In almost every, if not all, industry that exists, there comes a time when the two parties disagree with each other. These disagreements are especially true in a business situation. The intent is for the two sides to end up with an agreement that both parties find acceptable. There are several key facets in order to conclude a successful negotiation. One should always try to negotiate from as strong a position as possible. This power can come from several sources. One power source is from one’s position or title, like when an employee is negotiating with their boss. Power can be derived by one having an alternative choice.
An example is where an employee has received a more lucrative offer from another company, possibly a competitor. Another example is having a choice between outcomes. Regardless one should always be prepared to walk away from the negotiation if it is impossible to reach a mutually gratifying conclusion.
One situation has to do with a job in the general business industry. When a company deals with a union representing the employees, several negotiators may be led by a chief negotiator. During the initial hiring process, this negotiation can take place, such as a corporation endeavoring to choose a new CEO or during an upcoming promotion opportunity for existing management or employees.
A second situation has to do with the music industry. A musician, either an entire band or a solo artist, eventually will find themselves having to negotiate with a record company for a fair share of the album proceeds. A musician or band finding themselves in this position should hire a negotiator who favors them, not the record company such as John Branca, well known and successful negotiator for the musicians within that industry.
Lastly, negotiations frequently take place in the sports industry. When a college football player is drafted in the early stages of the National Football League draft, while the player is excited and overwhelmed, is also young and inexperienced and is best served to retain an experienced negotiator to represent them to negotiate their contract with the team. When a baseball player has a contract that is due to expire in the near future, and they are looking at the opportunity to become a free agent, the wise thing for them to do is to hire an experienced negotiator within the sports industry to negotiate with their team, getting the player a fair and lucrative contract renewal, leaving the player to only have to concentrate on their performance.
Regardless of which industry you are negotiating within, two more things are essential. One is to try to end up with a solution where both sides feel like they won. The other is to always begin with the end in mind.
