How to conduct business negotiations?

In the modern world, more and more importance is attached 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 leaders, managers and top managers. However, business negotiations mean not only high-level meetings, where strategic decisions on interaction and business development are made. Technically, this area includes any communication of any company representatives during working hours and on a work issue.

Business negotiations usually mean a special form of business communication aimed at reaching an agreement in the course of joint communication, exchange of views and proposals. Ideally, the ultimate goal is mutual or unilateral gain. There can be many reasons, but they all boil down to four main types.

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

There are several main classifications of types of business negotiations.

• By the nature of the they are divided into official - held in a strict atmosphere and subject to documentation according to the protocol, or informal, held in an informal, semi-friendly atmosphere.
• By the circle of persons involved distinguish between internal and external subspecies. Internal ones are conducted within one team, while organizational and interpersonal issues, delimitation of functions and planning, and strategies for the general development of the company can be discussed.External negotiations are conducted with clients, customers or business partners.
• Negotiation type determined by the social status of the parties. Negotiations between partners and colleagues who occupy approximately the same position are called equal. Communication between a boss and a subordinate or people of different levels is unequal.

Negotiation is a complex and multi-stage process that requires a lot of knowledge and costs. One of the most difficult stages, often determining the outcome of negotiations long before they begin, is preparation. It is at this stage that you should define your goals and choose a strategy, place and time. It is also a great chance to collect and process information, and at the same time to plan everything.

You should start with a clear and unambiguous statement of the goal of the negotiations. Further, it is better to break the goal into a number of sequential tasks and determine the strategy, tactics and methods of achieving them. When analyzing, one 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 over the argumentation, it is better to try to predict the possible reaction of the partner, think about how you can convince him, what facts and guarantees to provide.

Unless a confrontational style of negotiation is used that is focused on reaching an objective at any cost, it would be wise to identify points of possible compromise in advance. As a rule, in partnership negotiations, mutual concessions, at least insignificant steps towards each other, play an important role. It should be based on the understanding that the other side is also interested in reaching a mutual agreement, which means that an agreement is initially possible.

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

• If the meeting takes place on your own territory, the negotiator or team perceives a subconscious psychological advantage in the familiar secure environment. It is also possible to organize the space for yourself, initially imposing your own order of actions on the opponent. However, being overly relaxed can also play a negative role, weakening attention and concentration.
• Alien territorybased on the foregoing, equally plays into the hands of the opponent. In addition, the road to the venue and location there will require time and effort. But, on the other hand, this situation gives a number of bonuses. You can, for example, compose a psychological portrait of your opponent based on his interior, non-verbal decision. You can also more clearly, without distraction, focus on the negotiations, or even, if necessary, hold on to "forgotten" documents and gain time.
• Meeting on neutral territory is considered by many experts as the best option. The parties are in an equal position, which meets the basic requirement of the principle of fairness.This decision leads to the fact that the partners can rely solely on their negotiating skills.

When conducting business negotiations, there are two main approaches: confrontational and partner. The choice of strategy directly affects the course and style of communication, determines the relationship of 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 partnership approach is the most popular, although the alternative option has many supporters. Opponents of the confrontational style consider its methods to be overly aggressive and immoral, supporters, on the other hand, position themselves as true masters of communication and classify any compromises and concessions as 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 the negotiations is the unquestioning and absolute approval of all one's own demands; any concessions and deviations 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 persuade the enemy to any favorable conditions for yourself.

• Affiliate approach emerged as a counterbalance to the confrontational and positions itself as democratic and modern. The very concept of partnership, embedded in the term, implies equal rights of the parties to receive benefits from the transaction. As a rule, such negotiations are based on a series of mutual concessions in order to eventually reach a mutually beneficial compromise. It is assumed that both parties are doing 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, to bring the interests of all parties to a common denominator and to find a golden mean that satisfies everyone.

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

An acute ethical problem in business communication is also the issue of personal decency and responsibility of everyone, and on a general level - honest and fair passage through all stages of the dialogue. The existence of a business protocol that regulates all rules of conduct and communication, from introductions and acquaintances to telephone conversations and exchange of gifts, helps to streamline controversial issues.

Over the years of existence of business etiquette, a clear and orderly structure of negotiations has been formed. Start with formal greetings. The representatives of the host side are the first to greet. As a rule, the host is the one on whose territory the negotiations are taking place, but if a neutral place is chosen, the host is the party that initiated the meeting. She also deals with the seating of the participants according to the protocol.

It is considered impolite to start a meeting right at the heart of the matter.... The true art of negotiation is to move on to the issue gradually, away from common informal phrases and topics. Such an approach will help to endear the interlocutors to yourself and express your respect and interest in them.

The desire to put pressure on the interlocutor, to force him to make the necessary decision does not paint the negotiator either. Direct questions requiring immediate resolution should be avoided. A more effective and ethical tactic is to give the adversary time to think and analyze.

The appearance of partners is also an important factor. Unless otherwise agreed, the style of dress is supposed to be official - a suit and tie of dull colors. It is considered bad form to take off your jacket or loosen the knot of a tie - at least before the head of the receiving party suggests doing it.

In the era of globalization, the Internet and fast travel modes, business ties with other countries and peoples are becoming more common. Despite the general desire for tolerance and the formation of a common, world-wide business protocol, the national and cultural traditions of other peoples should be respected. Some behavioral patterns are similar, but there are also significant differences that sometimes make communication difficult. For example, it is difficult for a European to understand the intricacies of Japanese etiquette and, in particular, the Japanese polite refusal, which sounds like avoiding a direct answer.

However, the art of negotiations, in principle, is based on the ability to understand and feel the nuances of psychology and the state of the interlocutor... Each conversation is unique and develops according to its own original scenario. It is not enough to simply set a goal and achieve it. At the end, you should definitely conduct a detailed analysis of what happened, understand what worked and what didn't, what mistakes were made, and what helped to come to a compromise.

An experienced master is distinguished by the ability not only to comply with the protocol and achieve the goal, but also to differentiate the types of negotiations and act in accordance with them.

However, the final, final point is not the agreement and signing of the deal, but its high-quality and timely execution. Often this last, final stage of negotiations is undeservedly neglected. 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.

A reputation is also formed in the very process of communication, exerting both additional positive and opposite, in case of disrespect for the interlocutor or violation of the protocol, influence.

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 a correct and objective assessment of both their own positions and capabilities, and other participants in the dialogue. However, with a certain negotiating skill, any strategy can lead to a successful completion of the deal.

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

• The first strategy is known for being aggressive and straightforward., it is not for nothing that it is also called the tactics of "primitive" or "bazaar" negotiations. The main leverage in this case is the personal charisma of a businessman who is only interested in getting profit at any cost. Prospects for further cooperation, maintaining a positive image, mutual trust and comfort of the parties to the transaction are not taken into account. Quite clumsy methods of manipulation are often used, based on assertiveness, active imposition and often deception. Examples of such one-off deals are vividly described in the stories of the formation of the first American businessmen during the gold rush.

• The second strategy is an intermediate link between a chaotic unregulated and a 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 tough competition for resources and sales markets, when there is no time and opportunity for lengthy discussions. Practically the entire illegal market is based on such methods, from large mafia and organized crime cases to blackmail and extortion.

• Civilized market strategy 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 it necessarily implies the maximum possible fair consideration of the interests of the parties.

Negotiation tactics should also vary depending on the chosen strategy. Tactics differ in the set of methods and technologies used, aimed at successfully passing all stages of the process. The most famous 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 from using in business negotiations from the following video.