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Negotiation skills:

A key tool for

finance leaders

An accomplished negotiator offers 12 tips for aspiring

leaders to hone their negotiation skills, build influence,
and achieve career success.

By Raju Venkataraman, FCMA, CGMA

egotiating is a science and an whom you are negotiating, take time y Prepare a list of questions you can
art. It is based on principles to gather pertinent information. ask the other party to validate your
and methods and requires y Focus on all dimensions: people, research and test your assumptions.
some psychological skill and problem, and process — for your side y Anticipate awkward questions your
N lots of practice. and the other side. (See the chart counterpart might pose.
Finance leaders would do well to hone “Preparing for the 3 Dimensions” for y Preparation is not a one-time step.
their negotiation skills, be it for balancing details.) While it’s difficult to plan for every
multiple interests and making resource y Use tools like the downloadable possible situation, a good negotiator
allocation decisions, for dealing with “7 Elements Worksheet” to organise can adapt quickly, return to the
external stakeholders like vendors and your findings and to align with preparation stage to gather new
bankers, or for advocating for oneself with internal stakeholders. Update it as information, and draft a new plan, if
senior executives to ensure one’s own you find new information. needed.
career progress.
During more than 25 years of my
corporate career, I participated in or led
Preparing for the 3 dimensions
high-stakes negotiations in acquisitions Preparing for the 3 dimensions
and divestments, intellectual property
licensing, and prominent media content
services in multiple cultural settings. The
battle scars from these negotiations
helped me hone skills as a tough-yet-fair § Interests – “MIL” prioritisation
of your interests
negotiator. § Diagnosis of existing § Various “issues” and § Agenda, order of items
relationship with the
Based on my experience, here are my counterpart best/worst case range § Communication, deal
top 12 tips for those aspiring to be ace § Their styles, needs, culture Legitimacy and justifications progress sheet, escalation
negotiators: § Who’s setting the mandate – for your stance § Deadlines on either side,
on your side and theirs? § Alternatives and BATNA time pressures
1. Prepare, prepare, prepare § Invisible stakeholders § “ICAP” research of § Logistics: venue, seating
counterparts
because negotiation is about § Aligning with your team – § Negotiation tradeables
80% preparation. whom to involve?
y Before you first meet parties with Source: Ecsel Consulting.
FM-MAGAZINE.COM June 2022 I FM MAGAZINE I 29