Danny Ertel, a founding partner of Vantage Partners and expert on negotiation, highlights the common scenario in which a negotiator faces difficulty in a critical negotiation with a customer or supplier. This often leads to responses like offering concessions or feeling stuck, prompting the question of how managers should respond. Many negotiators believe that only those directly involved in a negotiation can truly understand what is happening and influence the outcome, posing a challenge for managers who cannot be present in every negotiation.
Ertel advises managers to avoid two common mistakes in managing negotiations: trying to control the negotiation remotely by providing instructions and concessions, which diminishes the negotiator’s role, or giving them too much flexibility with a bottom line, leading to rushed decisions to close deals. Both approaches hinder the development of negotiators and may not yield favorable outcomes. A better approach involves defining success for each negotiation, encouraging thorough preparation, and focusing on continuous improvement in negotiation skills.
To achieve better negotiation outcomes, Ertel recommends following three steps. Firstly, defining success by considering various interests, precedents, implementation factors, and relationship considerations. This clarity enables managers to instruct negotiators accordingly and evaluate performance effectively. Secondly, emphasizing thorough preparation by considering potential scenarios, interests of both parties, and strategies for combining or disaggregating issues. Lastly, investing in continuous improvement by treating negotiation as a discipline within the organization, similar to other key business functions.
Managing negotiators effectively entails preparing them to succeed independently rather than focusing solely on the authority to close deals. By defining success, emphasizing preparation, and prioritizing ongoing improvement in negotiation skills, managers can support their negotiators in achieving better outcomes over time. This approach aligns with the principles of the Forbes Business Council, emphasizing growth and networking opportunities for business owners and leaders.
