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A Year in Review: 2016 Training Industry Report

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On average, negotiations training and other training expenditures increased for both small and large companies in 2016, while remaining consistent for midsize companies. Seems like good news, right? Underneath this seemingly bright information for companies that specialize in training and consulting, is the raw truth that businesses are spending more on training because they have more employees.  They are spending about 10% of their budgets on training, which is down significantly from last year…

What does this mean? As training becomes less focused on in-person facilitation, and more focused on online learning tools, training and influencing companies have begun to offer products that reflect the market. Companies are looking to train the largest number of employees for the least amount of money. There is little evidence that online training is as successful or impactful as in-person facilitation but, none-the-less, the shift towards mass, online training is underway.

Personal facilitation is still a relatively big part of training budgets, but the use of blended learning techniques is rising significantly, as the combination of instructor-led classroom training, virtual classroom/webcast training, online and computer based training, mobile device training, and social learning becomes more readily available. These blended learning techniques are often delivered in one of two ways: learning management systems (e-learning) or virtual classroom/webcasting. Why? Overall, technology use among companies is rising, meaning their sales or negotiations training programs are beginning to mirror this.

Looking ahead at 2017, training and influencing companies need to understand the current and adjust accordingly. Outsourced training programs are likely to be more successful in small (100-999 employees) and midsize (1,000-9999 employees) companies, which will be looking to invest in the programs with the best blend of innovative learning techniques.

Cheers to a new way of training and to a profitable year!

3 Reasons Negotiations Fail

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1. Mismanagement of expectations

Imagine going to a pizza shop and then being told it only serves sushi; disappointment is likely. The same goes for negotiations. If expectations aren’t managed properly, disappointment or frustration may ensue from a misalignment of expectations and reality, and may result in a less-than-ideal outcome for one or all parties.

Properly managing expectations comes from preparation and flexibility. If a party has done its homework –including understanding past precedents and current alternatives—that party is much more likely to have realistic expectations for its encounters. In addition, acknowledging that things may not go as planned can lead to preparation of alternative scripts and backup plans. These scripts and plans must lay out strict acceptance and walk-away scenarios prepared before negotiations begin.

 

2. Unwillingness to empathize

It’s like watching someone go fishing and not realizing that some people may enjoy fishing. Often, people do not consider the other side’s points of view and cannot appreciate that the other side has different needs and desires, which have a profound impact on how negotiations are approached.

By considering the other side’s goals, needs, and thought processes, a negotiator will be able to anticipate arguments the other party may make and consider alternatives that the other party may find appealing even before they meet. In addition, understanding and acknowledging the other side’s point of view may improve the rapport between the parties and can have a positive impact on long-term relationships.

 

3. Lack of preparation

Have you ever gone to the grocery store without knowing what you already had at your house, only to end up getting more of things you don’t need and less of what you do? Going into any deal without a knowledge of the negotiation’s landscape and potential traps can be treacherous for a negotiator and inhibit proper management of expectations.

A negotiator should come in knowing what relevant precedents exist for the current negotiation, what alternatives may be available (or currently unavailable), and what curveballs may be thrown during the conversation. Preparation in the form of a checklist can be especially helpful as a visual representation of what the negotiator has done, is doing, and needs to do in order to fully prepare for the negotiation. This detailed preparation will make the negotiator more flexible, confident, and purposeful than coming in with only a vague idea of what to expect.

 

For more on how to improve the likelihood of success in negotiations, check out The Power of Nice: How to Negotiate So Everyone Wins, Especially You! 

The Art of Persuasion: 3 Ways Women Can Negotiate Better in the Workplace

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We may not realize it, but we spend part of every workday negotiating. Whether it’s asking for a raise, closing a sales deal, pushing for better assignments, requesting more resources, or seeking more flexibility, we use our negotiation skills on a daily basis. However, women appear to be at a disadvantage in this regard.

Research shows that men are often the better negotiators, but Audrey Nelson, Ph.D. believes this is mostly due to cultural stereotypes rather than actual gender differences. A common misconception is that men are typically more direct whereas women are more relational in their style of communication. With these beliefs, women may fail to tap into their true potential. Here are some helpful ways for women to sharpen their negotiating skills and get what they want.

  1. Start Strong

Women are more often shy and more likely to apologize, whereas men say what’s on their minds. Don’t be afraid to cut the small talk and be direct. It may take practice, but the more you do it, the more empowered you’ll feel. Plus, since a direct approach may not be expected, it will give you the upper hand right out of the gate.

