How to conduct business negotiations?

In today's world, increasing importance is given to the ability to conduct business negotiations correctly and correctly. This skill is especially important for those who are building their own business, for company executives, managers and top managers. However, business negotiations involve not only high-level meetings, where strategic decisions are made on interaction and business development. Technically, this area includes any communication of any company representatives during working hours and on the work issue.

Business negotiations usually imply a special form of business communication, aimed at reaching an agreement in the course of joint communication, exchange of opinions and proposals. Ideally, the ultimate goal is to achieve mutual or one-sided benefits. The reasons can be many, but they all come down to four main types.

Negotiations can be held about something, under any circumstances, started for the sake of achieving a specific goal or be limited to solving several pressing issues. Obviously that the more global the reason, the greater the cost required for successful implementation.

There are several main classifications of types of business negotiations.

• By the nature of the they are subdivided into official ones - which take place in a strict atmosphere and are to be documented according to the protocol, or informal ones that take place in an informal, semi-friendly atmosphere.
• By the circle of persons involved distinguish between internal and external subspecies. Internal ones are conducted within the same team, and organizational and interpersonal issues, the division of functions and planning, and the strategy for the overall development of a company can be discussed. External negotiations are conducted with customers, customers or business partners.
• Type of negotiation determined by the social position of the parties. Equitable are negotiations between partners and colleagues who occupy approximately the same position. Communication is the boss with a subordinate or people of different levels - unequal.

Negotiating is a complex and multi-stage process, requiring considerable knowledge and cost. One of the most difficult stages, often defining the outcome of negotiations long before they begin, is preparation. At this stage it is necessary to determine the goals and choose the strategy, place and time. It is also a great chance to collect and process information, and at the same time plan everything.

It should start with a clear and unambiguous statement of the purpose of the negotiations. Further, the goal is better divided into a number of successive tasks and determine the strategy, tactics and methods to achieve them. The analysis should take into account not only all known information about the opponent, his intended goals and ways to achieve them, but also his own resources. Thinking through the argument, it is better to try to predict the possible reaction of the partner, think about what you can convince him, what provide the facts and guarantees.

If the confrontational style of negotiations is not used, it is focused on achieving a goal without any means at all costs, it is reasonable to isolate points of possible compromises in advance. As a rule, in partnership negotiations, mutual concessions play an important role, at least insignificant steps towards each other. Should proceed from the understanding that the other side is also interested in reaching a mutual agreement, which means that an agreement is initially possible.

An important factor is the choice of place for negotiations. The interior design, the colors used, the volume of the room and even the distance to the meeting place have a psychological effect on the person who is successfully used by experienced negotiators. There are three possible options: a meeting on its territory, on the territory of the opponent and on the neutral. Each has its pros and cons, focusing on which you can vary the style of behavior and methods of achieving results.

• If the meeting takes place on its territory, the negotiator or the team feels a subconscious psychological advantage due to the familiar reliable environment. It is also possible to organize the space for themselves, initially imposing its own course of action on the opponent. However, excessive relaxation can play a negative role, weakening attention and concentration.
• Alien territory, based on the foregoing, equally plays into the hands of the opponent. In addition, the cost of time and effort will require the road to the venue and location there. But, on the other hand, this situation gives a number of bonuses. You can, for example, make a psychological portrait of an opponent based on his interior, non-verbal decision. You can also more clearly, without being distracted, focus on the negotiations, or even, if necessary, hold the “forgotten” documents and gain time.
• Meeting in neutral territory considered by many experts as the best option. The parties are in the same position, which corresponds to the basic requirement of the principle of justice. Such a decision leads to the fact that partners can rely solely on their skills in negotiation.

When conducting business negotiations there are two main approaches: confrontational and partnership. The choice of strategy directly affects the course and style of communication, determines the relationship between the parties and sets the rules for all communication. The main distinguishing characteristic is obtaining one-sided or mutual benefit.

In modern business etiquette, the most popular is the partnership approach, although there are quite a few supporters in the alternative. Opponents of the confrontational style believe his methods are too aggressive and immoral, supporters, however, position themselves as true masters of communication and attribute any compromises and concessions to the category of sentimental weaknesses that are unnecessary for a business person.

• Confrontational style negotiations is based on the thesis “Victory at any cost! ". The main criterion for the success of negotiations is the unquestioning and absolute assertion of all its own requirements, any concessions and derogations are considered as a failure of the strategy. The confrontational approach is based on the fact that with a certain skill and knowledge of human psychology, you can incline the enemy to any conditions advantageous to yourself.

• Partnership approach arose in opposition to confrontational and positioned itself as democratic and modern. The very notion of partnership laid down in the term implies equal rights of the parties to receive benefits from the transaction. As a rule, such negotiations are built on a series of mutual concessions in order to achieve a mutually beneficial compromise. It is assumed that both parties do the same thing and have a similar goal in the negotiations.Therefore, the task of the master is to smooth out sharp corners and contradictions, reduce the interests of all parties to a common denominator and search for the golden mean that satisfies all.

