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What are the key characteristics that helped to determine the negotiation success of famous negotiators like Nelson Mandela, Henry Kissinger and Mahatma Gandhi? The results of research we've conducted over the past 4 years reveal that world class negotiators must have the ability to deal with 5 areas central to negotiated success.
1. An appreciation & understanding of the ’big picture’ and the ability to plumb the detail.
Probably the most critical characteristic of world class negotiators is their ability to understand what it is that all parties to the negotiation want. The ability to see past the ‘demands’ of your counterparties and really understanding why it is that they are negotiating with you is an essential element that will help you to understand what common ground exists between parties. Equally important is to understand all the individual elements that will ensure the adoption and implementation of an agreement by all the parties. The key tool at your disposal to facilitate an understanding of both the big picture and the supporting detail is the effective use of questioning.
2. The ability to generate creative options.
What a lot of people would like to describe as business negotiation is often no more than one dimensional haggling about price. Our research suggests that more than 50% of negotiators struggle to create or uncover options outside of this one dimension.
3. Treating others with dignity & respect at all times – occupying the ‘high moral ground’.
A common misconception is that in order to be a tough negotiator one has to be a rude negotiator. Both Mahatma Gandhi & Nelson Mandela are shining examples of how to occupy the moral high ground. One can be tough on the issues whilst treating the people involved with dignity at all times. The rule of reciprocity states that we will return to others the form of behaviour exhibited towards us. It is folly to think that we can run roughshod over others without them attempting to reclaim their dignity.
Remember that very often victims become aggressors…..
4. Devoting time to structured preparation.
The success of your negotiations will depend in large part on the quality of your preparation. We often make the mistake of thinking that we don’t have enough time to spend on preparing for negotiations.. You will most definitely benefit significantly from your upfront investment in preparation – try to spend at least as much time preparing for negotiations as you expect to be involved in actual negotiation – ideally spend as much as twice more time in preparation as you expect to be involved in actual negotiation.
5. Know and understand your own negotiation strengths & weaknesses.
Continuously develop your skills. It is only once you have built an understanding of your own weaknesses & strengths that you can implement measures to improve your negotiated outcomes. World class negotiators never stop refining their skills because they realise that one can never reach perfection.
If you are able to do nothing else but devote time to the above 5 key characteristics you will almost certainly improve the quality of your negotiated outcomes. Remember, in business you don’t get what you deserve, you get what you negotiate.
Ex. 1. Insert the appropriate words.
1. I want to end the negotiations today, so we need to bring things to a … 2. We’ve achieved a lot. We’ve covered a lot of … today. 3. Our customers want the steel next week. The … date is Thursday. 4. The … for the next products will be how well they sell in the shops. 5. I don’t have any evidence, but my … that this deal will be a success. 6. They wanted the answer … I didn’t immediately said yes. 7. They decide to … the contract. Actually, they cancelled it. 8. Don’t … that company. You don’t think they’re good, but they are.
(hand-over, head, gut feeling, ground, hesitate, underestimate, nullify, acid test)
Ex. 2. Put these sentences into the order according to the importance.
· Set the tone early, offset any bad rumors, be candid.
· Utilize "human factors" and be open about feelings and motives: this will enhance trust.
· Avoid presenting too many issues, highlight the strongest ones.
· Avoid deadlines, lessening the chance for needless concessions.
· Summarize frequently: this enhances understanding.
· Present arguments calmly, without personalization, and make sure they are logically supported.
· Avoid use of personal opinions in arguments.
· Avoid ultimatums and other forms of non-negotiable demands.
· Admit, when appropriate, the validity of the other party's arguments.
TEXT 2. Read and translate the text consulting the dictionary if necessary
Traditionally, negotiated outcomes can be classified into one of the following categories:
- Lose/Lose (all parties lose)
- Win/Lose (I win and you lose)
- Lose/Win (I lose and you win)
- Win/Win (we both win - could also be described as compromise)
The notion that a win/win approach is the only sustainable way to gain competitive advantage, it is well worth considering how you would practically apply this approach in today's global marketplace.
It would be short-sighted to conclude that all negotiations are made equally and should therefore be approached in the same way. It would be similar to say that one nation's culture & beliefs are the appropriate culture and therefore the standards that apply to that culture should be applied in interacting with people across the world, irrespective of their background.
There is another dimension within the context of commercial negotiations that should be considered - the old economic dilemma of 'guns or butter'.The 'guns or butter' story illustrates that with limited resources, organisations and individuals are forced to make choices. In order to have more butter, one must sacrifice guns and vice versa. In a practical sense this means that resources can only be allocated in relation to the relative strategic importance of the activity at issue.
In the case of negotiations that are considered strategic in importance to the organisation, we are more likely to pursue a collaborative or compromising approach. Conversely, when we deem the outcome of certain negotiations to have a limited impact or no impact at all on the achievement of strategic organisational objectives we could decide to be competitive in our approach or even to avoid negotiation completely.
Some organisations are renowned for their collaborative approach to doing business whilst others have a reputation for a mercenary approach to conducting business.
Some players in the retail sector have reputations of dealing ruthlessly with suppliers - they rationalise their approach by arguing that it is in the interest of the consumer. This approach is short sighted and probably not sustainable in the long run, it would be naïve not to recognise the fact that, at least commercially speaking, a lot of organisations have little interest in collaborative or compromising type negotiations within certain departments.
It is interesting to note that whilst most organisations pride themselves on providing 'solutions' to the issues confronting their clients, a significant proportion of their so called negotiations actually revolve around haggling about price.
Ex. 3. Match the two halves.
1.When you do work outside your a. compromise
usual hours you got paid more
2.When your employer permanently b.AOB
increases your salary
3.Money that you have borrowed c. venue
and need to pay back
4. To choose someone for a job d. pay rise
or a role
5. When both sides reach an e. appoint
agreement by changing their position
6. The location for smth f. debts
7. Extra discussion points on g. overtime
an agenda
8. When people loss their job h.redundancy
and receive a special payment
Text 3. Read the text and be ready for a comprehension checkup.
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Ex. 2.Discuss the questions below. | | | Negotiation Strategy |