of-view.

▪ Planning: In order to reach an agreement that benefits both parties, it is

crucial you consider how the consequences will impact everyone in the long-
term. Planning skills are necessary not only for the negotiation process but
also for deciding how the terms will be carried out.

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 ▪ Strategizing: The best negotiators enter a discussion with at least one
backup plan, but often more. Consider all possible outcomes, and be
prepared for each of these scenarios.

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