  1. Communicate Value

This is a strategy that builds upon a woman’s natural inclination to think globally versus a man’s more linear method. Simplify the desired end result in your mind, but use that as a starting point to map out the ways that goal is beneficial for everyone involved.

For example: You’re a top performer in sales and want to negotiate for a higher compensation package. Communicate your desire clearly at the start of the meeting, and then highlight your contributions to the company. Don’t think of this as bragging – managers are often so busy with other things that they don’t notice the value of their team members.

  1. Know Your Facts

It’s widely known that men tend to be more fact-centered while women tune into feelings. Before you begin your negotiation, do your research! Find out the median salary for your position. Bring hard data to the table (e.g., “In 2016, our department increased revenue by $500,000 while cutting expenses by $100,000”). Know the actual market value of that car or home you’re trying to purchase. Numbers don’t lie, and the more information you have, the more legitimate your end goal will seem to others.

Above all, remember that you’re worth what you’re asking for. Self-confidence provides the foundation upon which all great negotiation is built!

3 Ways to Become a Better Active Listener

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Being an active listener is important, whether it is in a meeting with the perfect client or in a negotiation with a raging lunatic. It encourages trust by showing that you care about what the other party is saying. Listening shows that you are not simply hearing what they are saying, but actually processing the information and taking it seriously. And it may preempt misunderstandings before they create problems. Here are 3 ways to become a better active listener.

  1. Put the technology away

It’s hard to disconnect, especially during work hours. But it is essential to minimize distractions during conversations to ensure that the people you are meeting with know that you value their time and opinions. By putting the technology away, you increase the likelihood of giving the other party 100% of your attention. Instead of using a computer or notebook to take notes, try using pen and paper to decrease distractions. If a computer is necessary, store necessary files on the desktop and turn the internet off to avoid the temptation of checking that new email or answering a lingering text.

  1. Repeat important statements in your own words

Repeating important concepts or statements in your own words serves multiple purposes. If the other party agrees with your reiteration, it shows that you are engaged in the conversation and received the message as intended. If the other party notes a discrepancy in what was said and what you said, it may help preempt miscommunications before they turn into problems by showing that something was lost in translation.

For example, if a client says “I would take $4 million for two,” you should repeat the statement as you understood it by saying, “So you would like $2 million for each.” If the intention was to get $4 million for each of the two, getting clarification could help avoid a huge misstep.

  1. Ask questions

Besides the obvious goal of getting answers, asking questions serves similar purposes as restating important messages. It shows that you are listening to the speaker and want to make sure you understood what they said. And it gives you the opportunity to clear up any discrepancies before they become full-blown misunderstandings. When an answer is given, it may help to repeat it in your own words to make sure that it cleared up any lingering questions.

Similar to the previous example, if a client says, “I would take $4 million for two,” you could ask, “Is that $4 million for each or $2 million for each equaling $4 million?” Again, this will clarify the client’s goal and avoid a mistake moving forward.

 

For more on how to become an active listener, check out The Power of Nice, which discusses how to participate, engage, and personalize to become a better negotiator, faster.

Should you listen to a Devil’s Advocate?

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Why would we encourage someone to tell us we are wrong and that our ideas aren’t clear? Sometimes it could be the push we need to be better, to do more, or to make more. John Adams, the second President of the United States, relied on his wife Abigail for advice and critiques to lead our country. With that said, taking the extra hour to script your pitch for a meeting or to hand off your proposal to a co-worker might not only be the remedy to miscommunication, but the key to success. So, do you have a devil’s advocate, someone you can turn to for guidance? Who is your Abigail Adams?

If you’re the drafter…

The tried and true process of putting pen to paper allows us to work through our thoughts and uncover our real goals. We have drafted our proposals and scripted our speeches And, now that you know what you want to say, and think you have said it clearly, hand it to the one person you know won’t be biased or go easy on you. When he or she brings you back your draft with red marks and arrows, go and redraft the script. Do it again and again until your devil’s advocate has run out of recommendations. In this case, third time may not be the charm. It may be the fourth or fifth or tenth. But when all is said and done, you will have a script that is clear and concise.

If you’re the devil’s advocate….

Maybe you are sitting at your desk when a co-worker hands you their latest proposal. They ask you to read it over, make suggestions, and be brutally honest. How can you be a good devil’s advocate? Here are a few key things to consider.

Is the intended demand or request clear? What can you change to make it more apparent?

