Negotiation and Business Success
Negotiation is common, but it is necessary for success in business. Mismanagement will paralyze the company as easily as it loses its key customers. While the majority of game plans tend to be common sense, it is common for corporations to become emotionally involved and neglect their key instincts. It cannot lead to good negotiations with magic, chance, and emotion. It demands unblinkable discipline, smart street; homework and good iron (Lewicki, et al, 2015). These keys will open up the ability of a company under any circumstances to access the best offers available. Expert management and management skills are critical for successful business negotiations. Successful negotiation is the power to negotiate well in a broader range of business settings such as real estate leases, vendor pricing, business acquisitions, contracts among others. When transacting business, it is important to be innovative. Strategies in business negotiations involve breaking the challenge into smaller fragments, considering new terms in deals and getting the business team to brainstorm ideas (Oliver, 2011).
Key Approaches to Researching the Counterpart
One of the major and frequent mistake that companies make when arranging to negotiate is not researching about their counterpart (Lewicki, et al, 2015). Even when the company is negotiating with the government, individuals will perform the negotiations. Therefore, the team should make it the highest priority to collect as many details as possible about the negotiating team before the meeting. The following are some of the key ways through which the manager can advise his team to adopt in researching about the government negotiators and its operations.
Perform the Basics First
To start, the group should research about the name of the individuals who will be negotiating on behalf the of the government and their positions. This research can simply be possible by asking for their names or seeking for their business card. With one's name, it is easy to conduct a further search of the person to find out more details about the individual. The information gathered can be applied in creating rapport at the beginning of the negotiating process. The information will also be useful in tailoring negotiation tactics. However, the purpose is not to discuss the details but to improve the general knowledge regarding the person to be aware of the exact person doing negotiations on behalf of the government (Oliver, 2011).
Study the position of Persons the Company is negotiating with
Further to finding more about the persons doing talks in the name of the state, it is important for the team to discover several other things regarding the government regarding business relations (Lewicki, et al, 2015). The first thing to research about is the corporate environment relating to the kind of policies that will be used in the sort of negotiation that will be carried out. Secondly, it is recommended to find out about the authority of the negotiator and if they have the power to perform in closing the deal. It is advisable to negotiate with individuals who can authoritatively make decisions than having to seek advice from their seniors. Third, most negotiations have different incentives which can attract them towards closing a deal. There are also attitudes that can influence their perceptions towards the business and the entire process of negotiation. Finding out about these attitudes and incentives as well as the motivating factor can place the business in a stronger negotiating position. Fourth and finally, the consultants from the company can research to know if there is any other business that has previously closed similar deals with the U.S government. These businesses could be competitors, business associates, or even friends. If not, information can be gathered from people to get their overall opinion. Obtaining this kind of feedback from sources of first party can be a superb way to ascertain what kind of negotiators the company will be dealing. The information would also assist in deciding the kind of strategies to apply in the negotiation process (Lewicki, et al, 2015).
Overcoming Objections on Quality or Price of Commodity
Similar equipment's of GPS guidance by competitor companies with lower prices and different conditions can cause a challenge to the enterprise because there can be complaints about quality or price. Objections in negotiations are common and the success of the company in it business talk will be determined by how they are handled (Lewicki, et al, 2015). The first action in dealing with objections is to attempt to comprehend the perspective without having to agree with the opposition. One way of overcoming quality opposition from the client is by handling it as a pre-negotiation preparation. The sales team can prepare a list of the company equipment benefits, attributes, and disadvantages. They can repeat the same for similar material from competitor companies. Then, list all conceivable objections to the company's equipment. The team can then brainstorm to come up with possible responses to challenge these objections. A second way of dealing with complaints is to offer an alternative to a long-term discount. When the business has a value-add application, theoretically clients should grow dependent on the products of the company and the benefits they enjoy. In this case, once the government invest time assimilating and learning how the equipment is used, it is most likely that they will want to purchase more equipment from the company. Whenever a client shows nervousness of the products price, it is recommended to overcome the objection of the cost by assisting them to realize the value of the product by using it. Hence, instead of providing a long-term discount, give the likelihood with the chance to try the product to confirm the value for their model of business (Oliver, 2011).
Essential Steps to follow in Opening the Session of Negotiation
The consultation process is more than merely meeting around the table and trading proposals. It involves operating through several stages as the parties learn enough regarding the other team or individual to engage them in discussions that entice the other party to agree to accept (Lewicki, et al, 2015). After all, negotiation concerns persuading the other party to close a deal with the business. The other team has to get inspired to act finally. Before opening the negotiation session, there are several steps that the team from the company would have to follow.
Identify if There is an Issue of Conflict
The first step is to identify if there is an issue of conflict or if there are any conflicts. It is fundamental to determine what the problem is before attempting to solve it. Usually, arguments happen due to separate discussions among team members, or the crossover associations are not clear to one of the teams.
Choose Participants
The second step is to choose participants. The company's team and the government team are allowed to add or oppose to a prospective participant in the negotiation. The manner in which the two parties populate their teams typically will affect the results. It is advisable to avoid individuals who are likely to worsen the situation during negotiation.
Research on the Participants in the Consultation
Third, research on the participants in the consultation should commence. On the company's team and the government, a team has become aware of the people involved; there is need to study member in the other team and why they are involved as well as the positions they favor. The government's choice of co-negotiators will show areas they find significant to the government's position or where they think lacks expertise.
