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How To Be A Good Negotiator?

Planning for Negotiations

Learning Objectives:

By the end of this chapter, you should be able to:

Identify the true issues of a negotiation.

Clearly define the primary objective of a negotiation.

Assess the strengths and weaknesses of your opponent and yourself.

We define negotiation as the process by which opposing sides resolve their differences by bargaining with one another to reach a mutually acceptable agreement. Such differences are the issues to be dealt with, so the first step in the negotiation process is to identify the issues.

IDENTIFYING THE ISSUES

There is no trick to identifying issues in most of our managerial and personal activities. However, in the give-and-take of the marketplace and in our relations with those above, below, and equal to us in our company's organizational structure, the identification of issues takes on a new dimension. Specifically, if we are preparing for negotiations, both sides must see the issue in the same light if a mutually acceptable agreement is to be reached.

Example 1

The experience of a broker of expensive, one-of-a-kind household furnishings serves as a case in point. The furnishings with which he deals are generally heirlooms, and the selling price is determined by the owner. When an article is sold, the broker receives a fixed commission. If a sale is not made, he receives no compensation.

At first, the broker declined to deal with customers who sought to reduce the selling price below the initial asking figure. He saw such haggling as an open and defiant challenge to his ability to set a fair market price. These customers, of course, saw the issue as nothing more nor less than standard business practice.

After losing some customers who wanted to bargain, the broker opened his eyes and was able to see the issue for what it actually was-a simple difference in commercial practice. In short order, he learned to increase the asking price by 45 percent. Both parties now bargain...