How to: Negotiate

What does this look like?

Managers who negotiate effectively:

• are able to gain the trust of other parties to negotiations
• know when to compromise and when to take a tough stance
• can achieve outcomes without damaging relationships
• can be strong and direct as well as diplomatic
• have a good sense of timing.

How can I do this?

1.    Know the outcome you want

Before you begin negotiating, clearly establish:

• your goals—what exactly do you want to achieve?
• what you’re willing to give and the impact this will have on your unit i.e is it negligible, small or major?
• what you’re not willing to negotiate on.

2.    Choose a suitable setting

Choose an appropriate setting for negotiations and think about where people are positioned in the room. Try not to have all likeminded parties on one side. If you’re the host, allow time for people to settle in and feel comfortable. Begin with small talk.

3.    Set the boundaries

• Start by explaining the purpose of the meeting. For example, you could say, ‘We have a few important goals that we won’t reach without some support.’
• Allow each side the opportunity to outline their goals and positions. Clarify if there are issues that won’t be discussed. For example, ‘We aren’t here to discuss costs today.’

4.    Understand the other position

• Try to learn as much as you can about other people’s positions before you start a negotiation.
• What do they want to achieve?
• What are their non-negotiables?
• What are they likely to do if there’s no agreement?
• When the other side presents their position, ask clarifying questions to make sure you fully understand it and why they hold it. Ask questions like:
• ‘When you say that, what do you mean?’
• ‘Why is that?’
• ‘How would that work?’
• ‘What led you to that position?’
• If you don’t think you can accept their position, don’t immediately reject it. Ask for the reasoning behind the position and how it will produce a fair outcome. Play out what would happen if you did accept the position.

5.    Present your position carefully

• When you present your position, don’t start with non-negotiables. This can seem like an ultimatum and undermine the negotiation.
• Give reasons first and your position last. If you start with your position, people may not hear your reasons.
• Present your position calmly. Try to avoid:
• strong words and statements
• casting blame
• absolutes
• lines in the sand
• unnecessary passion.

6.    Work towards an agreement

• Try to find points of agreement.
• Categorise other issues as either ‘deal breakers’ or ones you’re ‘far apart’ on.
• Address deal breakers one at a time. Ask why an issue is a deal breaker and what it would take to make the situation workable. Try to shift ‘deal breakers’ to issues you’re ‘far apart’ on.
• Look for ways you can change your position in order to reach agreement.
• What small compromises could you make?
• What could the other side give in return?
• State potential changes as propositions. For example, ‘If we were able to deliver the clinical supplies an hour earlier could you have the trolleys ready for return by 2pm?’
• Be willing to adjust your position and let go of your ideal outcome. Remember the goal is to reach agreement, not to ‘win’.

7.    Keep negotiations fair and calm

Negotiations can easily become heated. If people start behaving inappropriately, call for a break or end the discussion completely.

• If there are interpersonal conflicts, deal with them outside of the negotiation.
• Avoid game playing (e.g. ‘good cop, bad cop’) and call it out when it happens.
• If people aren’t being fair or respectful, point out that they don’t seem willing to explore options and ask why.
• Suggest objective standards and identify issues that aren’t to be discussed.
• Don’t allow people to blame each other. Focus on facts and solutions.
• You don’t have to respond to unreasonable proposals or attacks. Simply say nothing or move on.
• If someone makes a suggestion that seems ridiculous, ask them to explain it. It may not be ridiculous.

Be aware of your emotional reactions during a negotiation. Try not to let impatience or frustration show either in how you speak or through non-verbal cues. If you start losing your composure try asking a question or asking the other side to tell you more about their point of view.

If the other side expresses frustration, don’t respond in kind. Return to the facts and the problem to be solved.

If need be, suggest a break to give people a chance to calm down.

8.    Closing the negotiation

• If you can’t agree on everything, document the things you do agree on and any remaining issues. If you need to, make a suitable arrangement for the mean time while the parties keep looking for a better solution.
• Try to agree on a process for moving forward and keeping momentum e.g. follow up steps, a timeframe for meeting again.
• End on a positive note and work at keeping the relationship intact.

9.    Arbitrate if necessary

• If the parties can’t agree, consider involving a third party to help broker a resolution. Find someone who both parties are willing to work with. An arbitrator can help clarify each side’s interests and keep suggesting compromises until there’s an agreement.
• If you still can’t agree after arbitration, consider passing the issue to a higher authority.

10. Know when to walk away

Sometimes it becomes clear that the parties will never reach an understanding. As a manager, you have limited time. Be willing to move on when you need to. Think of other ways to meet your objective if possible.

You may find this challenging if you…

• want to win every battle and don’t want to compromise
• give away too much to get agreement
• don’t like conflict and don’t know how to respond to attacks, contention or peoples’ inflexibility
• can’t stand your ground when you need to
• don’t listen well
• struggle to find common ground
• find it hard to be diplomatic, direct and polite.

You’re not negotiating effectively if you…

• can get agreement but ruin relationships
• disregard how people feel
• won’t let go and move on when you need to
• spend too long negotiating.