As you know, any etiquette is a subsection of ethics, and therefore it is obvious that business etiquette must be based on basic norms of morality and ethics.

An acute ethical problem in business communication is also a question of personal decency and responsibility of everyone, and at the general level - honest and fair passage through all stages of a dialogue. Ordering controversial issues helps the existence of a business protocol that governs all the rules of behavior and communication ranging from ideas and dating to telephone conversations and the exchange of gifts.

Over the years, the existence of business etiquette managed to form a clear and orderly structure of negotiations. Begin with formal greetings. First greet the representatives of the host country. As a rule, the host party is considered to be the one in whose territory negotiations take place, if a neutral place is chosen, the host party is considered to be the party initiating the meeting. She is also engaged in seating participants according to the protocol.

Starting a meeting right from the bottom line is considered impolite.. The true art of negotiation is to move to a question gradually, from general informal phrases and topics. Such an approach will help to position the interlocutors to themselves and to express their respect and interest in them.

He does not paint the negotiator and the desire to put pressure on the interlocutor, to force him to make the necessary decision. Direct questions that require immediate resolution should be avoided. A more efficient and ethical tactic is to give the opponent time to think and analyze.

An important factor is the appearance of partners. Unless otherwise agreed, the style of clothing is assumed to be official - a suit and tie of dim colors. It is considered bad form to take off a jacket or loosen a tie knot - at least, before the head of the receiving party suggests that.

In an era of globalization, the Internet and the fastest ways to move, business relationships with other countries and nations are becoming more common. Despite the universal desire for tolerance and the formation of a common, world-wide business protocol, the national and cultural traditions of other nations should be respected. Some behavioral patterns are similar, but there are serious differences that sometimes impede communication. For example, it is difficult for a European to understand the subtleties of Japanese etiquette and, in particular, Japanese polite refusal, which sounds like a departure from a direct answer.

However, the art of negotiation is basically based on the ability to understand and feel the nuances of psychology and the state of the interlocutor. Each conversation is unique and develops on its own original script. It is not enough just to set a goal and reach it. At the end, you should definitely conduct a detailed analysis of what happened, understand what worked and what did not, what mistakes were made and what helped to reach a compromise.

An experienced master is distinguished by the ability not only to observe the protocol and achieve the goal, but also to differentiate the types of negotiations and act accordingly.

However, the final, final point puts not an agreement and the signing of the transaction, but its high-quality and timely execution. Often this last, final stage of negotiations is undeservedly deprived of attention. Do not forget that this is how the business reputation of a businessman or a company is formed, and this is the same immeasurable but significant value that will invariably affect all subsequent negotiations and transactions.

Reputation is also formed in the process of communication itself, exerting both additional positive and opposite effects, in case of disrespect for the interlocutor or violation of the protocol.

For effective negotiations it is necessary to determine the preferred strategy. Experts identify three main strategies that are suitable for certain conditions. The choice depends on the correct and objective assessment of both own positions and opportunities, and other participants in the dialogue. However, with a certain negotiation skill, any strategy can lead to a successful completion of the transaction.

First of all, such parameters as the psychological portrait of the interlocutors, their level of culture and the standards of communication and interaction adopted among them should be subjected to a thorough analysis. You should also consider the format of the meetings and the amount of goals and objectives.

• The first strategy is known for its aggressiveness and straightforwardness.No wonder her name is still the tactic of “primitive” or “market” negotiations. The main lever of influence in this case is the personal charisma of a businessman who is interested only in obtaining profit at any cost. Prospects for further cooperation, maintaining a positive image, mutual trust and comfort of the participants in the transaction do not count. Often quite clumsy methods of manipulation are used, based on assertiveness, active imposition and often deception. Examples of such one-time transactions are colorfully described in the history of the formation of the first American businessmen since the gold rush.

• The second strategy is an intermediate link between the chaotic unregulated and civilized market. Its essence lies in the constant balancing between the methods of hard and soft pressure on partners. The strategy is quite dangerous and is used mainly in situations of fierce competition for resources and markets, when there is no time and opportunity for lengthy discussions. Practically, the entire illegal market, starting from large mafia and organized crime cases and ending with blackmail and extortion, is based on such methods.

• The strategy of a civilized market considered the most progressive and creative. Its methods are aimed at creating long-term mutually beneficial relationships with partners. A conversation in such conditions does not always imply equality of partners, but necessarily implies the greatest possible fair consideration of the interests of the parties.

Depending on the chosen strategy, the negotiation tactics should be varied. Tactics differ in the totality of the used methods and technologies aimed at the successful completion of all stages of the process. The most well-known tactics are considered to be waiting, a tough offensive, regular repetition of demands, clarification of positions, partial concessions and evasion of a direct response.

You can find out which phrases are prohibited to use in business negotiations from the following video.