The art of strategic negotiation

This post came out from The Straits Times (10 July 2015)
Title - The art of strategic negotiation

Some pointers that I've got are:
1. Frame your case positively
2. Focus on interests over positions
3. Stress common ground, not differences
4. Manage information skillfully
5. Aim higher
6. Understand and leverage your power
7. Concede strategically

On Frame your case positively

• Framing is persuasive messaging with a favorable frame of reference. Use compelling themes to frame the negotiation in your favour. 
• Effective framing is about presenting information persuasively. Enhance your value proposition with compelling framing. Begin by anchoring your point with strong facts early in the negotiation process.

On Focus on interests over positions

• Go beyond what is articulated to find out exactly what the other party's interests are.
• Note that there is a difference between a position and an interest. 
• Positions are more specific and measurable, while interests are more general and subjective. Interest is the underlying motivation for the position. In other words, a position is what one wants, and the interest is why one wants it. 
• Uncovering and identifying interests allow both parties to be more creative and productive in looking for a win win situation.

On Stress common ground, not differences

• Good negotiation are rarely adversarial in nature. Look for common ground: Deadlines, interests, shared experiences
• Commonalities create positive feelings and a sense of shared destiny. Do this as early as possible in the negotiation process to establish the right emotional footing for a conducive negotiating climate. 

On Manager information skillfully

• Those who know how to leverage and uncover information will perform better than those who do not. Knowing what information to share and when to share it can help you build rapport and trust.
• By skillfully uncovering information from other party, you can link your value proposition to their interests and needs. 
• Strategic negotiators often ask more open-ended questions than average negotiators. They encourage the other party to do most of the talking, while they listen carefully. In strategic negotiation, the quality of your question determines the quality of the information you get. 

On Aim higher

• Top negotiators set higher targets for all aspects of the negotiation. Communicating a higher target influences the other party's perception of your value. 
• When you ask for more, you expand the range of reason, and tend to get more. It also builds negotiating room into your proposal. Effectiveness at the conference table depends on overstating one's demands.

On Understand and leverage your power

• You can increase your competitive advantage in a negotiation by understanding power sources and leveraging them. Typical power sources come from factors like financial strength, information, situations, time, technology and people.
• In negotiation, your personal power derives from your conviction, confidence and negotiation skills.

On Concede strategically

• In a negotiation, how you concede is as important as what you concede. Your concession pattern will send a message to the other party. Set your targets high enough to give yourself room to accommodate concessions. Be reluctant to give away concessions.
• Go for the quid pro quo ("something for something") approach. If you give away a concession without asking for something in return, you are encourage the other party to ask for more.
• Negotiation should start off as an exchange of information and then progress to an exchange of value. Trading concessions is a natural part of that process. 

Yours,
Something Small Thinking Big