business negotiation skills

Negotiation skills in business negotiations are similar to those in interpersonal or personal negotiations in that they employ the same methodologies and strategies except at a much larger scale.

The following items are tagged business negotiation skills.

Negotiation Skills Tips: Be a Relationship Negotiator

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During talks, effective relationship negotiators focus on a variety of noncontractual issues, including:

Getting to know the other side well
Establishing a positive personal chemistry between the leadership of the companies involved
Understanding and respecting each other’s cultures, expectations, and goals
Putting mechanisms in place to foster communication after the contract is signed
Ensuring that the proposed deal is balanced and advantageous for both sides
Identifying and planning for potential obstacles to implementation

In Dispute Resolution, Try Going to the Top

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When two parties are attempting to resolve a contentious dispute, the most effective peacemakers may be those at the highest levels. That’s the lesson from recent productive talks between President Obama and Afghan leader Hamid Karzai on the issue of rules for detaining terrorism suspects.

Water Diplomacy: Understanding Uncertainty, Risk, and Opportunity in Water Management

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When countries face contending water claims, one of the biggest obstacles to reaching an agreement is uncertainty. Specifically, there are three types of uncertainty: uncertainty of information, uncertainty of action, and uncertainty of perception. In part 2 of this 5 part series, Program on Negotiation faculty member Lawrence Susskind explains the uncertainties facing negotiators trying to make agreements.

Business Negotiations: Cooperate to Claim Value

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What happens in negotiations between two individuals who care little about each other’s outcomes? Suppose an engineer and an industrial designer are arguing over the design of a car bumper. The designer only cares about whether the bumper matches the style of the vehicle; the engineer is concerned only about how the bumper connects to the front. After describing the trouble he’s having with the existing design, the engineer presents a solution that the designer deems “ugly.” The designer threatens to involve her boss if the engineer doesn’t revert back to the prior design.

In Deal Making, Broaden Your Focus

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Imagine that you are in charge of renting a new location for a branch of your company in a nearby city. After researching the reputations of a number of local real estate agents, you meet with several and choose the one who seems most knowledgable and responsive.

Bring Back Your Deal from the Brink: Weigh the Benefits of a Concession

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Another option for dealing with difficult negotiations is to craft what Harvard Law School professor Robert C. Bordone calls a “workaround” – a strategy for meeting your current goals without the involvement or support of your adversary. You might be able to induce a yes with a tempting concession on a key issue, according to Bordone. Offering a concession can be a risky strategy, as it may only encourage someone to push for more. But if a concession would allow you to move beyond that person once and for all, it may be your best option.

Bring Your Deal Back from the Brink: Probe the Other Side’s Point of View

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How can you figure out the motives behind someone’s seemingly stubborn position? Begin by questioning her about the problem she is trying to solve. Deal blockers may be held back by financial, legal, personal, or other constraints you don’t know about, according to Harvard Business School professor Deepak Malhotra. A tough stance could also communicate a psychological need that isn’t being satisfied.