Effective communication is at the heart of every business endeavor, and negotiations are no exception. However, it is something that people often fail at, no matter how successful or experienced they are. Factors like a lack of preparation, no defined objectives, and poor listening skills all influence how a discussion turns out. The same goes for overpowering emotions, which, if not expressed properly, can cloud judgment and lead to impulsive decisions or irrational reactions. In this article, I will share some tips to increase the odds that your next negotiation works in your favor, while at the same time creating shared value for everyone involved. 

What is business communication and why is it important? 

Business communication is crucial because it sets the tone for collaborative relationships in the workplace, which are a determinant factor of the company’s corporate culture. Leaders who communicate well are often perceived as more inspiring, resulting in an increased commitment from their team. Transparency also fosters a sense of safety, where employees feel encouraged to share openly and are more receptive to feedback. This creates a positive ripple effect across the company, which catalyzes innovation, the development of new ideas, and creative approaches to problem-solving. 

The importance of emotional intelligence

Successful business communication relies on several factors, including transparency, authenticity, and inclusion. The high coefficient of emotional intelligence enables individuals to navigate complex situations–like conflicts of interest–manage their emotions, and build stronger relationships. Entrepreneurs and founders who have a solid EQ are better equipped to connect with others and understand their needs, and this leads to superior outcomes in every area of the business. 

Here are ten tips for effective negotiations that, driven by emotional intelligence, will help you to establish a better rapport with the person across the table, and to accomplish the results that you are looking for. 

10 tips for effective negotiations

  1. Before you start negotiating, clearly state your goal or intended outcome. Remember one of the famous quotes of Lewis Carroll, an English poet: If you don’t know where you’re going, any road will take you there. 
  2. Share the key points and theses to be discussed in advance with all the participants, and stick to it. This will help everyone to know what to expect, and prevent any surprises. 
  3. Bookend your meeting, and strictly adhere to the stipulated timing. Sometimes, negotiations go on for far longer than necessary, and this can complicate the chances of a mutually beneficial agreement. 
  4. Remember a negotiation exists to create shared value. Therefore, consider the other person’s needs as well. Taking this empathetic approach will let the counterparty know that you care about them also, and as a result, they will be more proactive about taking your intentions into account, too. 
  5. Back up your position with facts and numbers. Having the right data as support will strengthen your position. 
  6. Help the other person feel safe and relaxed. Tense negotiations seldom lead to successful outcomes. 
  7. Ask open-ended questions that start with “How?” and “What?”. They encourage everyone to share their point of view rather than the simple “yes” or “no” response. You might also use “Why?” but Chris Voss, a retired FBI international crisis negotiator, suggests taking it completely out of your vocabulary, as it triggers a defensive response. To foster collaboration he advises trying “What are the benefits of including these KPIs?” instead of “Why would we do that?”
  8. Be tactful when sharing your point of view. You can be assertive in a non-violent way. Start from a first-person perspective, “I/We need this.” 
  9. If something doesn’t feel right, say “no” and see how the other person reacts. It is important to enforce your boundaries. 
  10. Within 3 or 4 hours of the negotiation taking place, follow up with the participants, and share the agreed deadlines, tasks, and responsible parties. Since the accords are still fresh, this helps reinforce the importance of urgent action. 

Final Thoughts

To succeed in business, as well as in life, knowing how to communicate is key. As we discussed, however, it is easier said than done, largely because the process of expressing our needs and feelings can stir up emotional reactions, which is something that many people have not learned to handle adequately. 

The good news is that with enough practice, we can get a grip on it. By understanding the principles that drive effective communication and developing our emotional intelligence, we can improve our strategies to obtain what we are looking for and achieve our goals. Similarly, considering our counterparts in the process will not only help to create shared value, but to transform enemies into allies, and maximize our potential benefit without taking away from others.