Negotiating strategy

Skillful negotiation is vital in business when two or more sides have different viewpoints and each party wants to press for their own advantage. The ideal outcome is a compromise that resolves conflict.

How it works

Like many aspects of business, negotiation is a process to find a mutually acceptable solution. Before any discussion, each party must work to understand the other’s interests and decide on strategy; otherwise talks can end in stalemate, bad feeling, and loss of business. Being able to negotiate is vital to build strong working relationships, deliver a sustainable, well-considered solution (rather than a short-term fix), and avoid future conflicts.

65%
of face-to-face communication is through non-verbal signals

Reaching agreement

Any strategy, from a wage negotiation between a trade union and employer to a sales negotiation between a customer and a supplier, depends on the relationship between the two parties. Good negotiation should leave each party feeling satisfied with the outcome of the discussion and ready to do business again.

Prepare and plan

• ❯ Set objectives and ideal outcome (and assess those of other party).
• ❯ Rank and value issues and think of possible concessions.
• ❯ Consider ideal agenda and meeting place. Rehearse.

Define ground rules

• ❯ Agree on logistics— location, room setup, agenda, schedule, number of negotiators.
• ❯ Define etiquette, such as no cell phones, one person speaks at a time, formal breaks.
• ❯ Agree on how information is to be presented and recorded.

Propose, clarify, and justify

❯ Ensure both sides have equal opportunity to put forward their case.
❯ Clarify any points of disagreement.
❯ Focus discussion on understanding rather than resolving.

Bargain to solve problems

❯ Offer alternative proposals and concessions.
❯ Discuss what is acceptable to each side.
❯ Aim to find win-win solutions.

Agree, close, and implement

❯ Conclude with an agreement that is mutually acceptable.
❯ Clearly articulate and note agreement and concessions.
❯ Formalize agreement in writing and follow up.

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BODY LANGUAGE IN DIFFERENT CULTURES

With international negotiations, it can be hard to read body language signals, particularly since the meaning of gestures can vary.

Eye contact Chinese people avoid direct eye contact to show respect while American people see lack of eye contact as a sign of shiftiness.

Facial expressions When emotions are high in the US, it is acceptable to frown, even to swear, but not to cry. Japanese people might smile or laugh, but never frown or cry

Head movements In much of Europe and the US, people nod to mean yes and shake their head to mean no. But in some parts of the world, such as in Bulgaria, it is the opposite way round.

Gestures Western cultures use a hand extended towards a person to indicate “Come here”. Chinese people would see this gesture as offensive.

Posture In the US, being casual is valued; people might slouch when standing or sitting. In some European countries, such as Germany, a slouching posture is considered rude. Formality is also valued in Japan, particularly the ability to sit upright and still.