Connect with us

Top 10

How to achieve success in a negotiation

The ability to negotiate effectively is a crucial talent in the world of business. From financial transactions to conflict resolution, negotiation skills are valuable in all nature of scenarios.

In an ideal world we’d all walk away from the negotiation table with the best possible deal, but it doesn’t come as easily as simply asking for what you want. Achieving your desired outcome can take thorough preparation, effective communication and a willingness to compromise.

So, what’s the trick for achieving success in a negotiation? Fortunately, like any other skill, effective bargaining can be learnt and there are a few key rules to follow in order to master it.

 

Prepare, prepare, prepare

Denise Louise Jeffrey

The worst thing you can do is turn up at a meeting without having done the appropriate leg work. While it isn’t possible to plan out exactly how the discussion will go, doing your research will put you in a good position to answer any questions and address any issues that may arise. Having hard facts to back up your viewpoint is a great bargaining tool and will prove that you know what you’re talking about.

If you’re not familiar with the person you’re negotiating with, it doesn’t hurt to carry out some background research on them beforehand. Learn what their company does, what their role is and if possible, a bit about their previous projects. This may help shed some light on how they’ll behave in the negotiation and, therefore, how you should tailor your own approach to it.

 

Choose your approach based on their behaviour

There’s no one size fits all approach when it comes to negotiating. What works with one person may rub another up the wrong way. This means your conduct on the day can have a huge impact on your success or failure, so it’s essential that you learn how to tailor your behaviour appropriately.

Negotiation style is less about somebody’s personality and more about their behaviour in that setting. Everyone can adapt their manner, and the actions they exhibit in a business meeting may not mimic their usual demeanour. Somebody who is generally easy going may decide they’re going to play hardball to achieve the results they want, for example.

Be prepared to alter your own behaviour to respond effectively to theirs. If they’re being cooperative, be cooperative back. If they’re going into a lot of depth, try to offer the same level of detail in return. One exception to this rule is if they’re behaving in an overly dominant or aggressive manner – this is unprofessional, and you’ll be well within your rights to call this out.

Be prepared to compromise

Negotiations aren’t always about getting what you want. There needs to be give and take, and the best possible outcome is one that benefits both parties. By working on building a positive professional relationship with your client from the start, you’ll both feel more inclined to work on a compromise.

Build rapport and gain respect from the other party by demonstrating that you’re listening attentively and taking on board what they’re saying. You may even begin to see things from a fresh new perspective, which can put you in better stead to strike a deal that works for everyone.

 

Know when to call it day

Discussions can go around and around in circles when both sides are determined to achieve their desired outcome. In this circumstance, it’s important to be able to identify when the negotiation has reached a natural end.

It might be that you’re not going to get what you want from the arrangement, in which case the best thing to do sometimes is to walk away. Though disappointing, it could be a better decision in the long run than settling on an arrangement that you’re unhappy with. In some cases, the mere threat of leaving the negotiation may be all it takes for your client to show more lenience.

In contrast, if you’ve managed to strike an agreement that you’re happy with, close the deal as quickly as possible to avoid any renegotiation from the other side. Of course, once the final deal has been agreed on, be sure to get it down in writing to get it signed off as soon as possible.

 

Good negotiating is a skill that anyone can pick up if they put their mind to it and, like anything else, practice makes perfect. In short, it’s all about planning effectively, observing human behaviour and tailoring your own conduct accordingly. By keeping the above advice in mind, hopefully you can go forward and find success in future negotiations.

 

Denise Louise Jeffrey :

Denise has seventeen years of expert specialization in Negotiations, Leadership and Communications which she delivers to her corporate, business and aerospace and defence clients via international seminars, key note speeches and coaching. She has helped many clients accelerate their effectiveness and sustain organizational vitality at the managerial, executive, board and leadership team levels facilitating both individual and team learning.

