Effective negotiators are skilled communicators

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Effective negotiators know that
delivery is as important as content
CHRISTINE MCMAHON
For SBT
Question: Our negotiations begin with the first call. We are often asked: “Who is Acme Corporation (false name)? And will you be competitive?” We compete against blue chip cable and harness companies that have strong brand recognition. This gives our prospects a false sense of security in the negotiations. We have a stronger value-added proposition that truly improves our customers’ business units. What suggestions do you have for getting past this issue?
Answer: Effective negotiators are skilled communicators. They strategically plan their communications. Every comment, question, and/or counter-response is evaluated for how it helps move the negotiator closer to his or her desired outcomes.
They know that every action adds to the other party’s perception of them. So skilled negotiators are deliberate in not only what they say, but also in how they say it. Delivery is as important to them as content. They often use the following criteria to guide their communications:

  • Will this help me build rapport with the other party?
  • Will this help me better understand the other party’s needs and wants?
  • Will this help me understand who can help or hinder this negotiation?
  • Will this help me move closer to finding common ground with the other party?
  • Will this help us reach a mutually acceptable solution?
    They know that every move is either paving the way toward a mutually agreeable solution or building a roadblock.
    Experienced negotiators look beyond the other party’s delivery; instead they look for the meaning behind the message. They ask themselves “What is the other party’s intent in asking that question or making that move?” That helps them move beyond the limitations imposed by language and focuses them on the other party’s intention. When done well, this process can help take a potentially bad situation and redirect it so information flows more easily.
    Tension is a normal part of any negotiation. Different people have different responses to how they handle tension. Some become emotionally charged becoming hostile, defensive or ornery. Some retreat into their emotional caves, unable to communicate their desired position. Some release their tension by spilling their beans at the very beginning.
    When feeling emotionally challenged, go back and review the purpose and objectives of the negotiation, and determine what response moves you closer to those outcomes.
    Try to determine the meaning when a prospect initiates a relationship with the questions: “Who is Acme Corporation? And what makes you different?” While there are many possible answers, the most obvious are:
  • They are qualifying you out of the box. Since time is the currency of our new economy, they are evaluating how much time, if any at all they should allocate to this meeting.
  • They want to see how you handle pressure. Do you flinch? Or do you respond in a thoughtful, meaningful way? Your response tells them a lot about who you are and how to push your buttons.
  • They want to know if they are dealing with an amateur or a pro. Some people only want to do business with people who are prepared, have internal fortitude and who can make it happen within their company.
    Your answer reveals a lot about your negotiating style. For example, prospects know when they are dealing with an inexperienced salesperson because the novices typically spew off everything they knows about their company and their products, hoping something will be appealing. In fact, that approach forces the buyer to sift through the information and find the pieces that appeal to him or her. Most experience buyers don’t want to work that hard.
    Another response is for the salesperson to select a few value-added qualities and detail them. Selecting the ones that are most appealing to the buyer is a dart-throw at best. If you miss the bull’s eye, you risk being shown to the door.
    The option we recommend is to answer the question with a question. That signals to the buyer that you are listening, and that you are not a “hit-and-run” salesperson but, rather, a consultant who needs more information before commenting.
    Here are some questions to get you started:
  • “For you Mr. Prospect, what’s most important to you about the relationship you have with your cable and harness vendor?” After they respond, ask: “Is there anything else?” The information you collect gives you insights about how they make decisions and allows you to tailor your response to align with their expectations.
  • “For you Mr. Prospect, what’s most important to you about how your cable and harness vendor helps you maintain ‘just-in-time’ deliveries.” Inventory management is a core competency within your company, so you ask a leading question that gives you insights about whether they are interested in this area or not. Replace inventory management with any other competencies that you can leverage to your advantage.
  • “Well, (long pause), what is it about your harness and cable area that keeps you up at night?”
    The other piece you need to consider when you respond is what is the other party’s negotiating style? If the other party is a bottom-line negotiator, they are direct, concise, sometimes even curt, and are results driven. To be effective, be very, very prepared. Bottom-lines are ego-driven and enjoy power. Do not engage in lengthy analysis or descriptions with them. Be precise and concise when communicating. Make sure you understand how you can help them increase productivity, improve revenues and/or positively impact the bottom line.
    If, on the other hand, your prospect is an influencer, your approach needs to be warm and conversational. They want to be liked and enjoy socializing. They can be swayed by testimonials or proven case studies. To be effective with an influencer, make a personal connection, and then track the conversation so it keeps on task. Influencers have a tendency to digress. Have a prepared agenda that you to refer back to if needed.
    When meeting with someone who doesn’t show emotions and resists change, you are dealing with a poker face. They are interested in proven solutions not what’s new and exciting. Since change is uncomfortable for poker faces, you need to recognize that it will take time for them to trust you. Don’t push them instead be with them. When they become comfortable with you they will be strong champions within their company.
    The fourth negotiating style is called the perfectionist. These players pride themselves on making the right decision. Therefore, they must have a proven solution. Test results, documented analysis and proof of performance are critical factors for them to be comfortable. They are very self-critical and often have a difficult time socializing. Honor their space. Keep conversation focused on business. Be prepared to walk them through analysis and test studies. These are the people who will read and look through every number and result. Do not expect quick decisions. Patience is more than a virtue, it’s a necessity when interacting with a perfectionist.
    Remember, do your homework and be prepared. Have flexibility so you can be effective with any of the four negotiating styles. Every action, every communication, every response is being evaluated by the other party. Be deliberate. Don’t surrender your initiative by speaking before you think. Every action either moves you closer to or further away from the outcomes you are seeking. Strategically plan every move so it sets the stage for future success.
    For your free copy of “The Four Negotiating Styles” either fax or e-mail your letterhead, with your name and the words, Four Negotiating Styles to: 414-290-3330 or ccm@christinemcmahon.com.
    Christine McMahon is the owner of Christine McMahon & Associates, a training and coaching firm in Milwaukee. She can be reached at 414-272-6566. Her column appears in every other issue of SBT.
    April 13, 2001 Small Business Times

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