STEP 1: Understand the purpose
Very few of the negotiations you will have as an accountant will involve one-off situations with someone you won’t have to have an ongoing business relationship with. So, if you go stomping around engaging in the sort of negotiations you see on business-based reality TV shows, you will quickly find yourself pretty isolated. Although it’s not ideal to get what you want at the expense of giving too much away in a negotiation, you also don’t want to make the other person feel unhappy with what they get in return - this could damage your relationship. People have long memories. A win in the short term can come back to bite you later. In any negotiation, your goal should be to work with the other party to reach a solution which works for everybody. It may sound simple, but a successful negotiation will mean that both of you are happy with the outcome.
This is called a win-win outcome, and this briefing is based on the assumption that that is what we are aiming to achieve in a negotiation. Think your way through the other possible outcomes and you will quickly see that they are less desirable. An outcome where you both feel you have lost is clearly not good for anyone. An outcome where you feel you have lost and they have won will not make you happy or impress your colleagues. An outcome where you win, and they feel they have lost, may make you look or feel good in the short-term, but it might create resentment and undermine a longer term relationship. Successful negotiation will mean that both of you are happy with the outcome. This is called a win-win outcome.
NEGOTIATING IN FINANCE | STEP 1: UNDERSTAND THE PURPOSE
6
Made with FlippingBook Digital Publishing Software