5 rules of effective negotiating

8/14/2019 5 Rules of Effective Negotiating

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Expert Reference Series of White Papers

1-800-COURSES www.globalknowledge.com

5 Rules ofEffective Negotiating


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Copyright 2009 Global Knowledge Training LLC. All rights reserved. 2

5 Rules of Effective NegotiatingTaylor Sparks, Global Knowledge Instructor

IntroductionOpportunities to negotiate arise everydayat home, at work, when youre with your riends, and even withyoursel. Sometimes they are small, like how many bites your kids should take o the spinach they dont like,or whether to buy that new set o gol clubs or keep using the ones you have. There are other occasions wherethe negotiation can be very impactul, like purchasing a car or asking your boss or a raise. In these situations,it is usually better approach the negotiation ater ample preparation. This white paper will discuss ve rules ornegotiating that can help make the transaction more pleasant or everyone involved and better your chances atgetting what you want.

Rule #1 - Always AskYou never know what you can getnot unless you ask or it. This rule covers everything you want, and ev-erything you think you may want. So many o us do not get what we deserve simply because we do not ask.Because o this, negotiation should be thought o as one o the most-used tools in your lie. We negotiate dailyor the things that we want and need.

Rule #2 - Know What You WantIt is dicult to have a successul negotiation i you dont know what you want out o it. Are you attempting toget something? Get rid o something? Once you have considered the possible outcomes, you can decide howyou will respond i it does not end up in your avor. Just as you should know what you want, you should alsoknow what you dont want. What is totally unacceptable, your deal breaker? Having a clear vision o the desirednal outcome on this mutual agreement will make it easier or you as you work your way through the negotiat-ing process.

Rule #3 - Prepare for the Type of Negotiating You Will Be

DoingLes Brown said, It is better to be prepared or an opportunity and not have one, than to have an opportunityand not be prepared. Understanding the dierent types o negotiations will determine how much preparationyou will need. There are ve types o negotiations and understanding them will determine how much prepara-tion you will need.


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Impromptu

Spontaneous negotiations simply occur. Oten the person initiating the discussion is prepared, knows what todo, and how to convince the other person, who may not be as well prepared because the negotiation wasntanticipated (i.e., boss and subordinate).

InformalInormal negotiation occurs at every meeting and can involve riends, colleagues, peers, immediate supervisor,and sta.

Formal

Formal negotiation occurs when both parties expect to negotiate and have time to prepare or the negotiation.

One-of-a-Kind

One-o-a-kind negotiations are situations such as buying a car or an item at a garage sale: both parties attempt

to maximize their positions at the expense o the other. This negotiation is known as bargaining and is otenconrontational and positional. One-o-a-kind negotiations can be impromptu, inormal, or ormal.

Ongoing Relationship

Ongoing relationship negotiations are situations such as a marriage or working or your manager. Here, bothparties must be concerned not only with the tactical issues, but also must constantly be aware o the longer-term (strategic) implications o living or working together into the uture. These ongoing relationships are morecooperative and have a greater atmosphere o trust and concern or the relationship as well as solutions. Ongo-ing relationship negotiations can be impromptu, inormal, or ormal.

Preparation is essential, especially in inormal and ormal negotiations. When seeking a raise or promotion, youmust do your research. Have you kept a list or older on all o your accomplishments or the year? Dont thinkthat your boss remembers everything that you do. Most o you are so good that your boss has no idea how youkeep pulling rabbits out o your hatbut you get it done.

Do you have copies o any positive e-mails or letters rom sta, peers, or internal or external customers? Didyou research the salary range or your position outside o your rm? A site such as www.cbsalary.com (part owww.careerbuilder.com) oers a salary calculator that is customizable to your city, experience, and education.That calculator will give you the low, average, and high salary range o your position in your city and that o thenational average.

Rule #4 - Understand Cultural DifferencesWhat culture you were raised in may make a dierence in your outlook on negotiation. Many people born in theUnited States are used to a pre-packaged society. Most o us go into a store and accept the marked prices.Have you ever gone into a Home Depot and tried to negotiate or a better price on a new rerigerator? Whynot? It can be done; all you have to do is ask and present your case. You never know, they may be willing to


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negotiate. In many European and Latin cultures, negotiation is expected. Ask or complimentary upgrades onfights or hotel rooms. You do not have to be a requent fier, just ask. Ask or a complimentary waiver on theluggage ees. Just because you are not used to asking or what you want, does not make it rude when you do.Dont wait until you are outside o the United States to practice start now.

Rule #5 Practice, Practice, PracticeNegotiation is a skill, which means it can be learned by anyone. It may not happen immediately; some practicemight be needed. Put aside cultural biases and start. Practice everywhere, at the restaurant, at the dollar store,at the airlines. Doing so will get you in the habit o asking. I you ask someone who does not have the author-ity to approve such a request, ask to speak to the person who does, and ask them or what you want. Whenthey say no, nd out why not. Always smile, keep an even voice, dont make threats, and thank them or theirtime and explanation. Practice at home by doing what kids do. They ask you once, twice, and again. The nextday they come and repeat their request. You dont always give in, but they know the odds are in their avor ithey dont accept the rst no. Be committed to the win-win. You are not going in or the kill. You are going into reach a mutual agreement on solving a common problem.

Reviewing the RulesLets review one o the key areas where we should use negotiations your career.

What are the benets to you when you negotiate at work?

Better work load (i.e., more or less responsibilities)

Clear, dened goals and objectives

Promotions

Higher salary

The consequences to not negotiating at work are the opposite o the benets. So, i you know the benets andconsequences, why might you not negotiate more oten? Number one reason: ear o conrontation.

What is the number one area that most people do not negotiate at work? Salary. When you do not negotiateor your salary every year, you earn your salary by deault, meaning you get whatever they decide to give you.I your employee handbook does not specically state, Salary negotiations are strictly prohibited, you shouldplan to negotiate each year. It is understood that some salaries have ranges (example: rst tier manager mightmake between $30k and $36k). But, that does not prohibit you rom negotiating to the top o your range.

In order to get to that higher tier, you need to sit down with your manager and ask what you need to do to getthere. Ask to work together to outline a specic plan and how long it will take in order to reach that tier. Youmay discover that you need certication in a particular area that will take you less than six months to achieve.I you are already at the top, it is time to plan what steps you need to take in order to get to that next level. Youmay need to take on more responsibilities, more training, or earn a new certication.


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5 rules of effective negotiating

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