Step 6 –Listen!

Sometimes when you are nervous about something, you become so focused on what to said that you don’t pay attention to what is being sad to you. This can cause all manner of problems, including knee-jerk reactions to problems that aren’t really there but which you think we’ve heard. Active listening is a technique which will improve your general communication skills and will be particularly useful if you are often involved in negotiations. Active listening involves:

 concentrating on what is being said

 emphasizing that you are listening by summarizing your understanding of what has been said and checking that this is what the communicator intended to convey.

 empathizing with the communicator’s situation. Empathy is about being able to put yourself in the other person’s shoes and imagine what things are like from their perspective.

 offering interpretations, listening for agreement or disagreement. Remain open to new ideas and think positively about the other’s input. Listening against results in you closing down to new information and automatically seeking arguments why something won’t work.

Ø Questioning and probing brings forth more information and will clear up any misunderstanding about what is being said.

Ø Not being afraid of silence. We often feel compelled to fill silences, even when we don’t really have anything to say – yet silence can be helpful in creating the space to gather thoughts and prepare for our next intervention.

Step 7 – Call a break if you need to

Sometimes a short break of 10 or 15 minutes may be a good thing if a negotiation is providing to be more complex or contentious than you’d expected. A break will give everyone a chance to cool down or recharge his or her batteries as necessary. It will also give everyone an opportunity to take a step back from the issue under discussion and return to the table with some ideas.

Step 8 – Reach agreement

As the discussion continues, listen for verbal indications from the other party such as ‘maybe’ or ‘perhaps’ – these could be a sign of an agreement being in sight. Also look out for non-verbal signs, like papers being tidied away. Now is the time to summarise what has been discussed and agreed and not to start bargaining again.

Summaries are an essential part of the negotiation process. They offer a way of making sure that everyone is clear on the decisions reached and also give all participants a final chance to raise any questions they may have. As soon as possible after the negotiation, send a letter that sets out the final agreed solution. A

handshake on a deal is fine, but no substitute for a written record. Make sure your letter mentions:

 The terms of the agreement

 The names of those involved

 Relevant specifications or quantities

 Any prices mentioned plus discount and so on.

 Individual responsibilities

 Time schedules and any deadlines agreed

 

COMMON MISTAKES

1. You open negotiations with an unreasonable offer.

2. You begin negotiations without enough information about the other party wants.

3. You lose your temper.

4. You try to rush negotiations to get a quick win.

 

Classroom activity. Hold a round table discussion on “Negotiating skills “

 

Part 3. BIDDING, BARGAINING AN D MAKING CONCESSIONS.

 

Unit 13

 

Exercise 1. Read the following extract. According to the writer, are these statements about negotiating True (T) or False (F)?

a) Decide on the most important and less important issues.

b) Try to guess what the other side thinks.

c) Note answer to the questions you ask.

d) Deal with issues in isolation, one at a time.

e) Make concessions and get a concession in return.

f) If there are problems, you have to accept or reject what is on offer.

g) Tough bargaining can combine with a spirit of cooperation.

 

Effective negotiating requires clear thinking and a constructive approach.

It is necessary to have a clear understanding of what for you are the most important issues and at the same time what for you are less important. Try to identify aspects in the second category where the other side will be happy to gain concessions. Give what is not so important for you, but is valuable for the other side.

To do this, you have to do the following:

Ø Check every item of what the other side wants. Ask how important items are and look for flexibility.

Ø Do not guess their opinions or motives – you could be wrong, or they won’t like your speculation.

Ø Note the other side’s answers, but don’t immediately say what you think.

Ø Avoid being forced into considering one issue alone, consider two or three at once – aim for an agreement to a package.

If there are big differences between the two parties, you have a choice of these opinions: to accept. To reject, or to carry on negotiating. If you decide to carry on, then the opinions in the next round are:

Ø to make a new offer;

Ø to seek a new offer from the other party;

Ø to change the shape of the deal (vary the quantity or the quality, or bring in third parties);

Ø begin bargaining.

Your bargaining should be governed by three principles: be prepared, think about the whole package, and be constructive. In preparing, you must identify the issues and prepare your bargaining position. You need:

Ø an essential conditions list – issues where you cannot concede anything;

Ø a concession list – issues where you can make concessions;

Ø to grade the concessions from the easiest to the most difficult, where you need most in return.

As for the package, you must look for agreement in principle on a broad front.

When the time comes for compromise, each party will concede on one issue if they win a concession on another.

 

 

Unit 13

 

The final principle is to be positive and constructive. You should be fair and cooperative, even during difficult bargaining. This approach is most likely to move the negotiation towards a settlement that both sides feel is to their advantage.

(From «Negotiating» by Bill Scott)