Mastering the Art of Strategic Negotiation

Strategic negotiation is a process of communication between two or more parties to work out an agreement over something, such as price, quality, and quantity of goods sold, etc.

If done right, strategic negotiation can result in both parties walking away with something of value to them. Strategic negotiation is used in many different fields, but it’s particularly important for the business world. From mergers and acquisitions to conflict resolution in the office place, strategic negotiation comes in handy in every situation.

But negotiation can also be a tricky process and there are many ways that it’s possible to get things wrong.

The first step in negotiating effectively is to assess your own position relative to your counterpart’s. If it seems like they have more leverage than you, find out what their motivations are for getting a deal done and use that information to negotiate from strength rather than weakness by providing them with an incentive to make concessions or meet certain conditions.

For example, if they want something from you but cannot make a proposal without your cooperation, you can do one of three things: (1) put pressure on them to make the first move (2) give them an ultimatum that gives them a reason to want to meet your terms or (3) simply wait and see.

However, before you decide how to proceed, you must assess exactly where your leverage lies. In this blog, we’ll give you an overview of how to successfully plan and execute strategic negotiations. So let’s dive in.

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How to Prepare for Strategic Negotiations?

1-Set your negotiating strategy

Do not rush into negotiations if you are unprepared or don’t know about the business or the offer at hand.

Before starting the negotiations, you should ask yourself some questions to set your strategy. Negotiation is all about making the greatest deal for you.

They start with preparing yourself and knowing exactly what you are going to negotiate and most importantly what you are not going to negotiate. That’s what makes negotiation strategic, to avoid weaknesses while playing to your strengths.

2-Research

Before you start your negotiations, make sure you’ve done your homework. Research your counterpart whether it’s a customer, a coworker or even your own boss. Figure out what their needs are, and how this deal meets those needs.

Good research also entails evaluating all the information. Don’t let yourself be prejudiced or pass judgment too quickly even if you don’t like the person you’re negotiating with.

3- Strategic Planning

The importance of planning in negotiation cannot be overstated. Strategic planning provides a framework for your negotiations and allows you to approach them from an organized vantage point. It’s not enough to know what you’re going to say, you need to plan out how you’re going to say it.

4.Beware of your and their weaknesses

Finally, try to familiarize yourself with the weaknesses of your negotiating partner. Knowing their weak points allows you to play to those areas and helps you negotiate a favorable deal for yourself.

Similarly, it’s important to know your own weaknesses and try to avoid them. For example, some people who are great at making deals often have poor listening skills. If this is your weakness, you should practice active listening techniques and avoid interrupting your negotiating partner unless it’s absolutely necessary.

Now that you know how to plan for strategic negotiation, let’s take a look at what to do when you are in one!

How to Achieve Successful Strategic Negotiation?

1.Put yourself in the other person’s shoes

Strategic negotiation is a very human process. It requires understanding from both parties and the best way to understand your counterpart is to put yourself in their shoes.

Strategic negotiation requires the parties to be on equal ground and therefore both parties need to come to the table as equals. Strategic bargaining gives each party a chance to explain what they want from the conversation while never being under pressure.

In becoming an expert in strategic negotiation, it is important that you can appreciate where the other person is coming from. The better your can understand their position, the better rebuttals you can offer.

During a strategic negotiation, it is also important to know when to be in control and when to let go. It is essential to understand that if your opponent sees you as being too controlling or manipulative, they will not trust you and that increases chances of disagreement.

2.Use Silence as a Weapon

It is imperative to know when to be silent and when to speak your opinions. Silence is golden in the art of negotiation. It can lend you an air of confidence and superiority that can facilitate a win-win situation.

You’ve probably heard of the phrase “never make the first offer” in a negotiation, but did you know it’s based on science? Humans are naturally wired to fill silences. In a negotiation, this can give you an advantage because the other person is more likely to fill the silence with their own terms and concessions.

This gives you an upper hand because you can then counter with your own terms. And it is always easier to compromise on something you proposed yourself!

So, don’t be afraid to use silence to your advantage. Masters of negotiation and salespeople alike will advise you that listening is a key skill in negotiation. Listening can be instrumental in gathering information about your opponent without them realizing it. And when you’re listening, you stay silent.

3-Know what you have to offer

In job offers, negotiations are easy since you already have a job and your boss knows what he has to offer. Your salary is fixed and there are no secrets about it, so they must make the best out of what they get from you.

However, people in business negotiations often do not know what they have to offer. If you don’t know this then it will be difficult to gain benefits from the business. you should ask yourself the following questions before entering into negotiations:

• What kind of product are you selling, what does it offer?
• Is it a niche market or is it common?
• How many competitors do you have and why does your product stand out from the crowd? Know the exact value of what you’re offering

  4-Have a Contingency Plan

Things don’t always go the way you want them to. You should always be prepared not to get all the approvals you hope for because negotiations might go in a completely different direction.

Before entering into any negotiations, have a contingency plan ready that is flexible enough so that it can suit any environment that you may find yourself in. It’s also important that your contingency plans are realistic, make sure they account for all the variables that might come up.

5-Be Ready to Adapt

Your negotiation strategy should be flexible enough so that you can change it depending upon the situation of the negotiation. Don’t make the same mistake and always stick to your original plan, make adjustments mid-way through negotiations if need be.

Conclusion

It’s like the title says, strategic negotiation is more of an art than an exact science.  Strategic negotiation is not difficult, but it’s also not easy. This type of negotiation can be mastered by anyone with the right mindset, persistence and patience. Follow the tips mentioned above and soon enough you’ll be a master of the art.

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