How to Be a Successful Negotiator

In order to understand the art of negotiation, a person must know their own bargaining style. G. Richard Shell introduces us to a comprehensive, step by step method of learning how to negotiate by teaching us first that we all negotiate in a different way.

The five styles he outlines include; avoidance, compromise, accommodation, competitive, and collaborative or problem solving strategy. He starts with a "thought experiment" that helps you pinpoint your own approach or strategy in negotiation.

He reveals that a study with American lawyer-negotiators found that 75 percent of the effective negotiators in the group had cooperative styles, whereas only 12 percent had competitive styles. So, if you're a cooperative type person, and fear that you won't be good at negotiation, the good news is that reasonable people have a good potential to become effective negotiators.

Differences in gender, culture and divergent negotiation styles are all elements to consider in your preparation for an important negotiation. Planning is the key to pulling off a good negotiation, along with high expectations, the patience to listen to the other party, and a deep commitment to personal integrity, according to Shell.

In his many years as the director of the Wharton Executive Negotiation workshop, Shell found that if people are willing to ask for a bargain or a discount, they are more likely to get it than people who are unwilling to ask. In the same way, if you have set a high a specific goal for your negotiation, then commit to that goal, then you are more likely to attain it. You must learn to set fair, reasonable goals and remain ethical while attaining those goals.

In order to understand the entire problem, you must be able to see it from the other's point of view, so you need to ask questions that will clarify your opponent's goals, limitations, advantages and concerns. Remember to mirror back which you have heard, to assure yourself and your negotiating opponent that you are listening, and that you understand what they've said. Periodically summarize what has been discussed, and continue to listen for valuable information.

Shell explains that in fair negotiation there is a "positive bargaining zone", which is the area midway between the seller's bottom-line (the minimum the seller will receive for the item) and the buyer's bottom line (the most the buyer will pay for the item). The skill of a good negotiation is to find a middle ground where the seller receives a fair profit and the buyer receives a fair value for the item.

Both negotiators have a bottom line, but if you concentrate on just the bottom line and not the overall goal of the negotiation, then you only end up with a battle on your hands. You may lose the negotiation and the business relationship in the process. Instead, Shell suggests that you write down your specific goal and expected end results for the negotiation, rather than concentrating on a dollar amount.

Shell knows from experience that common ground is usually where we will find agreement in negotiating. At this point in your planning you must be assured that whoever you're going to be speaking with actually has the power to make decisions about the deal.

In order to offer everyone a fair compromise, find low-cost ways to solve any obstacles for both parties involved. Make a list of any possible objections by the other side, and be able to answer any questions they may have. If you understand their motivations and find a common purpose, you can both walk away happy.

Shell discusses the three types of leverage; positive, negative and normative. You could say that the person with negative leverage is the one who has the most to lose if the negotiation fails. He explains some of the misconceptions about leverage and how you can change your odds if you're in the weaker bargaining position.

He instructs you on each phase of the negotiation process, which he breaks down into four basic steps; preparing your strategy, exchanging information, opening and making concessions, and closing and gaining a commitment.

With almost every chapter he provides tables and graphs that give you a visual overview of his strategies and tools for each phase of the negotiation. At the end of each chapter he sums up the basic points with a brief checklist so you know if you missed any salient information. At the end of the book he has a long chapter discussing the ethics of negotiation, which involve a bit more flexibility than those on your personal life.

The appendixes are especially helpful because he gives you an individualized survey to help you determine your personal bargaining style, and an outline for how to prepare your bargaining plan. All in all, this book is a mini-course on how to improve your negotiation skills and give you the confidence to deal fairly and equitably, while showing a decent profit for your efforts.