World leaders have demonstrated a mix of negotiation methods in response to the global tariffs imposed by the US.
Whether or not you agree with those who have decided to retaliate, or those who are being calm, balanced and pragmatic, their different approaches can teach us a lot about how we undertake negotiations and try to exert our influence as business leaders.
Negotiations are often seen as jousts with each party posturing to protect its own interests. This black or white, win or lose mindset often leads to a competitive, inflexible situation. Something that Roger Fisher examines in his book ‘Getting to Yes’.
Instead, I find it more helpful to view a negotiation in terms of your ability to influence.
A client recently found himself struggling to make progress with a growth programme he was endeavouring to implement. He’d been hired by the CEO as an expert in his field and had specifically been brought in to drive growth in what was described as a passive culture. The CEO was not good with conflict, so when the board showed resistance to some of the changes being proposed there was tension.
This executive realised that he had come from a business where the culture was far more direct and where change happened quickly because it was a directive from top down. He underestimated the impact this difference in culture would have and how he would need to adjust his approach. He had pushed his agenda without taking sufficient time to build relationships with his new board colleagues and take a more collaborative approach. He viewed his success as the impact of his growth programme, and not getting buy-in was clearly inhibiting this.
In times of conflict, there’s often a tendency to become entrenched in our own viewpoints. Instead, it’s helpful to pause and explore the other party’s perspective. I frequently encourage clients to try on a ‘different set of glasses’ and reflect on the viewpoint of the other party. By stepping into this alternative perspective, new insights emerge which inevitably shed light on blind spots we may have ignored which can limit our influence. In this particular case, my client recognised he had not addressed some of the concerns held by the board and a more collaborative approach to problem solving would make a difference. It would take time but it was worth it.
Seven questions to consider…
If you need to influence, even in the toughest of circumstances, ask yourself some key questions:
1. What are you willing to accept?
There are instances when what you are negotiating for is so significant that compromising creates deep internal tension and conflicts with a core value. At these times, it is essential to ask yourself, ‘What am I willing to accept?’ A clear understanding of your boundaries can instil confidence and resonate with others, encouraging them to listen.
2. Where is your relationship starting from?
Evaluate your current relationship with the other party and envision where you want it to be.
My client conducted an honest assessment of his relationship with the board and each member, identified points of tension, envisioned the desired state of these relationships, and took specific, quick-win steps to move towards that vision. The board noticed the change in approach and responded positively, marking the beginning of a turnaround.
3. Where do you agree?
At some level, you and the other party share common objectives. It is important to start from these points of agreement.
Returning to this common ground when discussions falter to reinforce you both want the same outcome is the best place to leverage creative thinking.
4. Do you understand the underlying motivations?
As Stephen Covey says: “Seek first to understand, then be understood”.
The greatest influencers are those that start by asking questions about what the other party wants first, and why. Understanding their motivation and showing curiosity about views that may be different from yours is a first step to have people fully listen to you, When people feel heard and understood they are more opening to listening to a different point of view and agreement being gained.
In my client’s case, when presenting his final proposal he used the same language the board used to articulate the business objectives to increase understanding that they were aligned.
5. Do you understand your stakeholders?
Preparation is key. When aiming to influence a decision, it is wise to invest time in creating a stakeholder map to understand all involved dynamics. Identify who the visible stakeholders are, as well as those less visible individuals who influence these primary stakeholders.
Consider what financial or emotional interests do they have in the outcome of your project? What motivates them above all else? What are their greatest concerns? What specific information do they require from you, and how do they prefer to receive it?
6. What are the tough questions that will be asked?
Following a critical incident on site that had major implications for a property business, the Executive responsible for Health & Safety likened the board meeting as ‘walking into a lion’s den’.
In such situations, it is important to anticipate the questions that will be asked and be proactive at the start by acknowledging the burning issues they want to address. Clearly stating, “I recognise some of you might be thinking about x, and I will address this,” can significantly defuse tension. You don’t need to answer the question straight away but acknowledging it at the start enables them to feel you are aligned with their concerns.
7. Are You Grounded?
Research shows that individuals displaying strong emotions such as anger or frustration during negotiations are less likely to achieve the most favourable outcomes.
Have a set of strategies that will calm your mind, particularly when you know you are going into situations where you may be triggered. Mental fitness is developed by practicing exercises every day, and it is particularly important when going into an environment that may be combative so that you can remain calm – a relaxed mind moves faster and is more creative. My client spent a few moments before this emotive Board discussion going through some exercises we had worked on, to make sure he was prepared mentally and physically and this significantly impacted the result.
You may be pleased you are not having to negotiate tariff agreements with the US, but as leaders we all undertake constant negotiations, big and small. Putting relationships at the heart of your efforts will build trust and transparency and optimise the opportunity for positive outcomes for all.
If you would like to increase your influence and ability to negotiate, please contact Oona at team@potentialplus-int.com.
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