Now that you're prepared to enter negotiations, the first tactical decision you may have to decide on is which approach will work best with your situation. Both, informal and formal approaches in negotiating, have its ups and downs. Deciding the right approach in your situation is key in successfully winning over the other party.
In this article, we'll discuss the different impacts each respective negotiation approaches have. Hopefully, after reading this article, you'll have enough information to make the decision yourself--informal or formal approach in negotiating. Here are some advantages of each approach in negotiating.
Informal Approach
Fly below the radar. Informal approaches allow you to scout the landscape of the situation without sounding the alarms. This allows you to have light, casual discussions about the topic with minimal pressure. This also avoids the public spotlight in the negotiations.
Not set in stone. An informal negotiation tends to open a lot of discussions and verbal agreements about the topic. Though the exchange will not result to any formal contractual agreement, some mutual agreement/understanding can be met. These can help when it's time to formally draw out the negotiations.
Plausible deniability. You often hear this phrase used in Washington hit dramas. You can go slow, calculated, with an "abort" button close when things go sideways.
Formal Approach
I'm serious! Formal negotiations makes it a public event. It shows that you're not afraid for everyone to know that you're in negotiations with the other party about a certain topic. It tells the other party that you mean business.
It's in writing. Unlike informal negotiations, formal approaches result in explicit and contractual exchanges. At the end of formal negotiations, a detailed outline of the tasks, who's doing them, when they're going to be done, and how, will be in writing.
WIN OR GO HOME. There is no backing down on formal negotiations. This approach tells the other party that you're all in, you're serious, and it makes your stance undeniable. This sets your goals clear and sound. There will not be any doubt on what you want out of the negotiations. You'll have to ride the entire journey to its completion even when things go sideways.
Doing your homework and preparing for negotiations is important. However, what's the point of having the right information and doing all the leg work if you're unable to execute on the delivery of your negotiations? Knowing the ups and downs of both the two approaches of negotiations will help you come up with the right plan and the proper execution.