MRO Today - Be a better negotiator

Be a better negotiator

by Rachel Alexander

Clients, suppliers, colleagues - no matter who you deal with, negotiating is inevitable.

The better you know the basics, the bigger the rewards will be, said Gail Zank, Ph.D., faculty member and researcher with the Thomas A. Read Center for Distribution Research and Education.

"We negotiate all the time," she said. "In the business world, we think of the buyer/seller relationship, and negotiations in terms of contracts, margins or discounts."

Zank said the key to becoming a better negotiator is remembering the basics:

Plan ahead
Successful negotiations are the result of good planning and goal setting.

"Before negotiations begin, you should know what both parties expect to achieve," Zank said. "You should also consider which issues are most important to each side and which issues have more flexibility."

Listen actively
Active listeners clarify, summarize and reflect - and, they get a clearer picture of the other party's ideas.

"How we give, ask for and receive information is vital to successful negotiations," she said.

Be creative
Look for alternatives, realizing the goal is to reach an agreement.

"Think creatively about what parties have in common," Zank said. "Remember that you don't always have to 'meet in the middle.' Seventy-five dollars is not always the compromise between $50 and $100. Maybe delivery is an important factor in the agreement."

Know the people
Consider the implications for everyone involved, including the negotiators.

"You are not only dealing with an organization, but people behind it," she said. "For example, a negotiation between two organizations for an alliance may result in lots of extra work for that one person who is negotiating."

Take your time
Many negotiators think they need to respond immediately to offers, but Zank advises taking a time-out or getting input from a supervisor if in doubt.

"Another mistake people make is conceding too early," she said. "Hold off and keep exploring other options."

Keeping the basics in mind, don't become too focused on the win-win agreement. Zank said such a situation is not always possible.

"A win-win negotiation can only happen if both parties want that to happen," she said. "Though it is ideal, both parties do not always enter negotiations with a win-win frame of mind. They have to want that end and have to agree to work for it."

Gail Zank, Ph.D., is a Thomas A. Read Center faculty member and researcher. You can reach her at (979) 845-4984 or zank@entc.tamu.edu.