Chapter12: Best Practices in Negotiation

Chapter12: Best Practices in Negotiation

Ten Best practices for Negotiation

1. Be prepared

·        Understand and articulate your goals and interests

·        Set high but achievable aspirations for negotiation

2. Diagnose the fundamental structure of the negotiation

·        Make conscious decisions about the nature of the negotiation: is it a distributive or integrative negotiation or blend of the two

·        Choose strategies and tactics accordingly

3. Identify and work the BATNA

·        Be vigilant about the BATNA

·        Be aware of the other negotiator’s BATNA

4. Be willing to walk away

·        Strong negotiators are willing to walk away when no agreement is better than a poor agreement

·         Have a clear walk away point in mind where you will halt the negotiation

5. Master the key paradoxes of negotiation

·        Claiming value versus creating value

·        Sticking by your principles versus being resilient to the flow\

·        Sticking with the strategy versus opportunistic pursuit of new options

·        Facing the dilemma of honesty: honest and open versus closed and opaque

·        Facing the dilemma of trust:  trust versus distrust

6. Remember the intangibles

·        “See what is not there”

·        Ask questions

·        Take an observer or listener with you to the negotiation

7. Actively manage coalitions

·        Coalitions against you

·        Coalitions that support you

·        Undefined coalitions that may materialize for or against you

8. Savor and protect your reputation

·        Start negotiation with a positive reputation

·        Shape your reputation by acting in a consistent and fair manner

9. Remember that rationality and fairness are relative

·        Question your perceptions of fairness and ground them in clear principles

·        Find external benchmarks of fair outcomes

·        Engage in dialogue to reach consensus on fairness

10. Continue to learn from your experience

·        Practice the art and science of negotiation

·        Analyze each negotiation

Question

1. How important are contract negotiation skills to ensure business success?

1. Learn to flinch.

2. Recognize that people often ask for more than they expect to get.

3. The person with the most information usually does better.

4. Practice at every opportunity.

5. Maintain your walk away power.

2. How well do you negotiate?

1. Do your research

2. Don't tip your hand

3. Understand your value

4. Let the company bring up the salary negotiation issue

5. Emphasize the benefits of your skills
6. Don't blink

7. Be reasonable

8. Be flexible

3. Does your organization have the number and level of skill master contract negotiators needed?

You've got sharp people skills, an analytical mind, a polished demeanor and appearance, and willingness to traveling across the country or the globe, negotiating deals that can make or break an organization. If you're also willing to get at least a 4-year bachelor's degree in a field such as industrial or labor relations, a career as a contract negotiator might be for you.

Career Definition: Contract Negotiator

Many organizations succeed or fail because of contracts, which are agreements designed to resolve differences and prevent future disputes. Contract negotiators, also called contract specialists or dispute-resolution specialists, often work in the insurance, software development and media industries. They serve in the human-resources or labor-relations divisions of large corporations, non-profits, government agencies and labor unions. Their work usually involves drawing on knowledge of company policy and economic data as they prepare and negotiate new contracts; they may also review and re-negotiate existing contracts, act as a company's prime customer liaison and work with executives on new organizational strategies.

How to Become a Contract Negotiator

Required Education for a Career in Contract Negotiation

Preparation for this career varies but almost always requires at least a bachelor's degree. A contract negotiator for a human resources department might have a 4-year degree in industrial or labor relations, including courses such as employment law, human resource management, and collective bargaining and conflict resolution. On the other hand, an in-house corporate attorney working in contract negotiation would need a law degree, which generally takes three years beyond a bachelor's degree.

Skills Required for a Career as a Contract Negotiator

These professionals are adept at various approaches to negotiation. They also have well-developed writing, speaking and computer skills, a professional appearance, and the ability to work and set priorities independently. They often must be free to travel.