Your Insufficiently Developed Commercial Negotiation Skills Capability Could Cause Critical Negotiation Interventions To Fail Due To Poor Preparation

Two parties are involved in a negotiation - one accomplishes his/her objective(s) and is delighted, whilst the other walks away disappointed with the result. Does this scenario sound familiar?

Do you often feel displeased with a settlement that you have reached? Have you sometimes entered into an agreement only to feel regret soon after reaching a settlement?

SUCCESS VS FAILURE

What distinguishes success vs failure in commercial negotiations?

Most of us recognise the importance of preparation to achieve positive results and it is therefore remarkable to note that the majority of commercial negotiators do not spend sufficient time preparing for negotiations, often due to insufficient negotiation training. Professional sports people spend significantly more time preparing for a championship than they spend in competition; should it not be the same for business negotiators?

THE EVIDENCE

Commercial negotiators only spend about 1/3 as much time planning for negotiation as they actually spend in negotiation. If you were a professional sports person, this would mean that you spent only 1/3 as much time training & planning as you do in competition. The leading contributor to successful commercial negotiation results is the quality of your planning for the negotiation.

As a matter of negotiation strategy, consider the following top 5 components of preparation and at the same time you will also develop your negotiation skills:

1. Understand Yourself

Before we even put into operation best- and leading practice negotiation, it is important that we first understand our own strengths & weaknesses and it is vital that we make use of personal profiling tools to emphasise our areas of preference within the framework of business negotiations, which enables us to have a reference point from which to plot our skills development.

2. Vision

What is the fundamental aim behind the negotiation? Is the negotiation about price or is it about the value that can be added? What are the key motivating factors behind your counterparty's position? What common ground, if any, exists between your and your counterparty's vision? It is key to comprehend the interests or silent motivations behind the positions of all parties to the negotiation and it is only by asking questions that we will expose these motivations.

3. Value

What are the most important deal goals being targeted in this negotiation? What are the facts and figures strengthening the negotiation environment? What alternatives does each party have, if any? Once again we should try to identify, rank & weigh the goals of all parties to the negotiation and only then are we in a position to highlight those goals that are shared and at the same time deal with those objectives that are likely to initiate conflict.

4. Process

Have you spent time thinking about an agenda for your forthcoming negotiation? Have you listed all the concessions that you will give & receive? Do you have tools/templates at your disposal to support the efficiency of the negotiation process.?

5. Relationship

It is easy to forget that we deal with people who have goals & aspirations similar to our own and it is not always just about the facts & figures. The research is clear that people are more likely to deal with those whom they trust & like, than with those with whom they little in common. Try to focus on those things that you share with your negotiation counterparts, and do not forget to focus on the people.

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