Mastering the Art of Virtual Negotiations
Written by WIN Staff
Virtual negotiations have been on the rise since the advancement of technology in the workplace. But with COVID-19 forcing business and other operations to scramble for at-home solutions, online negotiations have become the norm. Technology, with all of its conveniences, can also complicate things during a negotiation.
When it comes to negotiating without the table, group decision-making can become less effective and more protracted. Janice Nadler and Donna Shestowsky from the Northwestern Pritzker School of Law, studied the effects of technology and negotiation and found that online negotiations are less likely to reach deals, develop trust, and build rapport compared to those conducted face-to-face. Interestingly, it’s been suggested that women are less cooperative in virtual settings than when they are face-to-face, with no changes for men. This could be due to women feeling less bound to social pressure to adhere to the female role and display gender-consistent behavior such as accommodation, politeness, or cooperation.
The greatest challenge that the new age of negotiation brings is the inability to “read” the counterparty. An in-person interaction better enables you the opportunity to feel the temperature of the room and make adjustments in hopes of coming to a deal.
With all of its challenges, virtual negotiations also come with its advantages. Distance can create a greater chance of a win-win. If the other party is perceived to be far away (by several thousand feet), perspective changes to encompass the needs of the bigger picture. Here are some tips to improve your performance in your next virtual negotiation!
Prepare and Organize
What you should do: Practice your meeting beforehand. If you are using a video conferencing tool, practice using it and be sure to have a good internet connection. Additionally, frame your meeting based around time needed and points to be addressed (this is especially important if you are leading the meeting). You should create an outline and prepare for your negotiation as if you would for a real-life negotiation.
Why this is important: An important determinant of situational ambiguity in negotiations is the negotiators’ knowledge about the structure of a negotiation. Being able to outline what you will be discussing, the purpose and the amount of time to be committed. In virtual negotiations, parties typically join at different times, which can make things feel imbalanced. If a key negotiator will need to sign-off early, adjustments will need to be made to the agenda but clarifying this at the beginning will diminish any assumptions and keep everything as clear as possible.
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Take Time to Connect
What you should do: Before you proceed with the negotiation, take the first few minutes to make small talk and connect emotionally. Talk about topics that are not relevant to the negotiation. Try to find common ground with your counterparty. Humor is always a good way to start.
Why this is important: Studies have shown that virtual negotiations can leave parties feeling less warmth and trust toward one another and can walk away with poorer objective results. When taking the time to make small talk, you’re more likely to walk away with better financial and social outcomes. Making a more personal connection can have a powerful effect on the outcome.
Use Video and Good Lighting
What you should do: If possible, set up your e-negotiation with video conference software, such as Zoom or Cisco Webex. Use a larger screen, such as a television projection or larger computer screen so you can get a full picture of your counterparty. Ideally, you’ll want to ask them to move farther away from their own screen so you can see at least one half of their body (as if you were sitting across a table from one another) and do the same for your video feed. Make sure you’re not back lit, or side lit as this will cast distracting shadows, and can subliminally give the impression of concealment, which you don’t want.
Why this is important: In the hierarchy of virtual negotiations, live video conferencing is queen. Study after study has shown that when a negotiation takes place over a channel where parties can’t see each other, such as phone or email, communication and understanding decreases and the interaction is less likely to be successful. Visual cues are significant to human interaction and communication. We tend to overestimate how effectively we communicated and how well we were understood and the possibility of seeing a person increases our chances for success.
Summarize Frequently
What you should do: Create summarizing statements during a negotiation. They are often more effective than questions. Take notes during the negotiation to better organize thoughts. Use statements such as “...so we’re all clear on [topic]...” or “We’ve agreed the [topic] will be [decision]” (for example: “We’ve agreed the contract will be for 6 months.”).
Why this is important: Constant questions can come across as demanding. By restating your counterparty‘s objectives, and bringing attention to the outlined propositions, you’re able to validate your counterparty and keep the attention of everyone involved. This keeps engagement high, helps your counterparty feel heard in the conversation, and ensures everyone is on the same page about key agreements. When negotiating virtually, it’s easy to be fatigued by the conversation and certain things may be lost in translation.
Take a Break
What you should do: Find times in the negotiation discussion to take a break, if even for 10 minutes. If you have reached an impasse in the conversation, simply ask, “What do you think about taking a quick 10 minute break?.”
Why this is important: In virtual negotiations, people can feel like they don’t have the opportunity to break away like they might in a face-to-face negotiation. There are no water cooler breaks, bathroom breaks, or lunch breaks naturally built into a longer e-negotiation. Taking a break from the constant conversation could work in your favor. Sometimes reaching an agreement requires taking a step back.
Establish Offline Methods of Chatting
What you should do: If you are negotiating as a team, you’ll need to find ways to talk privately outside of the primary negotiation arena. If you are using Zoom, avoid using the chatbox. If you are using email, avoid forwarding from the same thread. Instead, establish a secure way of communicating either through a private Slack channel, text message or a completely different platform for instant chatting. And don’t forget to practice this method with everyone on the team.
Why this is important: When you do not specify an offline way of chatting, it’s very easy to accidentally send important information to the counterparty. Avoiding using the same system that you are using to negotiate completely eliminates this issue and keeps communication constant between the team. This being said, it’s also equally important to not only be chatting during the negotiation. These kinds of sideline discussions could lead to an increase of distrust from the other side of the negotiation table.
Address Security Threats Beforehand
What you should do: If you are negotiating sensitive information, address any technical challenges before you start your virtual communications. Every organization and discussion has different needs, so be sure to talk to your IT department and get the clearance you need before you transmit sensitive information over the internet.
Why this is important: Switching to virtual negotiations can pose technical and security challenges. The possibility of unauthorized recording for a phone or video conference is heightened. Zoom faced much opposition earlier this year due to security issues, so you’ll need to be more aware and cautious when you enter in the ring of virtual conversations. If the information is too sensitive, consider waiting until you can continue your discussions in person.
Send a Follow-Up
What you should do: Immediately after your discussion, follow up with an email summarizing the negotiation results (why taking notes during the discussion is important!) and ask the other party to confirm the agreement.
Why this is important: Not only is a follow-up email a courtesy, you’ll want to summarize the things you’ve agreed to in order to ensure nothing was lost during the conversation. If you have tabled the discussion for later, you’ll need to include the date or timeline for the next conversation. This email will help establish clarity and maintain perspective.
The negotiation experience tends to reduce the gender difference in negotiation outcomes. Thus, the more experience you have with negotiations, even virtually, the greater the improvement in negotiation performance. So, with every virtual negotiation you take on - the better you will become! Nothing substitutes face-to-face negotiations but as we navigate this stressful time and our new normal, digital communication tools can make our negotiations more efficient and help keep us connected. Don’t let this new way of communicating intimidate you. If we practice it’s usage and understand how to put these technical tools to best use, you will feel increasingly more comfortable having your next negotiation virtually.