NEGOTIATION

MEANING
Negotiation is a dialogue between two or more people or parties intended to reach a
beneficial outcome over one or more issues where a conflict exists with respect to at least one
of these issues. This beneficial outcome can be for all of the parties involved, or just for one
or some of them.

It is aimed to resolve points of difference, to gain advantage for an individual or collective, or

to craft outcomes to satisfy various interests. It is often conducted by putting forward a
position and making small concessions to achieve an agreement. The degree to which the
negotiating parties trust each other to implement the negotiated solution is a major factor in
determining whether negotiations are successful. In many cases, negotiation is not a zero-sum
game, allowing for cooperation to improve the results of the negotiation.

People negotiate daily, often without considering it a negotiation. Negotiation occurs in

organizations, including businesses, non-profits, and within and between governments as well
as in sales and legal proceedings, and in personal situations such as marriage, divorce,
parenting, etc. Professional negotiators are often specialized, such as union negotiators,
leverage buyout negotiators, peace negotiator, or hostage negotiators. They may also work
under other titles, such as diplomats, legislators, or brokers.

DEFINITION
Negotiation is a method by which people settle differences. It is a process by which
compromise or agreement is reached while avoiding argument and dispute. In any
disagreement, individuals understand and are able to achieve the best possible outcome for
their position (or perhaps an organization they represent). However, the principles of fairness,
seeking mutual benefit and maintaining a relationship are the keys to a successful outcome.

Negotiation is the process of making joint decisions when the parties involved have different
preferences. You can say negotiation to be a way of getting what you want from others in the
process of making decisions. It is especially significant in today’s work settings, where a
larger number of people is being offered opportunities to be involved in decisions affecting
them and their work than, say, a decade ago.
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NEGOTIATION PROCESS
Negotiation process permeates the interactions of almost everyone in groups and
organizations. In today’s loosely structured organizations, in which members work with
colleagues over whom they have no direct authority and with whom they may not even share
a common boss, negotiation skills become critical.

The five steps of the negotiation process are;

1. Preparation and Planning.
2. Definition of Ground Rules.
3. Clarification and Justification.
4. Bargaining and Problem Solving.
5. Closure and Implementation.

1. Preparation and Planning

Before the start of negations, one must be aware of the conflict, the history leading to the
negotiation the people involved and their perception of the conflict expectations from the
negotiations etc.

2. Definition of Ground Rules

Once the planning and strategy are developed, one has to begin defining the ground rules
and procedures with the other party over the negotiation itself that will do the negotiation.
Where will it take place?
What time constraints, if any will apply?
To what issues will negotiations be limited?
Will there be a specific procedure to follow in an impasse is reached?
During this phase, the parties will also exchange their initial proposals or demands.

3. Clarification and Justification

When initial positions have been exchanged both the parties will explain amplify, clarify,
bolster and justify their original demands. This need not be confrontational.
Rather it is an opportunity for educating and informing each other on the issues why they
are important and how each arrived at their initial demands.

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 This is the point where one party might want to provide the other party with any
documentation that helps support its position.

4. Bargaining and Problem Solving

The essence of the negotiation process is the actual give and take in trying to hash out an
agreement, a proper bargain. It is here where concessions will undoubtedly need to be
made by both parties.

5. Closure and Implementation

The final step in the negotiation process is formalization the agreement that has been
worked out and developing and procedures that are necessary for implementation and
monitoring. For major negotiations – this will require hammering out the specifics in a
formal contract.

Negotiation Process has five stages. In all steps of a negotiation process, the involved parties
bargain at a systematic way to decide how to allocate scarce resources and maintain each
other’s interest.

CHARACTERISTICS OF NEGOTIATION
There are certain characteristics of the negotiation process. These are:

i. There are a minimum of two parties present in any negotiation.

ii. Both the parties have pre-determined goals which they wish to achieve.
iii. There is a clash of pre-determined goals, that is, some of the pre-determined goals are
not shared by both the parties
iv. There is an expectation of outcome by both the parties in any negotiation
v. Both the parties believe the outcome of the negotiation to be satisfactory.
vi. Both parties are willing to compromise, that is, modify their position.
vii. The incompatibility of goals may make the modification of positions difficult.
viii. The parties understand the purpose of negotiation

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4 P'S OF NEGOTIATION
 Purpose: aim is required otherwise it will result in wastage of money ,manpower
and time
 Plan: main agenda on which negotiation is to be carried on
 Pace: main point should be covered in discussions, also proper breaks must be
introduced to maintain interest of people involved.
 Personalities: negotiator initiating negotiation must have convincing power,
effective communication skill, can influence people & process of negotitation.

