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5 Common Negotiation Mistakes

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Negotiating is an art form, one that requires skills honed over time, but there are some mistakes you can avoid no matter how new you are to the game. Here are some common mistakes made by rookies and experienced negotiators alike.

They Don’t Listen

Negotiators can be so focused on presenting their piece and closing the deal they forget to listen. This alienates the person you’re trying to persuade. Show up prepared and know your stuff, but make sure you know your audience. Ask questions to find out where they’re coming from and what matters to them. No matter how great your pitch, if your listener feels un-listened to, it will likely fall on deaf ears.

They Talk Too Much

Have you ever been in a situation where someone communicated successfully, then kept talking so long you forgot what the original point was? Don’t make this mistake. Clearly and concisely present your case. Allow the other party a chance to ask questions. Answer them as clearly as possible, but be concise.

They Don’t Define What They Want

Before entering a negotiation, define exactly what you want from the other party. Decide your best hoped-for outcome and the minimum terms that will be acceptable to you. Use these as fixed points to ensure you won’t get derailed by emotion or manipulation.

Plan to get what you want, but don’t expect it. Have alternative solutions prepared ahead of time. Often, you’ll find you get what you want or you’re able to find a similar option that’s agreeable to both sides.

They Lack Confidence

Projecting confidence means putting in preparation time and being able to demonstrate you’re the expert in your field – no matter what the question. It doesn’t mean being loud or pushy. Know everything you can possibly know about your subject, then carry yourself accordingly.

They Don’t Build Relationships

A good negotiator is always building relationships. If you are meeting someone for the first time, try not to start at the negotiating table. Meet for dinner the night before to establish rapport and get to know the person you’re going to be dealing with.

Build time into every day to strengthen personal connections with others. Let people know you aren’t just in it for what you can get from them, but you care about them personally. Ask questions about things that interest them and really listen. Return to those topics every time you see them to build a deeper connection.

Be prepared, be credible, and let the other side know you care about what matters to them. Negotiation is an art that takes practice, so keep these blunders in mind before you start the process.

Tips for Negotiations When the Going Gets Tough

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Everyone can negotiate from a place of strength. When you know you offer the best product, service, or customer support, you can easily push through the tough talks. What happens when your company asks you to keep producing results after a major professional or organizational setback? Knowing how to negotiate at your weakest will give you strength.

 

Create a Mindset of Resilience

 Perhaps a powerful client wrote a scathing review of the business online or you gave a client the wrong quote and need to backtrack in your negotiations to meet your sales targets. In any tough situation, a negotiator could crumble or could look for ways to turn those seeming setbacks into opportunity. Negotiation resiliency is a concept that describes a person’s ability to recover quickly in the light of adverse negotiation outcomes.

Anyone can train his or her mind to immediately go into problem-solving mode, persevere, and see opportunity in the face of adversity. If you can master negotiation resiliency, you can salvage the deal and/or relationship.

 

Recognize Your Own Value

Use your newfound resilience to take a second glance at the situation. Assess the situation placing an emphasis on the other party’s needs, weaknesses, and attitudes. If you understand the motivations driving someone else, you can craft a pitch or negotiation argument to match even the most powerful positions. You always have something of value to offer. Find your competitive advantage and deliver. Actively listen in negotiations to find the opportunity in every interaction.

Successful negotiation is about finding a way for both parties to succeed. Look for the mutual benefit in promotion negotiations, client relationships, and contract negotiations.

 

Engage Effectively

With the right mindset and research supporting the claim, a negotiator can move into an engagement phase. Many people benefit from negotiations training as a way to put preparation into action. Tone, appearance, diction, and even handshakes build confidence and credibility.

Practice the following negotiation techniques to maintain your position of strength:

  • Avoid rushing your speech. Take measured breaths, pause for effect, and practice your position until you can present it with confidence.
  • Ask questions. Ask open-ended questions and listen carefully to answers. Take notes and use the other party’s comments to strengthen your own position.
  • Give the other party time to think. In difficult negotiations, avoid forcing someone into a decision too early.

Every interaction builds a narrative. You can choose to react to the other person’s point of view or create your own. In negotiations, the person who shapes the narrative often receives the most support. Look for ways to counter weaknesses without appearing defensive. Take responsibility for shortcomings while firmly promoting your strengths.

 

Shift Your Definition of Success

 Consider the big picture in every negotiation. Occasionally, conceding terms can set you and/or your organization up for future success. If, for example, you might lose a client if you refuse to drop a small contracted service, altering the terms of the contract may make more sense than enforcing the terms of the full contract.

