Eleanor Hecks
Eleanor Hecks is a writer who has been sharing SMB and leadership insights for nearly a decade. Her work has been featured on publications such as Fast Company, HubSpot and eLearning Industry. She currently serves as Editor-in-Chief of Designerly Magazine. Continue reading to discover what she has to say about negotiating as a first-time leader.
Negotiations may intimidate first-time leaders, but mastering this business art is critical for success. How well you can deal and bargain often determines the outcome, from signing
contracts and asking for a raise to closing large-scale mergers and acquisitions. Here are five tips to help you negotiate confidently and attain your desired results.
1. Prepare Thoroughly
There’s no such thing as over-preparing when it comes to negotiation. First-time leaders, especially, must be reflective during this initial stage, determining their long- and short-term
goals, strengths and weaknesses, and what the other party wants from them.
Research crucial statistics, metrics or pricing pertaining to the dealings. Also, map out your bargaining agenda and how you’ll respond to their opening offer — working with a mentor is an excellent opportunity for role-playing different scenarios.
Finally, consider what curve-ball questions they might ask you and what your answers will be, and plan an exit strategy. Not all negotiations are meant to go through.
2. Know Who You’re Negotiating With
Researching who you will negotiate with is also essential during the preparation stage. As a leader, you will encounter all types of people with different behaviors, personalities and expectations. As you learn more about who they are, you’ll need to practice modifying your behavior to match theirs.
Do they think about the big picture, or are they hyper-focused on the fine details? They may favor specific values, so play into whatever you uncover about them.
3. Connect on a Human Level
Connecting on a more personal level with meaningful communication will make you likable. The more they like you, the better your chances of closing successful deals with them now and in the future.
A mere 1%–2% of the population are true empaths, yet empathetic leadership drives productivity, customer satisfaction, loyalty and results. It requires the difficult task of putting
yourself in the other person’s shoes so you can better understand their motivations and approach.
Taking an empathetic approach allows you to build authenticity and trust into your conversation. This authenticity can even make the difference in how well your conversation goes and whether the other party is willing to work with you again in the future. An astounding 90% of people look for authenticity when deciding on a brand to do business with, and the same sentiment rings true for interpersonal relationships. By fostering trust, you’re creating an environment that encourages collaboration and participation.
4. Be an Active Listener
Active listening also ties into being an empathetic leader. As former New Zealand Rugby President Bill Osborne pointed out in an exit interview, active listening builds transparent and
authentic trust with whomever you’re communicating with. Many people can tell when someone isn’t being genuine, which may cause them to walk away in negotiations.
There are several ways first-time leaders can be active listeners in meetings with other parties,
including the following:
- Try to understand their viewpoint, conditions and concerns.
- Pick up on crucial information pertaining to a possible agreement.
- Ask them open-ended questions to deepen your knowledge of their motivations and
concerns. - Paraphrase what they’re saying to clarify their points and demonstrate you’re paying
attention. - Notice body language and tonal changes in their speech.
5. Focus on Long-Term Value
A successful negotiation doesn’t begin and end with a price. First-time leaders will benefit from concentrating on their company’s long-term offerings. For example, explain how you or your product can help solve operational inefficiencies, provide customized solutions or deliver other resources to maximize your product or service’s value.
If you can demonstrate your commitment beyond business functions, the other party will feel they have a solid partnership with your company. This may also be an ideal time to mention how your deal is a win-win situation for both parties, giving you more credibility.
Practice Makes Perfect for Master Negotiators
Even though you’re a first-time leader, you can still negotiate important matters with clients and partners. With preparation, a confidence boost and a few strategies up your sleeve, you can walk away with your ideal outcome every time.
