Book Shawn for the Negotiation and Conflict Management in Business program
NEGOTATION AND CONFLICT MANAGEMENT
McBride For Business | November 2016
WHAT YOU CAN EXPECT WHEN YOU ATTEND
Conflict is an everyday facet of running a business or being in any type of partnership. This presentation discusses negotiation strategies to successfully managing conflicts when they occur.
Business owners often face conflict with other partners, managers, employees, vendors, customers and the public. Negotiating is natural result of conflict and negotiating can be a tool that resolves conflicts among all parties or things can go horribly wrong. If a conflict is avoided and tensions are not recognized it can snowball and affect the business on a broader level.
This presentation introduces the strategies and processes involved in negotiation and conflict management. The goal is more effective outcomes and better business outcomes.
SPOT THE CONFLICT
Conflict often occurs when individuals have different ideas, beliefs or theories regarding business operations. Business owners may also find conflict when bargaining with other businesses based on different needs and wants.
The following conflict management process can result in several strategies to resolve discord and business disagreements. The four steps to conflict resolution are: (1) identify the problem, (2) analyze the issue, (3) create different strategies or approaches, and (4) act on outcomes or ideas. These steps provide a logical process to follow when attempting to resolve a conflict.
There are five common types of negotiation strategies. Determining the best strategy for you to use depends on the authority and/or negotiation leverage you have, in relation to your counterpart.
COMPETING – This win-lose strategy is assertive and involves putting your business interests before your counterpart’s. You may be standing up for your rights, defending a position or just trying to win. This strategy tends to make sense when the relationship is short-term and interaction may not happen in the future.
COMPROMISING – This win-some-lose-some strategy is intermediate in both assertiveness and cooperation. Compromising is a give-and-take approach in which neither person gets everything they want but both get something. Often it involves splitting the difference, exchanging, making concessions, or finding the middle-ground solution.
COLLABORATING – This win-win strategy is assertive and cooperative. It involves working with your counterpart to find a solution that fully satisfies both sets of interests.
ACCOMMODATING – This lose-win strategy is unassertive and cooperative. It involves neglecting your own interests to satisfy the interest of your counterpart. You may be able to be generous, obeying orders, or yielding to your counterpart’s point of view.
AVOIDING – This lose-lose strategy is unassertive and uncooperative. It involves not pursuing your interests or the interests of your counterpart. You want to diplomatically side-step or postpone an issue until a better time, or withdraw from the situation completely.
A compromising negotiation strategy is a solution that pleases both sides, even if it requires each side to make concessions.
Once you identify the problem between both parties and think about the issue from the other’s perspectives only then can you start to better understand the common ground. Carefully established negotiation tools help to keep the process moving smoothly.
BECOME MORE EMPOWERED
Powerful negotiations is a natural part of The 3 Laws of Empowerment.
Empowerment grows with time. As your team becomes empowered through successful negotiation, you will start to become more prepared, have set plans and you will have assets to protect. Forward thinking companies want to have processes in place to develop knowledge and power intentionally.
The more knowledge and power you accumulate, the more opportunities will present themselves. Because, people naturally find others who they see as having an ability. As you start negotiating more and getting what you want, you will show others that you have the knowledge, ability, power, connections and the experience. The opportunities will naturally present themselves to your business.
In a negotiation situation, the negotiation team must choose themselves in the process. When it comes to launching innovative technologies, creating sales growth or expanding; the negotiation team must focus on a goal. If negotiation team can stay focused and choose themselves they put themselves in a position of empowerment, just by choosing themselves.
WHEN TO NEGOTIATE
- Salary negotiations
- Contract negotiations
- Leasing negotiations
- Licensing negotiations
- Settlement negotiations
- Union negotiations
- Purchase order negotiations
- Vendor negotiations
BE MORE CONTROLLED IN NEGOTIATIONS
Part of the path of empowerment is negotiating. If you are empowered, you can recognize this fundamental concept and focus on win/win, open-style negotiation discussions rather than divisive winner take all tactics. The best-case scenario is to create negotiation situations where everyone is winning.
There should be a net positive. Each person should take the time to understand the other party’s side because that may expose new ways of trade and areas of potential development to benefit everyone.
You can achieve a more controlled negotiation situation by showing interest – use body language, nod, give verbal replies i.e. “yes”, “okay” or “I see”. Paraphrase what you are hearing from the other team. Place a label on their emotions to establish a mutual understanding of where the other side is at in the negotiation process.
Also, try mirroring their behavior by repeating the words they use or restating a main idea they have. A little use of Neuro-Linguistic Programming (NLP) can go a long way. Finally, ask open ended questions. This allows you to hear and understand the other team’s perspective better.
An additional benefit of empowered negotiations is that you avoid “scorched earth” and build relationships in the negotiation process. This means that you will build relationships that will help you in the next round of negotiations – rather than creating enemies.
CREATE MORE VALUE
A good leader will project and communicate the goals of the business and facilitate the resolution of conflicts. If a leader does not know the proper conflict management techniques, the desired results may not be achieved and in the extreme, the business could fail. Before you start negotiating, know what your goals are and inform the entire team so you all can create more value for the business.
There are some important steps you can take to position your team to reach your goals. They are:
- Be prepared
- Set issues aside
- Listen and ask good questions
- Arrange to negotiation somewhere you feel comfortable
As the team starts receiving more effective negotiations and aligning the business with others who also seek out win-win situations. A negotiation can be done in such a way that both parties take away more value than what they brought in. In fact, that is the principle of economic trade. The idea being that each person should work on the thing that they are better at and trade for the items that they are not as good as developing or building. That is what we want to create as the result of negotiations.
We want to build negotiation situations where the team is winning and the other party is winning. There should be a net positive. Both sides should be getting something they want. At the end, both parties should feel wealthier and like you have benefited from the trade. That is the goal.
Always be willing to walk away – if you recognize the alternatives, you are less likely to concede just to make a deal. Be open enough to walk away and say, “No!”.
R. Shawn McBride’s speech on Negotiation Skills and Conflict Management (www.yourbusinessspeaker.com) teaches and re-enforces this
McBride For Business, LLC offers speeches, training and consulting on Negotiation Skills and Conflict Management.
Call us for at (214) 418-0258 for a consultation.