How to negotiate

Résumé du document

We negotiate every day to get the best deal possible and to get better than we would have had without negotiation. The success of negotiation is due mainly to the quality of its preparation. Definition of the objectives: In this step we define clear and realistic objectives, while providing flexibility with a high estimate, an assumption and a low threshold that should not be crossed. Information plays a key role in negotiations. We must know the other party, and the players who will be present at the negotiating table. We should know what their issues, goals and strengths are. In order to do this, we must explore the personality and power of each actor. From these factors, the trader can get an idea of the power relationship between the two parties and determine a range of discussions.

Extraits

[...] In the case of a negotiating team we must define the roles. Who will speak? Who will respond to the proposals? Subsequently, the difference will be on anticipating trying to predict the reactions of adversaries and possible responses. In all cases, the negotiator must prepare a fallback position and consider it application. The goal of most negotiations is to create a win-win situation. But at least, I guess that we have to leave the other person feeling that he won. [...]

[...] We have to play with this aspect. Threats are to be affective, they must be believable. A credible threat is one that is reasonably proportionate to the action, which it is intended to defer. Besides, we have to be careful not to issue threats that we will not carry out because it undermines credibility. Instead we can make affirmative promises which are more effective than threats and indicates that position change will be reciprocated. You also have to be careful about silence, time and patience because the more you talk, the more information you divulge. [...]

[...] Moreover, I observed that more of the concessions are made at the really last minutes of the negotiation. At the end, it is the cooperative phase when both parts work together in the same way, to find an agreement. To conclude, I will say that to negotiate, you have to: - Put the other side at ease - Separate people from the issue - Be confident and firm but not demanding - Be patient and a good listener - Ask questions - And of course, do not be afraid to walk away. [...]

[...] Studying the "enemy" Information plays a key role in negotiations. We must know the other party, that is to say the players who will be present at the negotiating table. What are their issues? What are their goals? What are their strengths? So we should explore the personality and power of each actor. From these factors, the trader can get an idea of the power relationship between the two parties and determine a range of discussions. Adopt a strategy To consider a negotiation, you must be willing to make concessions. [...]

[...] So, there are three major steps in a negotiation. The first one can be called the information phase, where each part tries to know what are the “walk away number” and the capacities of their counterparts. We focus on knowledge of the other party and employ only open- ended questions. The goal of this phase is to learn other parties' potential and actual choices. We try to know their B.A.T.N.A. and, moreover, how much they are interesting in the deal to prepare the second phase, which is the competitive phase. [...]