Turning Negotiation into Corporate Capability
Negotiation is a key component in many aspects of our lives, but it can also be stressful. For business owners, negotiation can result in an opportunity to gain more revenue or develop new partnerships. It’s important to take the time to prepare for negotiations and research what to negotiate for before getting into it. They can be time-consuming and stressful, but they don’t have to be.
Dr. Jordan Sudberg is a pain management specialist who has spent his career teaching people how to turn negotiation into corporate capability – which he defines as “the ability for individuals or companies to negotiate with others effectively.” His tips will help relieve some of the pressure associated with negotiating so that your company can focus on what matters most: making money.
The first step in turning negotiations into corporate capability is understanding the different types of negotiations and what they entail. Sudberg identifies two classifications: distributive and integrative. Distributive negotiations are those where each party wants as much as possible for themselves. Integrative negotiations involve finding a middle ground that benefits both parties. Many business owners only focus on distributive negotiations, but Sudberg stresses the importance of handling integrative ones as well. “You can’t be successful if you’re not good at both,” he says.
It may not be easy at first, but learning how to negotiate in a way that benefits both parties rather than just themselves can turn negotiation into corporate capability.
Negotiations are like chess; they take strategy, patience, and focus for both parties to come out on top. Sudberg has spent much of his career teaching people how to approach negotiations so that their companies can develop better workers overall. The more skilled someone becomes at negotiating, he says, “the higher-level things that person accomplishes.”
His teachings on negotiation don’t stop at understanding the different types of negotiations. It’s important to understand what motivates the person you are negotiating with to succeed in negotiations. What is their end goal? Dr. Jordan Sudberg calls this “moving the other guy.” This involves figuring out what the other party wants and then giving it to them in a way that benefits the business as well. It may not always be easy, but doing so creates a situation where both parties feel like they’ve won something.
It’s helpful to have an idea of their personality type to move the other guy. Sudberg outlines four different types: drivers, influencers, supporters and analyzers.
1. Drivers are the most motivated by results and like to control negotiations.
2. Influencers are motivated by relationships and want to maintain a positive relationship with the other party.
3. Supporters are motivated by fairness and want both parties to feel good about the negotiation.
4. Analyzers are motivated by information and want all of the facts before making a decision.
Knowing which type of negotiator one is dealing with is the first step in moving them. Identify what makes them tick. It becomes much easier to provide something they want so that both parties can walk away happy. It takes some finesse, and it will leave both parties feeling satisfied with the negotiation outcome if done correctly.
Turning negotiation into corporate capability is not easy, but it can become second nature with practice. While negotiation may seem like a stressful experience at first glance, knowing how to approach each situation and provide something that satisfies their goals. It can make this essential business practice an asset rather than a detriment.