OUTCOME OF NEGOTIATION

Negotiating outcomes are the types of results that can happen at the end of a negotiation. All
negotiations end up with one out of four possible outcomes: one party wins and the other
loses, both parties lose, they get stuck in a stalemate, or both end up winning. Obviously, the
goal in a cooperative negotiation is for both parties to walk away with their needs being
satisfied. Familiarize yourself with the four different negotiating outcomes and make it your
goal to aim for a mutually-beneficial outcome.

Lose-Lose
In this type of outcome, ego's come into play which thwart the negotiating process. Both
sides dig into their positions and are unwilling to compromise with each other. In the end,
both parties end up losing in the deal. Resentment exists between both parties as a result of
the outcome and it is unlikely that they will ever negotiate with each other again.

Example
A labour union refuses a contract offer and goes on strike until demands are met. The
company refuses to give into to this bullying-type technique and digs into their position of
not budging. In the end, the strikers go back to work without a raise and with lost income and
the company loses a large amount of sales revenue, and the consumer loses because the
company must raise prices to pay for its losses.

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Win-Lose
In this type of outcome, one side wins and the other side loses. There is no compromise with
a win-lose outcome. It's a one-side takes all battle with one side getting all their needs
satisfied and the other side getting nothing. While the side that wins may be very happy about
the outcome; the losing side has a high level of resentment over the deal because they did not
have any of their needs met. This usually results in a end to any future negotiations and a
termination of the relationship.
Examples
A street brawl is the ultimate in win-lose negotiations. One side wins by use of physical
violence and the losing side has no choice but to submit to defeat.
A civil court battle is win-lose. A judge or jury decides winner and loser based on available
evidence. One side wins punitive or compensatory damages and the other side loses that
money.

Stalemate
In this type of outcome, neither side wins or loses and after a long negotiating session, both
sides are at the exact same place that they started off at. This is a result of not being able to
deal with interests and only positions. Stalemates happen when both sides aggressively
defend their positions and neither side is able to make the other side budge.
Example
You go to buy a car and the salesman quotes you a price that is too high. You are unwilling to
budge on your price and the salesman is unwilling to budge on his quote. You then walk out
of the dealership and go find another one to deal with and the salesman moves on to the next
customer.

Win-Win
This is the type outcome that you strive to achieve when you Street Negotiate. In this type of
outcome, both sides walk away with their interests and needs being met. Both sides leave the
negotiating table satisfied because they came out of the negotiation with more than they had
started with. Relationships are preserved because both parties cooperated with each other in
determining a fair solution to the problem. This outcome also bolsters trust for future
negotiations between the two parties because they have established a positive relationship.

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Example
A hostage taker agrees with the police negotiator to surrender and release his hostages. In
return, the negotiator agrees that the SWAT team won't bust through the doors and kill the
hostage taker. In this example, the hostage taker gets his needs of survival taken care of and
the negotiator gets his needs of ending a potentially deadly confrontation without any
bloodshed satisfied.

BARGAINING STRATEGY
Bargaining is a process of reaching a mutually acceptable solution among all parties of
the conflict at the end of the negotiation process. bargaining strategies helps to resolve the
conflict by proper communication and understanding of the situation. There are two general
approaches to negotiation are distributive bargaining and integrative bargaining.

Distributive Bargaining Strategy

Distributive bargaining is defined as negotiations that seeks to divide up a fixed amount of
resources, a win lose situation.
Its most identifying feature is that it operates under zero sum conditions i.e. each party
bargains aggressively and treats the other as an opponent who must be defeated. The core of
distributive bargaining is that each party has a target point and resistance point. Target point
is what the parties would like to achieve most.
Each parties target point is most of the time are entirely or extremely opposite. Resistance
point is the minimum result which would be accepted by the parties.
The difference between these two points is the each one’s aspiration range. As long as there
is some overlap between the aspiration ranges, there exist a settlement range in which each
one’s aspiration can be meet.
Examples of such tactics are persuading to his/her target point and the advisability of
accepting a settlement near yours arguing that your target is fair, which your opponent’s is
not and attempting to get you opponent to feel emotionally generous toward you and thus
accept an outcome close to your target point.