Prioritize your mindset, conduct research, and carefully engage the other party to negotiate from a point of weakness. Handling a difficult situation with grace, maturity, and ease can turn a defeat into an unmitigated success.

3 Benefits of Customized Negotiations Training

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One of the things that sets Shapiro Negotiations Institute apart from the competition is its customized negotiations training. SNI’s programs are tailored to each client’s individual needs. This helps you engage more with the negotiations training process and take away actionable tips for ways to improve business. There’s no reason to settle for a one-size-fits-all approach when you can have truly customized results and help your company stand out against the crowd.

The Benefits of Personalization

ROI always matters, so you’re probably wondering what exactly makes customized training so much better. There are three big advantages that come with a personalized plan:

  • Gaining an edge against the competition. Companies that choose off-the-shelf training styles will all have pretty much the same result. When customers work with your team, they’ll be able to spot the difference. The extra attention to detail and comprehensive experience will elevate your business and put you one step ahead of the competition.
  • Anyone and everyone can learn. When you choose predesigned training methods, you’re forcing everyone to conform to the same learning tactics. You may think this will save you time and effort, but, in reality, it makes it more difficult for some people to fully grasp the concepts. Each employee has a unique learning style, and only personalized plans can give you the flexibility you need to cater to their preferences. After all, you can’t judge a fish on its ability to climb a tree – why should you expect all your employees to build skills the same way?
  • Performance power. Many off-the-shelf negotiation training sessions do little more than teach employees a basic, single-dimension approach. They learn how to tackle example problems, but that doesn’t mean they’ll be prepared for more difficult situations. A customized training regimen, on the other hand, goes beyond just telling them what to say. The best programs will actually help them understand the art of negotiation on a more complex level. This means they’re better equipped to handle the unexpected. Chances are, they’ll be able to reason out any situation – not just the ones covered in training.

Negotiation is an important part of any company. It could make the difference between building and keeping connections and watching them turn to dust. When your business is on the line, don’t settle for subpar programs. Take your team to the next level with personalized training programs from SNI. Questions about how to get started? Call or email us today and see what we can do for you.

MGMA Financial Management and Payer Contracting Conference

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This past month, SNI’s Master Facilitator, Jeff Cochran delivered a keynote speech to Medical Group Management Associates at the 2017 MGMA Financial Management and Payer Contracting Conference held in Las Vegas, Nevada. The conference is highly regarded and attended by medical practice professionals that go to enhance their financial education to advance the profession of medical practice management. Jeff’s keynote was entitled Negotiating: Strategies for Success. Since 1926, MGMA has created successful medical practices that provide the highest level of patient care through member benefits, education, resources, news, information, advocacy, and networking opportunities.

 

 

SNI’s approach to negotiations challenges traditional perceptions of approaching deals. Jeff spoke on the foundational teaching of Shapiro Negotiations Institute- The 3 P’s systematic method to managing negotiations: Prepare, Probe, and Propose. Through an interactive role play, Jeff taught attendees to cultivate long-lasting relationships with their counterparts by utilizing the 3 P’s correctly. The reactions from the conference attendees exhibit not only the charismatic delivery of Jeff, but, more importantly, how beneficial SNI’s Systematic Approach to Negotiating can be.

 

(Photo from https://twitter.com/MGMA)

 

We value all of the training feedback we recieve and were happy to hear from Kelly Mattingly, the Director of Contracting and Credentialing at Practice Velocity about her experience at MGMA:

 “I thought your talk was the most valuable session of the conference. You were entertaining, the topic was very relevant, and the hands on aspect was engaging. In my opinion negotiating is all about doing your research and finding your (and your opponent’s) strengths and weaknesses, knowing when to play your cards, and understanding who you are dealing with on the other end (because in my opinion…that may change my strategy entirely). I work in an industry where our negotiating leverage is pretty minuscule to non-existent. I was reminded to treat each negotiation as if I had more leverage than the last. I think sometimes when we are defeated often, we forget to reset …gain our confidence, and give the next negotiating opportunity an A+ effort. I won’t underestimate my strengths again, and I won’t talk myself down before I sit at the negotiation table. I look forward to hearing you speak again in the near future.”

 

Thanks again to MGMA for the great opportunity! 

Do You Have These 5 Negotiations Skills?

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Andrea Kupfer Schneider, Marquette University Law School professor, recently wrote an article for the Washington University Journal of Law and Policy explaining the importance of teaching five specific skills for negotiation, rather than teaching with negotiations style labels alone. These five critical abilities, according to Schneider, are assertiveness, empathy, flexibility, social skills/intuition, and ethics. Consider how each plays a part in the process.

