Monday, February 25, 2013

Negotiation: The Win Win Strategy

Negotiation takes two parties to carve some outcomes based on mutual interests. This mutual interest can be some dealing or even can be some dispute. But as in this topic I will only consider dealings not disputes. A good negotiator is one who produces a WIN-Win situation between both parties. Gerard I. Nierenberg, author of The Art of Negotiation, argued that "everybody wins" is better than "winner takes all" approach. This WIN-WIN philosophy assures that all parties benefit from the negotiation process.

With the global business, distances are shrinking and we have created a global village. Merger, dealing, employing and procurements are taking more and more time of management. Lack of better negotiation can lead to failure. So, firms throughout the world are concentrating on negotiation skill of their employees.
In past it was considered that negotiation skill is a personality trait and the person having such skills can only do good business. They also believed that anyone can't achieve it as it is god gifted. But in my opinion negotiation is not a personality trait at all; anyone who has zeal for it can achieve it. This article will try to give out the best negotiation strategy, which once followed will generated WIN-WIN situation.

The process of negotiation

Negotiation: The Win Win Strategy

Different literatures talk about different steps of negotiation. I will try to put up the optimal from them. We can classify negotiations in three chronological steps - before, during and after.

1. Preparing for the negation -

a. Know your goals. Negotiation can be of vivid shades like, you want to approve your conditions, you want to take agreement of someone or you have to win a better price tag. All these must be clearly stated in your mind. Also draw out flexibility in your goals.

b. Set floor and ceiling. Any agreement has some points to ponder, and each point has a range. First chart out all the points in the negotiating agreements and also the floor and ceiling of each point. Like, if you are a human resource manager and you have to negotiate for an employee, the salary and benefits ranges should be set, before going in negotiations.

c. Know your authority limits. If you are negotiating on behalf of someone else like for your company, you also know what exactly what are your capabilities and what are your limitations. See, when you are negotiating for your company always remember that you are not the company, but you are only the employee of that company, so, don't take anything personal.

d. Fix a meeting. This is obvious point, but it is worth mentioning. Make sure that your meeting time, place and person to meet should be well decided. The time and place chosen must be comfortable to both the parties. Also make sure that you are communicating directly to concerned authorities not to mediators.

2.Negotiating Process

a. Generating the best deal for you. Always make sure that you got the most from the negotiation. Even if you have some compromise, the over all outcomes are in your favor. This should be the first policy of your whole negotiation.

b.Communicate directly to concerned stakeholder. Whatever your communication media be (face to face, telephonic, mail or online), always talk directly to the concerned authorities. If you are communicating to middle man (like secretaries or receptionists) you can never final a deal.

c. Let them speak first. This is helpful in some cases when the other party is making more favorable deal than what you have thought of. If you speak first they will change their tone. This is also applicable in your side.

d. Setting wins conditions of the other party. See what points are WIN conditions for the other party. Sometimes other party is more concerned about some less useful part of agreement; you can take advantage of it by popping up that portion as core issue and make them feel that they have won the agreement.

e. Be trust worthy. Do not try to dodge your opponents in negotiation, try to make them understand you and trust you. And when I said "make them" I never mean "fake them", so, you must be trustworthy and this is one quality that will help you most in getting the 'YES'.

3. The aftermath of negotiation

a. Nothing should be considered as a full and final in any agreement. Verify that the outcomes are exactly according to the agreement of negotiation, if they are not, we can go for a further step in the negotiations.

b. Analyze the negotiation. We can learn from old experiences, this also works in negotiation. Try to analyze whole process, "what worked what not", "what went wrong" these should be analyzed, so that we can improve our skills for future negotiations.

New research in the field

Now some more topics are added and being researched in negotiation skill. One of such topic is "adding emotions to win negotiations." Anything that makes you win your goals must be considered in business dealings, so this can also be tried.

