Thursday, July 6, 2006

Art of Negotiation

Today, I had to clean my desk and my library. The books that I have read are all stacked up because the fiction books that have been made into movies in Hollywood are now in forms of DVD’s. I did not want more space to block my library hence I kept my books away and there I found my old notes of my MBA student days. One of which deals with Negotiation. Reader, I would not make this as academic article but this would be no nonsense, to the point readable article on the Art of Negotiation. I would not like to waste your time to give basic definition of negotiation as you all know it very well. This article deals with how negotiation is universal attitude and goes on to explain 6 basic types of negotiation and which one should be adopted in what circumstances to suit your goals.
Negotiation is universal
Negotiation is applied into all relationships because everywhere there is a deal and life is full of negotiations. The quality of your life eventually depends upon your attitude in negotiation. Your attitude while negotiating has to be top class or simply superb Sometimes you have to play to win or play not to lose! Negotiation can be of 6 types. 1. I win, you lose 2. I just win 3. I lose you lose 4. You win, I lose 5. No deal 6. Win-win means you win, I win Let’s see the aforesaid in details 1. I win, you lose: This is a kind of negotiation that is egoistic attitude. A person who keeps such an attitude may not be liked and in long run will not be able to pull off the deal if the person wants to be in business. This must not be applied in long run, but only in short span provided you never intend to deal with the person(s) but if you apply this I win, you lose attitude remember that your energies will be diverted on opponent moves. 2. I just win: Again, this is almost near to the aforesaid as the person who has this attitude in negotiation concerntrates his energies only on himself or herself and not bothered about others. The problem with this kind of attitude is the person may not know his standing and just get short-term benefits. 3. I lose, you lose: what a situation! The person who has this attitude knows he or she is losing and the focus on others is to lose as well! Reader, keep away from this kind of attitude in negotiations. Such type of persons keep you in suspense till the climax and in the end you realize that the person was just acting like a honest person or your well-wisher but had plans neither for you or for him/her to succeed. Then you would ask how to know such persons or such attitudes. Right! The golden rule to judge such persons is that anyone who looks extra sincere, extra perfect, extra cautious, extra honest, extra humble, you better doubt his/her intentions. As this person may be very very dangerous and may have ulterior motives or objectives. This type of person is a weed. A weed is unnecessary grass that grows in your garden that hampers the growth of a tree or other plants. Out of 7 people, 2 may be weed that you come across in real life. Just cut them out. 4. You win, I lose: this kind of situation happens in two cases Case A : Normal people (with inferiority complex, shy people, low self esteem, sensitive/emotional persons, or persons prone to emotional blackmail) Case B : Diplomats (who divide the cake in such a way that both the parties think they have the bigger bite) This kind of I lose,you win situation is by choice by diplomats. They “choose” to lose. It’s a well-planned move and long term thinking. These kinds of people are keen observers of situations and attitudes of people. People who have diplomatic thinking are like they think twice before saying nothing. The difference between Case A of normal people and Case B of diplomats is that a diplomat “contributes” to lose where as in case A people “sacrifice”. When you are in such situation you should know which kind of person you are dealing with. What is to be done with that? Well, you will read all the answers in conclusions. 5. No Deal: Often people do not make a deal in negotiations it may happen in two cases Case A: When you see that time is not ripe for the deal or Case B: When you sense that the other person is not in tune with negotiation. So in case of A, when time is not ripe you can get away with just 2 statements to avoid arguments with words like “I don’t know” or “you are right” and make no deal. Sometimes you can choose not to negotiate with people whom you feel: Are not principled in terms of payments of money. People who are bad at keeping promises or the people who have bad track records as you just don’t do anything but waste time and energy with such lethargic people. 6. Win-Win (You win, I win) This can be the best attitude and best negotiation you could ever have, remember its You win and then I win. Its not only long lasting but also fruitful for both the parties. This win-win situation creates better relationships, trust, gratitude that only grows stronger with time. No wonder people give so much importance to costumers. This is probably the only situation that can make you excel in your given profession or business in the long run. Conclusions: Here is a checklist!  You must know the person whom you are negotiating with or have fair amount of idea.  You must know your attitude before going for negotiation.  You must know what benefit you can offer to others.  You must know your minimum and maximum offerings.  You must know how to start it and yeah you guessed it right  You must know the art of ending the deal as well. What negotiation you choose in what circumstances depends upon your attitude and your goals. See to it that the other party or person is also satisfied for what you are offering in return for what you want from them. May you go for the best deals. I wish you all the best for your deals. Go conquer!