Negotiating: how to structure your approach

The art of negotiation is fundamental to the sales profession, and requires subtlety and mastery. But how do you structure your approach? Jean-Claude Sattonnay, expert trainer and consultant in business organisation, takes us through the stages of a well-executed negotiation.

Negotiations are part, and this is sometimes underestimated, of a legal framework which creates reciprocal obligations. These obligations are governed by the mandatory law set out in the Civil Code.legal obligations. For example: the obligation of loyalty, information, advice, etc. These mandatory rules - from which negotiators may not derogate - are then supplemented by the following contractual obligations freely negotiated between the two or more parties.

Since 2016, the legal rules have been tightened. The "law of obligations and contracts" section of the Civil Code has incorporated the negotiation phase into the stages of formation and performance of contracts in good faith. Thus, if a decisive piece of information has been concealed by one of the parties during the negotiation, and the contract has subsequently been signed, this may entail a risk of retroactive annulment for fraudulent concealment.

Negotiation: a game of relationships

Negotiation is a process of communication and exchange between at least two parties, aimed at organising a relationship or resolving a common problem. Consequently, for any negotiator, it is necessary to design the negotiation before carrying it out.

We therefore need to determine :

• The right strategy
• The structuring method
• The techniques and tactics planned for the negotiation process

It is also worth remembering that each negotiator has his or her own objectives, which may differ from those of the other party. Thanks to arguments of convergence, the result obtained will have to satisfy both parties. reciprocal interests.

Negotiation: a multi-stage process

Negotiation follows specific communication patterns, and the exercise can be prepared according to a few key principles known as the "6 Cs".

1. Building: preparing for the negotiation

What strategy should be used to address the issues, the context, the risks and the potential gains?

Factors to be taken into account

• Data actors, reasons for negotiation, context, situation, stakes, reciprocal powers
• Clarifying the issues : mutual interests, importance of negotiation, operational and psychological consequences
• Setting targets : assessment of the zone of possible agreement (ZAP), realistic margins for manoeuvre incorporating the market situation
• Choosing the type of negotiation cooperation or competition, long-term or short-term needs
• Selection possible concessions and envisaged quid pro quos
• Choosing a method
• Techniques and tactics to be deployed
• Search for arguments, anticipating objectionspossible solutions
• Staging and practical aspects
• Plan B or even C

BATNA negotiation techniques

La BATNA, best alternative to a negociated agreement is also known as MESORE in French for "meilleure solution de rechange/repli". This technique makes it possible to provide a fallback solution to prepare for a winning negotiation.

During this phase, the negotiator must build on and enrich his information: negotiating is not haggling and requires preparation tailored to each situation. In other words, negotiating cannot be improvised.

As a reminder, the 3 rules for successful negotiation are :

• Rule no. 1: be well prepared
• Rule No. 2: be well prepared
• Rule no. 3: be well prepared

Techniques and tactics for negotiating

The technique is rather neutral and circumstantial.

Two types of technique

• Sequential salami negotiation technique

Negotiations are broken down into sequences, point by point, to create a balance of power.

Don't ask for everything at once, but slice by slice. You can then start the negotiation with a secondary point and put your negotiating partner at ease by concluding. You can then tackle the other points in a predefined order, from the easiest to the most difficult. Never end with the price and never go back.

• Block or global trading techniques

It makes it easier to find a mutual balance. In fact, this tactic makes greater use of cunning.

You approach an open negotiation on all the points to be negotiated so that you can bounce from one point to another depending on the concessions requested and the possible quid pro quos. Price always comes last.

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2. Contact: reception and relations

You are face to face. So what approach should you take to relationships?

There are two different approaches to negotiation.

• Approaches that are predominantly competitive. The best known is "negotiation by position". Each party starts from a position, and by mutual concessions arrives at an area of agreement, then a point of agreement. This approach puts the result before the relationship.
• Approaches that are predominantly cooperative. The most common is the "Harvard principle of interest-based negotiation", which is based on taking into account the interests of the various parties. This approach focuses on the relationship. It is therefore a win-win strategy.

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3. Knowledge: the art of questioning

After identifying the grey areas identified in phase 1, the negotiator asks questions to gain a better understanding of the other party's position. To do this, they can use a number of questioning methods, including :

• Open questions to help the other person express themselves

"What is the outlook for your market and your company?

