Tips for Negotiating
With the disadvantage of integrative negotiations, what can you do to ensure if this type of negotiation process is utilized that it will be a win-win situation for both sides?
Compromise – This type of negotiation does require some compromise from both sides, not just one side, so have an idea ahead of time on what you’re willing to give up or counteroffer.
Be Realistic – When it’s time to negotiate be realistic about offers and counteroffers. If you do lose a small profit margin, isn’t it worth it rather than the company losing the project and the client going somewhere else? A successful project outcome with a lower profit margin could also mean referrals from a happy client.
Standing Firm – Make a list of what you absolutely won’t give up such as quality control or phases in the project the client may think unneeded. If your company bases its goals on quality that certainly isn’t something you can give up. If your company insists on using the Agile Management Methodology, you shouldn’t give that up either if you know this methodology will work best.
Team Negotiating – With integrative negotiation you may experience team members that disagree and the project halts. Here, you must listen to both sides, be a facilitator and make compromises both team members can live with.
With integrative negotiation comes some disadvantages, however, often it works better than distributive negotiation where long battles could end up with your company losing the project or teams not working together. Because the distributive outcome usually finds a winner and a loser—this type of negotiation may be hard to tackle and build relationships on, once the negotiations is complete, making integrative negotiation your best choice even with the disadvantages that come with this technique.