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 Integrative Bargaining Strategy

Negotiation that seeks one or more settlements than create win-win situation is called
Integrative Bargaining Strategy.
In terms of intra-organizational behaviour all things being equal integrative bargaining is
preferable to distributive bargaining. Integrative bargaining builds long-term relationships
and facilitates working together in the future.
It bonds negotiators and allows each to leave the bargaining table feeling that he/she has
achieved a victory. Distributive bargaining however, leaves one party a loser.
It tends to build animosities and deeper divisions when people have to work together on an
on-going process.

FACE-NEGOTIATION THEORY
The cultural differences in the society shape the responses to conflicts in different societies.
The theory holds up the idea of maintaining a face according to their cultures. The face is
nothing but an identity, the persona we keep up in the society-a public image. As face
represents oneself in the society, the people display an attitude which is desirable to them.

There are certain factors in negotiating face. They are

 Concern over self-face and others faces. It is important to understand the significance of
face for an individual and how important is it to maintain a face which in turn will reflect
on to the others
 People from a collectivistic culture usually avoid or integrates the conflict while more
individualistic people dominates the conflict as to maintain an independent face in the
society
 Another factor in negotiating face is status in the society which generates power. In
Collectivistic society people are born into certain status quo and their individuality is less
concerned. In a more individualistic society, people earn their power to live in the society
An Important factor influencing a person’s behaviour is the culture he belongs to. From his
childhood, the person lives in this perspective created by the culture. The conflict styles differ
with the culture and through socialising; the individual tends to reflect the particular culture
while negotiating a conflict. Generally there are two aspects in which the conflict styles are
classified. People belonging to individualistic culture tries to maintain a face so as to

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preserve one’s own face while in a collectivistic society, people maintains a face for the sake
of the society. Based on these dimensions, there are five types of conflict styles

1. Domination– An individualistic approach to make decisions by dominating or controlling

2. Avoiding– A collectivistic approach of staying away from the conflict
3. Obliging– A collectivistic approach of giving up
4. Compromising– An individualistic approach to negotiate to come to a solution
5. Integrating– an individualistic approach to work together to reach a solution

Critics of Face Negotiation Theory

The western countries have an individualistic culture (promote individual autonomous,
responsibility and achievement) which is greatly observed and followed. Whereas in Eastern
countries have a collective or group culture and they honor community. But there are
societies in these countries which follows another culture like individualistic culture or
collective culture vice-versa. So the generalisation applied to the cultural classification is not
practical in this context.

Application
Face negotiation can be applied in the study of all types of interpersonal relationships and
how it is applicable across cultures.

Example
According to the Stella Ting-Toomey “People face a conflict situation will differ from
individualist culture and collectivist culture. When an ordinary person in USA, followed the
response to a conflict will be self-preserving and dominating. At the same time for a person
who has migrated from a collective culture like china, South Korea, Japan and Taiwan, the
response reflects his/her culture (collective culture) to avoid the conflict or oblige to the
situation”.

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 SKILLS REQUIRED
1. Analyse and cultivate your BATNA.
In both integrative negotiation and adversarial bargaining, your best source of power is your
ability and willingness to walk away and take another deal. Before arriving at the bargaining
table, wise negotiators spend significant time identifying their best alternative to a negotiated
agreement, or BATNA, and taking steps to improve it.

2. Negotiate the process.

Don’t assume you’re both on the same page when it comes to determining when to meet, who
should be present, what your agenda will be, and so on. Instead, carefully negotiate how you
will negotiate in advance. Discussing such procedural issues will clear the way for much more
focused talks.

3. Build rapport.
Although it’s not always feasible to engage in small talk at the start of a negotiation
(particularly if you’re on a tight deadline), doing so can bring real benefits, research shows.
You and your counterpart may be more collaborative and likely to reach agreement if you
spend even just a few minutes trying to get to know each other. If you’re negotiating over
email, even a brief introductory phone call may make a difference. This is one the most
valuable negotiation skills to master.

4. Listen actively.
Once you start discussing substance, resist the common urge to think about what you’re going
to say next while your counterpart is talking. Instead, listen carefully to her arguments, then
paraphrase what you believe she said to check your understanding. Acknowledge any difficult
feelings, like frustration, behind the message. Not only are you likely to acquire valuable
information, but the other party may mimic your exemplary listening skills.

