There are many ways of thinking about the negotiation process. Some see negotiation as a game of chess — with strategies and surprise attacks — while others follow the Harvard University approach of "principled negotiation". When you are working in a second language, it helps to have a clear understanding of the typical stages of the negotiation process, so you can more easily apply the appropriate language to each stage. That will make it easier to reach a successful conclusion.
The "BEST" approach to negotiating has four stages:
B for "building relationships"
E for "exchanging information"
S for "structured bargaining"
T for "total commitment"
Before you sit at the table, however, ask yourself three questions: What are my goals and priorities? What's my "walk-away point"? What is my BATNA? ("best alternative to a negotiated agreement").
In other words, decide what you hope to gain, the level where agreement becomes impossible and what alternative you have if the negotiation fails. Now, let's look at each stage of the negotiation.
Building relationships
In his classic book What They Don't Teach You at Harvard Business School, Mark McCormack says a good relationship built on trust and mutual respect can compensate for problems with delivery, quality and price. A good relationship is the platform for good business.
He also says you learn more about your business partner's intentions while socializing over coffee or lunch than you can ever discover during a negotiation.
Relationship building involves listening for clues about a person's interests outside work, including family. You can share appropriate personal information about yourself, because any strong relationship is based on mutual interests and common experience.
Exchanging information
Check any assumptions you make regarding the needs and goals of your negotiation partners. To do this, you'll need both questioning and listening skills.
Think of the process as a funnel. You guide your partner from a general opening to a specific, narrow end. Begin with open questions about experiences, attitudes and opinions. Encourage your partner to speak when you feel there's more to learn. Slowly, move to more specific questions about figures and hard facts.
Listen closely and show interest using body language and encouraging sounds and phrases. Check that you've understood correctly. In fact, regularly summarizing what you've discussed is a good idea, especially when working in a second language.
Structured bargaining
As you get more information, you will need to reassess your strategy. In most business negotiations, both sides are looking for a win-win outcome. That's why it's so important to talk in terms of mutual benefits rather than simply concentrating on technical specifications or financial arrangements.
The bargaining process is actually simple. First, you need to define and agree on the needs of both sides. Then, prove that the solution, plan or proposal satisfies those needs and that both sides accept this is so.
Of course, it's easier said than done. But making proposals conditional makes it easier to adapt or withdraw them — for example: "If you accept delivery in 60 days, we will carry out the technical changes you asked for." It also allows you to generate different options and possible solutions to any bottlenecks. "If..., then..." are the two most important words in English for an international negotiator.
Total commitment
This is most likely if the result of the negotiation meets four key criteria:
1. It's profitable to both sides. This means not only in terms of money but maybe also market share, advanced technology or a long-term relationship.
2. Any negative consequences are acceptable. All change has a cost — retooling, retraining, etc. The benefits must clearly outweigh those costs.
3. There's a proven plan. Both sides must be sure the agreement can be implemented effectively — timetables are realistic, figures are correct and processes will work as expected.
4. It needs to be now. There should be a sense of urgency and that the decision is coming at the right time — following a trend, adapting to new technology or being first to market.
Negotiations happen every day — some big, some small. They all aim to find the optimal solution. The BEST process can help you achieve that.