B2B negotiations typically end with a win-win result because both parties benefit from repeat business. Sellers need loyal customers. Buyers need consistent suppliers. Even when all business requirements are met negotiations can stall if one or both parties have not achieved their personal wins.
Fundamental to win-win negotiation is having strong personal relationships built before talks start.
By establishing personal relationships, we start the conversation knowing how to read people. We understand their tastes, body language, voice inflections, etc. Most importantly, we understand what motivates them. Business benefits are calculated and confirmed with spreadsheets and calculators on today’s smartphones. However, people’s motivations are not so simple. No phone will ever be smart enough to calculate motivations. So how do people win and why do we need to know before talks begin?
- Safety – Some negotiators win with the low risk option. This can happen with the procurement team or the business owner, as well as with someone new or a veteran negotiator who is coming off a failed project. These people will continuously ask for assurances and guarantees. They will often default to a successful incumbent. Our job is to convince them that we are the low risk option whether incumbent or not.
- Simplicity – Some negotiate to make things easier for their team and company. These people are looking for an agreement that will relieve their teams and company of work. Adding workload to their co-workers would be a personal loss. As with safety seekers, these people may lean towards the tried and true rather the new and innovative. Our job is to show them through credible experience and expertise that new is not synonymous with complexity.
- Reward – Negotiators want to get ahead just like everyone else. Whether they are procurement officers, plant managers or CEOs, something good could happen for them if they get certain things from a negotiation. Promotions, bonuses, awards, etc., are things these people are looking for. People motivated by reward are keen to satisfy needs and wants of others who can give them their desired reward. Our job is to help them build the path to satisfy others needs and wants. I strive to have relationships with those influential people so I can help the negotiator. I have often found that I know the right people better than the negotiator.
- Recognition – Many times negotiators are in the finance or procurement organization and not part of the organization for which they are negotiating. In many cases, winning the business results in the seller becoming more involved with the buying organization than the negotiator. In reality, good negotiators are an integral part of the business and what they get from us is highly impactful to the buying organization. Our job is to ensure we do not do anything to damage the relationship the negotiator has with their internal business partner.
- Revolution – Some negotiators will want to leave their mark by getting something from the seller that predecessors never got. This could be as simple as pricing or terms or as complex as schedules and performance metrics. They want the fist-pump that comes with doing something never done before. Unfortunately, there is generally a good reason these things are untried and we often find that we cannot address the negotiators original request. It’s critical that we remember that their focus is on getting something new. Our job is to figure out how to get them that fist-pump even if it isn’t what they originally asked for.
Why do we need to know the negotiator’s motivations before talks start? Because once we start, their playbook is closed. It’s like athletes playing for opposing teams. They can be best of friends off the field but want nothing more than to beat the other while playing. Can you see Serena Williams telling Venus Williams what her game day strategy is when they are playing each other? Of course not and they are sisters.
I’ve outlined the ways people are personally motivated when negotiating. We know that learning those personal motivations has to happen before talks start. Understanding these two simple realities helps us create more win-win results.
In my next blog, I’ll discuss the one motivation that, if held by either party, ensures a win-win will never happen.
©2013 Rick Wong – The Five Abilities® LLC
