Negotiation Techniques and Tactics

Chess pieces arranged on the chess board

Each negotiation scenario is unique, demanding versatile strategies tailored to address specific challenges and opportunities. Whether it's employing collaborative techniques to foster team alignment or assertive moves to protect non-negotiable interests, the ability to switch between tactics is paramount. For employees navigating the negotiation landscape, the ability of employing different tactics with flexibility is the key to unlocking successful outcomes and reinforcing a consistent team dynamic. Negotiation involves a variety of techniques, and the effectiveness of these techniques depends on the specific context and goals. Above all, though, active listening, flexibility, assertiveness, finding the middle ground and understanding that the negotiating parts are not enemies are of great vitality.

How can I learn more ?

Scenario: The company is on the brink of bankruptcy, and employees believe they can save it by taking over and running the operations. Each team will represent a group of employees proposing this takeover to the employer.

1. Each team needs to come up with detailed financial information about the company's current state and profiles of key employees, research the market, competition, and potential solutions. Each team should prepare a comprehensive proposal outlining their plan to revive the company. Before creating the plan, have a look at this: “Create an action plan that drives results”.

2. Keep in mind the following techniques :

- BATNA (Best Alternative to a Negotiated Agreement): Knowing and understanding the best alternative if negotiations fail. You can check out “The Program of Negotiation -What is a BATNA” from the resource section.
- Collaborative Problem-Solving: Encouraging open communication and working together to find mutually beneficial solutions.
- Compromise: Finding middle ground to address the interests of both parties.

3. Teams present their proposals to the employer, highlighting how the employee-led takeover will benefit both parties.

4. The person assigned with the role of employer raises concerns about potential risks and uncertainties. This is an opportunity for teams to showcase their understanding of the challenges and address these concerns through strategic negotiation. It is crucial during a negotiation to separate the interest from the person. The other part (in this scenario the employer) is not your enemy. You are both parts of the negotiating process. In this task, but also in real life situations, the basis of negotiation is being able to not see/ address/ react to the other part with hostility. You have to treat each other with empathy and listen actively. Aggressiveness most probably would damage the negotiation process, than do any actual good. For further information, check out “How to Use Empathy to Negotiate: 3 Types of Empathy” and “The Psychology Behind Negotiation”.

5. Teams use negotiation techniques (such as BATNA) to address concerns and find common ground. This may involve adjusting ownership percentages, outlining clear roles, and developing a phased transition plan. The participants should keep in mind not to develop just one action plan, not having just one rigid option. You should be able to have different options, keeping of course your core criteria, but be prepared to suggest more than one options.

6. Teams submit a final, refined proposal that incorporates feedback from the negotiation. This should include detailed plans for financial restructuring, operational improvements, and employee development.

7. After negotiations, debrief with participants, discussing the effectiveness of negotiation techniques, challenges faced, and areas for improvement. Emphasize the importance of creating a win-win situation, after referring to “Negotiation Skills for Win-Win Negotiations” Be honest as to what worked and what not. Accepting feedback and not feeling offended, is crucial. Use the feedback, other people’s ideas and thoughts about the process to build a foundation for more effective negotiations.

8. The employer decides based on the proposals. Provide constructive feedback on each team's negotiation skills, highlighting successful strategies and areas for growth.

Test yourself

What have you learnt?

Structuring and presenting an action plan
Having more than one options structured
Backing options with evidence
Finding solutions but also possible concerns that may come up during a negotiation process
Understanding and managing conflicts in negotiations
Understanding negotiation in the context of acquisitions
Different negotiation styles and approaches
Preparation for negotiations: setting objectives, identifying interests, and gathering information.
Active listening
Communicate your vision and be efficient in sharing it with other stakeholders.
Aiming for a win-win negotiation process
Being able to accept feedback and use it for your own benefit and development

Conclusion

Negotiation, a complex and dynamic process, plays a pivotal role in both personal and professional spheres. The ability to navigate through conflicting interests, find common ground, and reach agreements is a skill that transcends traditional business settings. By recognising the diverse needs and priorities of each party, negotiators can foster an environment of empathy and collaboration, paving the way for more effective and sustainable agreements. Flexibility is crucial, acting as a common thread that ties these techniques together, allowing negotiators to adapt to changing situations. In the end, negotiation is a practical skill set, where success is not just about getting a good deal but also about navigating relationships and finding common ground in the complexity of business and interpersonal interactions.