To think of the ideal negotiation is to think of a utopia. However, when it is carried out, someone always earns a little more than the other and setting the standards for a good negotiation is very feasible, as well as increasingly improving our actions and strategies in the domain of the art of negotiating and both sides win.
Some typical problems in ordinary negotiations of business people in Mexico (Analysis of common frustrations in the negotiation process)
- Both sides in the negotiation always seek the best for each one without thinking about the other. We only think about ourselves, what is there for me, and not what is the benefit of the other. By "opening our cloak" and teaching our interests, most likely, the other take advantage and take advantage of our situation to obtain greater power in the negotiation and as a result we end up giving more than what we initially thought to yield.When one of the parties is a direct communicator, and this, when communicating in the negotiation process is too aggressive and end up with misunderstandings or continuous frustrations.One of the parties is so indirect that it does not have the courage to face the reality in the negotiation and say directly that we will NOT reach an agreement in this way and we must find another type of arrangement or continue with other businesses and forget the one that We have in question, when one of the parties hides the real reason why it is taking longer than expected to reach the agreement.
These are among other situations that we have observed are consistently repeated in both negotiations in our business environment.
What should we do to avoid so much frustration and wear and tear between the parties?
- From the beginning of the negotiation: Be Clear and direct Be honest Address the problem with guts Not be afraid to ask or ask Be ourselves Do not pretend that everything is going well, when the ship is sinking Do not be afraid of rejection
What can we do to standardize the characteristics of a good negotiation?
- First remember that not all negotiations are the same (they change according to the situation, number of players, the matter in question, the process, the timing, the culture, the environment, etc.). Understand the context in which Negotiation in progress is being carried out • Analyze the case first as the only one and then compare with previous cases, for reference only. Ask ourselves the following «Eight KEY Questions», 8 PC's.
- PC1: Do we know the client and all the decision makers? PC2: Do we know the needs of all the decision makers and who influence the decision? PC3: Can we really compete in this negotiation or are they using us as a reference? PC4: Can we win and if so, will it be worth it? PC5: What is the reason or reason why this negotiation is taking place, if there are more than two, what are the priorities? PC6: How important or urgent Is the project for the other? PC7: How relevant are we as service providers? PC8: How fast is the client in answering our phone calls or emails, or any type of communication?
These eight key questions will serve as a thermometer and help us assess how close or far we are from reaching a customer agreement. For example, if we have no idea how important and urgent it is to reach an agreement with the client, and how relevant we are, as suppliers, perhaps we are wasting our time. Either if the client takes too long to answer our emails, or our communications and continually evades or postpones us, he is most likely avoiding confronting us directly and saying "NO", the best thing in these cases is to be direct with the client, and face reality, move forward with other business opportunities, and put in "stand by" the one we are negotiating with this specific client.
So to standardize the characteristics of a good negotiation, it goes beyond the tactics and strategies of negotiation. It is entering the process from the prospecting of the client and evaluation of the business opportunity methodologically, through the steps of identifying decision makers, identifying their needs and preparing successful presentations and proposals to reach the effective closing.
Establishing the Process
The result of a successful negotiation can be predicted if we do our job well in the negotiation process before entering into negotiations.
The steps to be followed in order to forecast more accurately the expected results of the successful negotiation of the parties are:
1) Seek detailed information from the other party.
2) Thoroughly analyze why the other needs us.
3) Investigate what the competition offers and how we can overcome the offer.
4) Find out the timing of the deal, how urgent is it for our client?
5) Ensure that we have all the critical points of the decision makers of the client and of our company (internal sale).
6) Have reference of successful cases with other clients of similar projects or situations.
7) Have a well defined payment plan.
