When an opportunity comes up for an up and coming artist in the music industry such as a manager contract or even a possible record deal, negotiation comes into play. It is very important to know how to negotiate properly to get the best deal. Three techniques in doing this are: mutual benefits; to separate people from the problem; and having a Best Alternative To A Negotiated Agreement (BATNA).
In the art of negotiating, mutual benefit is an admirable goal since it doesn't rely on dirty tricks or egos, but rather goes to the heart of what negotiating really is. In the Video "How to negotiate so everyone wins, especially you!" Ronald M. Shapiro reminds us why using a win win mindset is much more effective in negotiations; whether you are signing a lease, going thru a divorce settlement or working out a record deal. Looking for points of agreement rather than ego driven tactics can really focus your negotiations and help the parties come up with something of value for both sides. When you think in terms of "I win, you lose," he says you can get into trouble because win/lose = lose/lose most of the time. The negotiation stalls, conflict arises and it falls apart.
A great strategy is demonstrated when he uses the audience in a $10.00 mock negotiation. In the demonstration, the parties have to negotiate dividing $10.00 but they can't split it evenly. Rather than using the I win, you lose mindset; Mr. Shapiro reminds us that instead, if we agree to what we can agree on and THEN negotiate the rest, we are much closer to a win win situation. So for example, a good way is if both agree to get 4 dollars each, then they can flip a coin for the remaining 2 bucks! It's a simple but brilliant strategy and goes to the heart of what true negotiating really is. I will be sure to remember it, as it will come in handy in everyday life!
A great strategy is demonstrated when he uses the audience in a $10.00 mock negotiation. In the demonstration, the parties have to negotiate dividing $10.00 but they can't split it evenly. Rather than using the I win, you lose mindset; Mr. Shapiro reminds us that instead, if we agree to what we can agree on and THEN negotiate the rest, we are much closer to a win win situation. So for example, a good way is if both agree to get 4 dollars each, then they can flip a coin for the remaining 2 bucks! It's a simple but brilliant strategy and goes to the heart of what true negotiating really is. I will be sure to remember it, as it will come in handy in everyday life!
The next technique is to separate people from the problem. According to William Ury, author of Getting to Yes, discusses negotiations, how to reach agreements, and separating people from the problem in the video, Negotiating for Sustainable Agreements. He reminds us that we negotiate everyday w/our spouses, kids, coworkers and bosses. Ury tells us that the ability to avoid conflict during negotiations has more to do with what WE can do ourselves rather than what we think our opponent can do. Conflict arises when we fail to separate our egos, or feelings from the negotiations. We all have the power to NOT react he reminds us. He recalls how some cultures and tribes rely on "cooling off" periods when things get heated.
From South Africa to Venezuela he has seen it all. What he's noticed is that time and again, simple things like: respect, avoiding pressure and insulting or humiliating, and really listening to the other side works! And not just listening to their position, but the interests behind them is KEY to reaching peaceful creative solutions.
We learn that conflict is a growth industry and that how we handle conflict can be key to avoiding problems, even war. Separating personalities from the disagreements is hard; and it seems is hard-wired in humans; so in negotiations we sometimes need to step back and look at the bigger picture. What is the goal? Listen to what the other party really wants. He tells us to bridge the gap of understanding and leave our emotions out of it. We can do this by reframing our positions and building "Golden bridges"
Separating our egos or "the person from the problem" using these key tips; Ury points out that we can avoid the pitfalls that undermine any negotiation. By doing so, we can focus on what's behind the positions, or the heart of the matter. By asking questions we can learn and discover better ways to bridge the gaps of understanding. This is a powerful message for anybody from heads of states to parents. Lessons we can all benefit from.
The final technique is the Best Alternative Negotiated Agreement or BATNA. This is an agreement created by the interested party of what he is willing to accept, but it is vital that the party has researched and has all the facts about what is being negotiated, as well as how much he is willing to accept. They need to know what their value is and they need to be self confident in what they are negotiating for. The interested party should not settle for anything less than their BATNA.
To some, negotiating an important contract or record deal can be unnerving, but the bottom line when negotiating is to make sure you have done your homework so you can have a successful negotiation meeting. Also, making sure there is a mutual respect and keeping emotions at bay and maintaining professionalism during a meeting will prove to be successful.
References:
References:
How to Negotiate so Everyone Wins, Especially You!
It’s All About The BATNA Baby
http://betterpodcast.com/post/24538955133/better-2-its-all-about-the-batna-baby-in-this
William Ury: Negotiating for Sustainable Agreements
http://www.youtube.com/watch?v=e1NHqPDzqoU
http://www.youtube.com/watch?v=e1NHqPDzqoU
