Closing the contract

Closing the contract

Yesterday evening I attended a Future Faces event on negotiation skills. We received a brief presentation and then had chance to do a group challenge based on a case study. I found some of the things covered in the presentation really useful so though I would share them.

I’ve got to be honest – I wasn’t sure what to expect from this joint event with CIPS (Chartered Institute of Purchasing and Supply) – I’m not involved in sales or purchasing, and I’m not in a position to be able to negotiate my salary (two of the examples on the event blurb) but I hoped it might give me some tips and develop some generic skills which I might be able to apply to other contexts. I was therefore very glad that the event started with an overview of how we might be able to use the tips and techniques from the session in other contexts in both our work life (such as negotiating better deals/terms, not just financial negotiation) and our personal life (for all purchases and agreements).

The presentation from Jo McDowall from CIPS on negotiating took us through the phases of negotiation:

  1. Preparation and planning
  2. Opening
  3. Testing
  4. Movement
  5. Closing

She then gave us some tips on how to prepare and plan for negotiation. This included understanding your own requirements (what you need, not what you want), researching the other party to understand potential negotiation points, deciding on your targets (what you would like in an ideal situation, your realistic expectations, and what you would accept as a fallback i.e. minimum), and recognising any assumptions. Again it was highlighted that you need to consider all aspects of the deal, not just price. Using the example of buying a car, you might want to consider your ideal, realistic and fallback options for things like servicing, warrantee, accessories, full tank of fuel, payment terms etc. Jo highlighted the importance of beginning negotiations with your ideal situation, and shared an anecdote with us;

If you don’t feel embarrassed by what you ask for, you are not asking for enough

I can certainly see the logic behind this (after all, sometimes you might get what you want!), though in reality I know I’m far more likely to go in with a realistic negotiation rather than an ideal one as I feel really uncomfortable asking for too much. Definitely something to consider though – what are you willing to sacrifice and what are you not willing to budge on?

We were also taken through the planning process for the stages of negotiation:

  • Opening – The more you ask for, the more you get
  • Testing – Never accept the first offer
  • Movement – Aim to get maximum wish list whilst giving away little
  • Closing – Don’t take no for an answer

The group challenge got us to apply this learning into a real life example. It was an interesting task though sadly there wasn’t much time to discuss it in detail. I was glad we had the opportunity to consider how to apply what we had learnt though, and consider how the ideal, realistic and fallback situations could work in practice.

Do you have any tips for successful negotiation or additional things to bear in mind?