Negotiation Strategies
The summer must be ending because it’s time to strike a deal! Over the past month, I led a series of three Facilitated Issue Resolution workshops where in each case we were able to arrive at a resolution to a disputed item or potential claim. In each case the teams had successfully been working on other aspects of the project, but the ongoing disputed item was impacting morale and momentum. It reminded me about one of the most important leadership attributes that tends to be under-appreciated both internally within organizations and within our project teams – Negotiation.
I recently read a Harvard Business Review article by Remigiusz Smolinkski and Peter Kesting, who analyzed more than 1,000 negotiations in the international Negotiation Challenge on the topic, and they provided examples of types of negotiators and ways to define the key skillsets that I believe are instructive.
The Four Types of Negotiators
- Integrated Achievers
- Competitive Maximizers
- Accommodating Harmonizers
- Destructive Negotiators
1. Integrated Achievers
The Integrated Achievers are able to secure strong results while strengthening relationships – they tend to be top negotiators within project teams, because they are able to balance assertiveness with empathy, so they can advocate for what they need without impacting trust.
2. Competitive Maximizers
Think of Competitive Maximizers as negotiators who are able to win big results, but the experience will often damage relationships. Have you ever negotiated a deal, and it left a bad taste in your mouth? That is how they will feel to work with. They will win transactions for you, but in the long run, someone will need to clean up their mess.
3. Accommodating Harmonizers
Accommodating Harmonizers are really “nice” people. They are able to build rapport easily and establish strong ties, but they give away too much. They will prioritize relationships over outcomes, which can result in maintaining loose ties, but you will not get the results you need.
4. Destructive Negotiators
A Destructive Negotiator will burn everyone in pursuit of an outcome. They tend to erode value and damage relationships, and someone will need to step in to fix their mess entirely. If you have ever worked with someone who can turn a “yes” into a “no” and somehow make people feel burned in the process… that’s a destructive negotiator. Do not let them lead your team’s efforts!
Well, looking at these definitions… I want to be an Integrated Achiever… right?!?
What is fascinating is that these groups appear in roughly equal proportions. But the good news is that the skills that allow some people to maintain trust during negotiations are coachable. So, there is hope for all of us.
According to the research, these are the key areas to train your team on.
Key Negotiation Skills
1. Language and Emotions
There are two key elements to a negotiator’s success – the words they say and how they say them. Top performers are precise with their words, and their negotiation follows a logical progression. They actively listen and repeat what their counterpart says to confirm they understand (rather than give a rebuttal). Perhaps most importantly, they manage emotions effectively. The research revealed consistently that individuals with well-regulated emotions and empathetic communication correlate with higher joint gains, improved creativity, and stronger relationships.
2. Negotiation Intelligence
Negotiation has a structure to it. In graduate school we learned about the stages of negotiation (Opening Phase, Communication Phase, Negotiation Phase and Agreement/Closing). Negotiation intelligence is the ability to recognize and understand the structure of a negotiation and apply the right tactics at the right time. Negotiators understand items like BATNA (Best Alternative to a Negotiated Agreement), which helps them understand the best and worst case scenarios if they cannot make a deal.
High performers are also adaptable. The research reveals that teams need to start collaborative to get the best possible outcome. If it turns out one of the parties is not and is okay with a damaging/scorched earth approach, you can pivot and start removing offers. In complex, multi-party deals, members with high intelligence will understand how to coordinate roles and stakeholders while managing a unified strategy under pressure.
3. Relationship building
In Partnering we measure Trust and Teamwork because they are not “soft skills”; they are measurable predictors of success. Effective negotiators deliberately invest in rapport, structure discussions transparently, and follow through on commitments.
Team members who can build trust are attuned to the culture of their team and can adapt behaviors to respect diverse norms. Those who struggle will use the same strategies and tactics regardless of the circumstances and who they are working with. Building trust helps you listen more effectively to ensure you can achieve your counterparts needs while meeting your own. And the best part, is that Trust helps you build renewable bargaining power.
4. Moral Wisdom
At the core lies moral wisdom. Think of this as your Core Values. I believe that team members can benefit by applying values to negotiations. It helps provide a lens through which you can measure fair and justifiable decisions. When we serve as mediators for Facilitated Issue Resolution, it is incredibly helpful to understand the moral wisdom of both parties, but we can only understand those needs if we ask for them.
Master negotiators pair assertiveness with empathy and reveal that effectiveness and integrity are not opposites. Instead, they help reinforce the quality of your agreements.
So how do we get better?
As leaders, the first step is to get clear about your values as a company and your expectations are as a negotiator. I have learned over time in this industry that organizations with strong cultures will often reflect their values in negotiation. But it is equally important to understand who you are negotiating with. If you are working with a hard-charging, strategic organization, they are not likely to be soft in negotiations, so be prepared for an environment with Competitive Maximizers. If you are working with a relationship-focused team, start there and look for opportunities to build value together.
And if your team doesn’t have a strong handle on the structure of negotiation, that is something you can improve. A basic negotiation class where team members can get some reps can be really helpful. Call us if you could use support with a facilitated negotiation or some coaching!
– Rob
Rob Reaugh is President of OrgMetrics LLC. He facilitates the City and County of San Francisco Collaborative Partnering Steering Committee and currently works with San Francisco International Airport, San Jose International Airport, BART, Caltrans, and others. He holds a Masters’ Degree in Alternative Dispute Resolution.
For more information please contact Rob Reaugh, RobReaugh@Orgmet.com / (925) 487-2404 (cell), or OrgMetrics, (925) 449-8300.