October 21, 2024

Positive Risk and Hidden Value: The Role of SWOT in Negotiations

31 minutes

In Episode 17 of The Negotiation Club podcast, host Philip Brown is joined by seasoned negotiator and author Patrick Tinney. Together, they dive into the transformative power of SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) as a key tool for honing negotiation skills. Both Patrick and Philip emphasise that while many negotiators focus on tactics or processes, the ability to "strategically" apply SWOT principles can make a significant difference in how negotiations unfold.

Negotiation Card: "Positive Risk from SWOT"

Key Themes of the Episode:

SWOT as a Strategic Foundation:

Patrick highlights how SWOT analysis serves as a foundation for smart negotiation strategies. Understanding your strengths and opportunities allows you to identify key leverage points in any deal, while recognising weaknesses and threats helps to mitigate risks. He encourages negotiators to regularly practice SWOT to stay sharp and adaptable in any situation.

Leveraging Opportunities and Strengths:

Patrick shares the importance of focusing on strengths and opportunities to create what he calls “positive risk”—a concept that involves taking calculated chances to unlock growth and value in negotiations. For listeners, practicing how to identify and leverage these opportunities is a crucial step toward crafting smarter deals.

Avoiding Negative Risk:

While embracing positive risk is key, Patrick warns against the pitfalls of negative risk, which can destabilise negotiations. He illustrates this with real-world examples, advising negotiators to avoid deals with legal liabilities or imbalanced terms that could lead to long-term issues.

Why SWOT is a Negotiator’s Best Friend:

Patrick and Philip agree that SWOT helps negotiators think strategically and identify hidden value, which often goes unnoticed in a negotiation. Whether it’s a procurement deal or a high-stakes sales pitch, practicing SWOT analysis before entering the room ensures a more comprehensive view of the playing field.

SWOT in Practice:

Patrick recommends a hands-on approach: before entering any negotiation, take time to perform a SWOT analysis on yourself, your team, and your counterpart. This exercise will reveal both leverage points and vulnerabilities, ultimately helping you craft more balanced, successful negotiations.

Actionable Takeaway for Listeners:

Both Philip and Patrick stress that SWOT analysis isn’t just a theoretical tool—it’s something every negotiator can practice daily. Start by applying SWOT to your own career or recent negotiation experiences.

This will help you better understand what you’ve done well, where you’ve faltered, and how you can improve in future negotiations. By continuously practicing SWOT, you’ll gain the ability to identify leverage points quickly and approach each negotiation with confidence and clarity.

Episode 17 of The Negotiation Club is a must-listen for anyone serious about improving their negotiation skills. Patrick Tinney’s insights into SWOT analysis and the power of positive risk offer listeners practical tools they can apply immediately. As always, Philip Brown’s focus on practice over theory ensures that these concepts are accessible and actionable for negotiators at every level. Tune in to this episode to sharpen your strategic thinking and take your negotiation skills to the next level!

...more