September 24, 2019

Power Negotiation 101

In an article by Keith J. Cunningham, who is regarded as one of the foremost authorities on business mastery, discusses the keys to power negotiation. Over the years, Cunningham has figured out what it takes to become a master negotiator and the pitfalls that most succumb to. 

Most people never get training in the key concepts of negotiation, yet it is one of the most essential skills in business and in life. We are constantly negotiating – to get bigger, better deals in our favor – and to do so we must learn how to approach it from a position of power.” States Cunningham. 


The Purpose

The purpose of negotiation is to make an agreement with another person or business, that will benefit both parties. Yet, you want the better end of the stick. 

Cunningham states a paradox: 

In order to get the most that you can, you must also meet the other person’s interests. To get all that I want, I have to give you what you want. When you hold negotiating power, it is easier to get what you want, and give the other person what they want.


The Necessary Components of Negotiation

  1. Desire: Both parties must desire something from one another before the negotiation begins
  2. Agreement: You must care about the outcome — but not too much
  3. No Fixed Riles Regarding the Negotiation: There will always be some rules like if you and I are negotiating for me to buy your car, we will probably both have our clothes on and be making the exchange in money. But concerning the value of the vehicle and how we enter into negotiations? There are no fixed rules.


An Important Principle of a Successful Negotiation 

Bringing your ego to the negotiation table is a common pitfall of many unsuccessful negotiations. Cunningham describes the importance of understanding the difference between positionand interest. 

In a position-based negotiation, I say something, prompting you to defend your position. This makes me defend my position. Now our egos get involved and there is nowhere to go but deeper into an argument.

It is essential to understand that negotiating power comes from the point of interest—what drives you to negotiate in the first place. 

The next time you start a business negotiation, remember that your positions are your actions, but your interests are what influence your actions. Most of your unsuccessful negotiations were probably centered on positions, not interests. But when you enter into a negotiation and focus on the interests of yourself and the other party, you’ll resolve things without much trouble. When things go smoothly, the chances of everyone getting their interests met go up dramatically, resulting in a successful negotiation.”

Published in Coworking Blog