Getting to YES!
A practical guide to reinforce the previous knowledge regarding closing deals easier and faster
The Concept
In their book "Getting to Yes: Negotiating an Agreement without Giving In" (original edition 1981, 2nd ed. 1991, 3rd ed. 2011), Roger Fisher, William Ury, and Bruce Patton introduced the world to the possibilities of mutual-gains negotiation, or integrative negotiation. The authors of Getting to Yes explained that negotiators don’t have to choose between either waging a strictly competitive, win-lose negotiation battle or caving in to avoid conflict.
Rather, they argued, bargainers can and should look for negotiation strategies that can help both sides get more of what they want. By listening closely to each other, treating each other fairly, and jointly exploring options to increase value, negotiators can find ways of getting to yes that reduce the need to rely on hard-bargaining tactics and unnecessary concessions.
Fundamentals of Principled Negotiation
Separate the people from the problem
This first principle is broken down into three subcategories:
perception
emotion
communications
Negotiators are people first—people who have values, cultural backgrounds, and emotions that vary by person. Getting to Yes teaches that this human aspect can be either helpful or disastrous. Negotiation can either build trust and understanding with a positive relationship established at the end, or lead to frustration or dissatisfaction.
Communication is the main aspect of negotiating. These are three common problems in communication:
Not clearly speaking with the other party, but instead attempting to impress those within one's constituency by taking a side instead of working toward a mutual agreement
Not actively listening to the other party, but instead only listening to rebut the other party's statements
Misunderstanding or misinterpreting what the other party has said.
Focus on interests, not positions
Identify what the buyer needs and understand the buyer’s business objectives.
Some key questions to ask before starting the negotiation:
How can we ensure that you get everything you need from this deal?
What is the impact of implementing <solution, product or initiative> in your company?
What role could <AIESEC, GT or another initiative> play in the big picture for your organization?
How does this fit in your priorities?
What effect will this have on the people of your company or organization?
Get the buyer to negotiate the value of your solution, so you don’t have to negotiate your pricing.
Be genuine about your questions!
Invent options for mutual gain
Expand the pie before dividing it.
This means that you must invent solutions advantageous and beneficial to both sides. This principle aims to help the parties find an option that will impact each party in a positive way, making both sides feel like they did not get taken advantage of during the negotiation. It is important to listen to the other party and not make a decision until both parties feel that they have clearly explained their intentions and what they want out of the conversation.
The solutions to these obstacles:
Separate the act of inventing options from the act of judging them. Before brainstorming clarify the ground rules, including the no-criticism rule.
Broaden the options on the table rather than look for a single answer.
Invent ways of making their decisions easy. Rather than making things difficult for the other side, you want to confront them with a choice that is as painless as possible.
Insist on using objective criteria
This principle is about making sure that the conversation stays on topic and that it is productive. The parties are making deals based on objective and practical criteria.
The three steps to using objective criteria are to:
Find out what the other party's intentions are.
Keep an open mind.
Never give in too pressure or threats.
Each party is in charge of keeping the other party committed to the conversation.
Know your BATNA - Best Alternative to a Negotiated Agreement
No method can guarantee success if all the leverage lies on the other side.
There are two methods of going about negotiating from a position of power:
Each party should protect themselves first.
Each party should make the most of the power within their own assets to negotiate and win against the opposite party.
When negotiating, the parties must resist the urge to constantly compromise for fear of completely losing the negotiation. Establishing a "bottom line" can protect the negotiator's final offer, but may limit the ability to learn from the negotiation itself and may preclude further negotiation that possibly could result in a better advantage for all parties involved.
When considering final decisions, each party may want to take a step back and consider all possible alternatives to the current offer being made.
Conceptual Selling
Conceptual selling is founded on the idea that customers don’t buy a product or a service, they buy their concept of a solution that the offering represents. With that in mind, the creators urge salespeople to not lead with a pitch, but instead seek to uncover the prospect’s concept of their product and understand their decision process.
Why is it Useful?
Allows the sales representative to get to know the customer at a deeper level and focus on achieving results.
Draws attention away from pricing which in turn deters the customer from going to a lower-priced competitor.
Offers a way to stand out from the competition.
Important Characteristics
Listening
The salesperson begins by listening to the prospect in order to fully understand the prospect’s concept of their problems and issues. The salesperson then relates the product or service directly to that concept.
Asking Questions
Type
Reason
Confirmation questions
Reaffirms the information.
New information questions
Clarifies the prospect’s concept of the product or service and explore what they’d like to achieve.
Attitude questions
Seeks to understand a prospect on a personal level, and discover their connection to the solution.
Commitment questions
Inquires about the prospect’s investment in the project.
Basic issue questions
Raises potential problems so that they can be addressed.
Bonus: Video Summary
Quiz
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