WHETHER we are aware of it or not, everyone of us negotiates                                                                                          
our way in situations we're confronted with from day-to-day.                                                                                          
Be it at home or at the workplace, with family, friends, the                                                                                          
management or the client, it's an activity we perform                                                                                                 
unconsciously most of the time.                                                                                                                       
                                                                                                                                                      
In business especially, negotiation becomes a formal act which                                                                                        
has many connotations of winning and losing. It is essentially                                                                                        
an art that allows finding out about the other party's needs,                                                                                         
reconciling them with your own and finding a mutually                                                                                                 
convenient way of fulfilling those needs.                                                                                                             
                                                                                                                                                      
The first of this two-part series will take a look at what                                                                                            
strategic negotiation is all about and some aspects that are                                                                                          
vital for success.                                                                                                                                    
                                                                                                                                                      
The second part will address how an individual's personal                                                                                             
style can be a key negotiating resource as well as, how the                                                                                           
use of negotiation tactics can change the balance of power.                                                                                           
                                                                                                                                                      
According to business negotiations specialist Valentina                                                                                               
Stolar, the key to successful negotiation is flexibility                                                                                              
because, at times, midway through the process, the parties                                                                                            
involved will have to accept that their initial expectations                                                                                          
were unreasonable and thus requires modification.                                                                                                     
                                                                                                                                                      
Stolar, speaking at a seminar workshop entitled "Strategic                                                                                            
Negotiations for the New Millennium", however, claimed that                                                                                           
the conception of negotiators being born and not made is, at                                                                                          
best, a myth.                                                                                                                                         
                                                                                                                                                      
"Admittedly, negotiating is a complex art. However, it is                                                                                             
possible to identify, understand and acquire those basic                                                                                              
skills which, when put together, creates an effective                                                                                                 
performance. It is encouraging to know that there are very few                                                                                        
"rights and wrongs" or specific formulas for achieving                                                                                                
success.                                                                                                                                              
                                                                                                                                                      
"The very term 'negotiation', in essence, refers to a variety                                                                                         
of transactions in which the terms of exchange are not fixed.                                                                                         
if it were something that was fixed and cannot be changed ie.                                                                                         
price or quantity, then it leaves no room for negotiation,"                                                                                           
she reasoned.                                                                                                                                         
                                                                                                                                                      
In strategic negotiations, both parties try to achieve a                                                                                              
conclusion that they find satisfying and to their mutual                                                                                              
benefit - in other words, getting to YES.                                                                                                             
                                                                                                                                                      
Stolar emphasised that it is important for strategic                                                                                                  
negotiators to establish common ground rather than dwell on                                                                                           
differences because this makes it easier for all sides to                                                                                             
co-operate.                                                                                                                                           
                                                                                                                                                      
"This includes leaving behind the "battlefield" behaviour,                                                                                            
egos and petty competitiveness and instead concentrating on                                                                                           
pooling resources to solve the problem.                                                                                                               
                                                                                                                                                      
"Most negotiations also fail because people tend to see, it as                                                                                        
an event and not a process. For this reason, it is important                                                                                          
that the parties undertake pre- and post-negotiation                                                                                                  
preparations," Stolar said, adding that pre-negotiation                                                                                               
efforts showed a strong positive influence in the outcome of                                                                                          
85 per cent of cases studied.                                                                                                                         
                                                                                                                                                      
Pre-negotiation preparations would include identifying both                                                                                           
the actual and psychological needs of all parties, conducting                                                                                         
research on the profile of members 'from the other team,                                                                                              
ascertaining their strengths and weaknesses, determining who                                                                                          
are the real decision-makers and key influencers, setting                                                                                             
clear objectives, a specific agenda and devising a strategy.                                                                                          
                                                                                                                                                      
"Before going in for the formal negotiation, one area your                                                                                            
team certainly must address is the possible ulterior motives                                                                                          
and needs of the opposing team because, very often, the key                                                                                           
motivator or influencer is what is unstated and not implied.                                                                                          
                                                                                                                                                      