 

 

 

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Technology

USING ARTIFICIAL INTELLIGENCE TO ACHIEVE CIRCULAR ECONOMY

By Professor Terence Tse, ESCP Business School

 

It is really only a matter of time before the two main trends, artificial intelligence (AI) and circular economy, would come together. A milestone of this convergence was the white paper “Artificial intelligence and the circular economy”: AI as a tool to accelerate the transition, jointly published by The Ellen MacArthur Foundation and Google earlier this year. It has kick-started the discussion on how AI can be used as a tool to help accelerate and scale our transition to a circular economy. This can be achieved by unlocking new opportunities through improving product and material design, enhancing circularity-based business models, and optimising circular infrastructure. The paper draws on the food and consumer electronics industries to illustrate the circular benefits driven by AI. The forecasted value that can emerge from these is encouraging: up to $127 billion and $90 billion a year in 2030, respectively.

 

The pace will be slow

No doubt these are very good news. It also shows how innovative technologies can take circular economy to the next level. Yet, I believe the path leading there will be full of challenges, not least because, contrary to what general media would like to get us to believe, the development of AI is, in reality, really slow.

 

There are several reasons attributable to this sluggish pace

First, there is a general shortage of AI-proficient graduates. Training up AI researchers takes time. Universities are not churning out data scientists fast enough to meet the job market demand. For those who are graduating, they will most likely be snapped up by the technology giants. Indeed, it has been estimated that some 60% of AI talent are in the employment of technology and financial services companies, leading to a ‘brain drain’ in academia, which in turn, slows down the production of qualified graduates. Small circular economy-based companies (as well as AI start-ups) will struggle to have the same hiring power, as they often lack the ability to match the levels of salaries and prestige offered by large organisations.

Another reason why circular economy-aimed companies, large or small, will struggle to deploy AI is that the technology remains a very expensive investment. AI is, at the moment, far from a plug-and-play technology. Arguably, there are off-the-shelf AI applications available in the market. But what this one size fits-all technology solutions can really do is often very limited and their effectiveness low. Inevitably, for AI to work at an acceptable, value-creating level, it is necessary to integrate it into the existing wider IT system. Customising AI applications to be embedded in the system architecture is very complex and hence very costly.

To make matters worse, the market is seemingly inundated with self-proclaimed AI companies. A recent report has suggested that 40 percent of start-ups in Europe that are classified as AI companies do not actually use artificial intelligence technologies in a way that is “material” to their businesses. As someone who researches and works in the business of AI, I can readily observe this phenomenon has already eroded the trust of many companies, making them increasingly cautious when proceeding with investment and deployment of AI.

 

Gradual developments, not quantum jump

For these reasons above, the adoption of AI, and by extension, in the area of circular economy, will be slow. This, however, does not mean there will be no advancement. Instead of “big bang” new business model creations, AI will most likely produce circular advantages through baby steps in operational enhancement gradually. For instance, one of the important elements in achieving circular economy is better asset management. In a recent research project for the European Defence Agency, my colleagues and I have discovered that there is a wide spectrum of operations for ministries of defence to save money and practise circular economy, from refurbishing and repurposing small military equipment items to reduce waste and minimise the use of virgin materials to extending the service years of capital assets. Unquestionably, the same may be applied to civilian activities. For example, combining the power of AI and drones can extend the longevity of major infrastructure such as reactors and bridges.

Advancements in drone technologies have allowed them to be deployed to take pictures at heights that are dangerous for inspectors to reach. The contributions of AI come from its ability to analyse and identify cracks as well as defects on assets that are not always visible to human eyes from captured images. Consequently, problems are detected before the assets become irreparable, thereby lengthening their lifetime.

A seemingly insignificant but potentially huge possibility of waste reduction would be saving on paper use. In the insurance industry, for instance, there is still a huge reliance on actual paper, with the communications between various stakeholders, including the underwriters, brokers and insured, passing on a large number of physical documents. AI techniques, in particular natural language processing, can help speed up the digitalisation of documents as they can go beyond the point of just reading and processing text to recognising and recording signatures and rubber stamp marks. Little by little, it will be possible to lower paper consumption.