Conclusion

Negotiation is something that can only be won by will power and confidence. Your thinking of better alternatives and understanding the limits of your negotiation can help you most. Any negotiation is called successful only when both parties win, "Winner takes all" approach is not a better negotiating policy.

Negotiation: The Win Win Strategy
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Manu Dutt Tripathi is a young energetic computer professional working as a consultant DBA in leading IT firm of Bangalore, India. He has a master degree in computer science. He is an active member of many technical forums and help users and computer professional through out the world.

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Sunday, February 17, 2013

Negotiation - Basic Strategies

1- Identify guidelines you should follow during the negotiation;

To have an effective negotiation we should follow some basic strategies:

Separate the people from the problem Focus on interests, not positions Create options, Insist on standards

Negotiation - Basic Strategies

2- Identify steps of the negotiation process;

Recommended steps in negotiating a conflict:

Confront the opposition. Define the conflict mutually. Communicate feelings and positions. Communicate cooperative intentions. Take the other person's perspective. Coordinate the motivation to negotiate. Reach an agreement that is satisfactory to both sides

3- Apply guidelines that will enable you to facilitate effective communication during the negotiation;

It is important to build rapport during a negotiation.

To have an effective communication during the negotiation, we should remember a few key items:

Keep a 'YOU' focus-Most humans love to talk about themselves. Listen well and ask relevant questions. Speak the same language as the other person. Use person's name during the conversation (at least 3-4 times). Use words like 'we', 'our', 'us'.

Other useful suggestions for effective communication during the negotiation process are: offer options and explain them clearly, clarify expectations and offer them time frames.

Body language and non-verbal communication has an effect in the communication process as well.

4- Identify the types of questions you should ask during the negotiation;

These are questions starting with:

What, Where, When, How; Or, Help me understand; Explain to me; Describe to me.

For example, Can you give me the details of your organization structure? Randall, during the negotiation process, asked "How do you put a value on a company like this?"

5- Identify characteristics of the negotiation styles;

Probing is the skill of questioning to obtain information.

Successful negotiators tailor their approach to the behavioral style and needs of their counterparts.

Being able to identify a counterpart's preferred style and adapt your own style accordingly can be incredibly helpful in building productive relationships.

Negotiators who use the Amiable style have a strong need to feel recognized and valued in the negotiating partnership.

Another style that we may encounter when negotiating is the Driver. Drivers have a strong concern for outcomes and when ruthlessly pursuing their goal, may become shark like. Drivers are self-confident, assertive, and when feeling cornered, may become aggressive in their tactics.

Analytical negotiators have a strong need for facts and details, and won't move forward unless they have had the opportunity to carefully analyze all available data.

Blends negotiators are people who have no clear preference for one style, but use a combination of styles. Blends are personable, social and often have a sense of humor

6- Apply the guidelines you should follow when this negotiation becomes challenging.

A range of nonverbal clues may serve as red flags during a negotiation.

When dealing with difficult negotiations, it is important to screen our behavior:

Say and do as little as possible Direct action to alter impressions Present facts that enhance one's position

Negotiation - Basic Strategies
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Saturday, February 9, 2013

The Key to Successful Cross Cultural Negotiation

INTERNATIONAL BUSINESS NEGOTIATIONS

The impact of international business in domestic markets compels us to ask a question: How can we survive in this global playing field, and what can we do to run our businesses more effectively?

Nowadays, businesses of all sizes search for suppliers and customers on a global level. International competition, foreign clients and suppliers may become a danger, but they may also create huge opportunities to develop our business. The increasingly global business environment requires managers to approach the negotiation process from the global business person's point of view.

The Key to Successful Cross Cultural Negotiation

This approach includes aspects which are usually unimportant in domestic negotiations. Some of the components of a cross cultural negotiation process are more complex and difficult, but will increase our success in avoiding barriers and failures in the international business arena.