5. Ask good questions.

You can gain more in integrative negotiation by asking lots of questions—ones that are likely
to get helpful answers. Avoid asking “yes or no” questions and leading questions, such as
“Don’t you think that’s a great idea?” Instead, craft neutral questions that encourage detailed
responses, such as “Can you tell me about the challenges you’re facing this quarter?”
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6. Search for smart tradeoffs.
In a distributive negotiation, parties are often stuck making concessions and demands on a
single issue, such as price. In integrative negotiation, you can capitalize on the presence of
multiple issues to get both sides more of what they want. Specifically, try to identify issues
that your counterpart cares deeply about that you value less. Then propose making a
concession on that issue in exchange for a concession from her on an issue you value highly.

7. Be aware of the anchoring bias.

Ample research shows that the first number mentioned in a negotiation, however arbitrary,
exerts a powerful influence on the negotiation that follows. You can avoid being the next
victim of the anchoring bias by making the first offer (or offers) and trying to anchor talks in
your preferred direction. If the other side does anchor first, keep your aspirations and BATNA
at the forefront of your mind, pausing to revisit them as needed.

8. Present multiple equivalent offers simultaneously (MESOs).

Rather than making one offer at a time, consider presenting several offers at once. If your
counterpart rejects all of them, ask him to tell you which one he liked best and why. Then
work on your own to improve the offer, or try to brainstorm with the other party an option that
pleases you both. This strategy of presenting multiple offers simultaneously decreases the
odds of impasse and can promote more creative solutions.

9. Try a contingent contract.

Negotiators often get stuck because they disagree about how a certain scenario will play out
over time. In such cases, try proposing a contingent contract—in essence, a bet about how
future events will unfold. For example, if you doubt a contractor’s claims that he can finish
your home renovation project in three months, propose a contingent contract that will penalize
him for late completion and/or reward him for early completion. If he truly believes his
claims, he should have no problem accepting such terms.

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10. Plan for the implementation stage.
Another way to improve the long-term durability of your contract is to place milestones and
deadlines in your contract to ensure that commitments are being met. You might also agree, in
writing, to meet at regular intervals throughout the life of the contract to check in and, if
necessary, renegotiate. In addition, adding a dispute-resolution clause that calls for the use
of mediation or arbitration if a conflict arises can be a wise move.

ROLE OF NON VERBAL COMMUNICATION IN

NEGOTIATION
Gesture Clusters
Many skeptics argue that it is difficult determining what someone is thinking by singling out
one gesture-and they are right. A single gesture is like a single word; its true meaning is vague
out of context. But, when gestures come in clusters, their meaning becomes clearer. For
example, while a person’s fidgeting may not mean much by itself, if that person is avoiding
eye contact, holding his hands around his mouth, touching his face and fidgeting, there’s a
good chance he is not being completely honest.

As you study nonverbal behaviour, you will begin comprehending the clustering process.
When scanning a counterpart for clusters of gestures, view the body in four categories:

i. Face and head. The face and head truly provide a window into your counterpart’s
soul.

ii. Body. The body also plays an important role in nonverbal communication.

iii. Hands. People’s true feelings are commonly revealed through hand movements. For
example how, how one opens their palms generally conveys a positive message.
Involuntary hand movements can be particularly telling. People often touch their
nose, chin, ear, arm or clothing when they are nervous or lack confidence in what
they are saying.

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 iv. Legs. When asked why they cross their legs, most people say they do so for comfort.
Although they are being truthful, they are only partially correct. If you have ever
crossed your legs for a long period of time, you know that this position can become
painfully uncomfortable.

If you want your counterpart perceiving you as cooperative and trustworthy, sit with your legs
uncrossed, feet flat on the floor and body tilted slightly in the other parties direction. This
posture will give you a better chance of sending a positive signal.

