In the final part of our three-part series, we take a look at the right structure and the advantages of a change of perspective.

The negotiation itself

Negotiations often begin with one party submitting its negotiating position to the other in writing or sending it in advance. This document may be a pre-drafted contract or a summary of the key terms or basic terms of the deal. In the case of a company acquisition, for example, such key terms would include the purchase price and warranty provisions. In a license agreement, they would be the type of licenses, the scope of the know-how, the amount of the license fees, and the term of the agreement. 

1. Researching:

• Find out what the other side is thinking
• Explore the interests of the other side
• Often take the perspective of the other side

2. Communication: 

• Ask questions
• Listen actively
• Summarize statements made by your negotiating partners briefly in your own words.
• Use examples and employ meta-level communication (this focuses not on what we talk about, but how we talk to each other).

3. The counterpart: 

• Consider possible personal backgrounds
• Pay attention to how the person(s) is/are integrated into the company.

4. Individuality: 

• Ensure fairness
• Use humor (appropriately and in moderation)

5. The argument: 

• Compare what is comparable
• Argument of reciprocity – putting oneself in the other person's shoes and vice versa ("tit for tat!").

As part of the preparation for negotiations, we have already explained how important it is to structure the subject matter of the negotiations correctly. Now, at the actual negotiation stage, this offers another advantage: As a rule, the parties argue about the content, but not about the form, because the latter does not seem to raise any questions of content. Therefore, the other side is much more likely to agree to a structure proposed at the beginning than to be persuaded by something related to content. In this context, it is very helpful to go to the meta level and talk about topics, not content and details. This gives the topic formal control over the content and allows you to influence when certain topics are addressed. It is helpful to structure the negotiation into individual sections as shown in the figure below.

"Perspective taking"

There is a way to separate the two levels more easily: put yourself in the other person's shoes and view the negotiation from their perspective.

Perspective taking makes it easier to recognize 

• how the other side reacts to your offers,
• whether their arguments are conclusive, and
• whether what she says and what she really means are consistent or contradictory.

 
If you uncover contradictions based solely on the other party's presentation, they will find it very difficult to defend themselves against them. You beat them at their own game, i.e., with their own arguments, and thereby gain legitimacy.

In order to properly understand the other side's point of view, you should let them finish speaking and listen attentively. Listening and understanding does not mean agreeing with a specific opinion. Rather, it gives you the opportunity to transform personal attacks into a factual debate.

Listening attentively and letting the other side speak helps them to vent their aggression in conflicts. And this aggression disappears very quickly when met with interested silence. The other party expects to be contradicted, which they can then use as "ammunition." If this is not provided, even the sharpest attack quickly fizzles out. This prevents conflicts from escalating and channels and controls emotions.

Please remember: there are few other areas where so much can be gained, but also lost, as quickly as in international negotiations. In the next issue, we will use a case study on licensing to illustrate further relevant aspects of international negotiations.

This three-part series has provided valuable insights into successful international negotiation and highlighted the key factors involved. Please always remember: there are few other areas where so much can be gained, but also lost, so quickly.
 
To the last article Rules for international negotiations (Part 1)

To the last articleRules for conducting international negotiations (Part 2)