The Recap
In part 1, we explored the theory behind the three dimensions of negotiation: problem, people and process. We also met James, who has found a company he enjoys working for but for him to achieve his goal of buying his first property, he needs a pay raise. Through coaching, we helped James to consider the three dimensions of negotiation in developing his strategy to discuss his pay raise.
“Basic rule of negotiation is to know what you want”- Phil Knight. Click To TweetJames’ Final Strategy
Considering The Problem Dimension
James got very clear on what exactly he wanted: to be able to buy a house. Focusing on this allowed him to realise that there are three outcomes which would probably be the most valuable to him:
- Getting more money from current employer
- Receiving training which would increase his future market value
- A new job title, which would enhance his professional brand
Equally as important, James also knew what wasn’t important to him, which was receiving more flexibility with his time. Offers centred around working from home, more holidays time or working part-time were not benefits he would be interested in.
Considering The People Dimension
As mentioned in part 1, James was aware that his manager was under a lot of pressure due to a major pending deadline. As a result, he knew that this wouldn’t be the best time to approach her with his proposal. However, the situation also presented him with a new opportunity.
James had been performing at a higher level for a few months to improve the case for a pay raise. As a result, he was on top of all his work. He used his additional capacity to offer more support to his manager. The dual effect was reducing the pressure his manager was under while also building a stronger relationship with her.
Once the deadline had passed and the team had emotionally recharged, James used this as the time to begin the negotiation process.
Considering The Process Dimension
At first, it would seem as if James had little influence over the process dimension; however, this isn’t true. As he was the one initiating the negotiation it meant that he had time to prepare well for it.
The Agenda
The culture of James’ workplace didn’t require him to send a formal agenda of the meeting beforehand. Instead, he requested a 90-minute meeting with his manager for a performance and career review.
The Proposal
Before the meeting took place, James created a document which contained the following
- Information on his current roles and responsibilities
- His performance over the last six months
- Significant achievements he was responsible for
- Information on new responsibilities he would like to take on
- Overviews of potential projects he would like to lead.
James walking his manager through the document, served as a structure to the discussion.
Segments 4 and 5 helped the conversation to shift into a more collaborative atmosphere as James and his manager began to explore the possibilities. This is an effective strategy, as it means both sides were working to create more value. Consequently, this means that later in the negotiation, there would be more valuable to distribute.
The Offer
After spending time collaborating and creating value with his manager James then moved the conversation towards what he wanted in return. Still striking a balance between being assertive and empathic, James spoke clearly about wanting a salary increase. He gave the figure he would like for his compensation. He also backed-up this market value by letting his manager know that he has received job offers from two other companies. Please note, James wasn’t bluffing, which is vital as lying in negotiations can ultimately backfire if your bluff is called.
Process Strategic Tension
James remained empathic, understanding that the manager had other factors to consider, such as budgets and that she wasn’t the final decision maker. He didn’t push for an answer in that meeting, instead allowed his manager to have the time to think about everything presented. She had time to speak with the CEO and to decide what the process for the remaining negotiation would be. However, James did make her aware that he needed to respond to the other job offers within the next ten working days.
What was the outcome for James?
Not surprising James got his pay-raise alongside a promotion. The company created a new role for him, which included new responsibilities and a new title. He didn’t get the full amount he wanted; however, the company significantly increased his learning and development budget. This manager also worked with him to design a learning programme where he would be able to add even more value to the company within a year. James knew his market value would increase again shortly; however, this time, the company has time to plan for James’ next pay raise.
James was able to save enough for his deposit and will soon be on the London property ladder. His company got a more effective and happier employee. It also launched some of the new projects which came up through the discussions. In the end, both sides walked away with what they wanted.
