How to Negotiate: The Basics of Negotiation

Whether it's with suppliers, stakeholders, or colleagues on your team, negotiation is a skill that project managers use nearly every day. But, as the stakes get higher, it becomes more important to know how to negotiate.

So, in this video, I show you all of the basics of negotiation.

What is Negotiation?
Negotiation is the process of searching for an agreement that satisfies all parties.
What this means is:
1. Negotiation aims to produce a fair outcome for both sides
2. It is a process, so if you know the process and follow the process, you can get good results.

Negotiation follows a 4 Step Process:

Preparation
• Scope of desired agreement
• Goal and objectives
• Bottom line
• Research
• Negotiating strategy

Opening
1. Make a strong first impression
2. Build rapport
3. Check the level of authority they have to make commitments and deliver a final agreement
4. Agree the basis of the meeting - Decision process
5. Agree any admin and ground rules
a. Timings
b. Agenda
6. Establish their outcome
7. Set out your outcome

Bargaining
• Positions
• Progress
• Offers
• Counter-offers
• Concessions
• Getting stuck… and unstuck
• Preparing to close

Closing
• Summary
• Check issues covered
• Check concessions agreed
• Ask what more
• Trial close
• Make the offer
• Confirm and record the decision

Then SHUT UP

Following up
• Document agreement in writing
• Share it – as a fact, not a consultation
• Carry out any agreed actions
• Inform people who need to know
• Courtesy thanks to all those involved on your side
• Polite note to counter-party

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If you want to know more, there is a complete course on Negotiation on our sister channel, Management Courses:    / managementcourses  

Checkout the Negotiation Course/Playlist:
   • Negotiation  

The course is building from June to September 2020.


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