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Two people are engaged in a negotiation - one achieves his/her objective(s) and is happy, whilst the other walks away disappointed with the result. Does this situation sound familiar?

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

SUCCESS VS FAILURE

What distinguishes success vs failure in commercial negotiations?

Most of us acknowledge the importance of preparation to deliver positive results and it is therefore interesting to note that the majority of commercial negotiators do not spend adequate time preparing for negotiations, often due to insufficient negotiation training. Professional sports people spend notably more time preparing for a championship than they spend in competition; should it be any different for business negotiators?

THE EVIDENCE

Business negotiators only spend roughly 1/3 as much time planning for negotiation as they in reality 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 competing. The principal factor to successful business negotiation results is the quality of your planning for the negotiation.

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

1. Understand Yourself

Before we even put into operation best- and leading practice negotiation, it is imperative that we first understand our own strengths & weaknesses and it is key that we make use of personal profiling tools to highlight our areas of preference within the framework of commercial 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 main motivating factors behind your counterparty's position? What mutual ground, if any, exists between your and your counterparty's vision? It is important to understand 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 interests.

3. Value

What are the most important deal goals being pursued in this negotiation? What are the facts and figures strengthening the negotiation environment? What options does each party have, if any? Once again we should try to identify, prioritise & 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 produce conflict.

4. Process

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

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 money. 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 human elements.

Sales Training Tip: Getting What You Want From Your Sales Meetings Through Effective Negotiation Techniques
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We could easily make the mistake of stereotyping people according to their national culture whilst ignoring the other elements of culture that will contribute to the success in your negotiation.