Let us never negotiate out of fear. But let us never fear to negotiate.- J.F. Kennedy You cannot negotiate what you don’t have. – StandOutJane
That being said, the only way to tame the fear, is to prepare. The only way to become truly aware of what you have, is to prepare. This is the first Article on Negotiation in the Series of Five.
Whether you are negotiating for a first time salary, an increase in an ongoing compensation or a new deal, the questions that need to be answered first relate to the domain of power:
What do you have that the other side wants, needs or desires?
Determine:
1. What is your power and how it’s valuable to the other side.
2. What direction you want to take in the negotiation.
Former FBI agent and non-verbal communication expert Joe Navarro once made a comment about how unbelievable it is, that most people don’t prepare for negotiations. How prepared you are will impact your confidence levels which will translate in your use of words, tone of voice and body language. It will determine the course of the meeting and your future relationship with the other side. It will make you less reactive, emotional and stressed. It will enable you to be present, listen to the other side and ask legitimate questions.
First, reflect and determine on what you bring to the table by establishing your own power. There are two sources of power:
- Formal power, which is based on your position in an organisation.
- Personal power, which is based on your expert power (expertise, skills, knowledge) and referent power (likability, respect and admiration from others).
Research shows that the sources of your personal power are the most effective bases of power.
To further explore your personal power try answering these questions:
- What have my results been so far?
- What is my vision for the future with the other side?
- How dependant is the other side on me and my work?
- What problem am I solving that reduces the uncertainty of the other side, company, business?
- How rare is what I do? (Tip: If what you do is not perceived as rare on the market, then focus on HOW what you do makes the service different, include your personality traits, talents, strengths).
- How difficult is it to replace me?
- What effect do I have on others? What power and potential do I have to lead others?
Try to be specific, use examples and numbers if available. Once you have determined your own value that ties into the value you for the other side, consider second group of questions that clarifies the direction you want to take in negotiation:
- What is my goal and why?
- What is my (underlying) interest in this deal?
- What is my best alternative if there is no deal? Also called Best Alternative to a Negotiated Agreement BATNA. What is your leverage in this negotiation?
- What is your lowest expectation from the deal?
- What is the highest expectation from your deal?
- What is the objective criteria? The market price, the law, the expert opinion.
Now turn the same questions to consider the other side’s perspective: What is their goal and why? What is their underlying interest? What is does it mean for them, if there is no deal, etc.
The act of preparation is just as important as the act of negotiation. Before entering into any negotiation reflect and determine on your power and the direction you want to take during the meeting. Put yourself in the position of the other side and try to understand them.
Imagine yourself walking into the room prepared and confident that you are giving it your best… and now imagine yourself walking into that same room unprepared, hoping it will all work out somehow, leaving it to chances… What feels better?
Do you have an important negotiation coming up, and want to prepare?
Image: Alamy.