The art of negotiation: corporate life and beyond

Negotiation is a part of our everyday life, whether in a corporate boardroom or just trying to decide at home. The key to successful negotiation isn't about who "wins" or "loses." Instead, it's about finding a solution that works for everyone involved, ensuring that each party's needs and interests are considered and valued. This approach is particularly important in Bangladesh, where relationships, respect, and collaboration often play a big role in business and personal decisions.

One of the most common mistakes people make in negotiations is focusing too much on their position. This means getting stuck on what they want, like a fixed price or a specific outcome, without considering the other person's needs. Imagine a factory owner in Dhaka negotiating with a foreign buyer. If the owner insists only on getting a higher price for their products without considering the buyer's budget constraints, the conversation could end in a stalemate. Instead, the focus should shift to finding a solution that benefits both sides, like agreeing on longer-term contracts or additional services that add value for the buyer.

To avoid this problem, it's helpful to have a BATNA, or "Best Alternative to a Negotiated Agreement." Think of it as your backup plan. For example, if you're negotiating the rent for a new office space in Dhaka and the landlord won't budge on the price, having another office in mind that meets your needs is beneficial. If the negotiations don't go well, you have other options. Knowing your BATNA gives you confidence and prevents you from feeling pressured into a bad deal.

Another critical principle is separating the people from the problem. This means not letting emotions or personal feelings get in the way of solving the issue. This is especially important in Bangladesh's business culture, where relationships and respect are highly valued. For instance, if you're negotiating with a long-time business partner or family member, it can be easy to let past disagreements influence your decision. However, focusing on the problem-rather than the person helps keep things professional and productive.

A good negotiation should also be a joint effort to solve a problem. Instead of seeing the other party as an opponent, you should work together to find a solution that benefits both sides. Let's say you're a garment manufacturer in Chattogram negotiating with a European buyer. Rather than focusing solely on price, both sides could work together to improve the process. The buyer may suggest better ways to package the products, which helps reduce shipping costs, while the manufacturer offers faster delivery times. By working together, both parties benefit.

Another great strategy is "expanding the pie." This means finding ways to create more value instead of fighting over a limited set of options. Take the example of a local fruit farmer negotiating with a wholesaler. Instead of haggling over the price per kilogram of mangoes, the farmer could offer to sell more during the off-season or introduce a new, more in-demand variety. This creates more value for both sides instead of just focusing on splitting the current profit.

Inventing creative solutions is another way to keep negotiations positive. For instance, if you're negotiating a salary at a tech company in Dhaka and the employer can't meet your number, you could ask for additional benefits like flexible working hours or opportunities for professional development. This way, you and the company feel satisfied with the agreement, even if the salary doesn't change.

Lastly, how you frame the conversation matters a lot. Presenting your ideas can significantly affect how the other side reacts. Instead of saying, "I need a higher salary, or I'm leaving," you could say, "I've contributed significantly to the company's growth, and I believe a salary adjustment would allow me to continue adding value." This shifts the focus from a demand to a discussion about mutual benefits. Framing things positively can help both sides feel like they are working together toward a shared goal.

To summarise, effective negotiation is about collaboration, flexibility, and creativity. By avoiding a rigid position, knowing your backup options, separating emotions from the issue, and finding ways to create value, you can turn a negotiation into a win-win situation for both sides. Whether in a business deal or negotiating a family decision, these strategies will help you reach better outcomes while keeping relationships intact.

The writer is Chief of Staff, ShopUp