Other variables that should be managed are factors like time,                                                                                         
venue, seating arrangements and emotions as this can have                                                                                             
significant impact on the "mood" of the whole process.                                                                                                
                                                                                                                                                      
Once formal negotiation begins, skilled negotiators should                                                                                            
take control from the word "go" and maintain the momentum                                                                                             
throughout. The key tasks in the beginning game would include                                                                                         
taking control of handling introductions and seating                                                                                                  
arrangements - sit somewhere that does not disadvantage you.                                                                                          
                                                                                                                                                      
"Make sure you keep the initiative by stating the ground                                                                                              
rules, suggesting the agenda and being the first to get down                                                                                          
to business. Another point to remember is to focus on the                                                                                             
other party's position rather than on your own.                                                                                                       
                                                                                                                                                      
"This would include preparing lots of questions in advance so                                                                                         
that you avoid having to think on your feet, concentrating,                                                                                           
listening and watching for non-verbal signals, evaluating                                                                                             
whatever is said without emotion and reserving judgment until                                                                                         
all the facts are on the table," Stolar said.                                                                                                         
                                                                                                                                                      
The fundamentals involved in the opening position are to                                                                                              
always accept the other team's opening position for what it                                                                                           
is, always test it and never accept the first offer.                                                                                                  
Subsequently, the onus is on your team to communicate your                                                                                            
position with clarity and confidence so that you are clearly                                                                                          
understood.                                                                                                                                           
                                                                                                                                                      
However, she warned against having unrealistic and incredibly                                                                                         
high demands as this may result in an early deadlock.  The key                                                                                        
is to keep proposals simple as people are wont to disagree                                                                                            
with things they do not understand.                                                                                                                   
                                                                                                                                                      
"Ending the formal process also requires attention to                                                                                                 
particular details like communicating credible finality in                                                                                            
order to make the other side believe that you have reached                                                                                            
your limit and will go no further.                                                                                                                    
                                                                                                                                                      
"It is also useful to use deadline pressure to keep the ball                                                                                          
rolling.  Oftentimes, many negotiators will not move until                                                                                            
they feel a deadline pressure and see the consequences of not                                                                                         
reaching an agreement," she said.                                                                                                                     
                                                                                                                                                      
Finally, never end any negotiation process on a negative note.                                                                                        
Instead, always let the other party save face by making the                                                                                           
point of complimenting them on their valuable contribution, if                                                                                        
your team ends up the winner.  Contrarily, avoid letting the                                                                                          
other side believe that they have lost or have been tricked as                                                                                        
you may then have problems implementing the agreement.                                                                                                
                                                                                                                                                      
Post-negotiation initiatives would include documenting the                                                                                            
process as well as terms and conditions to safeguard against                                                                                          
noncompliance, implementing what was agreed upon and                                                                                                  
monitoring the situation to gauge its level of success.                                                                                               
                                                                                                                                                      
Stolar stressed the need for all parties to comply with what                                                                                          
was finally agreed upon because in most cases, there was the                                                                                          
tendency for the same people to be involved the next time a                                                                                           
deal has to be negotiated.                                                                                                                            
                                                                                                                                                      
"Once you have reneged on a promise or verbal agreement, don't                                                                                        
expect the other side to play fairly the next time your team                                                                                          
has to deal with them," she said, adding that this is where a                                                                                         
personal commitment turns out to be more binding than a                                                                                               
business commitment.                                                                                                                                  
                                                                                                                                                      
Due to the fact that all negotiations happen at two levels,                                                                                           
the first being factual or objective, the second being                                                                                                
personal, subjective and emotive, past experience has shown                                                                                           
that personal commitments tend to carry more weight compared                                                                                          
to signatures on dotted lines.                                                                                                                        
                                                                                                                                                      
"It makes a world of difference if one individual from the                                                                                            
other side gives a personal commitment to comply with all the                                                                                         
terms an conditions. That way, even if other team members                                                                                             
decide to play foul, the one individual will feel obliged to                                                                                          
keep his/her word," Stolar said, reasoning that ultimately, it                                                                                        
is "people" who negotiate and not companies.