How to conduct business negotiations?

In the modern world, more and more importance is given to the ability to conduct business negotiations correctly and correctly. This skill is especially important for those who are building their own business, for company executives, managers and top managers. However, business negotiations mean not only high-level meetings where strategic decisions on interaction and business development are made. Technically, this area includes any communication of any company representatives during working hours and on a working matter.

Under business negotiations usually mean a special form of business communication, aimed at that in the course of joint communication, exchange of views and suggestions to come to some kind of agreement. Ideally, the ultimate goal is to achieve mutual or one-sided benefits. There can be many reasons, but they all come down to four main types.

Negotiations can be conducted on something, under any circumstances, started for the sake of achieving a specific goal or limited to solving several pressing issues. Obviously that the more global the occasion, the greater the cost will be required for a successful implementation.

There are several main classifications of types of business negotiations.

• By the nature of the they are subdivided into official ones - taking place in a strict environment and subject to documentation according to the protocol, or informal, taking place in an informal, semi-friendly atmosphere.
• The circle of persons involved distinguish between internal and external subspecies. Internal are conducted within one team, while organizational and interpersonal issues, delineation of functions and planning, as well as strategies for the overall development of the company can be discussed.External negotiations are conducted with customers, customers or business partners.
• Type of negotiation determined by the social situation of the parties. Equal rights are called negotiations between partners and colleagues, occupying approximately the same position. Communication of the boss with a subordinate or people of different levels - unequal.

Negotiating is a complex and multi-stage process, requiring considerable knowledge and costs. One of the most difficult stages, often determining the outcome of negotiations long before they begin, is preparation. It is at this stage that you should determine your goals and choose a strategy, place and time. It is also a great chance to collect and process information, and at the same time to plan everything.

Begin with a clear and unambiguous setting of the goal of the negotiations. Further, the goal is better divided into a series of sequential tasks and determine the strategy, tactics and methods for achieving them. When analyzing, one should take into account not only all the known information about the opponent, his intended goals and ways to achieve them, but also his own resources. Thinking over the arguments, it’s better to try to predict the possible reaction of the partner, think about how you can convince him, what facts and guarantees are provided.

If you do not use a confrontational style of negotiations, focused on peremptory achievement of the goal at all costs, it would be reasonable to pre-isolate the points of possible compromises. As a rule, in partnership negotiations, mutual concessions play an important role, at least insignificant steps towards each other. It should be based on the understanding that the other side is also interested in reaching a mutual agreement, which means that an agreement is initially possible.

An important factor is the choice of a place for negotiations. The interior design, the colors used, the volume of the room and even the distance to the meeting place have a psychological effect on the person who is successfully used by experienced negotiators. There are three possible options: a meeting on their territory, on the territory of the opponent and on neutral. Each has its pros and cons, focusing on which you can vary the style of behavior and methods of achieving results.

• If the meeting takes place on its territory, the negotiator or team feels a subconscious psychological advantage due to the familiar, reliable environment. It is also possible to organize a space for yourself, initially imposing your opponent your own order of actions. However, excessive relaxation can play a negative role, weakening attention and concentration.
• Foreign territory, based on the foregoing, equally plays into the hands of the opponent. In addition, the time and effort will require a road to the venue and location there. But, on the other hand, this situation gives a number of bonuses. You can, for example, make a psychological portrait of an opponent based on his interior, non-verbal decision. You can also more clearly, without distraction, focus on negotiations, or even, if necessary, hold on to “forgotten” documents and gain time.
• Meeting in neutral territory considered by many experts as the best option. The parties are in an equal position, which meets the basic requirement of the principle of justice.This decision leads to the fact that partners can rely solely on their negotiation skills.

When conducting business negotiations, two main approaches are distinguished: confrontational and partnership. The choice of strategy directly affects the course and style of communication, determines the relationship between the parties and sets the rules for all communication. The main distinguishing characteristic is the receipt of one-sided or mutual benefits.

In modern business etiquette, the partnership approach is the most popular, although the alternative has many supporters. Opponents of the confrontational style believe his methods are too aggressive and immoral, supporters, however, position themselves as true masters of communication and attribute any compromises and concessions to the category of sentimental weaknesses that are unnecessary for a business person.

• Confrontational style negotiations is based on the thesis "Victory at all costs! ". The main criterion for the success of negotiations is the unconditional and absolute approval of all their own requirements, any concessions and derogations are considered as a failure of the strategy. The confrontational approach is based on the fact that with a certain skill and knowledge of human psychology, one can persuade an adversary to any conditions favorable to himself.

• Partnership approach emerged as opposed to confrontational and positions itself as democratic and modern. The very concept of partnership, embedded in the term, implies equal rights of the parties to receive benefits from the transaction. As a rule, such negotiations are built on a series of mutual concessions in order to achieve a mutually beneficial compromise as a result. It is assumed that both sides are doing the same thing and have a similar goal in the negotiations. Therefore, the master’s task is to smooth out acute angles and contradictions, reduce the interests of all parties to a common denominator and search for a middle ground that satisfies everyone.