When doing business internationally, we need to consider:

The negotiating environment Cultural and sub-cultural differences Ideological differences Foreign bureaucracy Foreign laws and governments Financial insecurity due to international monetary factors Political instability and economic changes

If we consider the fact that negotiating with our fellow citizen is not an easy task due to many individual differences, it would be reasonable to suggest that negotiating with foreigners may be even more difficult. The way we perceive and create our own reality may be completely different to our counterpart's way of thinking, behaving and feeling. Unfortunately, knowledge of any foreign language is not enough to face and solve the problem. Language is a cluster of codes used in communication which, if not shared effectively, can act as a barrier to establish credibility and trust.

We need more effective tools, and the most important is knowledge of all factors that can influence the proceedings. Nations tend to have a national character that influences the type of goals and process the society pursues in negotiations. This is why specifying and understanding cultural differences is vital in order to perform successfully in inter-cultural communication. As we better understand that our partners may see things differently, we will be less likely to make negative assumptions and more likely to make progress when negotiating.

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.

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 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.

The Key to Successful Cross Cultural Negotiation
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Michael Zieba is the Founder of The Strategic Negotiation Institute (SNI)
http://www.strategicneg.com

Gain unparalleled negotiation skills at The Strategic Negotiation Institute.

Our core competency is to help organisations save money, increase profits and maximise the value of their negotiations. Specialists in sales, procurement and executive negotiations, we design and deliver customised business negotiation solutions that go far beyond conventional negotiation wisdom and unlock unconventional value.

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Wednesday, February 6, 2013

Overcoming Communication Barriers Between People

When you send a message, you intend to communicate meaning, but the message itself doesn't contain meaning. The meaning exists in your mind and in the mind of your receiver. To understand one another, you and your receiver must share similar meanings for words, gestures, tone of voice, and other symbols.

1. Differences in perception

The world constantly bombards us with information: sights, sounds, scents, and so on. Our minds organize this stream of sensation into a mental map that represents our perception or reality. In no case is the perception of a certain person the same as the world itself, and no two maps are identical. As you view the world, your mind absorbs your experiences in a unique and personal way. Because your perceptions are unique, the ideas you want to express differ from other people's Even when two people have experienced the same event, their mental images of that event will not be identical. As senders, we choose the details that seem important and focus our attention on the most relevant and general, a process known as selective perception. As receivers, we try to fit new details into our existing pattern. If a detail doesn't quite fit, we are inclined to distort the information rather than rearrange the pattern.

Overcoming Communication Barriers Between People

2. Incorrect filtering

Filtering is screening out before a message is passed on to someone else. In business, the filters between you and your receiver are many; secretaries, assistants, receptionists, answering machines, etc. Those same gatekeepers may also 'translate' your receiver's ideas and responses before passing them on to you. To overcome filtering barriers, try to establish more than one communication channel, eliminate as many intermediaries as possible, and decrease distortion by condensing message information to the bare essentials.

3. Language problems

When you choose the words for your message, you signal that you are a member of a particular culture or subculture and that you know the code. The nature of your code imposes its own barriers on your message. Barriers also exist because words can be interpreted in more than one way. Language is an arbitrary code that depends on shared definitions, but there's a limit to how completely any of us share the same meaning for a given word. To overcome language barriers, use the most specific and accurate words possible. Always try to use words your audience will understand. Increase the accuracy of your messages by using language that describes rather than evaluates and by presenting observable facts, events, and circumstances.

4. Poor listening

Perhaps the most common barrier to reception is simply a lack of attention on the receiver's part. We all let our minds wander now and then, regardless of how hard we try to concentrate. People are essentially likely to drift off when they are forced to listen to information that is difficult to understand or that has little direct bearing on their own lives. Too few of us simply do not listen well! To overcome barriers, paraphrase what you have understood, try to view the situation through the eyes of other speakers and resist jumping to conclusions. Clarify meaning by asking non-threatening questions, and listen without interrupting.

