The 5 Most Important Negotiation Skills for Business [Checklist]

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This article is the second in a 5-part series on business negotiations. All five are available now in a comprehensive eBook, which you can download here.

There is no rule of thumb that determines what type of person makes a good negotiator. A quiet and thoughtful introvert is just as likely to be successful in a negotiation as a fast-talking extrovert full of confidence and bluster.

But there are five types of negotiation skills that will set any negotiator up for a great outcome, no matter who they are.

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1. Attention to Detail

There is nothing worse than suddenly realizing that you don’t know a key fact or figure while at the negotiating table. Admitting that you haven’t done your homework or scrambling through papers trying to find the answer doesn’t look good in front of the other party (or your own team).

The best negotiators are those who are the best prepared. They’re not only confident in their knowledge of their own business’ context and requirements, but they have also invested significant time in learning the same about the other party.

Keep in mind that even the smallest detail may be the factor that decides the outcome of a negotiation. For example, a supplier may notice that environmental sustainability is mentioned in the opening pages of the purchasing organization’s annual report and could leverage this knowledge to stress their own credentials in this area at the negotiating table.

2. Flexibility

Unfortunately, negotiations don’t always pan out according to Plan A, which is why it’s important to always have a Plan B up your sleeve.

A flexible mindset requires a willingness to quickly change course and move on when required; most stalled or failed negotiations happen because one or both parties is unable to do so. Fortunately, a negotiator’s toolkit contains tactics to get negotiations back on track through the discovery of areas of shared interest or common ground.

Being flexible doesn’t necessarily mean abandoning your ultimate goals or targets. Instead, it’s about being willing to change (and potentially change again) the route that will get you there.

3. Empathy

A key pillar of effective communication involves putting yourself in the other person’s shoes to better understand their perspective.

Considering the other party’s motivations, challenges, history, and pressures will help you not only comprehend the context behind their negotiating position but also enable you to propose solutions that play to these factors and better appeal to the other party.

Part of being empathetic is to listen carefully and respond appropriately when the other party shares information with you. Poor listeners miss opportunities.

4. Problem-solving Ability

While other professionals may have the luxury of days or weeks to solve complex business challenges, procurement negotiators often only have a matter of minutes to solve a series of problems in rapid succession, particularly when a negotiation isn’t going as planned.

Conflict negotiation (or conflict resolution) involves identifying the problem that derailed the negotiation and finding innovative ways to solve it to the satisfaction of both parties.

Thorough preparation will arm the negotiator with the key ingredient needed to solve problems fast: data. The more data you have at your fingertips, the better equipped you will be to make flexible, high-quality decisions at speed.

5. Persuasiveness

Persuasion skills should be employed well before entering into the negotiation itself; this may involve persuading business stakeholders to change unrealistic expectations about the outcome of an upcoming negotiation or persuading other members of your team to land on the best possible approach to take in the negotiation itself.

During a negotiation, persuasion may be required to convince a hesitating supplier to accept a deal or even to come back to the table and continue the discussion if the negotiation has broken down. Having a reputation for ethical decision making and reliability will increase the persuasiveness of your arguments.

Negotiation Skills – Checklist

Pay attention to detail when researching suppliers before a negotiation.
Have a flexible mindset and be prepared to adjust your strategy as required.
Put yourself in the other party’s shoes and be an active, empathetic listener.
Utilize data and conflict resolution tactics to solve problems on the fly.
Employ persuasion to determine the best approach to the negotiation or convince a hesitant party during the conversation.