Mastering Negotiation: The PICOC Strategy for all Situations

Welcome to a deeper dive into the art and science of negotiation. Drawing from the seminal work of Fisher and Ury in "Getting to Yes...", I've tailored their principles to both my personal experiences and the broader demands of global business dealings, adding a critical dimension - Cultural Context. Here's how these enriched principles have shaped my approach across diverse negotiation scenarios.

1. People Over Problems

At its core, this principle emphasises the importance of prioritising interpersonal relationships over the specific issues at stake. In any negotiation, viewing your counterpart as a partner rather than an adversary can transform the dynamic and lead to more positive outcomes.

Actionable Steps:

• Acknowledge and Validate Emotions: Both your and the other party’s feelings matter in a negotiation. Don’t dismiss or ignore them - try to understand their perspective. Statements like, "I can see why this matters so much to you," validate their emotions and help separate the person from the issue.

• Communicate Openly: Listen actively, and focus on clear, non-accusatory language. This avoids triggering defensiveness, which can derail negotiations.

• Build Relationships: Before diving into the details of the problem, invest time in building rapport. This creates trust and helps both sides feel understood, reducing tension around the issues at hand.

• Maintain a Solution-Oriented Attitude: Keep discussions constructive by steering conversations toward solutions rather than dwelling on problems. This approach keeps the focus on the people involved and their relationship, rather than just the conflict or the issue at hand.

Want specific cultural insights based on different markets? I’m here to help.

2. Interests, Not Positions

This involves digging beneath the surface of what a person or negotiators say they want, to understand why they want it. By identifying these underlying interests, you can discover new opportunities for consensus and compromise.

Actionable Steps:

• Identify Your Interests: Knowing your interests allows you to navigate the negotiation more effectively, ensuring that you are aiming for outcomes that truly meet your needs or solve your problems.

• Clarify Your Interests: Be clear about what’s driving your position, so you can communicate it effectively without getting stuck on a rigid demand.

• Explore Their Interests: Ask ‘why’ and ‘why not’. When someone takes a stance, understand the underlying interest behind it. Ask why they want what they want and what alternatives could meet those interests. Asking open-ended questions to understand the other party's interests builds trust and can lead to creative, mutually beneficial solutions.

• Identify Shared Goals: Often, both sides have overlapping interests, like long-term relationships, quality, or mutual gain. Emphasise these areas to build a cooperative dynamic.

• Employ Empathy: In professional settings where understanding the underlying emotions and pressures felt by the other party can lead to more humane and effective interactions. Empathy helps in bridging gaps between conflicting interests and can pave the way for collaborative problem-solving.

3. Create Options for Mutual Gain

Look beyond fixed positions to find solutions that benefit all parties. Instead of competing over limited resources, the goal is to explore creative options that expand the value for everyone involved.

Actionable Steps:

• Brainstorm Creatively: During discussions, propose multiple potential solutions. Avoid prematurely narrowing in on one option - expand possibilities first. Arrange brainstorming sessions where both parties can suggest ideas without immediate judgment. This inclusive approach encourages diverse solutions and builds a sense of teamwork and shared purpose.

• Evaluate Options Objectively: After brainstorming, collaboratively evaluate the options, focusing on how each can meet the interests identified. This helps in choosing solutions that provide the greatest mutual benefit.

• Look for ‘Win-Win’ Outcomes: Instead of thinking in zero-sum terms, search for ways both sides can benefit. This could involve trade-offs or creative compromises that meet the key interests of all parties.

• Avoid Reactive Devaluation: Stay open-minded to the other party’s suggestions. Resist the urge to dismiss ideas just because they didn’t originate from you.

• Flexibility in Negotiations: Encourage flexibility and openness to adjusting proposals, demonstrating a willingness to adapt solutions that can better meet the needs of both parties.

4. Objective Criteria

Negotiations grounded in objective criteria rely on external data, standards, or benchmarks to make decisions. This approach ensures fairness and keeps negotiations fact-based.  For example, global trade agreements often hinge on standards set by international bodies like the WTO, which provide a common ground for negotiations between countries with varying interests.

Actionable Steps:

• Set Clear Benchmarks: Before negotiations, agree on specific, measurable benchmarks that will guide the decisions. This could include industry and market standards, expert opinions, legal statutes, or previous similar agreements.

• Transparent Documentation: Keep all negotiation processes documented with the agreed-upon criteria and the rationale behind decisions. This transparency ensures that all parties are clear on why certain decisions were made, reinforcing the objectivity of the process.

• Use Data to Support Decisions: Rather than relying on emotions or assumptions, bring in objective evidence that supports your case (e.g., financial reports, and industry benchmarks).

• Be Willing to Adjust: If the other party brings forth solid, objective evidence that challenges your position, be flexible enough to adjust your approach.

• Use Neutral Experts: If applicable, involve neutral third-party experts to provide unbiased opinions or data, which can help in making informed decisions based on objective criteria.

5 Cultural Context - My Strategic Addition

This addition underscores the importance of recognising and respecting the diverse cultural backgrounds of negotiation participants. Each culture has its unique way of understanding and engaging in negotiations, which can significantly impact outcomes.

Want to know more about the impact of cultural dimensions on business and strategy? You can learn more from my research here.

Actionable Steps:

• Cultural Research and Awareness: Before negotiations, conduct thorough research on the cultural norms and business practices of the other party. This could include studying successful business strategies in their region or understanding local customs that might impact negotiation dynamics.

• Cultural Sensitivity in Communication: Tailor your communication style to match the cultural expectations of the other party. This could involve adjusting the level of directness, the formality of language, or even the pace of negotiations.

• Seek Cultural Insight: If unsure about certain cultural aspects, openly seek insight from the other party. Questions like, "Could you help me understand the best approach according to your business culture?", can provide valuable guidance and show respect for their cultural perspective.

  
  

Ready to transform your negotiation skills? Start applying the PICOC method today and unlock the potential for more meaningful and successful outcomes. Share your experiences and questions below, or connect with me for further insights!

Anne Marie is passionate about innovating business models for sustainability. As an ENTJ, she leverages her curiosity, strategic insight, and problem-solving skills to drive business innovation for social change. Connect with her and join the conversation.