Customise for negotiations

Margins are tight and the competition powerful. Just getting to the negotiation table is a challenge nowadays. All the more reason that once you are there, make sure to capitalise on the opportunity. The key here is good negotiation skills.

Good negotiators have three main attributes: they create value in the negotiations; they know how to capture that value; and, for long-term success, they are fair.

All three are equally important. Being tough is about not being walked over so that you capture value for yourself and your organisation.

Creativity allows you to create that value, to identify deals that expand the plot for everyone involved and push the frontiers in productive directions.

Being fair ensures that everyone walks away feeling like they have negotiated well and that you are a reliable partner. There are very few negotiations that occur just once. So, being "fair" is crucial.

Prepare, prepare, prepare

No doubt you prepared effectively for your exams. Do not misunderstand: negotiations are no different. You are being tested.

There are two matters you need to tackle. One is to make sure you understand the issues, how they interconnect and how they create value for you. The second is what trade-offs you are willing to make.

But your own house is just half of it. The other side is perfectly symmetrical. What is the other side of the table likely to care about? Of the issues at hand, which are the most crucial for them? What trade-offs are they likely to make? And crucially - who are they? Who has the decision-making authorisation? Who is going to be influential on the other side?

Horses for courses

One of the most common mistakes negotiators make is to assume that every negotiation is basically the same. Research shows unequivocally that different types of negotiation demand different approaches.

Unfortunately, people are often taught to negotiate using highly simplified exercises that do not reflect the reality: "Be really tough", and "Only give grudgingly", or "Keep your back to the sun", and "Wear power underwear". Simplified rules for negotiation may work fine in some situations, but are counterproductive in others.

The lessons you learn in one series of negotiations do not necessarily help in more complex situations. Rather than focusing just on capturing value, you may have to focus on creating it. There may be many parties involved and alliances may need to be built. There may be seemingly unrelated links you need to manage. Keep an open mind and be aware of the whole.