7 Steps To Effective Negotiations

So much of leadership, requires the ability to negotiate, effectively, and wisely, yet, so few individuals, who, either ascend to, are elected, and/ or selected, to these positions, appear prepared to do so, in the most professional manner. Only when a leader realizes, how important, it is, to proceed, consistently, with the ability to pursue the finest, professionally - developed, negotiations, will he make the greatest impact, for the better, for the organization, he represents, and the stakeholders, he serves. With that in mind, this article will attempt to briefly identify, consider, review and discuss, 7 steps towards effective negotiations, including how important, the preparation of a relevant, Request for Proposal, or RFP, is, to making a difference, for the better.

1. Know the purpose: Don't jump into any negotiation, unless/ until, you first fully understand and appreciate the purpose, you wish to achieve, and consider your priorities, and focus! One must be able, to thoroughly explain the needs, to the other side, if he hopes to achieve his objectives, but, that means, first understanding them, himself! Once this is understood, it should become the preliminary focus, of the RFP, which you submit, as the first - step, in a professional negotiating process!

2. Clarify position/ needs: Effectively negotiating, never should include, distorting, and/ or lying about what you organization offers, to the other negotiator, because, unless you earn the trust, you'll never achieve, in the long - run, the proper objectives! The clearer, you explain, what you need, and the better you identify the difference between needs, and wishes, the better your results! Seek a win - win scenario, if you hope to achieve what you seek!

3. Useful budgeting: Rather than creating a budget, after - the - fact, hoping to squeeze, a square - peg, into  round - hole, one should create a realistic, useful budget, which requires, under - estimating revenues, and over - stating expenditures. Include every foreseeable expense, from marketing, and attracting attendees, to venue expenses, including Food and Beverage, etc, to transportation, etc, costs, and negotiate, based on a realistic understanding, of what you can afford, and clearly, explain that, to the other negotiator. This should be the preliminary basis of your RFP.

4. Open and honest; empathetic: Study what the other side needs, and seeks, and seek to create a meeting - of - the - minds, where both sides, work together, to share savings, and proceed, effectively! The combination of genuine empathy, as well as integrity, are essential components, in this process!

5. Priorities vs Wish - list: Identify, understand, and differentiate between the priorities, and your wish - list. While there are some items, which might be sacrificed, in a specific negotiation, these must not be any of the priorities!

6. Effective negotiating: Think - outside - the - box! Discuss approaches, which will benefit both sides, so everyone considers this a win! That is the key to effective negotiating!

7. Close the deal: Move the process, along, towards a successful conclusion. This means, showing how this make sense, to both sides, and after, meaningfully, negotiating, for over 4 decades, it means closing, the deal.I like to use, something like this expression, In light of how this benefits both of us, and makes sense, for us to proceed, doesn't it make sense, to come to a meeting - of - the - minds, as soon as possible, and proceed forward? Doesn't it?

Whether you are negotiating for an event, office space, or anything else, a real leader must do so, as professionally, as possible! Will you have the patience, understanding, and persistence, to do so?

Why Using RFP's Are So Important To Successful Negotiations

Having negotiated hundreds of contracts over the last three decades, I find it extremely disconcerting when I observe an organization negotiate anything without using a Request for Proposal (RFP) prototype. While RFP's are helpful in all negotiations, any negotiations for conferences and/or conventions with hotels that do not utilize RFP's invariably eventually having troubling outcomes.

Request for Proposals are important for many reasons. However, it is important that one first understand what an RFP actually is. An RFP is a specific type of inquiry that specifies in detail what the submitting organization's needs are, and specifically asks the responder how they might address this concern. For the sake of understanding during this article, we will base this negotiation on a hotel negotiation. A properly formed RFP is a thoroughly researched and thought out document, where the organization determines its needs in as much detail as possible. When this is used, there is far less confusion "down the road." Some of the reasons RFP's are so important include:

(1) Organizations should use the RFP as a way of creating a competition between various alternative properties and/ or locales. It is important that the cover letter for the RFP let each responder know when an answer is needed by, and that the request is being submitted to multiple facilities.

(2) What types of items might end up being issues? For example, does the hotel chaOrgarge for parking? Would the hotel make some sort of accomodation regarding this?

(3) Is there a charge for internet use? What concession might be made?

(4) In terms of audio-visual needs, which often become extremely important, what might the property be willing to do in terms of accommodations and concessions? What might be included for free? What kind of minimum guaranteed discount might be offered?

(5)Organizations who will be using guest rooms at a hotel should request complimentary meeting space.

(6) What kind of concessions might be offered in terms of Food and Beverage pricing? This is both one of the biggest profit centers for the hotel, as one of the largest expenses for the organization and its conference.

(7) What is the hotel's policy regarding special meals or dietary requirements? What is the cost for this, if any?

(8) What decorations, etc., might the hotel offer on a complimentary basis to the organization?

(9) What upgrades, frees, givebacks might the hotel offer regarding guest rooms? What is the best room rates offered, and for which categories of rooms?

(10) What is the best the hotel will do regarding flexibility regarding attrition rate?

These ten items are certainly nowhere near the full needs of an RFP. I have simply used these items to demonstrate the types of things that should be included in an RFP. The answers to an RFP should then because part of the addendum to the hotel contract.

Use of Request for Proposal procedures are best handled by expert negotiators. Your organization should select an excellent negotiator, and permit that individual to guide the entire process. The negotiator should have major input from the beginning, so as not to hamper his ability to best negotiate in the organization's behalf.