Agency-Client Negotiations: Trust, But (Please) Verify

By Jerry Doyle

"Principled negotiating" is the best approach between the client and its PR agency. After all, it's not about having one side win; it's about the relationship. It's about
learning from history while raising the bar on communication. Ultimately, it's about becoming more efficient and getting more impact from all initiatives.

Negotiations happen at the beginning, during and at the end of the agency/client relationship. They could be about a number of things, including the contract, the budget, a
staff change, recent results, additional projects and even an ethical issue. In our survey of client and non-profit communication teams, each noted poor results and budget as the
top two reasons that bring about the need for negotiation. How your PR team handles negotiations is critical. It can establish your agency as a trusted strategic partner or it can
brand it as a vendor that is easily manipulated.

Sometimes, when the agency team and the client sit down to negotiate, a discomfort level leads to inertia. In most cases, neither "side" has properly prepared for the
negotiation. They approach it like they are buying or selling a car, which is an all-too-common mistake. So, how can you prepare and get a more productive outcome? Here are
several ways you can improve your team's negotiation skills:

Know the Subject Matter Better Than The Other Team:

Review the issues at hand carefully, and be prepared for anything that might come up, even items not on the agenda. Clients tell us there are two things that "lose it" for
agency teams during negotiations: First, the agency didn't know every aspect of the program intimately and, second, its team didn't listen.

The Goal Is Mutual Satisfaction:

Seek agreement, not victory. Your approach should be "principled negotiation," which means finding a solution that benefits both parties. Avoid one-issue negotiating. Establish
yourself as a partner equally deserving of fair play.

Define The Middle Ground:

Fill out a simple exercise grid that depicts your interests, their interests, where you can agree easily and how you can come together on the rest of the items up for
negotiation. What is your best possible result? What is your worst possible result? Avoid ranges; prepare to state positions clearly and specifically.

Start Strong And Climb To Higher Ground:

It is best to get the other side to talk first, and be prepared to actively listen. As for your turn, craft an opener that shows you've done your homework while providing a
broad view of what has gone well. This will set the stage for the rest of the meeting. Start positively, perhaps with a question you know can only illicit a positive response --
one that plays into what you want the other to remember.

Let The Little Things Go Early:

Decide what you are ready to concede, and prepare to do so at the beginning of the negotiation. Goodwill can be a bottomless pit, but a small concession can set par at
reasonable compromises that go both ways.

Define Where You Draw The Line:

Decide what the deal-breaker is, and communicate that in clear and in no uncertain terms. If you have started strongly, show you are a partner and offer a small olive branch.
This will garner more respect from the client.

Provide The Answers:

Showing you understand the issue is an important part, but only half of, the game. Craft solutions and run them by other teams and colleagues so you know how fair and
reasonable they are. Be prepared to show how these solutions benefit both parties.

Rehearse, Rehearse, Rehearse:

Take nothing for granted. Practice your messages, and have someone role-play the other party. Assign specific speaking roles to each of your team members based on subject areas
for which they are responsible. Leave no one unassigned; even the most junior person should have a substantial part. Put the rehearsal on camera and play it back to make
adjustments. Watch for timing, transitions, body language and consistency in message.

Plan To Close As You Began:

Craft the closing to end on a positive note, perhaps reiterating your opener. Remind the other party of your diligence and dedication, and of the larger picture. Outline
milestones and next steps.

There are scores of books on negotiation skills. Make sure you read those that cover negotiating as a team and that focus on the corporate setting (and not one-to-one
negotiation, which is a separate animal). Have your team go to a seminar or participate in a workshop. Effective negotiation skills can give your team a much-needed edge.

Contact: Jerry Doyle is Executive Vice President at Commcore Consulting Group, an Executive-Spokesmen-Coaching Firm with offices in New York City and Washington, D.C. He can be
reached at 212.468.4309, [email protected].