How to Develop Negotiation Skills for Managers
The idea of improving negotiation skills as a manager can be a daunting one, with so much already to consider as a manager, learning new skills, especially ones with significant impact, like negotiation, can look like an uphill battle.
Whether handling procurement activity or communicating with stakeholders internally, effective negotiation skills are a must-have for the modern manager. When it comes to these important workplace discussions, many people find it tough to be assertive.
Here, we’ll present the key skills all managers need in their arsenal, as well as how to develop them to get the best out of your dealings throughout the working day.
Negotiation basics
Before we delve into some of the more advanced negotiation tactics, it’s best that we look at the absolute basics of negotiation. Mastering these will ensure a stable base for you to build your skills on.
What is negotiation?
Negotiation, in simple terms, is the process where managers represent their organisation to engage in discussions with stakeholders. This could be to manage expectations with internal stakeholders, secure a better deal with suppliers, or resolve conflicts within the team.
Why are negotiation skills important for managers?
Ultimately, negotiation skills are crucial for managers because they are critical in delivering targets by managing talent within the team, negotiating with suppliers to get a better deal, and managing client expectations to ensure the long-term viability of the partnership.
What are some essential negotiating skills?
To be able to negotiate effectively, it’s useful to break down negotiation into small, manageable chunks that can be used across a variety of situations.
Building a rapport
Engaging in small talk before a serious discussion isn’t just superficial. It serves a serious purpose to strengthen your relationship with the person you’re negotiating with. Whoever you’re discussing things with, it may be a more productive conversation in which an agreement is reached more effectively if you spend a few minutes getting to know each other. The same goes for discussions over email; a brief introductory phone call can make all the difference in humanising someone on the other end of the computer.
Actively listen
Listening carefully to what is being said is essential in negotiation. When they have finished talking, rephrase what was said to you to make sure you’re on the same page. Think carefully about what’s really being said, as there may be implied meanings and emotional undertones in what they’re saying.
Problem analysis
Those who are effective at negotiation can analyse a problem and work out what each party needs from the discussion. Proper problem analysis identifies the issue, the interested parties and the outcome goals. For example, in contract negotiations between an employer and employee, the area where parties disagree might be the salary being offered. Identifying these issues quickly for both sides can help find a compromise for all involved.
The anchoring bias
Anchoring bias is a psychological phenomenon in which someone’s decisions are influenced by a reference point or “anchor” which can be completely irrelevant, such as the initial figure mentioned during negotiation.
You don’t want to be on the receiving end of anchoring bias by allowing the other party to make the first offer, and instead, try to anchor the talk in the direction you want it to take. If this isn’t possible, then have alternatives in mind and be prepared to bring them up as needed.
Leveraging trade-offs
During any negotiation, trade-offs can be the difference between securing a deal and not. Using your problem analysis skills, try to identify issues that your counterpart cares about but that you don’t hold much value in. For example, in a salary negotiation, things like benefits might be used as a trade-off, but you might want to stand firm on the salary itself.
How can you improve negotiation skills?
Be proactive
If you’ve decided to take part in a formal training programme, make sure to actively engage by taking notes, applying them to real-world examples and asking questions if you’re unsure. Research has shown that we have the opportunity to abstract lessons from two or more experiences. Thus, more proactive students tend to retain information when concepts are repeated.
Don’t be afraid to make mistakes
When learning negotiation techniques, don’t be afraid to make mistakes and step out of your comfort zone. Often, the best lessons come from making mistakes, putting you in a position to adopt better patterns of thinking that you can apply to your negotiations.
Preparation is key
If you don’t prepare effectively, you could leave yourself open to unnecessary concessions, overlook real value and end up walking away from what could be beneficial agreements. If you have to set aside a number of hours every day to do your research and homework, you’ll almost certainly be better prepared to ace the negotiations.
Practice makes perfect
When your training or research ends, the process of learning how to negotiate is not complete. These new strategies must become intuitive over time by continuing to practice them whenever the opportunity arises.
As you prepare to transfer these skills to the workplace, think back on what you have learned and see what you can apply to other things, both at work and at home. Using these new practices in other applications can help them to become second nature, where they phase out older patterns of thinking.
Whether you’re a budding BA or a highly-skilled Python Developer, a career at SEFE promises to be challenging and rewarding next step. For more information about our careers, visit our recruitment portal.
The views, opinions and positions expressed within this article are those of our third-party content providers alone and do not represent those of SEFE. The accuracy, completeness and validity of any statements made within this article are not guaranteed. SEFE accepts no liability for any errors, omissions or representations.
