Your Underdeveloped Commercial Negotiation Skills Capability Could Cause Critical Negotiation Interventions To Collapse Due To Inappropriate Planning

Two parties are busy in a negotiation - one reaches his/her objective(s) and is happy, whilst the other walks away unhappy with the result. Does this scenario sound familiar?

How often have you felt displeased with an agreement that you have reached? Have you sometimes entered into a settlement only to feel remorse soon after reaching agreement?

SUCCESS VS FAILURE

What differentiates success vs failure in commercial negotiations?

Most of us understand the significance of preparation to achieve success and it is therefore remarkable to note that most business negotiators do not spend adequate time planning for negotiations, often due to inadequate negotiation training. Professional sports people spend considerably more time preparing for competition than they spend in competition; should it not be the same for commercial negotiators?

THE EVIDENCE

Commercial negotiators only spend more or less 1/3 as much time preparing for negotiation as they in reality spend in negotiation. If you were a professional sports person, this would mean that you devoted only 1/3 as much time training & planning as you do in competition. The number 1 contributor to profitable commercial negotiation outcomes is the quality of your preparation for the negotiation.

As a matter of negotiation strategy, consider the following main 5 factors of preparation and at the same time you will also improve your negotiation skills:

1. Understand Yourself

Before we even employ best- and leading practice negotiation, it is important that we first invest in understanding our own strengths & weaknesses and it is vital that we make use of personal profiling tools to highlight our areas of preference within the context of commercial negotiations, which enables us to have a reference point from which to plot our skills development.

2. Vision

What is the main objective behind the negotiation? Is the negotiation about price or is it about the value that can be added? What are the key motivating issues behind your counterparty's position? What common ground, if any, exists between your and your counterparty's vision? It is vital to comprehend the drivers or silent motivations behind the positions of all parties to the negotiation and it is only by asking questions that we will uncover these interests.

3. Value

What are the main deal goals being targeted in this negotiation? What are the facts and figures contributing to the negotiation environment? What alternatives does each party have, if any? Once again we should try to recognise, rank & weigh the objectives of all parties to the negotiation and only then are we in a position to highlight those objectives that are shared and at the same time deal with those objectives that are likely to produce conflict.

4. Process

Have you spent time preparing an agenda for your forthcoming negotiation? Have you listed all the trades that you will give & receive? Do you have tools/templates at your disposal to support the effectiveness of the negotiation process.?

5. Relationship

It is easy to forget that we deal with individuals who have goals & aspirations not unlike our own and it is not always just about the money. The research is clear that people are more likely to agree with those whom they trust & like, than with those with whom they little in common. Try to focus on those elements that you share with your negotiation counterparts, and do not forget to focus on the people.

Sales Training Advice: Getting What You Need From Your Sales Opportunities By Deploying Efficient Negotiation Techniques
Sales training tip explaining how you can readily increase the likeliness of getting what you want from sales and business negotiations.

1 Easy Negotiation Skills Technique That Will Instantaneously Produce Better Negotiation Results
Research has proven that high objectives will constantly outdo low aspirations and if you therefore exaggerate your expectations at the negotiation table, you will continously influence your negotiation outcomes positively

Sales Coaches To Boost Your Sales Staff
Whether you are starting your own business or you have a well established firm, increasing clients and sales are the most vital things needed to keep a business growing. To achieve the best business results, you should hire a sales coach.

2 Important Factors Of An Effective In-Company Negotiation Training Program
Merely depending on the negotiation abilities of individuals is a familiar oversight businesses make. Developing a strong negotiation capability is contingent on critical factors: The negotiation strategy, process, the individual's skills and the supporting network.

Sales Training: Advantages And Drawbacks Of Coaching To Draw Consumers And Enhance Your Business
In the global economy of today's world that encompasses both virtual and actual opportunities, there are so many kinds and numbers of businesses for a potential customer to choose from that a business owner must use every possible advantage to generate sales

Industry Crunch: Using Your Negotiation Skills To Guarantee Your Stability
In times of market instability, it is advisable to move away from price as the key negotiation factor and concentrate on 'loss framing', creating more alternatives, reciprocation and value in order to reach agreement and realise your objectives in negotiations.

Use Your Negotiation Skills In Order To Deal With Tough Conversations
Difficult conversations present themselves from time to time. Perhaps you need to tell someone that their services are no longer required or perhaps you have done something for which you need to apologise.

Best Practice Preparation: How Purchasing Training Helps To Discover The Key Factor To Ensure A Successful Negotiation
The amount of time used to plan is the key success factor of business negotiation best practice. Exploring the framework and the deal objectives are some of the most important factors in aid of your negotiation endeavours and decision making processes.

 

Other Articles

Partner Sites