Negotiation Techniques
Effective Negotiation Techniques
Introduction
Negotiation is a skill that can help you achieve your goals and resolve conflicts in various situations, such as business deals, salary negotiations, personal disputes, and more. However, negotiation is not just about making demands and getting what you want. It is also about finding common ground, creating value, and building trust with the other party. To do that, you need to use effective negotiation techniques that can help you communicate clearly, persuade effectively, and reach beneficial agreements.
In this blog post, we will introduce some of the most useful negotiation techniques that you can apply in different scenarios. These techniques are based on research and best practices from experts in the field of negotiation, such as the Program on Negotiation at Harvard Law School, MasterClass, and HBS Online. Here are the techniques we will cover:
- Reframe anxiety as excitement
- Anchor the discussion with a draft agreement
- Use silence effectively
- Ask for advice
- Consider involving an arbitrator
- Know when to compromise
- Request sufficient time
Let’s take a closer look at each of these techniques and how they can help you improve your negotiation outcomes.
Reframe anxiety as excitement
Negotiation can be stressful and nerve-wracking, especially if you are not confident or experienced. However, instead of trying to calm down, you can try to reframe your anxiety as excitement. According to Harvard Business School professor Alison Wood Brooks, this simple mental trick can help you feel more positive and perform better in negotiation. This is because anxiety and excitement are both states of high arousal, but excitement is more conducive to creativity, optimism, and persuasion. To reframe your anxiety as excitement, you can use self-talk, such as “I am excited to negotiate” or “This is a great opportunity for me” before and during the negotiation1.
Anchor the discussion with a draft agreement
One of the most powerful negotiation techniques is to make the first offer, as it can influence the rest of the negotiation and set the tone for the discussion. However, you can go one step further and present a draft agreement, or a standard-form contract, that outlines your terms and conditions in detail. This can give you more control over the negotiation, as it can save time and money, establish credibility, and create a reference point for further negotiation. Of course, you should prepare the draft agreement with your legal counsel and team members, and be ready to make adjustments and concessions as needed. A draft agreement can be especially useful in complex or formal negotiations, such as business contracts or legal settlements2.
Use silence effectively
Silence can be uncomfortable in a negotiation, but it can also be a powerful tool to convey confidence, create pressure, and elicit information. According to Harvard Business School and Harvard Law School professor Guhan Subramanian, you can use silence strategically in three ways: (1) after making an offer or a counteroffer, to signal that you are firm and expect a response; (2) after hearing an offer or a counteroffer, to indicate that you are not satisfied and need time to think; and (3) after asking a question, to encourage the other party to reveal more information or make concessions. However, you should not use silence too often or too long, as it can backfire and damage the relationship or the deal3.
Ask for advice
Asking for advice is a simple yet effective negotiation technique that can help you gain information, build rapport, and increase the other party’s satisfaction. By asking for advice, you can show respect and interest in the other party’s perspective, and make them feel valued and influential. This can increase their trust and likability towards you, and make them more cooperative and willing to reciprocate. Moreover, by asking for advice, you can learn more about the other party’s needs, preferences, and priorities, and use that information to craft better offers and solutions. You can ask for advice on various aspects of the negotiation, such as the process, the criteria, the alternatives, or the expectations4.
Consider involving an arbitrator
Sometimes, negotiation can reach a deadlock, where neither party is willing or able to make further concessions or agree on a solution. In such cases, you might consider involving a third party, such as an arbitrator, to help you resolve the impasse. An arbitrator is a neutral and impartial person who listens to both sides of the dispute and makes a binding decision that both parties have to accept. Arbitration can be faster, cheaper, and more confidential than litigation, and it can preserve the relationship between the parties. However, arbitration also has some drawbacks, such as the loss of control over the outcome, the limited appeal options, and the potential bias of the arbitrator. Therefore, you should weigh the pros and cons of arbitration carefully before choosing this option.
Know when to compromise
Compromise is often seen as a necessary and inevitable part of negotiation, where both parties give up something to reach a mutually acceptable agreement. However, compromise is not always the best or the only option, as it can also lead to suboptimal or inefficient outcomes, where both parties leave value on the table or sacrifice their interests. Therefore, you should know when to compromise and when to look for other alternatives, such as integrative or creative solutions that can create more value and satisfy both parties. A good rule of thumb is to compromise only after you have explored all the possible options and tradeoffs, and only if the compromise is fair and reasonable for both parties.
Request sufficient time
Negotiation can be a complex and dynamic process that requires careful planning, preparation, and execution. However, sometimes you might face time pressure, either from the other party or from external factors, that can limit your ability to negotiate effectively. Time pressure can impair your judgment, reduce your creativity, and increase your stress. Therefore, you should request sufficient time to negotiate, and avoid making hasty or impulsive decisions. You can request time to review the offer, consult with your team, do more research, or simply think things over. However, you should also be mindful of the other party’s time constraints, and avoid delaying or stalling the negotiation unnecessarily.
These are some of the negotiation techniques that can help you improve your negotiation skills and outcomes. However, these techniques are not universal or foolproof, and they need to be adapted to the specific context and situation of each negotiation. Moreover, these techniques are not substitutes for the basic principles and skills of negotiation, such as preparation, rapport, listening, and communication. Therefore, you should always strive to learn and practice more about the art and science of negotiation, and apply the techniques that suit your style and goals.
Sources:
1: 5 Good Negotiation Techniques – PON – Program on Negotiation at Harvard Law School
2: 6 Types of Negotiation: Effective Negotiation Strategies
