Harnessing Behavioral Science for Successful Negotiations
Negotiation is an essential skill in business and life. It’s about finding common ground, reaching agreements, and building strong relationships.
Last week we had a webinar where I interviewed Mike Wynn, APD’s lead for Sourcing Optimization, about the application of behavioral science to commercial negotiations. Prior to joining APD, Mike trained sales professionals on the topic.
Here are the key points I took away from the webinar on how understanding behavioral styles can lead to more effective negotiations and better outcomes for both buyers and sellers:
Understanding Behavioral Science in Negotiations: Behavioral science is the study of human behavior and aims to predict and influence behavior. In negotiations, behavioral science helps us comprehend why people act the way they do and how we can leverage this knowledge to enhance negotiation results.
Building Positive Relationships through Behavioral Science: One of the primary goals of negotiations is to build positive relationships while achieving favorable outcomes. Behavioral science provides techniques to foster open communication, recognize different behavioral styles, and maintain composure in challenging situations. By using techniques like “cookies” (acknowledgments, compliments, and gratitude) and adjusting communication styles, negotiators can create a collaborative atmosphere that benefits both parties.
Active Listening and Positive Atmosphere: Active listening is a valuable skill that contributes to a positive negotiation atmosphere. It not only builds rapport but also helps gather crucial information for effective negotiation strategies. By actively listening and showing genuine interest, negotiators can create an environment that fosters collaboration. In addition, active listening improves our knowledge of the issue at hand and provides us with better outcomes.
Adapting to Different Behavioral Styles: Recognizing and adapting to different behavioral styles is key to successful negotiations. Understanding the dominant (D), interpersonal (I), steady (S), and compliant (C) styles helps negotiators tailor their communication to match their counterpart’s preferences. By adjusting communication styles, negotiators can bridge gaps and reduce friction, leading to more productive conversations and better deals.
Conclusion: Adapting communications for better negotiations is an art that draws heavily from behavioral science. Recognizing and adapting to different behavioral styles contributes to building positive relationships and effective collaborations that maximize results. Remember, negotiations are more than just exchanging offers; they’re an opportunity to connect, understand, and achieve mutually beneficial results.
Click here to watch the webinar and gain insights into the full discussion.
Want to adapt communications for better negotiations? Learn proven techniques to adjust behavioral patterns to achieve negotiation goals in APD’s new Advanced Negotiations training program