ROLE OF 3RD PARTY IN NEGOTIATION

Third party negotiation is very common. Actually in my experience in any dispute local or
international, it’s the third party who actually makes sense to the disputants for reaching a
settlement. Most recent international example will be the Syria and Myanmar situation and
Kofi Annan.
It not always the case that direct negotiations of individuals or groups will agree on a
stalemate and resolve all their differences. In such cases, they may turn to a third party who
will be in no way affiliated with them to help them find a solution.
Not always that they succeed and not always that they are credited and remembered for their
contribution. But their failure is most times received with huge criticism but we forget that all
they can do is act as a link and persuade the disputants. Mediator is a neutral third party,
whose job is to facilitate a negotiated solution by reasoning and persuasion, suggesting
alternatives to the involved parties. Mediators are common in labor-management conflicts and
in civil court disputes.

Arbitrator in Third Party in Negotiation

Arbitrator is a third party who has the authority for dictating an agreement between the
parties. Arbitration in a negotiation can be requested by the parties or can be compulsorily
enforced on the parties by court or contract. The big advantage of arbitration over mediation is
that it always results in a settlement.

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Whether or not there is a negative side depends on how “heavy handed” the arbitrator
appears. If one party is left feeling overwhelmingly defeated, that party is certain to be
dissatisfied and unlikely to cordially accept the arbitrator’s decision.
For that reason, the conflict may re-materialize at a later time. The authority of the arbitrator
varies according to the rules set by the negotiators or the court law.

Conciliator in Third Party in Negotiation

Conciliator is a trusted third party whose job is to establish an informal communication link
between the negotiator and the opponent. Conciliation is used widely in international, labor,
family and community disputes. In practice, conciliators usually act as more than mere
communication conduits.
They also engage in fact finding, interpreting messages and persuading disputants to reach an
agreement. Comparing its effectiveness to mediation has proven difficult because the two
overlap a great deal.

Consultant in Third Party in Negotiation

Consultant is a skilled and impartial third party who attempts to facilitate problem solving
through communication and analysis. Consultant is most likely to have much knowledge
of conflict management.
The consultant’s role is not only to settle the issues but also to improve relations between the
conflicting parties so that they can reach a settlement themselves.
Instead of putting forward specific solutions, the consultant tries to encourage the parties to
learn, understand and work with each other.
And so, this approach has a longer term focus by building a new and positive perceptions and
attitudes between the conflicting parties.

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 CROSS CULTURAL ISSUES IN NEGOTIATION

Factors influencing cross-cultural negotiations

Negotiating Goal and Basic Concept
How is the negotiation being seen? Is mutual satisfaction the real purpose of the meeting? Do
we have to compete? Do they want to win? Different cultures stress different aspects of
negotiation. The goal of business negotiation may be a substantive outcome (Americans) or a
long-lasting relationship (Japanese).

Protocol
There are as many kinds of business etiquette as there are nations in the world. Protocol
factors that should be considered are dress codes, number of negotiators, entertainment,
degree of formality, gift giving, meeting and greeting, etc.

Communications
Verbal and non-verbal communication is a key factor of persuasion. The way we express our
needs and feelings using body language and tone of voice can determine the way the other
side perceives us, and in fact positively or negatively contributes to our credibility.Another
aspect of communication relevant to negotiation is the direct or indirect approach to
exchanging information. Is the meaning of what is said exactly in the words themselves? Does
"...it's impossible" really mean impossible or just difficult to realise? Always use questions to
identify the other side's needs, otherwise assumptions may result in you never finding
common interests.

Risk-Taking Propensity - Uncertainty Avoidance

There is always risk involved in negotiations. The final outcome is unknown when the
negotiations commence. The most common dilemma is related to personal relations between
counterparts: Should we trust them? Will they trust us? Certain cultures are more risk averse
than others, e.g. Japan (Hofstede 1980). It means that less innovative and creative alternatives
are available to pursue during the negotiation, unless there is a strong trust-based relationship
between the counterparts.

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View of Time
In some cultures time is money and something to be used wisely. Punctuality and agenda may
be an important aspect of negotiation. In countries such as China or Japan, being late would
be taken as an insult. Consider investing more time in the negotiating process in Japan. The
main goal when negotiating with an oriental counterpart is to establish a firm relationship,
which takes time. Another dimension of time relevant to negotiation is the focus on past,
present or future. Sometimes the past or the distant future may be seen as part of the present,
especially in Latin American countries.

Decision-Making System
The way members of the other negotiating team reach a decision may give us a hint: who we
shall focus on providing our presentation. When negotiating with a team, it's crucial to
identify who is the leader and who has the authority to make a decision.