5. Differing emotional states

Every message contains both a content meaning, which deals with the subject of the message, and a relationship meaning, which suggests the nature of the interaction between sender and receiver. Communication can break down when the receiver reacts negatively to either of these meanings. You may have to deal with people when they are upset or when you are. An upset person tends to ignore or distort what the other person is saying and is often unable to present feelings and ideas effectively. This is not to say that you should avoid all communication when you are emotionally involved, but you should be alert to the greater potential for misunderstanding that accompanies aroused emotions. To overcome emotional barriers, be aware of the feelings that arise in your self and in others as you communicate, and attempt to control them. Most important, be alert to the greater potential for misunderstanding that accompanies emotional messages.

6. Differing backgrounds

Differences in background can be one of the hardest communication barriers to overcome. Age, education, gender, social status, economic position, cultural background, temperament, health, beauty, popularity, religion, political belief, even a passing mood can all separate one person from another and make understanding difficult. To overcome the barriers associated with differing backgrounds, avoid projecting your own background or culture onto others. Clarify your own and understand the background of others, spheres of knowledge, personalities and perceptions and don't assume that certain behaviors mean the same thing to everyone.

If you would like to get custom-made advice about your communication problems, please feel free to email me at martinmim21@hotmail.com All requests will be handled professionally and your communication problem will be handled in strict confidence.

Overcoming Communication Barriers Between People
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Martin Hahn Ph.D. is an industrial sociologist with more than 20 years experience in teaching, management consulting, and corporate training. The above article is an excerpt from the ebook titled 'Overcoming Communication Barriers between People and in Organizations'. His ebook on communication can be purchased at http://www.martinimhahn.com

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Sunday, February 3, 2013

Negotiation - Understanding Your Sources Of Power

One of the main differences between negotiators is how confident they feel when
negotiating. Typically, the more confident we feel, and the better we are prepared,
the more successful will be the outcome of our negotiations.

Personal power comes from many sources. To build up and increase our confidence
as negotiators we need to step back and analyse the sources of our personal power
and compare them with those of the people with whom we are negotiating.

Power is not absolute. In most negotiating relationships the power balance moves
with time as the negotiation progresses.

Negotiation - Understanding Your Sources Of Power

Here are just a few examples of sources of power:

Information Power:

Information power comes from having knowledge that will influence the outcome of
the negotiation. Planning and research can increase our information power, as can
asking the right questions before we reach the bargaining phase of the negotiation.

Reward Power:

Reward power comes from having the ability to reward the other party in the
negotiation. It could be the power a buyer has to place an order for goods and
services or the power a salesperson has to give good service and solve problems

Coercive Power:

Coercive power is the power to punish. This is seen most commonly in the buyer-
seller relationship, but can be a feature of other types of negotiation.

Situation Power:

Situation power is the power that comes from being in the right place at the right
time. A customer is desperate to place an order and you are the only source of
supply in the short term. Having an effective network and keeping in touch with
what is happening can increase your situation power.

Expertise Power:

Expertise power comes from having a particular skill which you can apply and which
can influence the outcome of the negotiation. Improving negotiation skills helps you
win better deals. Other areas of expertise could also help the outcome of the
negotiation.

And Finally - Referent Power:

Referent power comes from being consistent over time. If people see you as having a clear, consistent strategy as a negotiator, you will increase your referent power.
Having standards that you stick to and being consistent will help to increase your
referent power. In the eighties, Margaret Thatcher wasn't universally popular, but
was respected by many for being consistent in her views and behaviour. In the end
she failed because her approach was too rigid and she was unable to adapt to
changing circumstances.

Copyright © 2007 Jonathan Farrington. All rights reserved

Negotiation - Understanding Your Sources Of Power
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Jonathan Farrington is the Managing Partner of The jfa Group. To find out more about the author, subscribe to his newsletter for dedicated business professionals or to read his weekly blog, visit: http://www.jonathanfarrington.com

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