Negotiations
Training
Know
Thyself:
Self-Awareness
in a Negotiation
We spend a lot
of time talking about the importance of preparation
for any negotiation. Much of this time is spent focusing on
some critical
components. These include, but are not limited to:
One area that
should not be overlooked is the importance of spending time understanding
the ability to be aware of those inherent advantages and positions
of power one might have in a negotiation. What do we mean by
this? Simply put, the more someone knows about themselves, the
greater advantage they face in a negotiation. It is not enough
to know about the other party. It is critical to understand as much
as you can about yourself.
How is your
company faring in the marketplace? What are others saying about
you in the press? Does your company have a deserved or undeserved
reputation? Are you facing any specific
challenges that may affect your ability to negotiate
effectively? These are but a few of the questions you need to
ask yourself before you sit down at the negotiation table.
As a buyer in
a negotiation, do you know what your options are in regards to purchasing
a specific product or service? It might be that the people you
are negotiating with may be able to provide you the best price
on the highest quality product. At the same time, you might want
to consider if your company has the capabilities to go through a
more extensive RFP process. Are you forced to sole-source for a
specific part or can you work through various
suppliers to meet your organization's needs?
As a seller
in a negotiation, do you have the leeway to modify pricing or terms
in order to build a long-term
relationship? Are you in a position to offer new
concessions or pricing structures? It might be that you're more
concerned with nailing a quick sale and moving on to the next company.
While not wise, this might be part of your sales model. You might
be focused on landing a new
account or you may be looking to
increase the amount of business you do with a company.
What you have
to know is the entire situation you are facing. Those who take the
time to prepare often focus on the other party without taking a
moment to take a look in the mirror. Understanding your own strengths,
situations, shortcomings and areas of concern will have a profound
effect on your ability to negotiate
more effectively with external parties.
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