On 22nd and 23rd of December 2010, we met Mr. Hisham again on The Art of Negotiation session. We were taught about the skills to negotiate with other and it was awesome. Thumbs up!
According to the notes that given to us, first step before you want to negotiate, please get know the REAL you. Know your personality (extrovert or introvert), family background, and view towards challenges, failures and success. And also get know the parties that you want to negotiate. Gather the information about their culture and background. In real world, actually everybody negotiates. Before we further on, what is NEGOTIATION? Negotiation is "to discuss with the goal of finding terms of agreement." Unfortunately, nowadays, many people interpret negotiation as being the skill of persuading other people to accept their point of view. Is it? Answer it to yourself.
There are 2 primary types of negotiation. First is DISTRIBUTIVE NEGOTIATION. It is known as fixed pie. Parties will compete over distribution of a fixed sum of value. In the real world of negotiations, two parties face off with the goal of getting as much as possible. For example, the seller wants to go after the best price they can obtain, while the buyer wants to pay the lowest price to achieve the best bargain. It's really just good old plain haggling, just like playing a tug of war. In this type of negotiation, information plays an important role.
There are several tips to seal this kind of negotiation which are:
- Start of the right price
- Do not disclose significant information
- Know the information about the other parties
- Exploit what you learn about the other party in setting your first demand
- Don’t overshoot
Second type is INTEGRATIVE NEGOTIATION. Integrative means to join several parts into a whole. Conceptually, this implies some cooperation, or a joining of forces to achieve something together. It is usually involves a higher degree of trust and a forming of a good relationship. Both parties want to achieve something which has value by getting what each wants. Ideally, it is a twofold process and it is often described as the win-win situation. Both parties will gained many advantages when they take a cooperative approach to mutual problem solving by using creative problem solving methods.
For sealing the integrative negotiation deal, you should:
- Provide significant info on their circumstances
- Explain why they want to make a deal
- Talk about the real interest and business constraints
- Reveal in general terms the preferences among issues and options.
- Consider any additional capabilities or resources that might meet other side interest
- Use what learn to find creative options.
Now, come to the fundamental concepts in skilled negotiation.
- Know your BATNA (Best Alternative To Negotiated Agreement)- you have to know what to do if the negotiation fail and able to make best decision.
- Reservation price – it is a least favorable point at which one will accept a deal.
- ZOPA (Zone Of Possible Agreement) - set of agreement that potentially satisfy both parties.
- Value creation through trades – good exchanged had only modest value to their original holders but exceptional value to the new owners.
As a negotiator, play the game well by:
- Getting the other side to the negotiation table
- Making a good start. For example, express respect for the other’s side experience and expertise.
- Establish the right tone
- Do active listening
- Close the deal
- Frequently asked question.
So, play well and keep practicing dear. Be an effective negotiator and win the best deal. But remember this, in Islamic perspective, it is not about winning the deal. It is useless if you win the situation by cheating or tricks. Be honest, and all we want is only “BARAQAH” from Him. He will lead us to right path. I end up my post with this prayer…
“O Allah! Put affection amongst our hearts, set right our matters between ourselves, guide us to the ways of peace, save us from the darknesses towards the light, save us from all kinds of indecency; the apparent as well as the hidden, and give us barakah in our hearing, our seeing, our hearts, our spouses, our children, and turn in mercy upon us. Indeed You are the One who greatly accepts repentance, One who is repeatedly Merciful.” (Al- Hakim)
No comments:
Post a Comment