The AlumNUS
The AlumNUS

26 September 2024

MASTERING NEGOTIATIONS: 5 ESSENTIAL STRATEGIES FOR SUCCESS

Anuj Jagannathan (EMBA ’16) is the CEO of Propelurs Consulting. The following is an adaptation of his talk on negotiation strategies delivered at NUS Homecoming on 21 September 2024.

Anuj Jagannathan (EMBA ’16), speaking at NUS Homecoming 2024

Negotiation is a nuanced skill — combining both art and science — that plays a pivotal role in business and personal interactions. While it’s a vast topic, mastering just a few key strategies can significantly improve your ability to achieve positive outcomes and long-term success. Do these well, and you can handle even the most challenging negotiations with confidence, helping you secure better agreements and build stronger relationships.

Consider a scenario where a department manager requests a detailed 20-page report on employee engagement within five business days. You believe that meeting this deadline might be unrealistic. By applying the following five strategies, you can navigate this negotiation effectively.

I - Preparation: The Key to Success

Preparation is crucial for a successful negotiation — it equips you with the knowledge to make informed decisions, anticipate objections and generate creative solutions. As the saying goes, "Failing to prepare is preparing to fail."

Steps for Effective Preparation:

  • Research and Gather Information: Collect relevant data about the manager's requirements and any constraints. Understand the context and specifics of the report.
  • Understand the Other Party: Learn about the preferences, leadership styles and goals of the manager and other decision-makers involved. This will help tailor your approach.
  • Develop a Plan: Create a negotiation strategy that includes alternatives, key points and logistical considerations. Rehearse various scenarios to be prepared for different directions the negotiation might take.

II - Understand the ‘Why’: Digging Deeper

An appreciation of the underlying reasons behind the manager’s request is crucial. This approach allows you to address specific interests and find mutually beneficial solutions.

How to Explore the “Why”:

  • Ask Open-Ended Questions: Inquire about the flexibility of the deadline, the necessity of the 20-page length and the type of content expected. For instance, ask if the report can include photos of team events.
  • Active Listening: Pay close attention to the manager's responses. Paraphrase and summarise their points to ensure you've understood their needs accurately. For example, why is there a need to submit this in five days?
  • Reflect and Process: As you gather information, formulate potential solutions and ask additional questions to clarify and support your ideas. This shows that you value their perspective and fosters open communication.

For example, you might discover that the report needs to be reviewed by a peer before submission and that the manager is aiming for an award for the best report. Understanding these details can help you customise your approach.

Anuj Jagannathan (Business EMBA ’16), speaking at NUS Homecoming 2024

III - Assess Alternatives: Your Backup Plan

Having a ‘Plan B’ is crucial. This strengthens your negotiating position by providing options if the current negotiation doesn’t meet your needs.

Possible Alternatives in this current scenario could include:

  • Travel for an important client meeting
  • Prepare for a crucial project stakeholder meeting with executives, or
  • Take leave

Having viable alternatives gives you the confidence to negotiate from a stronger position and walk away if the terms are not favourable.

IV - Be Creative: Craft Innovative Solutions

Displaying creativity when negotiating can lead to mutually beneficial outcomes that might not be immediately obvious. By thinking outside the box, you can address the needs of both parties effectively. Such an approach can also foster a collaborative atmosphere.

Creative Solutions Might Include:

  • A kick-off meeting: Arrange a meeting with the manager and peer reviewer to clarify requirements and expectations from both sides.
  • Reviewing criteria: Examine past award-winning reports to understand what made them successful. Align your report with these criteria.
  • Reprioritising Tasks: Consider postponing less-critical meetings or tasks to focus on the report.
  • Staggering the submission: Send parts of the report for review in stages, which can manage feedback more effectively and reduce last-minute pressure.
  • Delegating and giving recognition: Distribute tasks among team members and consider offering recognition or rewards for their contributions. This can improve morale and efficiency.

V - Close Properly: Finalise the Agreement

Closing the negotiation properly ensures that all parties are clear about the final agreement and their respective commitments and helps to avoid potential future disputes. It involves summarising key points and confirming a mutual understanding.

Steps for Closing Effectively:

  • Summarise and Confirm: Recap all agreed points and actions. Ensure that both you and the manager are on the same page regarding what has been decided.
  • Document Terms: Create a formal written record of the agreement. Share this document with all stakeholders for review to ensure everyone is clear about the terms.
  • Sign-Off: Obtain acknowledgment from all parties involved. Outline any immediate actions required, set deadlines, and schedule follow-up meetings to ensure smooth implementation and address any issues.

Negotiation is a daily part of personal and professional life — whether you're discussing a new contract with a client, clarifying project requirements and expectations with your manager, seeking funding from your boss or debating a new furniture purchase with your spouse. Mastering these five strategies can help you navigate negotiations more effectively and achieve results that benefit all parties involved.

Text by Anuj Jagannathan.