Interests: The Heart of Every Negotiation

 

To the casual observer or the inexperienced/ineffective negotiator, the negotiation process may appear to be nothing more than a point-counterpoint, quid pro quo game in which each side tries to wheedle, cajole or intimidate the other side into giving away more than it wants to give. Unfortunately, negotiators who take such a narrow, shallow view of negotiating will miss countless opportunities to make more money, save more money, gain more territory, achieve higher levels of status and success, and just generally negotiate superior deals.

One of the biggest keys to becoming a highly effective negotiator is to look past the issues on the agenda, go beyond the opening offers that the other party makes, and concentrate on fully understanding the interests that have brought the other party to the table in the first place. Remember, interests are the WHY of negotiating – the underlying and often unspoken needs, problems, dreams or personal motivators that make a total stranger willing to sit down and talk to you for sometimes hours on end. Success in negotiation is a direct result of being able to offer the other side something they believe will truly meet their needs and/or help them obtain their underlying interests. In order to do this, you must first discover what those interests are.

Think of it this way. A sales rep too often starts out by trying to sell a customer on the product he has to offer, often with disappointing results if the customer doesn’t think the product meets any immediate need he has. Just think how much more successful the sales rep would be if he or she could first discover not only what the customer wanted to buy but WHY they wanted to buy it, i.e., uncover those needs and problems the customer was having that had brought him into the market place to begin with.

Effective negotiations do the same thing, because they pay close attention to uncovering why the other party came to the table and what that party is trying to "buy" through the issues and positions they have placed on the agenda. By uncovering and identifying these underlying issues, the savvy negotiator is able to determine the items and solutions he may offer that would be of real value to the other side in exchange for receiving items from the other side that help him achieve interests that are important to him as well. Being able to identify and work toward satisfying these underlying interests lies at the heart of becoming a highly successful negotiator.

Begin by making sure you have clearly defined your own interests. If you don’t do this, you may get caught up in an intense negotiation and give away something you shouldn’t. The best way to clarify your interests is to answer these two simple questions:

1. When the negotiation is finalized, I will be very satisfied if I have achieved the following goals or gained the following items of value:
2. The above accomplishments are important to me/us/the organization BECAUSE:

Now, as important as the items may be under question number one, they really only have value because they allow you to achieve the "BECAUSE" of number two. It is the answers in number two that form the basis for your most important interests, and anything that doesn’t help you capture these interests is at best a bunny trail and at worst a trap!

Be thorough and honest when generating your answers under the second question. Of course, you and your company may have engaged in this negotiation because you need to obtain new technology at a reasonable price so you can grow market share and increase the profitability of your company. But, are those the only reasons (interests) that have value to you? Are you actually trying to grow the company so you can sell it? Are you trying to please your boss by being successful in this negotiation so he will reward you with a nice bonus? Have you faced this other party across the table before and have always come away feeling like you could have done better, so that now you urgently want to get the best deal this time so you don’t feel like a failure ? again?

Just as your interests are very important to you, the other party’s interests are no less important to them. We can begin with a thought experiment. Put yourself in the other party’s shoes and ask yourself the same questions as before, but from the other side’s point of view.

1. If I were sitting on the other side of the table, when these negotiations are finished, I think I would be very satisfied if I had achieved the following goals or gained the following items of value:
2. I believe the above accomplishments would be important to me/them/their organization BECAUSE:

These simple exercises will go along way toward helping you to understand what is happening, or what needs to happen, during the negotiation.

 

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October Negotiation Quick Tip of the Month – Power is a State of Mind

Everyone likes the stories where the underdog comes back and gets the best of the big dog. However, when it comes to negotiating, must people still bet on the big dog. Honestly, how often does the little guy have a chance in this power crazy world? Well, it all depends on what the little guy believes. Research reveals that it is the person who BELIEVES he has the most power who ends up gaining the most in a negotiation. People who are passionate about their goals and who set their demands at the very high end of the bargaining range consistently come away from the negotiation with more than anyone expected them to be able to achieve. If you think you have the power, -- if you act with the confidence of someone who believes they have power – then you have it.