Fundamental to the sales profession, the art of negotiation is a skill that requires subtlety and mastery. For ORSYS, Jean-Claude Sattonnay, expert trainer and consultant in business organisation, outlines the stages of a well-executed negotiation, particularly in the light of the health context and the resulting era of distance learning.
Negotiation: a game of relationships
Negotiation is a process of communication and exchange between at least two parties, the purpose of which is to organise a relationship or resolve an issue between them.
The negotiation process is therefore either a cooperative relationship between the parties or a competitive one. During a negotiation, these two types of relationship may alternate.
In commercial negotiations, a number of central or influential factors need to be taken into account: an analysed environment, an appropriate methodology, assertive behaviour, factual communication, an up-to-date legal framework and, of course, one or more specified issues.
It is useful to remember that each negotiator has his own objectives, which differ from those of the other party, and that, thanks to arguments of convergence, the result obtained must satisfy the reciprocal interests. We are therefore in a relationship of interdependence which underlies the fact that each party a priori needs the other.
A consensus must be reached, which means that, from the outset of the negotiation, each of the parties must be in agreement with the notion of a concession or quid pro quo.
Negotiation: a multi-stage process
Negotiation follows specific communication patterns, and the exercise can be deconstructed (and therefore prepared for) according to a few key principles known as the "6 Cs":
- Build
- Contact
- Get to know
- Convince
- Conclude
- Consolidate
1. Building: preparing for the negotiation
During this phase, the negotiator must build up and enrich his information: negotiating is not haggling. It requires preparation tailored to each situation. Under no circumstances is negotiation based on improvisation.
The 3 rules for successful negotiation are :
- 1: being well prepared
- 2: being well prepared
- 3: being well prepared
For example, during this phase, the elements to be taken into account may be the environment, the background, the stakes, the reciprocal powers, the negotiation technique, the methodology including the objectives, the arguments, the appropriate strategy, the fallback solutions, etc. The more the participants are aware of these parameters, the more precise the negotiation can be.
2. Contact: welcome, relationship
Negotiation is all about relationships. The key is to master this relationship by adopting an appropriate approach. But how do you define this ideal approach?
There are two different approaches to negotiation:
- predominantly competitive. The best known is "positional bargaining". Each party starts from a position, and by mutual concessions arrives at an area of agreement, then a point of agreement. This approach focuses on the result rather than the relationship;
- predominantly cooperative. It is mainly based on the "Harvard principle of interest-based negotiation", in which the interests of the various parties are taken into account. This approach focuses on the relationship.
3. Knowledge: the art of questioning
After identifying the grey areas identified in phase 1, the negotiator will gather information to better understand the other party's position. To do this, they can use a number of questioning methods, such as :
- open to allow others to express themselves;
- to clarify certain points;
- alternatives to clarify positions.
This phase can also be used to validate the arguments you have prepared and ensure that you are approaching the negotiation from the right angle.
Important: who is piloting? Who hosts?
4. Convincing: the backbone of negotiation
At this stage, the negotiator will deploy his methodology and build on his preparation: objectives, arguments, objections, responses to objections, fallback solutions, etc.
When it comes to behaviour, practising assertiveness - or assertiveness - On the one hand, it gives credibility to the negotiator who has prepared well, and on the other, it allows the negotiator to focus on the result to be obtained and not on the other party. Being able to express our needs and feelings clearly, knowing how to say no... Assertiveness is above all a way of being and a way of communicating. They are essential for keeping the dialogue open and for successful negotiation. Indeed, if one of the two parties loses his or her temper, it becomes more complicated to make progress towards the goal.
5. Closing
Once 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.
There are different closing tactics, depending on the nature of the negotiation and the relationship between the parties: summarising the benefits, removing any hesitation with a final advantage, visualisation, etc.
6. Consolidate: the relationship and its framework
The contract is the formalisation of the negotiated agreements. In addition to the operational points, it describes the various legal obligations linked to the nature of the negotiation and the performance of the contractual obligations. In addition to the obligations of the parties, the contract sets out the penalties negotiated during the various discussions, expressed in the form of punitive clauses or incentive clauses.
The contract is the legal guarantor of the obligations of each of the parties, and consolidation will be achieved both by compliance with these obligations and by ongoing monitoring of mutual commitments.
Negotiating on the telephone
The telephone is not the ideal tool for conducting a successful negotiation. Many of the elements that make up interpersonal communication are lost (such as paraverbal and body language).
The health situation calls for certain adjustments. We need to be agile and adaptable.
While face-to-face negotiation requires a certain ease of gesture and good communication skills, telephone negotiation is more than just an empirical exchange.
The golden rule: never negotiate on the basis of a call from the other party. When they call you, they are ready. Their file is open before their eyes, including their checklist and cursors. There are several reasons why negotiations cannot begin:
- you're not ready;
- the asymmetry of power is too great to be easily compensated for.
We therefore need to agree on a telephone appointment that will enable us to rebalance the situation.
The best choice for remote negotiation is videoconferencing, or the equivalent, which allows you to return to some of the conditions of face-to-face negotiation.
But the most favourable situation for negotiation remains the "face-to-face" presence of the negotiators...
The stakes involved in a negotiation often require meticulous preparation. Negotiators must never lose sight of the bigger picture, both their own and that of their negotiating partner, and must adapt accordingly. The health crisis and the need for physical distance are reshuffling the cards in this complex exercise, but a good negotiator knows how to make the most of the tools at his disposal in all circumstances.