Are the facts there, or does the proposal sound too personal?

Is the proposal concise and specific? What type of language do they use?

Take-aways: Take your time with a proposal. Get your ideas down on paper and don’t be afraid to redraft until it is right.  Be someone’s Abigail Adams and let someone be yours. You will be more successful in the long run if you’re not afraid to ask for advice.

The Importance of Personal Relationships in Negotiations

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Experienced negotiators know the importance of building a personal relationship before going into business negotiations. A negotiation involves two parties trying to come to a deal when both sides may want different things. An overly heated atmosphere and anger can unravel the most carefully planned deal. You can avoid many problems when you establish a personal relationship with the people who will be on the other side of the negotiating table. 

You Are Working Together

A personal relationship with the person or people against whom you will be negotiating prevents an adversarial relationship from souring the deal before it starts. If negotiators see themselves as adversaries in a confrontation, both sides tend to become defensive and reactive with each other. In this situation, asking for even a small concession is seen as an encroachment or an attempt to take advantage of the other party. However, if the parties share a personal relationship, it is easier to put these give-and-take dealings in the context of building consensus. If your opponent believes that you are genuinely looking for a mutually beneficial deal, he or she is far more likely to make a concession. 

Focus on Business

Remember that business is business. If both parties didn’t have divergent needs, there would be no need for negotiations. Both parties will be asking the other to give up something. This can create a difficult atmosphere if you’re not careful. Never make personal attacks or attribute any combative exchange to malice on the part of your opponent. When things are getting tense, suggest a break. Taking some time away from the negotiating table can help you steer the conversation back to your personal relationship. Remember to not take things personally. 

Know Your Opponent

A good negotiator will build a personal relationship with the person against whom they will be negotiating before they even get to the table. This means making those important social calls to your opponent. The key is to frame yourself as a friend first and a negotiator second, which transforms your relationship from competitors to cooperators. This can provide a positive perspective on the person with whom you will be negotiating. Understanding what they want, can also help you get what you want.

Building personal relationships between negotiators is an essential part of reaching a deal. Remember to not only get to know the positions from the other side, but the people with whom you are negotiating as well. Focusing on your cooperation can be the element that closes the deal.

Navigating Negotiation Stalemates

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Every businessperson has experienced a negotiations stalemate. Compromise has faltered, neither party is willing to budge, and there is nothing more to say. A successful negotiator knows the way out of a stalemate and how to seal the deal.

Stay Professional and Keep the Client

Before trying to get your opposition to budge, think hard about what you are willing to do to keep this client. Make sure you are being smart about considering compromise. What is the smallest concession you are willing to make? Is this concession worth keeping the client? Negotiation isn’t always about getting your way on everything, sometimes to get what you want, you have to know and help them get what they want.

Your tone should remain professional, no matter how heated the negotiations become. Be courteous. Avoid the “buts” – saying, “I understand your point, but …” just tells your opposition that you are rejecting their points. Shift the conversation to finding joint solutions. Ask them, “How can we make this work?” Build relationships is much more profitable in the long run than burning bridges in one deal.

Breaking the Barrier

You’ve made all the concessions you are willing to make. Now is the time to break through your opposition’s objections. The first step is to understand the other person’s stumbling block. Get this information by being honest about your sticking point. This invites them to tell you why they aren’t budging. You will be able to address their concerns from this information.

If you aren’t getting anywhere at the negotiating table, it may be time to shift focus. The key is to change the context of the conversation to something else for a while. Get the client out of the combative mindset by suggesting a break. This allows you to engage with the opposition in a social context and gives them a chance to get to know you on a personal level. You can also talk about future business opportunities your two organizations might share in the future. More important, it gets them out of the adversarial mindset.

Power Moves

Breaking up the negotiations when they have stalled may be your only option. If you have the upper hand at the time, you can suggest a cooling off period. This is a better move to make when you know your opponent wants the deal more than you do. The prospect that you are willing to walk away may be all that is necessary to get the other party to budge.

If you don’t have the advantage in negotiations, it is still possible to shake up the negotiations by buying some time. Telling the opposition that you would like a legal opinion is a card you can always play. Most business-people understand the need for legal advice. This keeps your negotiations open and buys both of you some cooling-down time.

Keep an Ace in the Hole

When all else fails, you should always have a trick up your sleeve. Before you go into negotiations, prepare something you can use to push stalled negotiations over the edge. Use alternatives. A deal, a discount, or a special offer can go a long way to closing the deal.

