This section is really only ‘a starter for ten.’ Read the books referenced in the section.

We all negotiate, and all negotiators use the same skills. Negotiation is about resolving differences between people whether it is to get a salary increase, obtain additional resources, buy materials, or finalize a contract for a project. Nevertheless, many or most people are afraid to negotiate, or it is discouraged by company procedures. However, we don't practice it enough. In any situation, the parties have a different point of view, and there is a natural tendency to take a particular position and argue for it, make concessions, and settle for a compromise. However, arguments cannot be negotiated; only proposals can. Giving in, in stages, isn't negotiating.

All good negotiations have a structure and the following eight‐step approach to negotiating has been extracted from the Rank training video ‘The Art of Negotiating’. A few additions from the book Getting to Yes ¹² have been included. The video was based on the book Managing Negotiations – How to Get a Better Deal ¹³ This book was the first to put negotiating into a structured process, and in the video, this is condensed into four phases as follows:

1 Preparation for Negotiation

1. Objectives:
   1. Have different priorities. Identify your LIM: like to have, intend to have and must have.
   2. Identify what is to be achieved.
   3. Any additional items or services required or to be provided.
   4. Any factors dependant on the circumstances.
2. Information:
   1. Identify what is negotiable – in fact anything and everything.
   2. Gather the facts.
   3. Identify strong points and weaknesses.
   4. Get to know about the other party – the company and people.
   5. Separate the people from the problem.
3. Team Roles:
   1. Decide on the team leader and team roles and allocate tasks.
   2. The lead negotiator, who indicates when others may speak, may not be the team leader but will summarize what they have understood.
   3. The listener and analyser of what the other party are proposing.
   4. The observer of the other people's reactions, body language, and eye blink rate.
   5. A note taker.
   6. A specialist may be required in technical negotiations. They need careful briefing; they have a tendency to give things away!
4. Strategy
   1. Should be simple and flexible.
   2. Assess how the other party will view the problem.
   3. Prepare a list of points to be discussed in a logical sequence.
   4. Provide an agenda to the other party.
   5. Identify concessions you might make and what you will require in return.
   6. Aim for a ‘win‐win’ situation.
   7. Identify your fall‐back position. Know your BATNA – your best alternative to a negotiated agreement.
   8. Resolve technical issues first.
   9. Consider ‘home’, ‘away’, or ‘neutral’ location.
   10. Be clear about your limits of authority. Remember you do have authority to make recommendations.
   11. Are there any security considerations?
   12. Rehearse!

2 Discuss Interests

1. Listen don't assume – test assumptions.
2. Exchange information – ask questions.
3. Focus on and explore interests – identify resistance and inhibitions.

3 Signal

1. Open realistically.
2. Listen and watch for signals. Have they signalled? Have you?
3. Recognise and confirm messages.
4. Develop ideas.
5. Avoid irritations and displays of emotion.

4 Propose for Movement

1. Negotiating is about mutual movement Proposals advance negotiations.
2. Use ‘What if’, ‘could consider’, and ‘maybe’.
3. Try to satisfy the other party's needs.
4. What is it worth to the other person? Beware of assumptions.
5. Try and enlarge the ‘pie’. Invent options for mutual gain.
6. Listen, don't interrupt, question, clarify, summarize, and respond with a counter proposal.

5 Package

1. Express the proposal in a different form, which addresses the interests and inhibitions of the other party.
2. Insist on objective criteria that are independent and practical.
3. Use If … Then … statements. If you hear these words, you may be dealing with trained negotiators.

6 Bargain

1. Identify conditions before making offers.
2. Do not give concessions without getting something in return. Always get something in exchange.
3. Give the other party what it wants/values, if it is cheap to you; in exchange for something valuable to you.
4. Aim for a ‘win‐win’ situation.
5. Silence and time‐outs can be effective ploys.

7 Close the Deal

1. Close realistically,
2. ‘If you do that … then…. we have a deal.’
3. The final concession traded for an agreement.
4. If you propose doing business again with the same people or organization, it is important to consider how the final agreement will affect relationships.

8 Agree the Deal

1. Agree what has been agreed. Both parties should feel happy with the agreement.
2. Summarize and record the agreement.
3. Agree on an action plan and implementation process.

9 Techniques and Tricks