Effective Negotiating And Why It’s Important

Negotiation is a part of life. It’s not simply used when you’re buying used cars or bartering for some souvenirs in a market stall - it’s an art that is used more often than you know. For IT professionals, it’s an overlooked skill to possess, and the more potent you are at negotiating, the more effective you’ll be at your work.

What Is Negotiation?

Negotiation is the procedure of talking about a result with someone else or group of people, each with different targets on the same issue, with the objective of reaching a result that is appropriate for both sides. Take a car sale for instance - you might negotiate the price with the owner to come up with a price you are both pleased to pay.
In the office, negotiation is carried out in many areas - negotiating when setting deadlines for jobs, priorities for work, usage for team members, budgets, and many other areas.

Why Negotiate?

The goal of negotiation is to produce a win-win scenario - a situation that everyone is happy with. Many situations that need negotiation and agreement aren't quickly accepted by the other party. At this stage , a conversation or negotiation is necessary - to come to an agreement on an issue. If we didn’t negotiate, much less would get done and relationships may not be made as easily between people.

Do Your Research

Before commencing any negotiation, perform a little research on the other party, in terms of the issue at hand. Find out what their motivators are. Why are they not agreeing to your original terms? What’s their intention regarding this situation? If they are not content with the project schedule you've prepared, for example, discover why. Find out if they have a busy schedule of work, or lack resources through the lifecycle, or other factors.

Decide On Your Lowest Position

One more thing you’ll need to do before starting the negotiation discussion is to determine what your lowest position is. This is the point that represents the most you will give the other party, or the lowest point you will go on a price/time/terms. This is the least beneficial to you. It’s not the point at which you start, or the point you should be aiming to get to. It’s the point that you won’t go any more on.

Determine The Point Of The Negotiation

When you begin the process of negotiating an outcome, focus on the point of the negotiation. Even though this may seem obvious, it’s best if you mention it from the beginning. For example, you might say. “We’re here to come to an agreement on the budget required to implement a new software system”. This is an effective negotiation strategy and is used to make the issue clear to both sides.

Make Your Proposals Gradually

You’ve determined your lowest position, however you shouldn’t start at this point. You should have a position in your mind that is more beneficial to you. Bring up your proposal to them (budget, time, resourcing, an idea, whatever you’re suggesting) and ask if they accept those terms. If not, they would make another offer back to you, that is more beneficial to them.
From here, don’t rush directly to your lowest point. Make moves gradually to their favour, and at a particular point you should reach a solution. If you jump straight to your lowest offer, then they either accept it (which is good for you, but could be better) or they refuse it (therefore you have no more room to move).

A Win-Win Result Is The Aim Of Effective Negotiating

The aim of effective negotiating is to find an end result that all parties are pleased with. This may be close or far from the initial proposal, but provided that both parties are relatively happy with the outcome, it’s an effective negotiation. Try to keep it professional - try to avoid let your emotions become involved. Don't forget, what you’re negotiating at work is most likely a professional or business decision and not an emotional one.

Know When To Walk Away

At some time, you could reach a stalemate or a dead-end in the negotiation conversation. It doesn't matter how effective your negotiating has been, there could just be a point where no more action can be taken. The other party won’t budge, and you won’t alter your offer. This is the time when you may want to consider walking away. Make them a clear offer on the issue, and say it’s up to them to accept or reject. Ensure that it stays professional - not making an agreement could be better than committing to something which is unfavourable to you and that you can’t deliver on.

Be Respectful

You need to keep it professional all of the time during the negotiation, and ought to be respectful of the other party. Don’t get emotional throughout the negotiation process, keep your brain on the outcome and respect the other party’s requests and their issues. This is a good way to get a win-win result for both people conce
ed.

Putting a number of these effective negotiating tips into practice during your next negotiation will ideally help your chances!