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The Art of Negotiation

by Valerie Grubb, President, Val Grubb & Associates

Valerie Grubb

If you think negotiating skills are only for sales people, think again!

Every single relationship in your life entails some negotiation. True, it’s often linked to sales (or business), but that limited perspective ignores the fact that negotiation pervades all aspects of both professional and personal life. We all have encounters in which we seek to persuade someone to do something-or in which someone has to persuade us. And this is something we do every single day.

It starts at a young age, too-long before any formal training takes place. Remember standing in the grocery-store checkout lane when you were a kid and telling your mom that if she bought you a candy bar, you’d walk the dog every day? (Unfortunately, your mom remembered that you’d already promised to take Fido for a stroll each morning in return for getting him in the first place-and that you’d slacked on this responsibility. So that day, you didn’t get a candy bar and you experienced firsthand the pains of a failed negotiation.)

Thanks to life experience and schooling, you’ve probably improved your negotiation skills at least a little since then. A successful negotiation isn’t about getting what you want at all costs, however. Rather, it’s about engaging in a give-and-take with someone whose goals and agenda differ from yours, striving to reach a compromise that’s satisfactory to everyone involved.

This is the perspective espoused by Roger Fisher and William Ury in their famous book Getting to Say Yes: Negotiating Agreement without Giving In. With its emphasis on finding mutually beneficial solutions to problems, it’s been a mainstay in business circles and discussions about negotiation since its publication in 1981.

You’ve surely heard the phrase “win-win situation.” Fisher and Ury’s book helped shape and spread this concept, and it’s one I consider a critical component of any successful negotiation. I firmly believe that every negotiation must be in the “win-win” category in order to be successful-otherwise, something (usually quality) gets sacrificed along the way.

Clearly, strong negotiation skills are critical to success in any business field. Junior staff usually get an initial taste of this when negotiating the salary and benefits for their first entry-level position with an organization. As people advance through the ranks of a company or industry, and move into more senior positions, they encounter plenty of opportunities for negotiation.

Attempting to get the best deal from a vendor? Trying to increase your team’s productivity? Pitching a new product to a client? In any of these situations, you’ll have to negotiate. Based on my backgrounds in both management and consulting, I have a few suggestions for improving your negotiation skills in your business relationships while keeping a “win-win” approach.

1) Do Your Homework
Whether you’re meeting with a potential client or considering a new vendor, always prepare in advance! Read through the company’s or individual’s website, look for common connections through LinkedIn, browse the Internet to find out everything you can about an organization-leave no stone unturned in your search for data. With so much readily available information (and so many ways to access it) there is no excuse for being unprepared.

Doing this research will help you understand the other party’s goals and motivations, which in turn can help you work toward an arrangement that benefits them as well as you by finding the “win-win” solution.

2) Remember to Focus on “We”-Not “You” or “I”
In any negotiation, be mindful of how you frame the conversation. You may want to close a particular deal because it will eventually put money in your pocket, but highlighting your personal financial gain will very likely alienate the other party. Rather than focus on the short-term benefits that only you will enjoy, present the negotiation as part of a mutually beneficial long-term business relationship.

Begin by listening to the other party’s needs. Even though you did your homework in advance, seize any opportunity to learn more during the in-person interaction. And don’t underestimate the value of this conversation in demonstrating that you care more about your relationship with the other party than about the single deal at stake. As Fisher and Ury recommend in Getting to Yes, focus on the people, not the problem (or transaction or situation).

If you catch yourself saying “I” a lot, remind yourself to talk about “we” instead. Point out the “win-win” elements of every negotiation.

3) Keep in Mind That Today’s “No” May Be Tomorrow’s “Yes”
Here’s a scenario you’ve surely experienced: you give a stellar presentation, both parties agree that they’d work very well together, and then the person on the other side of the table says, “Sorry, we just don’t have it in the budget right now” or “That isn’t quite what we’re looking for at the moment.”

Was this meeting a waste of your time? Of course not! The timing isn’t right for this deal today, but through this meeting you’ve just built a relationship. From this starting point, you may find some room to negotiate an arrangement that works for everyone. Maybe you can offer to let the client pay in installments, for example, or perhaps you can modify your original plan.

4) Always Check In
Regardless of a meeting’s outcome, always follow up with the participants. If they say “no” the first time, they may say “yes” the next time you ask. And if they do say “yes” the first time, then keep up that momentum so they say “yes” the second, third, and fourth times. Always focus on the long-term relationship-and always remember that it’s not about “me” but about “us.”

Even though you’re now a grown-up and can buy your own candy bars whenever you like, most of your life still requires negotiation. It may seem a daunting task, but don’t let it intimidate you. If you ditch the Machiavellian “I want get the best for me by any means necessary” approach that’s often (wrongly) associated with successful negotiation and instead keep the “win-win” goal in mind, you’ll be able to approach negotiations with less anxiety and more confidence-and more success!

See more at: http://www.valgrubbandassociates.com/index/php/blog

 
Valerie Grubb is the principal of Val Grubb & Associates, Ltd., which she founded after holding a succession of leadership roles within major corporations. She now works on a consulting basis in operations management, specializing in back-office functions such as HR, purchasing, facilities/real estate, security, travel, and other logistics and ops-based areas. Valerie is particularly adept at managing major corporate initiatives in high-growth, complex work environments, and also supports talent and leadership development for several major corporations and nonprofits.

In her training capacity, Grubb focuses on the world of executive leadership and management, and has a special expertise in transposing company vision into strategic training initiatives that resonate with both senior management and employees. She has taught senior leaders and high-potential employees throughout the USA, Asia, Europe, South America, and Central and Eastern Europe (CEE). She has experience working in a variety of industries, including entertainment, media, spirits and beverage, retail, automotive, pharmaceutical, nonprofit, and others.

Prior to founding Val Grubb & Associates, Ltd., Valerie served as the vice president of strategic operations and initiatives at NBC Universal, where she oversaw business development opportunities within the Media Distribution Services group (including the purchase of the Weather Channel) and spearheaded quality initiatives in preparation for the 2008 Summer Olympics in Beijing, China. She played a seminal role in the 1999 formation of Oxygen Media, where she served as vice president of operations and led the HR, risk management, training, facilities, security, travel, and real estate operations for all Oxygen offices in the United States.

Before joining Oxygen, Valerie was the vice president of operations for Barry Diller during the inception of InterActiveCorp (IAC), where she contributed significantly to IAC's aggressive acquisitions strategy and managed the integration of newly acquired companies under the IAC corporate umbrella. She began her career as an engineer with Allison Engine Company, a division of General Motors that was purchased by Rolls-Royce in 1995. During her eleven years with Rolls-Royce, she earned increasingly senior assignments, culminating in her appointment as director of public affairs.

Since 2005 Valerie has been a featured speaker at the Society for Human Resource Management (SHRM) annual conference. She has also been a featured speaker for the Risk and Insurance Management Society (RIMS) and the National Association of Insurance Women. She is a member of Women in Cable Television (WICT) and has served as a Prime Access Mentor to young professionals in the cable industry.

Valerie graduated with a mechanical engineering degree from Kettering University (formerly General Motors Institute) and obtained her MBA from the Indiana University Kelley School of Business. She remains highly involved with the Kelly School as an active member of both the Supply Chain and Global Management Academy and the Dean's Advisory Council. She is also a founding board member of the business school at Sungkyunkwan University in Seoul, South Korea.

Visit Valerie's website