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Internal Negotiations: Intra-team vs. External Negotiations
Gregory from Australia asked:
| Which is more challenging: internal intra-team negotiation or external client, vendor or partner negotiaition? |
Our Answer:
The answer to this question really depends on the situation and circumstances surrounding the context of the negotiations taking place. There are simply too many factors to consider as every negotiation is going to be unique in itself. Lets explore the factors that are not discussed often enough - but should be discussed, when considering how to prepare for internal or intra-team negotiations.
Your success in intra-team or counterparty negotiations will all too often float or sink depending on how well you've considered and prepared on the following factors. These factors include: the relative strength of each person or negotiating party, negotiating styles, issues, positions, interests and personalities of the people involved. Unless you have prior negotiating experience with the company/organisation and/or the counterparty negotiator, you risk dealing with an unknown entity or blank slate. In-depth research and preparation can help to mitigate this lack of knowledge, but the reality of the situation won't be readily apparent until the negotiations kick off. You might end up facing an aggressive distributive style negotiator who seeks to extract the best possible deal at your expense. Additionally, you might face a negotiator who employs an array of various gambits and tactics that borders on the unethical.
On the other hand, you might be facing an integrative negotiator who actively seeks a collaborative business partnership. In this scenario, the negotiating parties will likely strive to build a business relationship premised on trust and durability. This form of negotiation poses its own challenges and does not mean that the negotiation will sail your ambitions smoothly into a safe harbour. Divergent interests and opinions usually results in a lively negotiation process. Both parties will be engaged in making trade-offs, taking and making concessions and trying to create the best possible value for their constituents. Most negotiations usually contain elements of both distributive and integrative negotiations.
The challenge posed by intra team or group negotiations is also dependent on a variety of factors. On the one hand, you are dealing with an entity and individuals that you may know well or at least possess some degree of familiarity. On the other hand, familiarity may act as a deterrent to productive internal negotiations within a company or organisation. One of the biggest obstacles to productive group negotiations, and the bane of many an organisation, is the counter productive reality commonly known as "office politics". This practice often entails a varying degree of backbiting and political infighting. Some department heads will actively vie for the limited resources to be allocated between departments. Coalitions, corporate ambitions, self serving interests and personality clashes may also impact how group negotiations are conducted.
The effectiveness of group negotiations and how they will progress often depends on the management style of the company, corporate philosophy, company culture and whether the mission statement holds much sway. A company's structure can be hierarchal or collaborative; departmental or team style, or anything in between. The decision making process could rest in the hands of a single individual or a Board of Directors. These are just a few of the factors that will influence the success or lack of success of group negotiations.
As with external counterparty negotiations, watch your assumptions and your back... Both forms of negotiations offer their own unique challenges, so bear in mind the foundation negotiation principles whilst considering the additional potentially hidden factors metioned in this response. As with all complex questions, there can be no simple answer.
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