3 Negotiation strategies to end disputes
If not resolved skillfully, disputes may result in an expensive deadlock and possible litigation. Skilled negotiators can save their relationships, avoid lawsuits, and look to create value with the strategies below.
1. Stay calm. Control your emotions even if provoked.
Negotiators often ask questions to validate the other side’s legitimacy and assert their power. If not handled skillfully, this information exchange can become contentious, even when discussing seemingly rational and concrete issues.
- Someone may question your expertise by saying you need more experience and a track record to provide a particular service.
- The other party may need better communication skills, language, and tone. They may intentionally or unintentionally make demeaning comments. Instead of asking, “Can you provide me with support for that? They may say, “That’s ridiculous.”
- A coworker might say, “Are you crazy?” instead of asking, “Why would this make sense for us?”
The party may be trying to provoke, intentionally or unintentionally, you into an emotional response that may transfer the power to them. So, what do you do in such situations without being too competitive? Here are some suggestions:
- Adjourn the meeting. Take a break. Let everyone gain control of their emotions.
- Name the move. Let the other party know you recognize it as a power move. So, how would you respond when somebody says,” You can’t be serious!” One option is to answer by saying,” I am quite serious. Now, instead of interrupting me constantly, how about giving me a chance to present my plan in full?”
- State the facts. Replace the other side’s negative remarks with a more positive explanation. If a coworker blames you for a reckless decision, provide her or your boss with evidence of facts and credibility for taking a calculated risk.
- Shift the focus back to the issue. For instance, advise the other party to avoid personal judgments and focus on the proposal.
2. Seek value-creating strategies.
Most skilled negotiators understand the importance of collaborating to create value. Yet, many often abandon a collaborative stance during dispute resolution. They treat business disputes as different from other aspects of dealmaking. They tend to view dispute resolution as a zero-sum game in which only a single issue (such as money) is at stake. Consequently, the dispute resolution process becomes a win-lose battle.
Most of the time, disputes offer the same set of value-creation opportunities as the deals. For instance, parties are capitalizing on shared interests. Suppose both parties are likely to get under regulatory scrutiny. In that case, they might agree to keep some aspects of their negotiation process confidential. Such agreement on apparently fringe or surrounding issues can build trust that helps resolve the primary issues.
Negotiators may also create value by trading on differing preferences and priorities. Suppose a buyer has proudly announced an agreement on a contract at a specific price. He places a high value on keeping face. The supplier might be willing to sign the lower price contract in exchange for the buyer signing the agreement today without any further discussion and any more concessions.
3. Negotiate with time on your side
Our perceptions about the dispute resolution process may change over time due to a better understanding of the other party’s perspective, experience dealing with the other side, and experience in better managing a similar conflict.
For example, after a bitter negotiation, a buyer and a supplier will become more collaborative if a significant share of their business depends on each other. They may view disputes as less permanent and more solvable in time.
During conflict resolution, it is essential to keep the communication lines open. By communicating regularly, parties often develop innovative solutions by working through their differences over time.
Over time most companies have some organizational changes. New faces start showing up. Take advantage of such changes by making new proposals directly or through a third party.
I would love to hear about your experiences! Please share your stories at satishmehtausa@gmail.com. Please forward this knowledge letter to those who could benefit from it. They can subscribe to it here or by clicking on the link below.
Thank you,