Form of Agreement
In most cultures ,only written agreements stamp a deal. It seems to be the best way to secure
our interests in case of any unexpected circumstances. The 'deal' may be the contract itself or
the relationship between the parties, like in China, where a contract is likely to be in the form
of general principles. In this case, if any unexpected circumstances arise, parties prefer to
focus on the relationship than the contract to solve the problem.

Power Distance
This refers to the acceptance of authority differences between people. Cultures with
low power distance postulate equality among people, and focus more on earned status than
ascribed status. Negotiators from countries like Britain, Germany and Austria tend to be
comfortable with shared authority and democratic structures. When we face a high power
distance culture, be prepared for hierarchical structures and clear authority figures.

Personal Style
Our individual attitude towards the other side and biases which we sometimes establish all
determine our assumptions that may lead the negotiation process towards win-win or win-lose
solutions. Do we feel more comfortable using a formal or informal approach to
communication? In some cultures, like America, an informal style may help to create friendly

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relationships and accelerate the problem solving solution. In China, by comparison, an
informal approach is proper only when the relationship is firm and sealed with trust.

Coping with Culture

Negotiating in the international environment is a huge challenge for any negotiator. How do
we cope with the cultural differences? What approach is more efficient and proper when
dealing with Japanese, Americans or Germans? There are some very helpful guidelines we
can apply (Salacuse, 1991):

 Learn the other side's culture: It is very important to know the commonest basic
components of our counterparty's culture. It's a sign of respect and a way to build trust
and credibility as well as advantage that can help us to choose the right strategies and
tactics during the negotiation. Of course, it's impossible to learn another culture in
detail when we learn at short notice that a foreign delegation is visiting in two weeks'
time. The best we can do is to try to identify principal influences that the foreign
culture may have on making the deal.

 Don't stereotype: Making assumptions can create distrust and barriers that expose
both your and the other side's needs, positions and goals. The way we view other
people tends to be reserved and cautious. We usually expect people to take advantage
of a situation, and during the negotiations the other side probably thinks the same way,
especially when there is a lack of trust between counterparts. In stead of generalising,
we should make an effort to treat everyone as individuals. Find the other side's values
and beliefs independently of values and beliefs characteristic of the culture or group
being represented by your counterpart.

 Find ways to bridge the culture gap: Apart from adopting the other side's culture to
adjust to the situation and environment, we can also try to persuade the other side to
use elements of our own culture. In some situations it is also possible to use a
combination of both cultures, for example, regarding joint venture businesses. Another
possible solution is to adopt a third culture, which can be a strong base for personal
relationships. When there is a difficulty in finding common ground, focusing on
common professional cultures may be the initiation of business relations.

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 WORK PLACE NEGOTIATION
Negotiation is an unavoidable part of work and everyday life. Throughout their work, head
hunters constantly make great use of negotiation skills — for example, when discussing
projects, contracts and salaries; as well as when co-ordinating interviews. We have put
together a list of of practical skills that head hunters use during their daily negotiations, and
insights they have into the art of negotiating to help you.

1. Control your emotions

Whoever gets angry first loses half of the negotiation. Often, the party who gets angry during
a negotiation is the party that cares the most about the results of the negotiation and may state
their bottom line in an indignant or emotional manner. It's therefore extremely important to
control your emotions during a negotiation, while making sure not to put your interlocutor in a
negative mood. By maintaining your composure, you can also earn the respect and trust of
your interlocutor.

2. Ask, listen and take notes

Negotiating is not about competing to see who is the better talker, but rather about who is the
best at asking, listening and taking notes. By posing a series of pertinent questions, getting to
the bottom of the matter and seizing the paradoxes in your interlocutor's arguments, you can
discover how they truly feel and what their bottom line is. Then, after summarizing the main
points of the opposing person’s arguments in note form, you can address each of those points
in the order of their importance. Sometimes, if you resolve the main conflict, resolving the
other problems becomes a piece of cake.

3. Adapt your technique to the personality of your interlocutor

There is a diverse range of negotiation techniques that you must choose from based on the
personality of your interlocutor. Analyzing and developing an understanding of your
interlocutor's personality prior to conducting negotiations will have an extremely positive
influence on the outcome of the negotiations. If you are dealing with an obstinate interlocutor,
you need to communicate hard facts backed by data and evidence. You also need to let them
know that you have a Plan B — they aren't essential to your plan. Should you encounter an
irresolute and indecisive partner, you must let them know that you both share the same
fundamental interests. You should also make an effort to appeal to their emotions.

