Effective negotiation depends on many key factors. One that least discussed, but most importantly, is the mutual trust and understanding. Without these, the possibility of a successful negotiation is significantly minimized. Often, negotiators enter the negotiations with an adversarial relationship, and many negotiators make very little attempt to openly and fairly communicate with their counterpart.
In the past three plus decades, may be we have a successfully negotiated various contracts and agreements in a variety of different industries. No doubt, the negotiations go well when they begin casually, with the negotiator taking many times to get to know their counterpart. Most professional negotiators understand this reality, but sometimes negotiators “attitude” for either political or other reasons. If that happens, it often creates an aura of frustration and negotiations often break down into personal conflicts.
The most effective negotiation always starts with the negotiators communicating openly. While some negotiators like to “play hardball,” it is almost never productive. Open communication need that the negotiations follow certain steps, such as:
1. Both parties fully explain the needs and requirements. If there are budget problems, these must be explained upfront so that there are no misunderstandings.
2. Both parties must be honest with each other. Being honest does not mean giving in to everything that the other party wants, but to understand fully what is needed and why.
3. If this is eithe a hotel or food and beverage negotiation, the facility must understand what is being requested. Are there alternatives that can make it less expensive for the facility, thus allowing it to pass along that saving to the potential customers?
4. In the hotel / food and beverage scenario, if the hotel believes it can not deliver what is being requested, at the quality level and price point requested, it must be state that advance.
5. If either side is negotiating with several parties simultaneously, that must be fully disclosed. The negotiators have to explain why this is happening.
6. When a party is does not make sense, the negotiations usually fail. Often, the worst case scenario is that the two parties agree, and that the deal is so one-sided that the other party is unable to deliver when and what is requested and was promised.
7. Negotiators should only promise what they can give.
8. The negotiators must have sufficient authority to make the necessary arrangements and framework of agreements. Too many levels of negotiation is usually catastrophic to a good result.
9. The negotiators should be direct and to the point.
10.specific needs and / or requirements should be announced in advance.
11.Each party must submit their request for concessions from the other.
12.The best outcome of any negotiations is when it is a “win-win.”
13.The best outcome of the negotiations in the long term, the results in a deal that is fair to both parties.
Most people are not good negotiator. Amateur negotiators can often damage the doable deals. Parties to the negotiations must use a professional negotiator, who understand what needs to be done to “close the deal.”