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Responding to demands in a negotiation when one is unsure
We see increasing leverage of drones across many real-life situations – post disaster search and rescue, field inspections, traffic monitoring and so on. Essentially, they offer a safe way to understand the landscape better; once the analysis is thorough, appropriate actions can be planned that deliver impact!
What if there is a drone equivalent for negotiators? Ankit – a seasoned sales leader with a large Indian FMCG company – has been negotiating the joint business plan (JBP) with his client for the past hour. Being the first conversation, both parties have just outlined their priorities. Just as Ankit is collecting his thoughts on how to move the negotiation forward, he gets a demand from the client when expected it the least. “We need you to invest in a store salesman during the Diwali season” – the demand from Ramesh – the client procurement manager- could not be clearer. However, Ankit is unsure how to respond. While the demand is not something he wants to reject right away, he is nervous about agreeing to it immediately without understanding the consequences!
How can Ankit respond when neither ‘no’ nor ‘yes’ are particularly preferred options? He still needs to keep the dialogue flowing and understand where Ramesh is coming from. In this situation, one option is for Ankit to ask exploratory questions, like for instance, - “Just suppose, we consider your requirement for additional investment through a store salesman, what does this mean to the business plan? Can you take me through it?” This is particularly helpful in situations where you want to explore/peek into other party’s issues/priorities without committing to demands made, while also keeping the relationships intact. Not a bad deal I suppose! Are you leveraging 'drones' enough in your negotiations?
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Dealing with different Opinions
"I am not sure how else I can convince you of the benefits of this value proposition" - an exasperated Joseph - an Infrastructure leader with a leading IT firm- asked his Client Director - Tim- as they explored the benefits of moving the client's on-premise technology applications to the cloud platform.
Joseph had outlined multiple reasons and benefits for the client, each backed by real-life cases. Tim - a smart leader himself - however believed that the cost and efficiency benefits were exaggerated and there were significant security risks. A case of two parties having opinions that are poles apart!
Too often we run into this classic "stalling" of negotiations caused by conflicting opinions. They are often difficult to change, no matter how convincing the arguments against it are. The more one argues against an opinion - the only certainty - is the negative impact to the relationship!
What are the options in front of negotiators in situations like this?
Firstly, it is important to recognize when the topic of the conversation pertains to an "opinion" of the other party! Secondly, it is vital for negotiators to consider whether it is more appropriate to trade opinions rather than trying to convince the other party as to why they are wrong! In this example, Joseph could construct an option (say a small pilot) in such a way that he is rewarded or penalized depending on the outcome, that is jointly measured by both the parties. The Client's ego is not hurt while being able to move forward in the negotiation. Are we ready to spot when we run into "opinion induced stalling" of our negotiations?