3 Keys to Negotiate Better: Get What Finance Needs Now

Just because you theoretically hold the purse strings doesn’t mean you automatically get what you and your team want.

You often need to negotiate, whether you consciously recognize that it’s going on or not. Sometimes, you’re deeply involved in a business deal for your organization. Other times, you need to propose – and win – ideas that help Finance succeed. And every once in a while, you need to negotiate for yourself to get what you want professionally.

Expert Help to Negotiate Like a Pro

So here’s help – three top negotiation strategies from experts at the Kellogg School of Management at Northwestern University.

The best part is they’re good in nearly every situation – winning the deal, getting support for your finance team, a raise for yourself or getting employees to accept change.

1. Focus on the Other Side

Most people don’t negotiate, thinking they’re negotiating. They just tend to focus on what they want and how to get it.

In contrast, the Kellogg researchers say the better bet is to focus on what the other side needs and how you can help them get it.

You’re the vehicle for the change you want, not a roadblock to what the other side wants.

For instance, if you’re trying to land the deal, keep steering the other side back to what they said they want to gain. If you want a promotion – and a hefty pay raise that should come with it – focus on the responsibilities you’ll take up and alleviate for your boss. In another instance, talk about the processes you’ll make more efficient so the department realizes cost savings.

To be sure you have the other side in focus, take what Kellogg professor of management and organizations Victoria Medvec calls a “pronoun check.” If you find yourself saying “I” and “me” a lot, you’re probably on the wrong track – the one to nowhere.

2. Differentiate Yourself, Your Cause

When you set out to gain something – and end up in negotiations – recognize that you aren’t the only one pining for more value, time, attention or resources.

Because others are negotiating for what they want – even if it’s not exactly what you want – you need to differentiate yourself or your cause.

Highlight what makes you, your company or your team stand out or what will make the biggest impact in the near future. Remember that it needs to hold context for the person or people whose approval you want.

For instance, if you want more funding for dedicated AI tools for your department, focus on how your team keeps a constant eye on markets and investments. Your enhanced insight will help identify the next best moves to help the company grow.

Bring Options to the Table

You may only want one thing when you go into a situation where you negotiate, but you’ll want to offer a few things to the other side.

Consider everything you want to “win” in the negotiation. Then look at several ways each could happen. You can mix and match the wins and the potential path to them to create a few options to put out there.

“Multiple offers let the other side feel like they have a choice,” Medvec says. “They feel better about having a choice. And they’re going to react better to having a choice.”

For example, you want your team to earn a bonus for a project they dread. You might present this: a percentage of the cost savings divided between team members, additional paid time off or a one-time larger bonus based on the timeliness and quality of the finished project.

Leave wiggle room in your options, knowing what you’ll compromise on, what the other side is likely to compromise on and what could be contentious.