Assertiveness

Negotiations are a two-way street, but it’s easy for some people to get bowled over and taken advantage of. Schneider’s first key skill for negotiation is to stand firm in your decisions. If you’re a self-doubter, this can be especially difficult to master, but it’s absolutely vital to making sure you’re getting the compensation (benefits, etc.) you deserve.

Empathy

Empathy and assertiveness might seem counteractive, but there’s a special balance a good negotiator must achieve. You must remember that you’re building connections with other humans, so listening and truly discussing their concerns with honest empathy is important.

Flexibility

The world includes a whole lot more gray than black or white. Things can’t always be the same or stay set in stone. Flexibility is key for better negotiation. You’ll be faced with unique situations and problems whether you’re ready for them or not, so being able to change plans and tactics will keep you ahead of the competition.

Social Skills/Intuition

Even though they’re about business, negotiations are just another form of conversation. Naturally, you need to have polished social skills if you want to excel. If, for example, you can ready body language cues, you’ll be able to adjust your tactics to suit extra-eager or finicky clients. Every person will provide live feedback about the conversation if you only know what to look for.

Of course, your social skills can’t be limited to watching the other person. You need to be able to communicate clearly and project yourself in a friendly, confident way. For many people, approaching others is the hardest part of negotiating, so polishing your intrapersonal skills can help everything else go smoother.

Ethics

The fifth skill Schneider listed is a dedication to ethics. No matter how badly you want to make a deal or come to an agreement, you still need to know when to draw the line. Polished ethics skills ensure you always stay on the right side of the law and don’t compromise your personal or business integrity at any point.

If you’re a little lacking in one or more of these areas, don’t worry. That’s exactly what SNI negotiations training is for.

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.

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.

3 Tips for Negotiating Your Salary

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Many people avoid asking for higher pay for fear of sounding pushy or entitled. However, if you know your work is valuable to your organization and worth more than you’re receiving, you should be able to argue your case effectively. Remember preparation is the only aspect of a negotiation you can control.

First, you need to know you have a solid case for higher pay. Everyone wants to believe their work is worth more than what they’re paid – but you need to know it before you bring up the subject. Once you do, it’s time to decide how to approach your supervisor.

Pick Your Battles

When you choose to initiate the conversation about your pay is as important as deciding to do it in the first place. Although our emotions shouldn’t affect our performance at work, things rarely play out this way, so you need to assess your superior’s state of mind before broaching the subject.

Typically, the best time to ask for more money is when the company has been doing well for a noticeable amount of time. A small rebound after a slow or difficult season isn’t ideal. Wait until the company is posting gains rapidly or after a particularly good year. Also, never forget that your time spent working for the company is a crucial part of your conversation. A good rule of thumb is to avoid asking for more pay for at least a year in your role, unless you are churning out extraordinary work on a regular basis that’s above and beyond expectations.

Know What You’re Worth

Once you think it’s time to have the talk about more money, you need to check your ammo and understand any precedents. Not only do you need a strong portfolio of work that displays your value as an employee and contributions to the company’s success, you also need to have a figure in mind. Do some research on professionals in your field and find a number that sounds reasonable. If you approach your supervisor with a precise number, you’re more likely to get what you want, as your supervisor will assume you’ve done your homework and know your value.

Special Tips for On-boarding

Salary negotiations are a bit easier when you have history with a company. Things get a bit trickier when you’re negotiating a starting salary during the interview and on-boarding process. Keep the following tips in mind for negotiating your starting salary:

• Let the interviewer bring up money first. Once the salary talk begins, never be the first to name a number. Let the interviewer give you a starting point and you’ll be in the power position once negotiations start. If you offer a number first, you run the risk of low-balling yourself with what you consider a lofty figure when the company was prepared to offer more.

• Know your value and aim high, just don’t be surprised if you are shot down. As long as you demonstrate value, the company will recognize your value. If it doesn’t, you may be better off looking elsewhere.

• Don’t bring up your salary at your previous job. This isn’t a benchmark and it’s not a great figure to reference when you’re joining a new company.

 

Sources:
http://www.employmentspot.com/employment-articles/salary-negotiation-learn-how-to-negotiate-for-a-higher-salary/
https://www.themuse.com/advice/how-to-negotiate-salary-37-tips-you-need-to-know
http://www.inc.com/jayson-demers/how-to-negotiate-a-higher-salary.html
http://www.forbes.com/sites/lisaquast/2014/03/31/job-seekers-8-tips-to-negotiate-your-starting-salary/#4453b77d548d
http://www.businessinsider.com/6-tips-for-negotiating-a-pay-raise-2013-10