The Negotiation Process

It's time to negotiate! Here are a few golden rules to successful negotiations:

1) Always try to negotiate for at least 15 minutes. Any less than that and it is unlikely that either party has had enough time to fairly consider the other side. Generally, the size or seriousness of the negotiation determines the amount of time needed to negotiate it. Setting a time limit is a good idea. Approximately 90% of negotiations get settled in the last 10% of the discussion.

2) Always offer to let the other party speak first. This is especially important if you are the one making a request for something such as a raise. The other party may have overestimated what you are going to ask for and may actually offer more than what you were going to request.

3) Always respect and listen to what your opponent has to say. This is important even if he or she does not extend the same courtesy to you. Do your best to remain calm and pleasant even if the other party is displaying frustration or anger. Remember some people will do anything to intimidate you.

4) Acknowledge what the other party says. Everyone likes to know that what they say is important. If the other party opens first, use it to your advantage, by paraphrasing what you have heard. Repeat their important ideas before you introduce your own stronger ones.

5) Pay attention to your own and your counterpartner's body language. Review the chart below to learn how to interpret body language during the negotiations. Make sure that you aren't conveying any negative body language.

Short introduction to body language interpreting:

- Points to bear in mind with last-minute "strong-arm" tactics:

Even if you make the decision to treat your negotiating opponent with honesty and kindness, the other party may not extend you the same respect. Be prepared to stand your ground firmly, yet cordially, especially in the last few minutes of the negotiations. This is the time when manipulative parties may employ certain tactics in order to try to fool you into losing focus or lowering goals and standards. Remember that conflicts are generally resolved in the last few minutes.

The theory behind last minute tactics is:
-that one party may be more willing to give in out of fear that all of the concessions or progress made up to that point (perhaps hours or weeks of talks) might be lost.
-people also get tired or have other commitments that need to be met, such as making an important phone call before another business closes, or picking up children from school.

- Here are some last minutes tricks that negotiators often use at this time:

Walking out of the room
Offering a short-term bribe
Telling you to take it or leave it
Giving an ultimatum
Abrupt change in tone (used to shock the other party into submission)
Introducing new requests (used at to get you to concede with little thought or consideration)
Stating generalizations without evidence (dropped without significant statistics/proof)
Adopting the Mr. Nice Guy persona (used to try to make it look like they are doing you a favour in hopes that you will lower your expectations)

-Points to bear in mind when formalizing the agreement/negotiation:

In most business negotiations it is a good idea to get something down in written:
-even if a decision has not been made, a letter of intent to continue the negotiations is often used. This is a way for each party to guarantee that talks will continue. A letter of intent often outlines the major issues that will be discussed in future negotiations.
-in some cases a confidentiality agreement is also necessary. This is a promise from both parties
to keep information private between discussions.
-when an agreement has been decided, a formal contract may be required. On the other hand, depending on the seriousness of the decision, and the level of trust between the two parties, a simple handshake and verbal agreement may be all that is needed.

Taking all this points into consideration your negotiation will be a success.