 

The future is now

Both AI and circular economy are by themselves breakthrough ideas that are set to change the world dramatically. Combined, it can be a very powerful force of good. But this can only be achieved if we can synthesise them. For AI and circular economy to work together, it is necessary to educate AI developers to be more familiar with the idea of circular economy as well as making circularity practitioners and researchers more AI-savvy. Holding just half of the equation, we risk missing out on most of the intelligence. After all, no matter how smart machines can be, ultimately, it is the human intelligence – or stupidity – that determines the kind of future that we will be having.

 

Extract of “The AI Republic: Building the Nexus Between Humans and Intelligent Automation”

 

Continue Reading

Top 10

IS BITCOIN SET TO HAVE A 2017-STYLE MINI BOOM THIS YEAR?

Bitcoin’s price is set to “surge before the end of 2020” with investors keen not to “sleepwalk” through a 2017-style mini-boom, says the CEO of one of the world’s largest independent financial advisory and fintech organizations.

The prediction from Nigel Green, the deVere Group CEO and founder, which has $12bn under advisement, comes as Bitcoin – already one of the best-performing assets this year – appears to be on the brink of a bullish breakout.

In recent days, Square, which is owned by the billionaire founders of Twitter, has allocated 1% of its cash reserves to the cryptocurrency, whilst a former Goldman Sachs hedge fund chief says the price of Bitcoin will jump to $1m in five years.

Mr Green comments: “There’s been something of an avalanche of interest in Bitcoin in recent weeks from household-name investors.

“Investor activity is picking up considerably with various on-chain metrics and ongoing – and heightening – global political, economic and social turbulence suggesting that there will be a price surge before the end of the year.

“Like gold, Bitcoin can be expected to retain its value or even grow in value when other assets fall, therefore enabling investors to reduce their exposure to losses.
“Investors will increase exposure to decentralised, non-sovereign, secure digital currencies, such as Bitcoin, to help shield them from the potential issues in traditional markets”.

He continues: “There’s a growing sense that we’re set to experience a mini-boom similar to that at the end of 2017.

“Prices are yet to catch-up with investor interest – but this is only a matter of time as investors will not want to sleepwalk towards perhaps year-high prices in the run-up to the end of 2020.”

The late 2017 bull run saw the Bitcoin price reach its all-time high of $20,089.

The deVere CEO concludes: “There’s been a notable ramping-up of interest in Bitcoin amongst investors since the end of summer. Indeed, it has been the best performing week for one of the year’s best-performing assets since July.

“I can see no reason why this upward trajectory will not continue between now and the end of the year.”

 

Continue Reading

Magazine

Trending

Wealth Management1 day ago

UNDERSTANDING THE RISKS INVOLVED IN TRADING FOREX

The foreign exchange market attracts numerous traders every day because penetrating the market is easy. To venture into trading forex,...

Business1 day ago

CONSUMERS IN THE COVID ERA CAN LEARN TO EMBRACE STRONG CUSTOMER AUTHENTICATION

By Ed Whitehead, Signifyd managing director, EMEA   The changes that COVID-19 has caused in rapid succession make it hard...

News3 days ago

ATOM BANK CHOOSES SUREPAY TO PREVENT FRAUD AND MISDIRECTED ONLINE PAYMENTS

Since launching in the UK, SurePay’s Confirmation of Payee solution is checking over 25 per cent of all UK payments...

News3 days ago

THE CENTRAL BANK OF IRELAND GRANTS MODULR AN EMI LICENCE

The European arm of Modulr has been established to provide services to customers across the European Union Modulr will drive...

Business4 days ago

PROTECTING THE CONNECTED CONSUMER FROM REAL AND PERCEIVED FRAUD RISK

Sam Holding, Head of International, SparkPost   Experts have researched and observed that when there is an economic downturn, there...

