The
need for negotiation arises because of differences
in approach and opinion, due to conflicts of
interest and on account of the varying needs
and wants of different individuals and groups
of people.
In
the political arena, negotiation is the more
acceptable route to conflict resolution than
the use of force, and in the process allows
for identification of common ground, the consideration
of compromise and the possibility of give and
take. Settlements are usually reached through
an exchange of tangibles such as land and resources,
as well as intangibles including matters like
autonomy, recognition of justice. The ideal
end situation in this type of political negotiation
is a 'win : win' one, where both parties involved
again, and neither is defeated or humiliated,
thus avoiding a possible outbreak of violence.
Negotiation
in business plays much the same role in a scenario
where trade takes place, and the exchange is
one of money, goods and services. As in politics,
humiliation in a business negotiation works
negatively, usually precluding the possibility
of future interaction with the 'winning' part
if one can term it such. Winning in this sense
is not usually in the 'winner's' interest either.
Information
If
there is a key to effective negotiation, it
is information. Information clarifies strengths
and weaknesses, delineates the parameters of
the terms of the negotiation, sharpens each
party's perception about the other, and establishes
the framework for the major issues involved.
Since
having all possible information about one's
counterpart in a negotiation is crucial; discreet
and consistent gathering of information and
data is vital to the preprocess. Data can be
gathered through past history, through records
of earlier transactions made and deals struck
usually available through the network of business
associations, references and contracts. A thorough
review of the company in terms of its top personnel,
facilities and infrastructure and its products
is also of great use. Public statements, press
reports, budgets and financial data are also
excellent sources of information. Not to be
forgotten either are the human details that
could impinge strongly on the negotiation process:
the cultural backgrounds of the individuals
involved, their temperament, attitudes and value
systems, all of which must be taken into account
in the planning of an effective negotiation
strategy.
Desk
research as outlined above is one route to data
collection. Information gathering is also helped
along by simply asking direct or indirect questions,
and if this, can be done I a social situation,
where perhaps defences are down over a drink,
so much the better. Care must be taken, however,
to ensure that in the process of drawing out
information, one does not supply it in equation
measure!
Rare
is the round negotiations that is compete in
one go, Intervals in the process allow for time
to think things through, to digest the ramifications
of certain courses of action, and most importantly,
to consult internally. Practically speaking,
all those tea and coffee breaks, lunch and dinner
times and overnights often enable people to
alter perceptions and reconsider positions.
As a general rule, however, changing an opinion
is a gradual process, and therefore patience
is of the essence of optimum results in negotiation.
Breaks
in negotiations can be disadvantageous if the
business environment is a rapidly changing one,
and a new piece of information entering the
equation can work against one, leading to unhappy
compromise. In this case, delays should be avoided
and matters concluded quickly. Both haste or
hesitation are possible dangers here, and are
to be carefully avoided depending on the situation.
Blocks
in the process of negotiation, when no happy
ending seems in sight over a point of issue
that is bogging all concerned down, are best
temporarily left behind. Moving on and coming
back to the controversial area at a later time
often works well. The opposition may have to
soften its stand, one may have a new outlook
on the point in question, and resolution may
be both quick and mutually satisfactory.
Another
useful tactic at the negotiation table is to
create minor and unnecessary requirements, then
conceding them with grace, while holding out,
and gaining, on major points. Needless to add,
this must be done both skilfully and in a manner
that is no way obvious.
Building,
credibility and confidence go a long way in
gaining concessions in the process of negotiation.
If, for instance, one can give the impression
of future business potential, or that a particular
business relationship can be status enhancing,
then these points must be brought out subtly,
thereby building confidence and gaining concessions.
Group
versus Single Approach
If
negotiations do not involve complex issues or
call for specialist inputs such as those from
tax or legal professionals, they can be effectively
carried out by one person. This option obviates
the risks of possible weaknesses being exposed
by several individuals on the same side of the
table reacting differently to points under discussion.
However,
in a situation where a team of people have worked
well at negotiating together over a period of
time, effectiveness is only enhanced by virtue
of the group approach.
