The need for Strategic Negotiation in the Organisation.'
Strategic negotiation is uderstanding the other party's interests and motives is important to good negotiation.Matching strategies to the situations differ as there are various strategies for negotiations such as
1. Problem solving — Both parties committing to examining and discussing issues closely while going into long-term agreements that calls for careful scrutiny.
2. Contending — persuading the negotiating party to concede to the outcome if you're bargaining in one-off negotiations or over the major achievements.
3. Yielding — considering a point that is not vital to you but is important to the other party. Remember this is an ongoing negotiation process.
4. Compromising — Both parties forgoing their ideal outcomes, settling for an outcome that is moderately satisfactory to each participant.Practice the concept of the win win situation.This will resolve the issues at the ground level and will not allow to come again.
4. Proactive — Buying time to work on the proposal, gather more information or decide your next strategies.
Your chosen strategy will depend on who you are negotiating with and the type of relationship you have with them.
Now the first question that comes to mind.How to approach a negotiation ?
There are many approach to the issue being negotiated.This again depends on person to person and their skills.
There are 3 key common approaches to negotiations: Hard, Soft and Principled negotiation.
The hard approach involves contending by using extremely competitive bargaining.Here highly skilled and experienced professionals are engaged.You totally concentrate on core business targets and ethical standards.The dominant negotiator wins over the other party
The soft approach involves activities, where one party tries hard to meet the interests of the other party and forgoes their own interests.
This happens when you are dependent on the other party.The businesses indirectly linked with the other party's involvement.This kind of negotiations are not good for the Organisation.The dominance of the party will always have negative impact on the business.
Principled negotiation concentrates on achieving a lasting, win-win outcome.This is done by
Separating the people from the problem, Focusing on interests not positions,
Generating a ample of options before settling on an agreement.
Basing the agreement on principal objective criterias.
Six Successful Strategies for Negotiation.Always remember that...
1. The negotiating process is continual and not an individual event.
2. Think positive if you want to achieve the goal you have set for the negotiation.
3. No miracle will happen.You need to prepare for the assignment.Foresee what's going to happen if things don't go as per plan. What would be your next course of action..Good deep preparation can lead to successful negotiation.
4. Think about the best & worst outcome before the negotiations begin. Think of the consequences and it's impact on the Organisation in long term. If negative then what's the plan or strategy to control the damage.
5. Build value for the Organisation.The situations can be you win and the other loose
or you loose and the other wins.or no one wins.In all three instances both the parties are not satisfied or happy in long run and can damage the business..But with the concept of win win situation both are happy satisfied and committed in the long run which is good for the organization.
This concept is practiced by all Organisations in the present circumstances.
Negotiators have a tendency to negotiate from one of five styles that are:
Competing.
Accommodating.
Avoiding.
Compromising.
or collaborating.
The strategic choice totally depends upon the competence level of the person who will be negotiating.The success will depend on his alertness,ability to use right tactic at the right time.
Objective should be that.
Both parties committing to examining and discussing issues closely when entering into long-term agreements that warrant careful scrutiny.
Persuading the negotiating party to concede to your outcome if you're bargaining in one-off negotiations or over major 'wins'
Another view of negotiation comprises of four elements:
Strategy.
Process.
Tools.
Tactics.
One of the most powerful things you need todo in a negotiation is draw out why the other party wants to make a deal. This can be done by asking questions and building negotiating roots.
Analyze and use the three keys to getting to bargaining :
Learn how to negotiate, have patience, and know where to find great deals. Develop skills for negotiating deals on products or services.
Thorough sincere preparation is the most important prerequisite to effective negotiation. Neither experience, bargaining skill, nor persuasion on the part of the negotiator can compensate for the absence of preparation.
The key to success in Negotiations is preparation and preparation.
There is no shirt cut or substitute for preparation.
