What Is Remote Negotiation And How Should It Be Done?

What Is Remote Negotiation And How Should It Be Done?

Bill Gates Announced Shortly After The Outbreak Of The Covid-19 Virus, Business Activities Will Not Return To The Old Routine, And There Will Be Many Changes In Organizational Culture.

One of these changes relates to how people negotiate with companies, mainly based on remote work. Interestingly, this process is expected to be followed by job applicants and companies after the end of the Covid-19 epidemic.

Today, all the traditional terms of making contracts are available to the public. It has positive points, as it forces negotiators to reconsider their assumptions more carefully, evaluate industries, and prioritize their demands carefully.

Considering that most of the negotiations will be held remotely even after the end of the pandemic, success in this way depends on understanding how to negotiate virtually.

What is remote negotiation and how should it be done?

 

In this regard, the McKinsey Consulting Institute has pointed out some interesting points, the attention to which will lead to success in the memorandum.

 McKinsey points out several essential points in this regard:

Savvy negotiators revise their assumptions, assess current and anticipated changes in their industry, and assess the implications for their organization and the changing priorities of their partners. The relationships between suppliers and buyers, which we will witness more objectively in a few months, will not have the stability, growth, and predictability that existed before the virus pandemic.

Some negotiations will remain virtual even after everything returns to normal. Before the pandemic, only 10-15% of the talks were conducted remotely. Therefore, this figure is expected to reach 25% in the future. Most small discussions will likely be around simple contracts, but parts of more complex contract negotiations may also be done this way.

A new perspective in remote negotiation

Let’s start by discussing what has changed regarding agreeing on terms. When organizations renegotiate contracts that won’t expire for several years, they no longer look to traditional times. Therefore, it is essential to manage this situation so that you can do the remote negotiation best. There are many reasons for this instability. For example, all industries are starting their work from a new position, and some industries, such as automotive, food, tourism, and aerospace, have passed a year with low demand and will start their work again in 2021. Under these conditions, in most sectors, companies facing bankruptcy are likely to merge and reduce their number of customers or suppliers.

In addition, due to the many rapid changes in supply chain conditions, pricing will fluctuate because suppliers will not be able to respond to customer demand fully, and buyers will be less motivated to buy because the cost of goods and products will be expensive.

Organizations that navigate these new opportunities more effectively can expect higher profit margins, greater flexibility in the supply chain, improved service levels, and early access to in-demand technology and innovations. They do.

Therefore, it is more important than ever that negotiators analyze the scenarios ahead, prioritize what is essential and identify. In addition, they should work more closely with senior leaders. For example, CEOs and CFOs of yesteryear interact more than ever to negotiate with their customers or vendors in auctions.

Use of new tools

Negotiators must use online tools efficiently to take advantage of the present. It is better to pay attention to the following To improve remote negotiation skills in the digital field,

Write the agenda in full detail.

Prepare the agenda of the meeting together with the other party in the negotiation and write in the spirit of cooperation. Make time for buyers and sellers so that you can provide credible data to show how things will look in the future during negotiations. In addition, give an overview of the current situation and business challenges, and set aside time for breaks so that teams can debrief based on new information about the extent of changes that emerged during the negotiation.

Shorten the duration of remote negotiation sessions and increase their frequency

Asking people to give you an hour of their daily schedule is better than taking half a day of their time. By eliminating the travel issue, you can organize several short and valuable meetings in a short time instead of a single big event.

Invite different stakeholders

This issue can be very critical. Let’s say a financial services company is negotiating to buy some technology. This buyer can invite multiple stakeholders such as city users, chief information officer (CIO), and managers of one of the branches to the meeting. If a salesperson only sees or hears about the buying side of a company and doesn’t hear from the main stakeholders of the business, they are missing out on meaningful benefits.

Experiment with remote video technology

Almost all communication experts suggest using video in remote negotiations so that you can receive critical non-verbal cues or create a sense of trust in the other party. If the technology used for the meeting, such as Microsoft Project, Zoom, Cisco Webex, or Google Meet, is different from what you are used to, inquire about the necessary approvals from the IT team. And learn how to turn the camera and microphone on and off, share information, present content, and use chat.

Enable implicit communication

Using a shared messaging system, such as Slack or texting, establish team coordination so that you and other members can compare your observations as the meeting progresses. The above approach allows you to change the conversation’s direction, probe specific topics, or conclude that it is time for the group to take a break. Also, avoid accidentally sending the wrong message while using the messengers in the video conferencing tool during a remote meeting.

First, check the personal status of people.

First, ask about people’s physical condition to ensure that the other party or family members are not in trouble. At the beginning of the conversation, take the time to say hello so that you can start your work with a sense of understanding and mutual trust.

Keep privacy in mind when negotiating remotely.

Pay attention to the fact that all your statements may be recorded. Before you share too much information, use jargon that could be misinterpreted or make unrealistic promises; consider these points. When holding a virtual meeting, share only certain pages with others instead of your entire computer screen to avoid accidentally revealing confidential information.

Prepare and submit a summary of the teleconference session

In a remote negotiation session, there is a high possibility that people will not understand the content correctly or misremember it. To avoid this problem, prepare and send a summary of what was discussed to the other party so that agreements, open questions, and next steps are adequately documented.

Businesses are expected to return to business as usual in a year or so, meaning your contracts will determine whether you’ve made room for new growth and new relationships or whether you’ve quickly burned through the opportunity. Therefore, it is better to plan for the post-coronavirus era today. Use these new negotiation techniques to be able to conclude contracts that have excellent material and spiritual value.