Not yet registered? Create a OverBlog!

Create my blog

A guide to negotiation tactics

Negotiation is simply the process of discussion between two parties, with different wants or needs, in order to see if a possible deal can be reached. We probably aren't even aware of how much we make use of negotiation in our day to day lives. Most of us make use of negotiation regularly in our day-to-day lives, but when it comes to business negotiations, sometimes, we lack confidence.

Different negotiation styles

Historically, business tactics dictated that negotiators would enter a boardroom with a set idea of what they wanted to achieve from the discussions, and employ all their negotiating skills to ensure that they achieved it. Arriving with a clear idea of their ‘bottom line’, or the worst deal they would accept, and whether it was acceptable not to agree at all. They would try to get as close to their best position as possible, while the other side did the same.

Win-win negotiation

In the last few decades, the concept of mutual gains bargaining, or win-win negotiation, came about. Here, the parties will enter the negotiation with less of a fixed idea of what they want to achieve, and aim to discuss the issues more broadly. The tendency of this negotiation style is to yield more creative and mutually beneficial results since the parties stay flexible in their approach.

Tactics versus strategy

Tactics are more associated with the first style of negotiation, and include tricks or common sense techniques such as not revealing your bottom line, always ensuring the person with a final say is not present, and implying that one is ready to walk away if the negotiation does not achieve sufficient results, whether or not this is true. Strategy is more of a big-picture approach and includes principles such as being prepared and keeping an open mind, listening to the other party, addressing all relevant issues and knowing in which areas compromise is preferable. Negotiation training?
Many companies send employees on expensive negotiation courses as part of their skills training. However, some would argue that these courses teach little other than tactics or tricks. The ability to be effective in negotiation may depend more on the ability to listen and identify the other party’s requirements, to think outside the box and be flexible throughout the negotiation process.

International negotiations

Another important thing to remember, is that even within the above framework, negotiation styles are strongly informed by culture. Analyses of negotiation styles suggest that the British tend to take a direct but open-cards approach, and pride themselves on being forthright in business discussions. Other countries which prioritise different values may express themselves very differently in negotiations, from the super-polite Japanese, to more aggressive and volatile continental countries.

Same category articles Business development

How to do business well?

How to do business well?

Many people become stumped when they think about how they can do well in business. While the challenge of bringing in customers, going to business meetings and growing a business, is one that many enjoy, while others are overwhelmed at the sheer responsibility. A person who understands some basic business tips will be able to do well and succeed in his or her business prospects.
A guide to starting a cleaning business

A guide to starting a cleaning business

Interested in the business of cleaning services? What should you expect at the beginning and how will your business progress? When the time comes to hiring more people, who should you hire and why? Read this article to find out the answers.
Where to find free sales leads

Where to find free sales leads

Don't want to purchase leads? Looking for free business sales leads instead? Read this article to learn the top two, internet leads marketing, methods including how to perform sales lead tracking and management. Not to worry, these are legitimate methods that give you qualified leads. Read on to find out.
Bankruptcy laws explained

Bankruptcy laws explained

Bankruptcy is not pleasant to go through, but sometimes it’s necessary, especially if a person doesn’t see any way to overcome their financial situation. Bankruptcy helps people to obtain financial freedom again once they have lost it, but it is not without consequences. The bankruptcy rules are simple and standard for people to follow, if they are planning on filing bankruptcy.