This is part two of the Negotiation series where I share with you what I learned during a recent workshop I took on Negotiation and Influencing. Here’s part one, in case you missed it: How To Easily Increase Your Negotiation Skills: Getting To Yes.

A little recap on Negotiation.

Negotiation is a process in which two or more entities come together to discuss common and conflicting interests in order to reach an agreement of mutual benefit.

There are 5 approaches you can take in a negotiation: Avoid or Delay, Acceptance, Bargaining, Compromise, and Collaboration.

In an interest-based negotiation, we want to use the best approach for both parties, that is the use of Collaboration or the Win/Win solution. Interest-based negotiation is one that is based on our wants, fears, concerns, expectations and needs and where you take into account the interests (wants, fears, concerns, expectations and needs) of the other party to come to a mutually beneficial solution.

Let’s face it. We all want to get the most from the other person without giving up too much on our side. We want the the most money, the lowest price, the most benefits. We want the other side to give in without showing all our cards on the table.

But remember that the reason we enter into negotiations is to get something more or produce something more than you can get without negotiation.

Something that you may not be familiar with is to always have a BATNA before you go into any negotiation.

A BATNA is your Best Alternative to a Negotiated Agreement. Basically, this is your solution(s) to the negotiation that you have in your corner which is an alternative in case you don’t get what you want from the negotiation. Sometimes in negotiations you may feel that the other party has all the power and you feel that you may have to be too accommodating during the negotiation process. Developing your BATNA will help you.

Your BATNA is not the hard bargaining position that you take. It’s not your bottom line. An arbitrary bottom line figure doesn’t always work in your favour, particularly if it cuts you out of seeing all the other alternatives to get what you want.

Your BATNA could be the other job offer you’ll accept if your boss doesn’t give you the salary increase that you have asked for during your last two performance appraisals. If negotiation fails in this case, you can use the leverage of the other job offer.

Your BATNA could be the highest price you are willing to pay for a house, knowing that you cannot afford any higher monthly payments. It’s not just coming up with an arbitrary figure, but one that has a basis in reality.

If you do not fully explore your BATNAs, then you can be going into a negotiation blind.

You may think you have other alternatives in case negotiation fails. Maybe you think it wouldn’t take long to find another job if they don’t give you a raise. Do you know this for a fact, though? Also, not having a BATNA could work against you and you become too pessimistic about your situation and/or too accommodating to the other side. It’s in your best interests to explore what other realistic alternatives you have before you start the negotiation process.

The greater your BATNA, the great your power is in any negotiation.

But, don’t forget that the other side will have their BATNA, too. Think of what their best alternative could be and be prepared to take it into consideration. Don’t be caught unaware of their alternatives. If you go into a salary review thinking that if you don’t get your increase you will take the other job offer, be prepared to have your manager do several things. They could say No. They could demote you. They could walk you out the door. They could make your work life miserable. They have options, too.

How do you develop your BATNA? By thinking of alternatives if no agreement is reached in the negotiation, exploring the alternatives so that the promising ideas turn into practical alternatives, and then selecting the one alternative that seems the best one.

So, don’t forget to do your homework before any negotiation.

But is Win/Win the best tactic in all negotiation processes? Not always.

What if the other person resorts to dirty tricks? Or doesn’t have your best interests in mind, while you have theirs? What if you don’t care about the relationship or other interests of the person (or organization, business, etc)? There’s nothing wrong with first trying the interest-based negotiation and then changing your approach. After all, would you care about the interests of the sales person at the biggest electronics store when you negotiate a lower price on the massive 50″ LCD TV?

Interest-based negotiation doesn’t apply to every situation.

In fact, negotiation doesn’t even apply to every conflict-based situation.

What if you got rear-ended by someone and it resulted in major damage to your car? Would you try to negotiate with the other person? The best approach in that case may be to just sue them for damages.

Other processes to reaching solutions between two parties besides negotiation may be:

Litigation - as mentioned, suing someone may be the best approach. Getting the courts and lawyers involved may be your best solution.

Arbitration - having an arbitrator decide the final outcome between the parties, such as in a grievance or harassment case, could be a better approach than using negotiation.

Mediation - having an mediator or neutral third-party person can help the parties come to a mutual agreement.

Conciliation - using the conciliation process whereby a vested third-party can help the two parties come to an agreement, such as when your manager hears both sides of the issues at work and helps resolve the dispute with both parties agreeing.

Change - leaving the situation can result in the conflict between two parties being resolved, particularly if there is no other solution.

A great resource to have in your bookshelf is the book Getting To Yes: Negotiating Agreement Without Giving In by Roger Fisher and William Ury. It’s a highly respected and recommended book on negotiation.

Good luck on your future negotiations. I hope I’ve been able to share some useful information on negotiation with you.

Related Posts:

1. How To Easily Increase Your Negotiation Skills: Getting To Yes
2. Do You Recognize Yourself In These 6 Stages Of Change?
3. The Power Of Analytical Thinking
4. Are You A Pushover? Boost Your Power of Assertiveness Today
5. Know These Five Causes Of Conflict

If you enjoyed this post, please consider leaving a comment or subscribing to my feed to have all the future articles delivered to your feed reader. Thanks!

Print PDF

Tagged as: Communication, Negotiation, Personal Development