5 Ways to Be a Successful Negotiator in the Business World

In the business world, negotiation is an activity that is carried out every day. Both negotiating with the company's internal team, external partners, and investors. Negotiation is necessary for anyone working in a company, regardless of title and responsibility.

Various business decisions, from the process of recruiting human resources, offering products to potential customers, to collaborating with business partners, all require good negotiation techniques. These skills can be learned by anyone, regardless of their position in the company.

Advantages of Mastering Negotiation Skills in Business

The more staff or individuals in your company master negotiation techniques, the greater the benefits that will be obtained by the company. Michael A Wheeler, a Harvard Business School professor specializing in negotiation, shares several reasons why mastering negotiation techniques can benefit your business.

1. Maximizing Profits from a Business Agreement

Business agreements are created not only from the agreement of one party, but from two parties. With good negotiation skills, one can get a targeted advantage, so that the agreement does not only benefit the other party.

2. Preventing Conflict Escalation

Disagreements are common in the business world. If this dispute is left unchecked, in the future it can become a bigger conflict. To prevent a bigger conflict, negotiations can be carried out to equalize opinions and resolve disputes.

How to Negotiate Successfully in Business

You can use the following five ways to become a good negotiator. A reliable negotiator is an individual who can maximize the benefits and benefits of the negotiation process, in various situations and conditions. Here are five ways to negotiate successfully:

1. BATNA (Best Alternative to a Negotiated Agreement) Strategy

The BATNA strategy was first introduced by Roger Fisher, William Ury, and Bruce Patton in 1991. They are members of The Harvard Negotiation Project, a project owned by Harvard University to explore negotiation and conflict resolution techniques.

This technique is a concept in which a negotiator already has the best alternative outside the planned negotiation. In this strategy, a negotiator also has a minimum standard to be achieved. This minimum standard can be in the form of product price, selling value, term of agreement, and the like.

For example, you are negotiating with a supplier for the procurement of raw materials for your product. Before negotiating with him, you should identify other potential suppliers who have a cheaper and more competitive offer price.

So, when negotiating, you can inform that you have identified another potential supplier, with a lower cost offer. Your information about the cheaper supplier is your BATNA.

Before negotiations begin, you can prepare to identify your BATNA first. This step can strengthen your bargaining position in the negotiation process.

2. ZOPA Strategy (The Zone of Possible Agreement)

This strategy is an alternative to the BATNA strategy. The ZOPA strategy focuses on getting negotiators to find a middle ground or common ground. From that point, all parties can achieve common targets and agreements that benefit all parties.

For example, your customer has a budget of 50 to 60 million rupiah to buy your product. On the other hand, you have a sales target of around IDR 55 million - 65 million. With the ZOPA technique, you can reach an agreement with consumers to be interested in buying products at a price of Rp. 55 million - Rp. 60 million. Thus, the sales target is still achieved.

3. MESO (Multiple Equivalent Simultaneous Offers) technique

The MESO technique uses a slightly different method than the other methods. Another technique focuses on just one offer when negotiating. Meanwhile, the MESO technique uses several offers at once that you have prepared before the negotiation takes place.

By offering various offers to your negotiating partner, you can identify which offers you like and don't like. This method is also effective for the brainstorming process or finding creative solutions that are faced together.

For example, you negotiate with a business partner to use your company's services. Instead of only offering one type of service at one price, you can offer different types of services at different prices.

Various types of services can be summarized into a package offer at an attractive price. Invite your partner to determine what services will be used, so that your offer is customized, to suit your partner's needs.

This way, you and your partners can understand and meet each other's business needs. The outcome of the negotiations will benefit all parties.

4. Use Open and Neutral Questions

In negotiating, use open-ended questions. For example, avoid questions like “Is that a good idea?” and replace the question with, “How did you deal with the challenges in the first quarter of this year?”

These types of open-ended questions will allow you to better determine the direction of the negotiation. Your negotiating partner will not feel forced by the flow of communication.

5. Plan How to Implement the Results of the Negotiations

In the negotiation process, also include the implementation plan that will be carried out by you and your partners. This step can provide direction so that the results of the negotiations can be made into a binding and long-term agreement.

The implementation plan includes how the agreement will be ratified, regular meetings throughout the contract agreement, and a renegotiation schedule after you and your partner have reached a certain time period.

The Applied Negotiation Technique program can be the right training program to show how to work together well for company executives. Instead of competing with the other party, negotiation can be the right way to get the best outcome for the common good.