Preparing for the Negotiation
Fourth, preparing for the negotiation requires that the team distinguishes facts and assumptions by understanding the right situation and what may be assumed to be true. Facts should be validated, and the team should ensure that their information is current. If the facts present cannot be verified, it is suggested that they are taken as assumptions. The assumptions should be checked by confirmation from the third party of just by requesting the other team to validate. The assumptions that cannot be validated should then be tested or be disregarded because incorrect assumptions can damage a rather good negotiating strategy. The team should finally adjust their strategy to ensure that their first goals, objectives, and strategies are still suitable. The new statistics can usually alter policies and sometimes can prevent the disagreement entirely. The fifth step involves meeting the government team. The first meeting of the participants is very brief. This first session is an exceptional time during which the team should study every person about to sit around the table. It is a time to observe those who appear uneasy and who are uncomfortable. The company's team should engage in casual interactions to ascertain the backgrounds and interests of the government group. Seventh and finally, it is recommended to verify the parameter of the status. Upon being seated around the table, it is useful to ensure that all members know about all issues for discussion and reveal any upcoming issue that requires being addressed. At this point, the team is now ready to open the negotiation process.
Possible Gambits to Use in the Negotiation Session
For successful business negotiations, a company needs to acknowledge that other teams will purpose to draw out the most from their negotiators, by foul or fair means, as the team is willing to offer. It is for this reason that team members are required to understand the tactical moves or gambits the other team might play on them, and to learn how to play these gambits (Oliver, 2011). One of the gambits the team could use to close the deal successfully is the "Shock them" gambit, which should come at the initial stage of negotiation. It only means to shock the other team. While making an opening demand, it is recommended to make it as credible high as it can be. Majority of people who plan meetings have the potential to express dismay and shock at the other team's presentation. This kind of gambit forces the other team to adjust accordingly.
Another gambit to apply is adjourning. This habit is rarely introduced during the initial phases of negotiation because most negotiators wish to settle faster instead of becoming aware that they need to play a game. This gambit can be applied when the other team offers something along the company range. The trick is to adjourn and following a presentation of a lengthy consideration, say no. This adjournment may well play a trick on their patience and cause them to lower their terms to the advantage of the company (Lewicki, et al, 2015).
The Importance of a Negotiator Writing the Contract
As the lead negotiator with the government, it is important to be the one to write the business contract of the business deal rather than let the government dictate terms. A written contract will offer the company legal documents indicating the interests and expectation of the company and the way to resolve negative situations. Having the business write the contract will allow it to express the best interest of the firm because it will act as an instrument to safeguard its resources (Lewicki, et al, 2015). An external person like the government may not be well versed with the companies interest and therefore if allowed to dictate the terms of the contract may cause damage to the operations of the enterprise. Besides having proof to show in case of a process of litigation, a written agreement allows the terms of the accord to be documented. In the event of disagreements, the written report is available for parties to refer to get back on track. In addition, it is not advisable for the company to leave the task of drafting the contract to members of the industry because businesses belonging to the same industry may not share the same interests. If the writing is left in the hands of a few members, there is a likelihood of disregarding some interests of the negotiation business. The negotiating company may then run into conflicts with their partner and fail in the process. Secondly, members of the industry may also be competitors in the negotiating business hence if they are involved in the writing of the contract may cause a conflict of interests (Oliver, 2011).
The Body Language
Experts in negotiation recommend negotiators to meet with their counterparts in person rather than depending on the internet or telephone. Electronic media does not have visual cues that assist in passing critical information and shape links in face-to-face interactions. In the absence of facial expressions and gestures, negotiators at a distance may not accurately build a rapport or get the other person's tone.
One of the body languages to look out for during negotiation is mimicry. Mimicry symbolizes a strive to creating rapport, finding common ground and connect with each other. The act also appears to make individuals feel comfortable around others and encourages trust between two people. It is believed that those who mimic others while talking are usually more honest and persuasive unlike those who do not. When assessing the negotiator's trustworthiness, it is recommended to check their facial expressions. It is believed that people who do not say the truth have a challenge matching their emotions with their facial expressions while communicating (Peleckis, et al, 2015).
Conclusion
While some things such as technology advances within the business world are rapidly changing, negotiation remains the same. The game of negotiation is the critical skill of operations as it has always been. Powerful negotiation skills can make the difference between a loss, and a beneficial compromise. Conflicts will always exist in business, and the power to resolve them is what brings success. As a lead contract negotiator of a company, it is important to have essential skills of negotiation while transacting with the government in a major business deal. The same skills should be instilled in the members of the company's team to create a condition of success in the firm. This paper highlighted key points for the lead contractor to keep in mind while preparing to write a contract that would enable the company to close a deal with the U.S government and to make a profit on the sale of their commodity, which is the GPS guidance equipment.
References
Lewicki, R., Saunders, D., & Barry, B. (2015). Negotiation. New York, N.Y.: McGraw-Hill Education.
Oliver, D. (2011). How to negotiate effectively. London: Kogan Page.
Peleckis, K., Peleckienė, V., & Peleckis, K. (2015). Nonverbal Communication in Business Negotiations and Business Meetings. International Letters Of Social And Humanistic Sciences, 62, 62-72. http:\/\/dx.doi.org\/10.18052\/www.scipress.com\/ilshs.62.62
