Negotiation Skills - Closing a Negotiation

Step 7. Closing a Negotiation

A negotiation can be brought to a successful conclusion only when both parties have made concessions that are mutually acceptable in order to reach agreement.

You may have to therefore make concessions. When you are forced to make concessions, it is important that you take a long-term view.

Try to retain some control of the situation by:

• Judging how much ground you need to yield - put a value on what you are prepared to give so that it can be matched with concessions from the other side.
• Compromising without losing face. For example, if you have to backtrack on a point you had established as your final position, you can say, “Since you have changed your position on ……., we may be able to change ours on……”

As you near the end of a negotiation, you need to discuss the terms of your agreement. Use your hypothetical proposal to help you work out a basic deal. The terms of the deal will involve the method of payment, the timescale of payment, how long the agreement should stand before being revised, and what to do if any problems arise over implementation of the deal.

As you move towards closing a negotiation and start to discuss terms, try to draw together the various items under negotiation. Group related items together, rather than negotiating for each individually. This will give you scope to make painless concessions. For example, do not concentrate only on a new pay deal. Link pay with demands for longer holidays, higher pension contributions, and more generous health benefits. Negotiating a package is also a good way of finding out the true priorities of the opposition.

Choosing how to close

Before moving on to closure, it is important to ensure you are clearly focussed on the relevant issues and that you have not allowed personal feelings about the other side’s negotiating tactics to colour your judgement and decisions. Are you holding out for a higher price because you need to make a profit, or just so the other party does not feel they have beaten you down?

You could use one of the following methods of closure:

• Making concessions that are acceptable to all parties
• Splitting the difference between all parties
• Giving one party a choice of two acceptable alternatives
• Introducing new incentives or sanctions
• Introducing new ideas or facts at a later stage

It is also vital that you indicate to the other party that you are making your “final offer” by choosing the right words, phrases and body language. Create an atmosphere of decisiveness: gather up your papers, stand up, walk about and generally look as if you intend to leave. Increase the urgency and firmness of your tone of voice, but do not rush to close the negotiations.

When you have made your final offer, the other party may simply accept it as it stands. If they do not, you may be able to nudge them towards making a final offer acceptable to you. Look for points that have not yet occurred to them - even apparent trivial ones - that could help you reach an agreement. Try to put your self in the other party’s shoes, and to understand what might be preventing them reaching an agreement.

Implementing Decisions

Once you have reached an agreement you have to implement it. Draw up a plan of action, and appoint an appropriate member of your team to put this plan into effect.

Whenever agreement is reached in a negotiation, the terms should be recorded and signed as an indication of agreement and acceptance. Next you must agree on how to implement the decisions.

A negotiation is not considered a success until it has been enforced, so build deadlines and a plan of action into any agreements made around the negotiating table. Check the progress of the action plan frequently.

Helpful Hints and Tips

• To become a good negotiator, learn to read the other party’s needs
• Practise negotiating to improve your skills
• Be prepared to compromise
• Determine your strategy according to the type of negotiation
• Be flexible - it is a sign of strength, not weakness
• If you agree in haste, you may repent in leisure
• Write down all your objectives and prioritise them
• Express each objective in a single sentence
• Be sure to gather all key relevant information
• Talk to people who know the other party
• Always keep your strategy simple and flexible
• Practise being silent around a negotiating table
• Try to set the agenda - it will influence the rest of the meeting
• Do not reveal all your tactics at once
• Do not run a negotiation longer than two hours without a break
• Begin with uncontroversial general points
• Stress the need for agreement from the outset
• Put forward a proposal with as little emotion as possible
• Do not start speaking until you have something relevant to say
• Pay close attention to the proposal of the other party
• Wait for the other party to finish before responding
• Ask for a break to consider any new proposals
• Engage only in arguments that are constructive
• Be alert, key signals may only last for a second
• Watch for changes in body language and adjust your tactics accordingly
• Never undermine the dignity of the opposing party
• Press home your advantage when the opposition loses momentum
• Do not concede ground unless you receive something in return
• Record fully all agreements finalised at a negotiations close
• Be assertive but not aggressive when you are closing a deal
• Make sure your opponent has full authority to close a deal
• Look at the other party when making your final offer
• If you are not satisfied with a deal, do not sign it

 Re-read this whole Negotiation Course several times before you put it into practice!

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