Preparing
to Negotiate
Lack of preparation in a negotiation almost
always sets a person up for failure. First and foremost,
each party must clearly define their own goals and
objectives. Secondly, each party must anticipate the goals
of the opposition. This may require doing some background
research. Finally, each party must come up with various
alternatives to their main objectives.
Markus Prepares to Negotiate with
Louis
Markus approaches Louis after his shift
on Friday afternoon and asks if he can arrange a
meeting to discuss a potential promotion. Louis
sighs and reminds Markus that they already had this
discussion last year. Markus agrees, but reminds
Louis of his loyalty to the company and insists that
they speak again on the subject next week.
Eventually Louis, who is afraid that Markus might
quit on the spot, agrees to meet on Monday during
the crew's lunchhour.
Over the weekend, Markus thinks about Monday's
meeting. Last year, he was unprepared to negotiate
and ended up only getting a 50 cent/hour pay raise.
This did not satisfy him, and he has continued to
feel undervalued ever since. Many times, after a
hard day at work, Markus has considered quitting.
However, it is difficult to find work in the middle
of winter. Markus has a family to support and he
can't afford to lose his job.
Markus decides to do some research on negotiating.
He learns the principles behind collaborative
negotiating, and decides that this is the
approach he will take this time. After he has
understood the concept he can ask himself the
preparatory questions above. Finally, he can apply
the rules of collaborative negotiating to his own
case. |
Here are some preparatory questions to ask
yourself before beginning talks with the other party:
-
What is my main objective?
-
What are all of the alternatives I can
think of?
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Why do I deserve to have my goals met?
-
What will my opponent's counter proposal
likely consist of?
-
How can I respond to this counter proposal?
-
When would I like to have this issue
resolved?
-
What is my bottom-line?
-
What market research/homework do I need to
do to back up my cause?
-
What is my bargaining power compared to my
opponent's?
-
What do I know about the principles of
negotiating?
Markus Answers the Preparatory
Questions
-
My main objective is to be named
crew foreman and to earn a salary that is
competitive with other foremen in the area.
-
Alternatives include looking for
work elsewhere, asking for a dollar more an
hour, suggesting that Louis hire someone else to
take on extra duties.
-
I deserve this promotion because I
have worked with Landscape Labourers for five
consecutive years, and have received many
compliments from satisfied clients. I am the
team member who reports early every morning and
leaves last. If we are under a deadline, I work
through my lunchhour. All of the other team
members come to me with their questions.
-
Louis will likely say that he can't
afford to pay me more because business is slow
in the winter. He will say that there are plenty
of qualified labourers who will do the work for
less money.
-
Both of these arguments are
probably true. Landscape Labourers lost a lot of
money last year due to poor weather. There were
a few weeks that we couldn't work, but Louis had
to pay us anyway because of our contracts. And,
unemployment is at an all time high in our
region. However, Louis just signed a contract
with a new company that will mean regular work
for at least the next two years. Also, the other
team members rely on me, and none of them have
the experience to take over my position if I
quit. It will cost Louis a lot of money to train
a new landscaper to do everything that I do.
-
I understand that winter is tough
on this business, so I would like to have this
issue resolved by spring.
-
I will look into three other local
landscaping businesses and inquire about the
salary and benefits of its employees. I will
also review the classified ads to see if any
other companies are hiring or looking for a
foreman.
-
My bottom-line is to receive an
extra dollar an hour and to be named team
manager.
-
I think Louis and I have equal
bargaining power right now. None of the other
current members of our team are as committed to
the job as I am. However, unemployment is high
and there are other people he could hire.
-
I have never been a strong
negotiator. I need to learn more about
negotiationg strategies and tactics.
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Collaborative Negotiating
In business, the goal of negotiating parties
should always be for mutual gain. This type of win-win
negotiation is often called collaborative negotating.
The opposite of collaborative negotiating is called
competitive negotiating. The goal of competitive
negotiating is for one party to win and the other to lose.
Dishonest practices, such as lying, manipulation,
intimidation, and bribery are often used in this type of
negotiation.
Main Principles of Collaborative
Negotiating:
-
Resolve previous conflicts ahead of time
-
Deal with issues, not personalities
-
Commit to listening more than speaking: The
more you know about your counterpart, the more likely
you will achieve your goals. You cannot convince someone
of something when you do not know anything about them,
or what their own needs are. A common mistake is to
prepare one's next question or point while the opponent
is speaking.
-
Establish trust in the onset
-
Develop a common goal
-
Discuss a common enemy
-
Take opponent's views/needs into careful
consideration: Not only do you want to win this
negotiation, you want your opponent to win as well, so
that he or she will negotiate with you again in the
future.
Markus Applies the Principles for
Collaborative Negotiating
-
I will not discuss the fact that I
was only offered a 50 cent raise last year. It
was my fault for not being prepared to
negotiate.
-
Even though I think Louis is lazy,
and takes too many days off when we are busy, I
will not point out his shortcomings. This is
about my promotion, not his work ethic.
-
I will first thank Louis for
employing me for five consecutive years. I will
tell him that the stable work has meant a lot to
me and my family, and I appreciate the security,
especially with so many people out of work.
-
I will tell Louis that I think his
company is one of the most respected landscape
companies in the region, and ensure him that my
goal is to have a lifelong career at Landscape
Labourers.
-
I will say that I hope I will never
have to work for a company that does a poor job,
such as Powell Designs.
-
I will acknowledge that last year's
weather was a problem and note that it is not
anyone's fault that the company lost money.
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Preparing to Negotiate a Job
Offer
Negotiating a job offer should mean more
than just saying, yes. Though being offered
a job is an exciting time, it is also an
important time to use your negotiating
skills. Here are some issues you may want to
raise before you accept:
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