Negotiation is a major part of life. Most of us negotiate on a daily basis - with spouses, children and co-workers. Most of us are familiar with negotiating smaller transactions with street vendors or larger transactions, such as the purchase or sale of automobiles or homes.
Negotiations involving even larger transactions, such as the purchase and sale of a business can be more complicated than home or car negotiations as they often involve ongoing relationships as well. Some negotiations are "zero-sum", such as negotiating a settlement with an insurance company; all that is involved is the size of the settlement - what is more for one party is less for the other. In many other cases, negotiations can be "win-win" where it is possible for the parties invent options for mutual gain. It is surprising how often, even in seemingly adversarial situations that by understanding each parties' concerns that a more favourable outcome can be achieved.
Establishing the process of how the negotiation will take place is sometimes as important as the substance of the negotiation itself. It is important to develop the necessary degree of trust and flow of information. Also, it is important that you are dealing with someone in the organization who has decision making authority.
One of the best known books on negotiation is "Getting to Yes" by Roger Fisher and William Ury. Another more recent book, building in part on "Getting to Yes", is "Gain the Edge: Negotiating to Get What you Want" by Martin E. Latz. Mr. Latz lays out five golden rules:
1) Golden Rule One: Information is Power - So Get It
2) Golden Rule Two: Maximize Your Leverage
3) Golden Rule Three: Emply "Fair" Objective Criteria
4) Golden Rule Four: Design an Offer-Concession Strategy
5) Golden Rule Five: Control the Agenda
I attempt to utilize these rules in negotiating for clients and have found them to be useful. As Mr. Latz points out in his book, many people negotiate instinctively as opposed to strategically. It is important to prepare for a negotiation - both the substance and the initial process.
Finally, we all create an impression of how we come across and it is important to retain the reputation as a fair negotiator. For more information on Mr. Latz's book, visit www.GaintheEdge.com
If you would like to learn more about how we might assist with your negotiation, please contact us.