The 3 Ps of Negotiation

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No matter the industry you are in or what you are trying to sell, negotiating is one of the most crucial skills a sales professional has to master. Here at the Shapiro Negotiations Institute, we’ve spent the last twenty years studying and teaching the art of negotiating. As a result, we have developed a systematic approach to the negotiation process:

3ps

For more information about proper negotiation tactics visit our negotiation training page.

 

Listening: The Golden Rule of Successful Negotiations

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You know the feeling of frustration you get when you know you aren’t being heard? It’s the same feeling your potential client has when you place more importance in the pitch you’ve prepared than what he or she has to say during a negotiation. Negotiation is about striking a balance—this isn’t possible without hearing both sides. If you don’t know how to effectively listen, potential clients will stop trying to communicate altogether.

The Importance of Listening

It’s in many peoples’ nature to talk too much when they’re nervous. Silence can feel uncomfortable during a negotiation, so negotiators strive to fill the silence with their own voice. Unfortunately, this habit gives clients the impression you aren’t interested in hearing what they have to say. Instead of nervously filling conversation gaps with empty words, try to listen.

Studies show that people spend 60% of an average conversation talking about themselves. You is a subject you know and feel good about discussing. Reverse the situation, and realize your potential client would also like to spend 60% of the conversation talking about him or herself. Now you may understand why listening is often better than talking during a negotiation.

Talking about the self encourages feelings of motivation and reward. When you allow potential client to talk about their own needs, wants, and feelings, you’re encouraging these positive feelings. Truly listening to a client makes an enormous difference in how they perceive you and your company. Practice good listening techniques, and train your employees to do the same.

Practice Active Listening

True listening is active. It’s a dynamic process that involves acknowledgement, inquiry, and restatement. It’s not static listening while your potential client talks. Psychologist John M. Grohol describes active listening as a skill that “builds rapport, understanding, and trust.” He has a few tips on how to become a better listener:

  • Summarize what you’ve heard
  • Use brief conversation prompts to show you’re listening
  • Repeat things the client says in your own words
  • Ask probing questions to draw more information from the client
  • Take advantage of silence
  • Avoid distraction while the other person is talking
  • Provide feedback to clarify certain points

Active listening not only shows your client that you care about what he or she to say, but it will also ultimately allow you to respond to clients’ needs more thoroughly. Listening is a skill that requires constant practice to keep up. If you master effective listening techniques, you’ll engage more fully with clients and reap the benefits of their appreciation: new business.

How to Turn Your Sales Force Into Expert Negotiators

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Your company perfected your training process over years of trial and error. You’ve dotted your i’s and crossed your t’s, hitting all the fine points to create your industry’s next top negotiators. You’re probably proud of your training model and plan on using it for the foreseeable future. But you may be missing a major component: the art of teaching habits instead of just methods.

Habits: The Missing Link in Negotiations Training

When you’re under pressure, what’s the first thing you resort to? The answer is most likely habits, an instinctual reaction in stressful situations. During high-pressure negotiations, your meticulously trained sales force may forget the methods you taught them—but they won’t forget their own habits. You have the ability to mold their habits into ones that are beneficial to your company and geared toward closing a sale during negotiation.

Turning your sales force into expert negotiators takes more than giving them a list of best practices. You need to focus on the how to negotiate on top of the what to do during negotiations. Your sales team must be able to take client objections in stride without resorting to bad habits such as becoming embarrassed, backing down, or apologizing. Your sales team should enter negotiations with confidence, and habits that will help them succeed.

What Are the Best Negotiation Tools and Habits?

According to a recent article by Neil Patel on Forbes.com, the best negotiation habits to teach employees are those based around human interactions. In other words, habits stemming from body language, personal relationships, and good-natured discussion. At its core, negotiation is the art of convincing another person to agree with what you’re saying. When you establish a few simple habits for your employees to resort back to under pressure, you can enter a negotiation with relative certainty as to how personnel will react.

So what are the best negotiation habits to instill in your staff? Here are a few pointers to lead you in the right direction:

  • Engaging body language. For example, leaning into the conversation instead of leaning back in your chair can express openness and attention.
  • Keeping quiet. A common bad habit for many salespeople is to chatter when they feel stressed. Train your sales force to take the time to absorb information given to them, slow down, and keep responses calm instead of jumpy.

See if you can shape your staff’s habits to model the habits of confident, calm negotiators—and reap the benefits of cultivating a training process that focuses on the how and not just the what.