Q & A Table of Contents
Negotiating on the Telephone
From: José Brazil
Question: I would appreciate very much some words about using telephone in negotiation between companies. Points like how to proceed, most common errors, and positive and negative points.
Response: Dear José,
Negotiating on the telephone is generally far less satisfying from a human standpoint than doing so face to face. We are deprived of the opportunity to observe the expressions and body language of the people with whom we are negotiating. For example, when we are face-to-face, we can observe whether the other person is looking us straight in the eye or is uncomfortable and avoiding eye contact.
Telephone negotiation is often most effective when it is a follow-up to in person conversations.
Nonetheless, negotiating on the telephone is more satisfying on a human level than doing so using letters, faxes, or email. At least on the telephone we can hear if someone is hesitating, we can listen for the tone of their voice. Written communications may have gone through several drafts; telephone conversations are less likely to follow a carefully-crafted script.
In order to negotiate effectively on the telephone we need to consider a few rules that also apply to face-to-face negotiation:
1. We should be well-prepared. It is a good idea to have a clear sense, or at least informed assumptions, about what interests are most important to ourselves and the person with whom we are negotiating. Doing a good job of homework can be crucial.
2. One of the worst things about telephone negotiation, and negotiation in general, is when we forget to pay attention to particular points. Thus, on the phone or in person, it makes excellent sense to have written notes prepared ahead of time which pinpoint significant issues we don't want to forget to discuss. Just this morning I had a telephone negotiation with a client for which the two of us had planned ahead. Yesterday, when I called him to set up today's conversation, we put together a list of things we planned to discuss. That gave us each time to gather relevant information in order to have a more efficient, and satisfactory conversation today.
3. One crucial rule of negotiation, to Listen Actively, is particularly important in telephone negotiations since sound is the only medium of communication involved. Don't interrupt the other party, don't spend your 'listening time' figuring out how you're going to 'zap' them when they finally stop talking. The better you listen, the better you can learn, and the more likely you will be able to respond in a way that improves the negotiation's result.
4. Don't let the immediacy of a telephone call force you into fast, unwise decisions. There is nothing wrong in saying to the other party something like, "What you have been saying has given me several things to think about. (a) I'm going to be quiet for a few moments to consider what you've said. or (b) Let me give it more serious consideration; I'll call you back by a certain time to continue our discussion."
Please feel free to contact me if you have further questions.
Good luck and good negotiating, Steve.
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