Mind Tools Club’s 10 Common Negotiation Mistakes : Pitfalls to Avoid When Sealing A Deal offers the following advice.
- Every leader negotiates all the time whether they realize it or not.
- Mistake 1 Falling to Prepare
- Even if you have a clear idea what you want you still need to rehearse your arguments carefully because if you can demonstrate your knowledge the other party will take you seriously
- You don't want to have to try and add something after the negotiation begins
- If you are doing a group negotiation it is critical that everyone decide who is going to say what, discuss what the other side might say and what you are prepared to compromise on
- Mistake 2 Not Building Relationships
- Just making small talk can build trust and give you a better insight into the other person’s goals, ambitions or even fears about the process
- Ideal if the relationship is built before you need to negotiate
- May make it easier to reach a satisfactory agreement later on
- Mistake 3 Being Afraid to Offend
- Negotiations can be daunting if you are scared of saying the wrong thing, settling too early, or haggling
- Remember there is a difference between negotiating and arguing.
- Arguing is making a case for or against something
- Negotiation is where both sides reach an agreement
- Mistake 4 Not Listening
- Don't talk over the other person or ignore what is being said because it will be harder to find areas of agreement
- Really focus on what is being said not what you are going to say next
- Listening allows you to learn about what the other person wants, identify your shared interests and work out how far apart your positions are
- Mistake 5 Not Knowing Your “BATNA”
- BATNA is Best Alternative To A Negotiated Agreement which comes from William Ury’s 1987 book Getting To Yes: Negotiating Agreement Without Giving In
- Means knowing what a “good” outcome is even if you don't get what you want
- Means knowing when it’s best to cut your losses and walk away
- Mistake 6 Caring Too Much
- You need to care about the outcome but not so much that you make bad decisions which means you need to keep your emotions in check
- Make sure you have plenty of alternatives
- Mistake 7 Assuming Something is Non-Negotiable
- Never take things off the table too early as you never know what the other person may be willing to give to get what they want
- Mistake 8 Focusing on Price (Costs)
- If you are fixated on price/cost you risk backing yourself or the other party into a corner
- Always consider what else could be negotiated such as additional services
- Mistake 9 Trying to “Win”
- Reaching an agreement might be more difficult if you expect to win outright even if you are entering from a position of strength
- The most effective negotiation is where both sides leave the table feeling they have gained something
- It is important not to be greedy or play “hard ball”
- Mistake 10 Giving an Ultimatum
- When you use “this is our best and final offer” there is nowhere else for the discussion to go
- There is a difference between giving an ultimatum and setting a deadline. Deadlines may encourage the other party to reach a decision or break a deadlock however you it also puts you under time pressure
- The upside is both parties are focused on reaching an agreement within the timeframe, which can speed up the process of finding a compromise however it might also result in the other party walking a way
Please share what you have learned about negotiating successfully.