To build a successful business, you’re going to need negotiation skills on a daily basis. But the fact is that most of us don’t possess these skills naturally. A study says, about 58 percent of us fail to accurately estimate how assertive we’ve been, and most of us only remember 50 percent of what the other party said.
A good listener makes a good negotiator, says Prof. Dishan Kamdar – Vice Chancellor at Flame University, Pune also ex- deputy dean and professor of organizational behavior at the Indian School of Business, Hyderabad. He further explains the ingredients of a successful negotiation and the things a negotiator must keep in mind.
Firstly, Listen to the client and understand the client’s needs. While most people discover this during the negotiation process, you’ll be more powerful if you assume their needs in advance. Probably 80% of people do not prepare before any negotiation. And for those who do, they do not spend more than 20% time in planning. They spend 80% of their time haggling. It should be the other way around. A good negotiator is data-driven and not hunch-driven. Information is the key; research your counterpart, prepare your ideas in advance and identify exactly what they want. Warren Buffett can sit in his office for hours reading annual reports and financial documents. Mario Gabelli walks around with a briefcase always brimming with research reports he wants to read.
Next is building trust with the Potential Client sharing some information. One of the cornerstones of the negotiation process is getting your client to trust you. Ideally, there will be trust on both sides. This tends to reduce the number of bluffs or moments of deception that lead to a confusing and antagonistic negotiation. A great way to build this kind of trust is to share some information with your counterpart. Be honest with what’s important to you as you work on the negotiation. Sharing a snippet of information will build trust and increase the chances of you reaching an agreement.
Next is the ability to walk away from an agreement. Any agreement isn’t always better than no agreement. In other words, you need to recognize when you’re compromising so much the deal is no longer worth it. Unless you can walk away, you are powerless. Before you enter into a negotiation, your second and third alternatives must be very clear. Find your best alternative to a negotiated agreement, or BATNA. Once you understand this alternative, you’ll be able to make a fair decision that works in your favor.
The success of a negotiation is defined only when both parties’ objectives are met and not by thinking that I know what their objective is without even asking. Our biggest problem is that we are bad listeners. We think we already know. Most of us ask our opponent “what do you want”, and the buck stops there. But very few of us ask, “Why do you want it?” That “why” helps us understand your underlying needs, priorities, preferences and interests win.
Focus on the first 5 minutes. In a study published in the journal of Applied Sciences, the first 5 minutes of a negotiation can predict the negotiated outcome. During these minutes, the other party is trying to figure out if you actually mean what you say or if you’re merely trying to get more than what you know you’re worth. Start out likable so that the other person doesn’t shut down on you.
Lastly, start higher than what you’d feel satisfied with. Researchers say you should always start high in negotiations. These starting prices will eventually “form an anchor”, which will come to affect every other number that follows it.
So as a conclusion what we understand is when it comes to negotiation, most of us are pretty bad at estimating our innate abilities. We usually think we’re better than we are, and we end up settling in the negotiation process. But it isn’t true for you if you are prepared enough to be an effective negotiator.
Prof. Dishan Kamdar says, like most other skills, the ability to perform in negotiations is determined by some combination of natural ability, experience and formal training. His training program “Winning through Business Negotiations “prepare individuals with a conceptual framework that will help them turn their own negotiating experience into expertise. This program help professionals to become a better business partner, supportive colleague and a have nuanced understanding of collaborative value-creating outcomes.
The Recent program on “Winning Through Business Negotiations” by Prof. Dishan Kamdar was held in Mumbai’s Courtyard by Marriott on 18th and 19th July with 42 participants from diverse industries, fructifying this opportunity to the fullest for razor sharping their negotiation skills. One of our participants Vishal Joshi, GM at Kalpataru limited says “This was one of the best programs I have attended after years post my IIMB MDP. Prof. Dishan is a superhero in what he is teaching, highly appreciate the way the program was conducted by the Flame CEE team.” Another participant Kunal Ahuja, Director at Darshan apparels says “Engagement, content was so practical that we can immediately apply it to things getting back home. No jargons were used- just practical things which were relevant with really good case studies. I wish, I could have stayed on & on with the program. Looking forward for more MDP’s from Flame CEE.”
Our two day open program on “Winning through Business Negotiations” by Prof. Dishan Kamar will be held in Delhi & Bengaluru soon. Flame Center for Executive Education also deliver customized programs as per organizational needs. For Custom Programs our team at Flame CEE understand your goals thoroughly and help you to think deeply and innovatively about your needs and examine ways to best design a learning solution. We design programs taking into consideration both the working dynamics of your company as well as the current management experience of your staff. Adding on, our pool of faculties from leading educational institutions around the world with rich consulting, business experience and innovative pedagogy will help your professionals update their skills while making material improvements in your organization. For Enquires or to learn more about the programs we offer, you can contact us at: http://cee.flame.edu.in/contact-us/