Business4 days ago

CHIEF DATA ANALYTICS OFFICERS – THE KEY TO DATA-DRIVEN SUCCESS?

by: Simon Axon, EMEA Financial Services Industry Consulting Director at Teradata   Banks were among the pioneers of the new...

Finance4 days ago

UNDERSTANDING FINANCIAL LITERACY

By Rita Cool, Certified Financial Planner at Alexander Forbes   Financial literacy is more than understanding how to work out...

News4 days ago

FINTECH TRADECORE SUPPORTS PLATO TO BRING MORE EFFICIENT MONEY TRANSFERS TO MARKET

Plato ’s digital and card solutions enable customers to share funds with family quickly and easily   Fast growth fintech...

Business5 days ago

THE EFFECTS AUTONOMOUS DRIVING WILL HAVE ON THE TRANSPORTATION AND LOGISTICS INDUSTRY

Stefan Spendrup, Vice President of Sales Northern and Western Europe at SOTI    ‘Big thinking’ articles on how to disrupt industries...

Technology5 days ago

USING ARTIFICIAL INTELLIGENCE TO ACHIEVE CIRCULAR ECONOMY

By Professor Terence Tse, ESCP Business School   It is really only a matter of time before the two main...

FINANCIAL SERVICES FINANCIAL SERVICES
Banking5 days ago

WIRELESS CONNECTIVITY POWERING BANKS OUT OF THE STORM

Graham Brooks, Strategic Account Director, Cradlepoint EMEA   It’s now clear the pandemic is going to have a long-term effect...

Finance5 days ago

FROM COVID TO CURRENCY CRISIS?

One hallmark of the United States’ superpower status is the primacy of the dollar. All regimes rise and fall. There...

Top 101 week ago

IS BITCOIN SET TO HAVE A 2017-STYLE MINI BOOM THIS YEAR?

Bitcoin’s price is set to “surge before the end of 2020” with investors keen not to “sleepwalk” through a 2017-style mini-boom,...

Business1 week ago

ACCOUNTANTS HAVE BECOME CRITICAL TO THE SURVIVAL OF BUSINESSES AND THEIR REPUTATIONS DURING COVID-19

Stuart Cobbe, Director of Growth, Europe, MindBridge   The opportunity for fraudulent activity to flourish as finance departments operate remotely...

Business1 week ago

STAY SECURE FROM ANY LOCATION WITH COVALENCE FOR REMOTE WORK

By Andrew Milne, Chief Revenue Officer at Field Effect    As cities across the globe begin to ease their COVID-19 restrictions, this...

Finance1 week ago

ARE FINANCIAL SERVICES COMPANIES RISKING THE CONSEQUENCES OF A DATA BREACH?

By Andrew Fitzgerald sales director for Western Europe and Sub-Saharan Africa – Cohesity   Financial services companies need to be doing data...

Business1 week ago

COVID-19 HAS MADE PERSONALISATION IN CUSTOMER COMMUNICATION MORE IMPORTANT THAN EVER

By James Hall, Commercial Director, Striata UK   When COVID-19 struck and countries around the world went into lockdown, the...

News1 week ago

CORE BANKING PROVIDER OHPEN APPOINTS DOUWE-KLAAS BIJL AS CFO AND BOARD MEMBER

Ohpen, the first fintech platform to bring a bank to the cloud, today announces the appointment of Douwe-Klaas Bijl as its new CFO. Joining...

Business1 week ago

HOW BUSINESSES CAN USE THE CHANGING LANDSCAPE TO AUTOMATE.

By Paul McFadyen, Managing Director of metals4U    The Coronavirus pandemic has dominated our global markets for the first half of...

News1 week ago

ABBYY DIGITAL INTELLIGENCE SELECTED BY PARAGON CUSTOMER COMMUNICATIONS TO DRIVE DIGITAL TRANSFORMATION

ABBYY, a digital intelligence company, has announced a collaboration with Paragon Customer Communications – the leading provider of insightful customer...

Trending