The Power of Negotiation

Although we often think of negotiation as something that happens between two "warring" parties (union vs. management, buyer vs. seller), the best negotiations take place when both parties are willing to compromise, or to reach agreement by modifying their initial demands. You do this by posing "What if...?" situations. "What if I give you this and you give me that? Would that satisfy both our needs? What if I take less of this and more of that? Would that be agreeable?" The more options you come up with, the more room you have to compromise.

There are four major principles that make for successful negotiations:

1. Understand your own value. Know what you bring to the table. Keep in mind that your knowledge and experience are strengths you can use as bargaining tools. You must have a complete understanding and appreciation of your value if you expect to communicate it to the other parties involved. The more you know about the benefits you can offer to the other side, and the better you are able to express them, the more excited they will be about making a deal with you.

2. Understand the other party's value. Know what they bring to the table; understand their point of view. Put yourself in their shoes. Do research and ask questions. Look at the big picture the way they see it, that way you can tailor your solutions and options to the needs of the other side. Learn as much of the specifics of what the other party is looking for before you begin negotiation. A negotiation is really a sale (you're selling your ideas and positions), and the secret to being a successful salesperson is to meet the buyer's needs.

3. Understand your goals. If you don't know what you want out of a negotiation, you'll be tempted to take anything that's offered without examining the consequences. Clarify your goals and your limits. Start with what is least acceptable, and then determine the maximum you can ask for within reason. Set your acceptable parameters. Or, as they say, "Know when to hold them, know when to fold them." Start with the maximum reasonable request and negotiate down from there. If you ask for too much, you can always settle for less. But if you ask for too little, it's almost impossible to bargain upward. Ask yourself the following questions:

   • What do I want to get out of this negotiation?

   • What are my real needs (money, prestige, benefits)?

   • What is the most I could get?

   • What is my bottom line?

   • Where specifically can I compromise?

4. Trust is the most important factor. Most negotiations take place in a climate of shared expectation. We expect that when we give in a little, the other side will give a little, too. We expect that when we bargain in good faith, so will the other side. If you do not feel that these things are true, you should not be negotiating in the first place.

   Visible good will is the strongest negotiation strategy. Don't let somebody else determine your behavior.

   —Dr. SU Sunrei,
   Chinese writer