Negotiations

Negotiations are a huge part of life - think about it. In almost every situation, we are constantly negotiating and trying to persuade the opposite side to see things our way. The definition of negotiation, according to TheFreeDictionary.com, is "a discussion set up or intended to produce a settlement or agreement." Whether I'm at a Crafts Fair and negotiating the price of a bracelet or at work, negotiating a custom sponsorship integration for my client, there are a few key steps to keep in mind.

1. Evaluate the big picture
2. Determine hidden agendas and the other side's viewpoint
3. Gain buy in to your side of the equation
4. Develop trust between both parties
5. Monitor the process of the negotiation

Just like everything else, the above steps are a guideline and are worth following and remembering. When you are in the heat of the moment, however, some of these check boxes can remain unchecked and you might run the risk of losing the negotiation. 

There are two examples that come to mind when I think of my own negotiations. One was successful and the other not so much. 

Let's start with the successful one - I was negotiating a media sponsorship integration that was cross-platform. The woman I was dealing with was new to the XYZ Company we were trying to make the deal with and she didn't have a very good handle on what their capabilities were. I have a very good understanding of what goes into a TV sponsorship and thus, a Digital extension. The plan I was evaluating was very unfair to my client and had us paying for a ton of units that we would never normally pay. We were also told we would be the only sponsor of this program but their definition of "sponsor" didn't include our logo on the page for the entirety of the campaign. Negotiations were rough. They took over a month and a ton of emails and phone calls back and forth. Conversations grew heated but I was only forceful when I needed to be. Without having known (officially) about the steps above, I realize now that I followed them almost to the letter. I took a look at the big picture and what was important to both of us - ultimately it came down to the fact that both of us wanted a successful partnership. Secondly, I tried to understand where XYZ Company was coming from when they said they had to charge us for placements we normally consider added value or why our logo wasn't on the page. We compromised and included some of these placements as paid and the others were given to us as added value. As for the logo, this is where I had to get forceful and explain the definition of a sponsorship. Once they understood and bought into where I was coming from, this was thrown in for the entirety of the campaign. On many of our phone calls with our legal departments, I took the high road and mediated the conversations. This built trust on both my own legal teams end but also for the XYZ Company. They knew I was trying to find a peaceful resolution and appreciated my frankness and transparency.  Finally, throughout the process I tried to reign us back into the big picture and why we were ultimately having these discussions. It was very successful because in the end, both my client and XYZ Company was happy with the end result and I could breath again. 

The second negotiation that comes to mind that didn't turn out so well was the one I participated in in my class last week. I was part of one of my classmate's council (she was the CEO of a skin care company) and we had to negotiate with another team who represented the island where we mine ash from for the skin care products. The topic was regarding an increased tax we (the company) would have to pay to make up for the damages we made to the island throughout the years of mining. We were on the stance that this tax was too high and were trying to bring it down to a more reasonable number. My team was great and ended up wining but that's besides the point. I personally felt myself get all riled up and I couldn't control my facial emotions or my reaction to certain arguments from the other side. I was so beside myself that I honestly should have kept my mouth shut (a valuable lesson learned) but I almost caused my team to lose! I felt uncomfortable - I didn't know the facts, it was a hypothetical situation and there were a lot of variables that were unknown. I was ready to lash out. I personally didn't follow the steps above even though my team did. I lost site of the big picture and all I saw were hidden agendas from the other team and I wanted to systematically break each and every single one down. Thank God the negotiations were over after 20 minutes. I think I would've said something my team and I hadn't agreed upon which was to pull out of that island immediately if they didn't lower the tax!

Both examples are very different. One is work related which means there's a lot more riding on it - the other was school related which was meant for practice and to teach us a lesson a major deal wasn't riding on it. I think that's pretty significant because in a real life situation, maybe I'm more apt to take it slow and go through the process whereas in class, I want to win and be right and all reason goes out the window. I think another difference is that in the first situation, I knew my facts and I had done my homework. I knew what I should be paying for a sponsorship and I ultimately was able to get what I needed. In the second, I was uncomfortable with all the unknown variables and instead of keeping my mouth shut when I didn't know something, I got a little riled up in the heat of the moment. 

Important to realize though that the above steps are necessary to follow in order to accomplish your goals. A negotiation is about both sides coming to an agreement - not just you getting everything you want and the other side getting nothing. There has to be harmony and there are better ways of getting to that harmony instead of losing yourself in the moment. 

-D