As you know, any etiquette is a subsection of ethics, and therefore it is obvious that business etiquette should be based on the basic norms of morality.

An acute ethical problem in business communication is also the issue of personal decency and responsibility of everyone, and at the general level - honest and fair passage of all stages of the dialogue. The existence of a business protocol that regulates all the rules of behavior and communication, ranging from presentations and dating to telephone conversations and the exchange of gifts, helps streamline contentious issues.

Over the years of business etiquette, a clear and streamlined negotiation structure has been formed. Begin with formal greetings. The first to greet the representatives of the host. As a rule, the host is the one in whose territory negotiations are being held, if a neutral place is chosen, the host is the party that initiated the meeting. She is engaged in seating the participants according to the protocol.

Starting a meeting right from the point is considered impolite. The true art of negotiation is to move on to the issue gradually, from common unofficial phrases and topics. Such an approach will help to draw interlocutors to yourself and express your respect and interest in them.

The negotiator does not color the desire to put pressure on the interlocutor, to force him to make the right decision. Direct questions requiring immediate resolution should be avoided. A more effective and ethical tactic is to give the opponent time to think and analyze.

An important factor is the appearance of partners. Unless otherwise agreed, the style of clothing is supposed to be official - a suit and tie of soft colors. It is considered bad form to take off your jacket or loosen a tie knot - at least before the head of the receiving party suggests it.

In an era of globalization, the Internet, and fast ways to move, business ties with other countries and nations are becoming more common. Despite the universal desire for tolerance and the formation of a common, global business protocol, the national and cultural traditions of other peoples should be respected. Some behavioral patterns are similar, but there are serious differences that sometimes make communication difficult. For example, it is difficult for a European to understand the subtleties of Japanese etiquette and, in particular, Japanese polite refusal, which sounds like a departure from a direct answer.

However, the art of negotiation, in principle, is based on the ability to understand and feel the nuances of psychology and the state of the interlocutor. Each conversation is unique and develops according to its own original script. It is not enough just to set a goal and achieve it. In the end, you should definitely conduct a detailed analysis of what happened, understand what worked and what didn’t, what mistakes were made, and what helped to come to a compromise.

An experienced master is distinguished by the ability not only to comply with the protocol and achieve the goal, but also to differentiate the types of negotiations and act in accordance with them.

However, the final, final point is not the agreement and the signing of the transaction, but its high-quality and timely execution. Often this last, final stage of negotiations is undeservedly deprived of attention. Do not forget that this is how the business reputation of a businessman or company is formed, and this is the same immeasurable, but significant amount that will invariably affect all subsequent negotiations and transactions.

A reputation is also formed in the communication process itself, exerting both additional positive and opposite, in case of disrespect to the interlocutor or violation of the protocol, influence.

For effective negotiations it is necessary to determine the preferred strategy. Experts identify three main strategies that are suitable for certain conditions. The choice depends on the correct and objective assessment of both their own positions and capabilities, as well as other participants in the dialogue. However, with a certain negotiation skill, any strategy can lead to a successful completion of the transaction.

First of all, such parameters as the psychological portrait of the interlocutors, the level of their culture and the standards of communication and interaction adopted among them should be subjected to thorough analysis. The format of the meetings and the scope of the goals and objectives set should also be taken into account.

• The first strategy is known for its aggressiveness and straightforwardness.it is not without reason that she is also called the tactics of "primitive" or "bazaar" negotiations. The main leverage in this case is the personal charisma of a businessman who is only interested in gaining profit at any cost. Prospects for further cooperation, maintaining a positive image, mutual trust and comfort of the participants in the transaction are not taken into account. Often quite clumsy methods of manipulation are used, based on assertiveness, active imposition, and often deception. Examples of such one-time deals are colorfully described in the formation stories of the first American businessmen from the time of the gold rush.

• The second strategy is an intermediate link between a chaotic unregulated and civilized market. Its essence lies in the constant balancing between the methods of hard and soft pressure on partners. The strategy is quite dangerous and is used mainly in situations of fierce competition for resources and markets, when there is no time and opportunity for lengthy discussions. Practically the entire illegal market is supported by such methods, from large-scale mafia cases and organized crime to blackmail and extortion.

• Civilized Market Strategy considered the most progressive and creative. Its methods are aimed at creating long-term mutually beneficial relationships with partners. A conversation in such conditions does not always imply equality of partners, but necessarily implies the maximum possible fair consideration of the interests of the parties.

Depending on the chosen strategy, the tactics of negotiating should also be varied. Tactics differ in the totality of the methods and technologies used, aimed at the successful passage of all stages of the process. The most famous tactical methods are anticipation, tough offensive, regular repetition of requirements, clarification of positions, partial concessions and evasion of a direct answer.

You can find out what phrases are forbidden to use in business negotiations from the next video.