Foolproof tricks to make negotiation a win-win deal in 2015 (Guest Blog)

Are times changing? Negotiation has often been seen as a way of one party achieving their demands at the expense of the other party. Finally, this seems to be changing as more and more businesses realize the value of collaborating with their suppliers of customers. There are various reasons for this change in approach. Many companies are now struggling to keep their bottom line in the right place. This has resulted in new tactics being tried to win contracts or better deals with their suppliers.

Equally, suppliers are experiencing the pressure and are rethinking their approach. This change in approach has meant that many issues have been identified and tackled before they become an issue. Previously, the negotiation was mainly to fix something which no longer worked for one or both parties. Agreements worked out under the new methods tend to keep both parties much happier. This means they will last much longer. An additional benefit is that agreements can retain a degree of flexibility for the future.

There are also many markets which have been dominated by the buyer. The power has been in the buyers hands. With the advent of new technology, the emphasis is shifting and the buyers no longer have the upper hand. For a company to win a deal it is necessary for the buyer to become a customer of choice.

Collaboration

This is where many people are now focusing their attention. Any negotiation will now centre on shared responsibilities and collaboration. If there are negative effects to any part of the negotiation then there should be a shift towards more positive incentives. The result of more recent negotiations is the creation of shared responsibilities and innovation. Together companies are finding it much easier to have programs of continuous improvements and to share the benefits.

Now a negotiation will be more likely to provide greater flexibility and better governance.  These negotiations allow companies to display their hidden strengths and utilize them to assist both companies. Whilst these types of relationships have existed in the past, it is very much an exception to the rule. This has only been the case because there have been a few exceptional negotiators who recognize the importance of balance in any relationship. Now we’re finally seeing a shift in the attitude towards negotiation.

 

The importance of judgement

Change is governed by three main items – efficiency, speed and better business judgement. It is now seen as much more costly to get a contract wrong. This is not due to the physical cost but rather to the reputation which is damaged by getting the contract wrong. Also, it can be very costly to have to start over with a new supplier or even renegotiate with the current supplier.

Another issue which has becoming an increasing problem to negotiators is the number of people with vested interest in a business has increased. This makes the whole process far more complicated and ensures it is much harder to reach an agreement that everyone is happy with.  As time is always one of the biggest pressures on a business a new approach has needed to be adopted.  A big part of this is recognizing that the relationship is more than just a one off deal; it is a continuing beneficial partnership.

Much of this change in negotiation techniques has actually been driven by lawyers. There are too many low level negotiations with not enough time. By businesses slowly switching tactics the lawyers can concentrate more on the bigger deals in respect of regulation or enterprise risk. An additional benefit is the ability to drive and manage performance through the negotiation terms. This should result in a set of core templates that can be applied across an industry and would provide a basis for any negotiation.

All of this is possible by shifting the focus of a negotiation from aggressive to neutral. What’s the point of an aggressive behaviour anyway? Skilled negotiators will never fall for the good cop/bad cop technique, and they won’t feel intimidated either if you start screaming. The key to winning business deals this 2015 is to have a professional attitude. You can also take negotiation training to be perfect. Be informed, remain calm, and engage in a conversation. Ultimately, the relationship you build with an opponent will can make or break your negotiation.