The 5 principles in negotiation are:
1. Separate the people from the problem
2. Focus on interests, not positions
3. Invent options for mutual gain
4. Insist on using objective criteria
5. Focus on what is important to you.
Principle 1- Leave your competitive mindset at the door. Win-loss and competitive advantage is so 1970’s thinking, isn’t it?
It’s no secret that many business relationships are built on competition. In fact, most of us have been taught from a young age that in order to succeed, we must be better than our competitors. But what if I told you that there was a better way? A way that would not only allow you to build stronger relationships with your customers and partners, but also improve your bottom line?
The first step is to leave your competitive mindset at the door. Win-loss and competitive advantage is so 1970’s thinking, isn’t it? The new millennium is all about collaboration and win-win solutions. When you approach negotiation from a collaborative standpoint, both parties are more likely to walk away satisfied with the outcome.
The second principle is to focus on what you want, not what you don’t want. This may seem like common sense, but it’s amazing how often people get caught up in the details of what they don’t want instead of focusing on what they do want. For example, let’s say you’re negotiating the price of a new car. If you focus on all the reasons why the car is too expensive and list out every detail of why it’s not worth the price tag, chances are good that you’ll never come to an agreement. However, if you focus on what you do want (a lower price), then you’re much more likely to get it.
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The third principle is to be prepared to walk away from the deal. This doesn’t mean that you should be unreasonable or inflexible in your demands; rather, it means knowing your bottom line and being willing to walk away if necessary. Many people make the mistake of getting emotionally attached to a deal and losing sight of their original goals; as a result, they end up making concessions they later regret. By being prepared to walk away from a deal that isn’t meeting your needs, you’ll be in a much better position to negotiate successfully.
The fourth principle is effective communication. This means being clear about what you want, listening attentively to understand the other side, and maintaining eye contact throughout the negotiation process. It also means avoiding any type of manipulative behavior, such as lying or making threats. If communication breaks down at any point during negotiations, it will be very difficult to reach an agreement that satisfies everyone involved.
Principle 2 – Value is the greatest currency
In business, the term “value” is used a great deal. It’s a word that we hear often, but what does it actually mean? Value is the currency of negotiation. When you’re negotiating with someone, you’re essentially exchanging value for value. The more value you have to offer, the more bargaining power you have.
The first step in creating value is understanding what the other person values. This can be difficult to determine because people often don’t know themselves what they value most. They may say they want one thing, but when push comes to shove, they’ll choose something else entirely. Asking questions and listening carefully to the answers will give you clues as to what’s important to them.
Once you know what they value, you need to find a way to offer more of it. This may mean compromising on some of your own objectives in order to make them feel like they’re getting a good deal. It’s important to remember that sometimes people place a higher value on things that don’t cost much money. For example, someone might be willing to pay extra for convenience or customer service that saves them time and hassle.
If you can offer more of what the other person values, you’ll be in a strong position during negotiations. Keep this principle in mind and always be looking for ways to create more value for yourself and your company.<.
Principle 3 – Deal with the tough stuff
When about negotiation, there are often a few key issues that can make or break a deal. These are the tough topics – the areas where both sides have very different interests, and where reaching an agreement can be difficult.
The key to dealing with tough topics is to address them head-on, rather than trying to avoid them. By doing so, you can increase the chances of finding a resolution that works for both sides. Here are a few tips for how to deal with tough topics in negotiation:
1. Be Prepared
Before entering into any negotiation, it’s important that you do your homework and understand all of the issues on the table. This includes being aware of your own interests and objectives, as well as those of the other side. The more prepared you are, the better equipped you’ll be to handle any tough questions or challenges that come up during negotiations.
2. Listen Carefully
Principle 4 – Service precedes ego
It is important to remember that the other person’s needs and objectives should always come before your own. This may seem like a difficult concept to grasp, but it is essential in order to be an effective negotiator. By keeping the other person’s best interests in mind, you are more likely to come to an agreement that is beneficial for both parties involved.
It can be tempting, in the heat of negotiation, to put your own needs and wants first. However, this will only serve to antagonize the other party and make them less likely to come to an agreement with you. Instead, try to focus on what the other person wants and needs from the negotiation. This doesn’t mean that you should completely sacrifice your own objectives – but it does mean that you should be willing to compromise in order for both parties to get what they want out of the deal.
The best negotiators are those who are able to put aside their egos and work towards a resolution that is fair for all involved. By keeping this principle in mind, you will be well on your way towards becoming a successful negotiator yourself!
Principle 5 – Activity comes before clarity
Few things are more frustrating than being in the middle of a negotiation that suddenly bogs down because the other party insists on “clarifying” everything before moving forward. Unfortunately, this is a common tactic used by people who want to stall or derail a negotiation.
The best way to deal with this tactic is to remember the fifth principle of negotiation: activity comes before clarity. In other words, you should always keep the negotiation moving forward, even if it means making some decisions without having all the information you would like. Of course, you don’t want to make any major decisions without understanding all the facts and ramifications, but there’s no reason to wait for perfect clarity before taking action.
This principle can be applied in a number of ways during a negotiation. For example, if the other party asks for more time to “think about things,” you can counter by saying that you’re happy to give them 24 hours (or whatever timeframe you’re comfortable with) but after that you need an answer so that you can move forward. If they continue to stall, you can remind them of this principle and say something like, “I understand that you need more time to think about this, but we can’t let this drag on forever. Let’s agree on a date by which we’ll have an answer.”
Another way to apply this principle is during bargaining or when proposing terms and conditions. Instead of getting bogged down in details or debating every point back and forth, it’s often better to just make an initial offer and then start negotiating from there. Once again, your goal is to keep the process moving forward so that you can reach an agreement rather than getting stuck in limbo while everyone tries to achieve perfection.