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4. Understand the importance of mutual compromise
It is quite rare for a party to feel as though they are the absolute winner of a negotiation.
Generally, either one party will compromise slightly more than the other, or both parties will
compromise to an equal degree. During negotiations, propose the principle of mutual
comprise. By allowing your interlocutor to make an initial proposal and then using that
proposal as the basis for a second proposal, you can convince your interlocutor that you're
getting the harder end of the bargain.

There are hundreds of books on the market that specifically discuss the art of negotiation.
Two books that have recently caused a sensation are Getting More by Stuart Diamond, and
The Secrets of Power Negotiating by Roger Dawson. If interested, take a read of these books
and let theory help you put negotiating techniques into practice.

DO’s & DON’T’s OF NEGOTIATION

DO’s:
– Prepare before you entering a negotiation, being unprepared can cost you money
– Establish a relationship with the other party. It will help you understand what the other
party wants and help you be creative in meeting their needs.
– Take time to craft your initial offer. Lead with your most optimistic price. You can come
down, but it’s hard to raise your price if you are the seller.
– Be creative when negotiating. Approach it form a position of abundance and not scarcity.
– Document your negotiation when completed. If you memorialize the negotiation it can
prevent misunderstandings or not capturing everything in the final agreement.

DON’T:
– Take no as the final answer. That is the beginning of the negotiation not the end of it.
– Reject a good offer. If the first offer is a good one and is where you want to be, accept it
especially if you ae developing a long term relationship.
– Rush the negotiation. Take time to develop your position and understand what the other
party’s position is.

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– Interrupt the other party when they are talking. You are gathering information and you may
miss a point if you are thinking about your response.
– Let the other party record the negotiation memorandum. You should do your own to insure
that your position is properly recorded.
Keeping these Negotiation do’s and don’ts in mind while negotiating will help keep you from
making fatal mistakes and reach a winning agreement.

NEGOTIATION OVER TELEPHONE

Attorneys negotiate over the telephone all the time and there are some things that you and
your client should consider if the parties are trying to work out an agreement. All the
negotiating could be done over the phone or the parties may follow up from face to face
negotiation or mediation.

 You may dread talking to a particular attorney. Perhaps prior negotiations haven’t gone
well, your negotiating styles are very different or maybe the person simply rubs you the
wrong way. Your prior dealings with the attorney in the current or past cases affects
what you’re doing in the present and how the other side responds to you. If that person
calls it’s best to get it over with, take the bull by the horns and take the call. Be
professional and try to make some headway. Repeatedly avoiding phone calls will send
the message you’re trying to run and hide.

 Be cautious of committing to an informal offer or demand. That informal number could

be used against you in further negotiations.

 Try to actively listen to what’s being said and how. In addition to the choice of words is
the speaker particularly emotional? Is the person relaxed or nervous and maybe talking
too fast? Repeat back what you’ve heard to make sure you understand the other party’s
position.

 To do that don’t multi-task during the conversation. It’s not the time to read or emails or
Twitter. Focus on the conversation, even if you take the call while you’re out of the
office.

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 Talk assertively and with confidence, but, like a negotiation in person, don’t use bluster
and turn up the volume to try to bulldoze the person on the other end of the phone. You
need to reach an agreement and you’ll probably make more progress by listening to the
other party, asking about their needs and talking about how your proposal meets those
needs.

 Be cordial so you won’t be the one whose calls other attorneys try to avoid. Try to be
pleasant to talk to so the other party will relax and will want to take your call. You’re
trying to solve a mutual problem, not to create new problems or worsen existing ones.

 Don’t be abrupt and try to be relaxed but keep an eye on the clock. Both of you have
work to do and long calls can put a crimp in your productivity. Time literally is money
for attorneys and their clients.

 If you’re taking the call out of the office be aware of your surroundings, think about
what you say, to whom you’re talking to, who may hear it and if it may impact attorney-
client privilege.

 If you’re talking to your client is he or she in the right frame of mind to hear the other
side’s proposal? Are they focused on the conversation or busy with other things? If it’s
not a good time to talk schedule a time when the both of you are available. The client
needs to be open to discussing the case and open to compromise at least to some degree.
A reminder that as much as your client has needs, so does the other side and to settle the
case both sides need to have their needs at least partially addressed may help your client
keep a more open mind.