• Closed questions to clarify certain points

"Would you like to reach an agreement today?"

• Alternative questions to clarify positions

"Is your priority to expand internationally or to increase your market share?"

This stage can also be used to validate the arguments you have prepared and ensure that you are approaching the negotiation from the right angle.

4. Convincing: the backbone of negotiation

During this phase, the negotiator will deploy his methodology and build on his preparation: objectives, arguments, objections, responses to objections, fallback solutions, etc.

In terms of behaviour, practising assertiveness (or assertiveness) allows the negotiator who has prepared well to reinforce his credibility. On the other hand, it allows them to focus on the result to be achieved and not on the person they are negotiating with.

It's about having an attitude that allows you to clearly express your needs and feelings, and knowing how to say no.

Assertiveness is above all a matter of knowing how to be and knowing how to communicate.

Refrain from adopting negative attitudes such as aggressiveness, avoidance or manipulation.

5. Closing the deal

When the objective has been achieved, the negotiator is in a position to conclude. He will bring about the conclusion and summarise (reformulate) the decisions and agreements.

The conclusions may be sequential, depending on the different issues addressed during the negotiation, and/or global.

Example: "I propose that we confirm our agreement on this point, which we will not return to, and move on to the next point.

There are different closing tactics depending on the nature of the negotiation and the relationship between the parties.

For example: "If we come to an agreement on this last point, can we look forward to a speedy conclusion", "I suggest you summarise all the points on which we have reached agreement".

The results need to be validated by a memorandum of understanding.

In conclusion, the memorandum of understanding is a preliminary contract that sets out in writing the outcome of the current negotiation phase.

The contract that follows formalises the points negotiated.

The face-off is over.

6. Consolidate: the relationship and its framework

In addition to the operational points, the contract describes the various legal obligations linked to the nature of the negotiation and the performance of the contractual obligations. It includes punitive clauses and/or incentive clauses. For example: bonus-malus.

Negotiating on the telephone

The limits of the telephone in negotiation

The telephone is not the ideal tool for conducting a negotiation. In fact, a large proportion of the elements that make up interpersonal communication are lost, particularly non-verbal communication. No face, no facial expressions, no gestures, no exact feelings...

This is why the telephone is mainly used in so-called bargaining situations, i.e. exchanges that are not complex, of short duration and with limited stakes.

But the context and constraints may lead you to negotiate by telephone.

The best choice for remote trading remains the videoconferencing. It allows us to return in part to the conditions of face-to-face contact.

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Good practice in effective telephone negotiation

Golden rule : never negotiate on a call from the other party. When they call you, they are ready. Her file is open in front of her, with its objectives, its arguments, its information... You, on the other hand, are not ready. Your mind is busy. The asymmetry of power is too great to be easily compensated for.

So it's time to agree on a telephone meeting to redress the balance. While face-to-face negotiation requires a certain ease of gesture and good communication skills, telephone negotiation is more than just an empirical exchange or improvisation.

In addition, the quality of verbal expression and its construction is paramount: comprehensible speech, short sentences, silences, repetitions, rephrasing, precise questions, clear tone of voice, even tempo, respect for the prepared plan, sequenced arguments, etc.

Face-to-face, you remember more easily what you see, hear and write. As a result, negotiation exchanges are easier to remember.

In telephone negotiations, your memory can fail you because not all your senses are called upon: no visuals, little feeling, non-verbal erased (memorization of oral information for 24 hours and low retention rate). You therefore need to use a thematic note-taking aid. As with face-to-face negotiation, the established negotiation plan guides you through the process. And any points of agreement are formalised on the spot, by e-mail for example.

So the telephone is not the most effective channel for bringing a negotiation to a successful conclusion. However, it is useful in a number of circumstances: distance, time factor, relationship history, issues and priorities, etc.

As you can see, conducting a negotiation is not something you can improvise. You need to be able to anticipate the behaviour of the other party, master sales or purchasing techniques, rely on the legal framework and negotiation techniques and know how to behave in a negotiation situation. Don't panic: there are ORSYS training courses to help you learn how to negotiate masterfully.