TRADING TECHNIQUES

Time Frame of the Negotiation

Diagnosis of the Needs of the Other Party

Negotiating Styles. Trading Climates

Negotiating Tactics. Concessions and Deadlocks

Systematic Preparation. Skill Development

The time limit determines the outcome of the negotiations. People wait as soon as possible to make a decision.


Those who have sixty minutes to negotiate, reach an agreement in sixty minutes.


Deadlines put pressure on you to close the deal The problem with deadlines is that we tend to be more aware of our deadline than the other person's. This leads us to underuse our power and overestimate our opponent's.

In this regard, take into account the following considerations:


  • If necessary, a longer term must be "negotiated".
  • Make the most of the time available.
  • Quick negotiations, whether necessary or unnecessary, are dangerous.
  • The person who is more prepared for a quick negotiation, is more likely to obtain better results. The basic principle of this type of negotiation is that both parties win, therefore there is always a better deal for both, if they are willing to take the time. to look for it time and patience are power.

The person who is most restricted by the time limit provides their opponent with a power base.


Buying, selling, negotiating are hard and exhausting jobs, so the desire to work is power. Perhaps the heaviest work is imposed on us by planning requirements and deadlocks.


The party most willing to work hard gains from power, some sincerely lazy lose this important source of power.

In the preparation phase, special attention must be devoted to trying to get to know the other party.


The more we know about our interlocutor, the better prepared we will be for the negotiation.


Among other information we are interested in the following: General company data: activity, sales volume and profits, product range, geographic markets, market share.


  • Strategies, objectives, goals pursued.
  • Negotiating style (cooperative or confrontational), tactics usually used, personal characteristics of the negotiators (manners, honesty, friendliness, etc.).

Power relationship Knowledge of the other party also allows us to estimate the possible power relationship during the negotiation:


  • Negotiating with a large company is not the same as negotiating with a small one.
  • It is not the same to deal with an issue that affects the core business of a company than to deal with a marginal issue.
  • Negotiating trying to establish a lasting relationship with the other party is not the same as simply seeking an occasional agreement.

In any case, even if the power relationship is unfavorable to us, one cannot start a negotiation with a feeling of inferiority, with the conviction that the other party is stronger, more intelligent, that they are going to sweep us away: we would be lost.


You always have to go to the negotiation with the aim of achieving the best possible result. If the other party abuses its power and tries to impose unacceptable terms on us, we will only have the option of breaking off the negotiation. To conclude, note:


  • Needs
  • Objects
  • Meet the other party

Negotiation is the process of seeking the acceptance of ideas, purposes or interests, seeking the best possible result, in such a way that the parties involved end the negotiation aware that they were attended to, that they had opportunities to present all their arguments and that the product final is greater than the sum of the individual contributions. And that every day we need to perfect it, especially when the crisis seems to be always present and when the executive is required to adopt a permanent position as a negotiator.

In our negotiation processes, two types of skills stand out: technical skills and interpersonal skills.


The first are related to the knowledge of techniques and processes for negotiation (example: stages for conducting the negotiation): the others are related to the interpersonal knowledge of the negotiators (what is the style of each one, what are their strengths, openness , needs, motivations, etc.).


Undeniably, technical skills deserve more attention than interpersonal skills.


A third type of skill

  • business knowledge
  • It is extremely specific to each negotiation: it is the minimum knowledge of the subject matter of the negotiation, fundamental even to know if the negotiation was good or not; in our chapter, the business is human resource development.

TRADING STYLES
WHAT IS THE BEST STYLE?


Typical phrases of each Style

  • Catalyst Style
  • Linebacker Style
  • Controller Style
  • Analytical Style

Critical Negotiator: Negotiators focused on action, what interests them is that the other party acts according to the principles that he imposes, they pretend to be right and that an agreement is reached with the other party accepting the alternative they propose.


Paternal Negotiator: Negotiators who are interested in fulfilling the pacts and acting in accordance with the solutions that he imposes. It is based on affective-type behaviors.


Calculating Negotiator: His behavior is aimed at achieving previously set objectives. It is based on reasoned agreements: it constantly calculates, adds and subtracts, multiplies and divides products, numbers and people.