Using the telephone can be a convenient, useful, time saving way to reach an agreement if
used properly and, just as in face to face negotiations or mediation, the parties are in a
position to give and take and communicate with each other professionally and effectively.

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NEGOTIATION EXERCISES
Negotiations are present everywhere in life. You'll negotiate little things, like who takes the
trash out, and big things, like how much money you'll be making at a new company. Getting
the most out of life depends, at least partially, on your ability to negotiate.
There are tons of articles already in circulation about how to be a better negotiator, but
there's a common fault point I've found with most of them. They all contain information on
what you should do leading up to the negotiation, such as doing background research, and
best practices on what you should do in the middle of a negotiation, such as maintaining
good posture and starting higher than your actual goal. These are phenomenal pieces of
advice, but they can only help you in the context of one negotiation. How can you make
yourself a better negotiator in general?

Like anything else, the solution is with practice, and you need practical exercises if you want
to condition yourself to be a better negotiator, in any area of life. These five exercises are
ones I've found to be extraordinarily rewarding in this regard:

1.Practice saying no
Saying "no" is tougher than it sounds. When your boss asks you to take on an assignment
that's out of your comfort zone, or when your friend needs help moving, you comply out of a
sense of responsibility, or out of fear of how you'll look giving a rejection. We even do this
in everyday society, such as when a person asks to cut us in line at the supermarket. In
negotiation, if you want to leverage your position at all, you'll necessarily reject an offer
that's already on the table, even if it's only implicitly. Accordingly, you have to practice
saying "no" to become more comfortable with this process. This doesn't mean you should
start saying "no" to everything, but it's far easier if you start becoming comfortable with
lower-stakes situations (like the ones I mentioned above) than if you try to hold your ground
in a high-stakes situation like a job interview.

2.Learn body language cues.

The percentage of communication that's nonverbal will vary depending on who you ask, but
there's no question that body language is a major variable when it comes to interpersonal
communication. Subtle cues, like the excessive blinking of the eyes or an uncomfortable

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shift in a chair, can give you major insight into what's going on in the other person's mind--
but you need to be attuned to this body language. The only way to do that is through study
and practice, observing the body language of people you already know, and strangers when
you get the chance (since it's harder to notice in strangers).

3.Listen to other people

Listening is the biggest and most important part of communication; it's what allows you to
understand what's going on in the other person's head. Moreover, saying less and listening
more puts you in a position of power during a negotiation--it means the other person is
giving you more information than you're giving them. Add in the fact that quiet people are
seen as better, more respectful communicators, and it's clear that being a better active
listener will make you a better all-around negotiator. But like all the other skills on this list,
it takes practice to perfect. Start out with your friends and family, listening more intently and
speaking less often, until it becomes a natural element of your conversational rhythm. From
there, it will be easy to integrate in your higher-profile negotiation scenarios.

4.Conduct better research

Before you walk into any negotiation, whether it's over the price of an antique at a flea
market or the price of a startup acquisition, you need to have done your research--
thoroughly. But how do you know you've done all your due research, or that you've gone
about it in the best possible way? If you're only researching occasionally, it's unlikely that
this is the case. You need to take it upon yourself to "practice" researching by learning best
practices for search, gathering a handful of key reliable sources for your information, and
learning what questions to ask to get to deeper, more detailed pockets of information.
Researching is a skill, and it can be refined.

5.Negotiate everything
Finally, we have what may be the most obvious entry on this list. If you want to be a better
negotiator, you have to negotiate. The more you do it, the more comfortable you're going to
be, which will lead to more natural confidence and better overall results. You'll become a

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better speaker, a better listener, and you'll learn the rhythm of negotiation better as well. The
key here is to start with small situations and scale your way up to bigger and more important
ones. Start negotiating small responsibilities with friends and family members, and then
work toward innocuous social situations, and then start commanding more authority in your
workplace by negotiating your responsibilities and needs.
These five exercises, if repeated regularly and with a commitment to self-improvement, will
help you become a better negotiator in all areas of your life. This isn't free reign to negotiate
everything, nor should it develop a compulsion in you to strive for more than you deserve.
Instead, use your new skills responsibly and remember that negotiation is a two-way street.

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