Complacent Negotiator: Negotiators who like to please the parties, avoid confrontation. They favor the personal relationship, having this a great weight when it comes to reaching an agreement.


Quarrelsome Negotiator: Demanding negotiators with the issues to be discussed, sometimes aggressive and challenging.


Imaginative negotiator: It is characterized by its emotional, changeable and creative attitude.

When the negotiation properly begins, the parties maintain distant positions.


The normal thing is that each one finds his position perfectly logical and rational and, on the other hand, the other's position is not explained, which will probably be selfish and indefensible.


This frequently leads to seeing the opponent in a negative way, as an enemy that must be stopped to prevent them from taking advantage of us.


The failure of this approach lies in not understanding that the interests of the other party are as legitimate as ours.


If we did this reflection, we would come to the conclusion that there are indeed two opposing positions, but that it does not have to follow that people also have to be opposed.


The appropriate use of language helps to make this separation between problems and people: Saying "your proposal is stupid" is not the same as saying "I don't agree with your new proposal at all."


The clarity of the message is the same in both cases, but in the first example the image of the adversary is damaged while in the second case it is not.


Faced with an impertinent comment or a personal attack, it is advisable to remain calm and not respond in the same tone, because if you do not run the risk of entering into a spiral of insults that could ruin the negotiation. We will also gain moral stature.


The negotiator will attend the meeting with a battery of arguments to use. As you detect what the interlocutor's main concerns are, you will focus on those arguments that best respond to them.

The ideal is to wait for the other party to start making concessions, although it is also possible to take the initiative, which grants a certain moral force since one shows a good predisposition to reach an agreement.


The concessions are made looking for an immediate objective, at the moment in which they can have the greatest impact and not randomly. For example, to overcome a blockade, as a sign of good predisposition, or when it is expected to obtain a consideration from the other party. Whenever one makes a concession, it is advisable to wait for the other party to respond in the same way (it is their turn) and not continue making concessions without obtaining compensation.


Concessions should never be made in response to pressure or threat in the hope of calming the other party down. Normally this will not happen, and more often than not the other party grows up at the success of their strategy and continues to press.


It is interesting to keep some room for maneuver to be able to make a final concession when the agreement is about to be closed. It is a sign of good will and also allows the other party to further convince himself that he has achieved a good result.


Finally, point out that we must try to overcome these blocking situations, that one cannot give up at the first difficulty. However, if satisfactory solutions are not found in the end, it is better to break off the negotiations than to reach a bad agreement.

Additionally, despite the central role that collective bargaining occupies in unions, this activity still takes place in most cases spontaneously, without systematic preparation based on research and knowledge, disjointed and atomized with respect to the unions of the same sector and of the same region and locality, and without the accompaniment and systematic advice of the CUT and its subdirectorates.

Many people excel at creativity and improvisation when negotiating. For many, preparation is not an important part of the negotiation process. They negotiate by intuition, without preparation. However, a new, broader view of the negotiation process is gaining ground. Having a keen intuition is important for success in negotiations.


Still, business executives, government leaders, and other professionals negotiating complex issues combine essential instincts with systematic preparation.


Every day more and more people are recognizing that careful preparation is a key ingredient for successful negotiations.

People don't prepare to negotiate for three reasons:


1) they do not see an important value in preparation;
2) they are too busy to spend their limited time preparing;
3) They don't know how to prepare for the negotiation in a way that produces results.


They commonly assume no preparation is necessary when negotiating in low-risk situations or feel they know enough about the substance of the issue to improvise.

Time is always a scarce resource for busy executives. With this in mind, we have classified our structured preparation techniques into three categories:


Quick Setup is a quick look at the negotiation map; it would help to have a sense of what the negotiation is and where it should go.


Priority Preparation is useful when it is necessary to focus only on certain elements of the negotiation.


Complete Preparation, is a broad preparation, useful in complex negotiations.


QUICK PREP Quick Prep is intended to provide quick help when you are facing a short negotiation or are short on time.


It's a good way to start moving toward deeper preparation, and by itself may be enough for five-minute phone negotiations.


Quick preparation would require only a few minutes to systematize your thinking and clarify your ideas and feelings towards the negotiation.