Emotional Intelligence

The cooling-off period offers one particular benefit. This allows all parties taking part in the discussion to check how far they have come. They learn to value each other’s contributions so far. Hence, they give up their personal interests in exchange for a bigger picture. Finally, they will arrive at the win-win solutions that will benefit them all.

What is emotional intelligence?

Emotional intelligence (EQ) means the skill to grasp and handle personal emotions to allow oneself to understand emotions from other people. This ability is as important as other intelligence areas, which are intellectual, physical, and social ones. As the name suggests, EQ deals with many kinds of emotions, such as anger, pain, jealousy, greed, and fear.

Emotional intelligence is the basis for wrapping up business contracts that address all of the needs of the parties. But this should come with one condition, in which all of the parties own this emotional skill. With this, usually, the workers who represent one firm for a business deal have this ability. When the discussion is tough, those officers know how to respond well.

Benefits of emotional intelligence in negotiation and dispute resolution

Besides win-win solutions, emotional intelligence offers three other benefits when conflicts arise during negotiation. The first relates to better communication. This refers to a great deal of progress that sees all of the members apply active listening skills. They listen to others’ needs thoroughly. When this occurs, a potential misunderstanding may vanish.

This is because the discussion members believe others will grasp their interests. This leads to the second benefit, in which all of the parties shape better business relationships. They find it easier to build empathy and trust, hence they agree to put their business goals above all else. At this point, they set aside personal interests.

They don’t mind giving up their egos to avoid more serious conflicts, which cost their business operations. When everyone in the deal is on the same page, emotional intelligence leads to better decision-making. The business outcomes will arise from rational and strategic points of view, instead of frustration and fear.

Key aspects of emotional intelligence in negotiation and dispute resolution

In practice, negotiations and dispute resolutions are diverse. Let’s say you work as a contract manager on behalf of your firm, which engages in the construction sector. One time, you have to negotiate with external vendors that will supply raw materials for a structure project. Usually, negotiations and conflicts arise when it comes to pricing.

You and the officers representing the vendors will find it hard to arrive at the best price scheme without applying emotional intelligence skills. At a broader scale, this ability covers a lot of emotions. However, when it comes to negotiation and dispute resolution, not all of them are useful. The list below brings forward the best four.

• Self-awareness

The first emotional intelligence skill relates to self-awareness. This means your ability to notice and grasp your own feelings. You need to remind yourself that you come to the business deal on behalf of your firm’s interests, not your own. This should hold you back from making decisions that arise from anger or disappointment. You will think about the impacts of your decisions during a negotiation and dispute for your firm.

• Self-regulation

Discussing terms and conditions in business contracts can turn ugly if all sides fail to exercise their emotional intelligence skills. In the worst case, they yell, shout, and leave the room. To prevent this, you need to withdraw yourself from reacting impulsively. Maintain your presence of mind during those “boiling moments”. Otherwise, no solutions will emerge.

• Empathy

Empathy is the basis for emotional intelligence in negotiation and dispute resolution. It refers to trying to put oneself into the other side’s shoes. In other words, it means attempting to understand what motivates the other side’s needs in a contract deal. This emotion is useful to prevent conflict escalation.

• Social skills

This covers the ability to connect with others through open dialogue and clear communication. During good and bad times in contract progress, communication is the skill that glues all sides. In good moments, communication brings them to mutually appreciate one another.Meanwhile in tough times, the skill allows the sides to share and jointly work on the issues.

Practical tips to develop emotional intelligence

Cultivating emotional intelligence serves as the key to winning at negotiations and navigating disputes regardless of the business deal types. As a contract manager, you will have to constantly practise this ability. It will support your career growth and align with the rising value of the contract you will handle in the future.

As a starter, you will face a smaller number of negotiators from other firms working on a relatively low contract value. When your work portfolio grows, the numbers for both the negotiators and value will rise. Hence, your skill in emotional intelligence needs to expand. So, how do you sharpen the ability? Check the list below.

1. Working on self-awareness

Look inward regularly, especially on your strengths and weaknesses. Track and write them all in a journal. Over time, you will notice certain patterns and how they impact your business attitude and decisions. Besides, seek feedback from your office mates to gain fuller views. Fix and improve yourself from these sources of evaluation.

2. Practice self-regulation

This tip focuses on how you should react to “heated situations” well. At this moment, it’s common to see all sides throw arguments, so they can win. Pause before reacting to those conditions. Take a deep breath and stay silent for a while before making any comments. Only then will you be able to respond rationally.

3. Take emotional intelligence training

Learn from the experts in this field by joining EQ training sessions and workshops. They will give you various scenarios and the solutions accordingly. You can even choose specific programmes where you find yourself lacking. This whole training will nurture you to become a better contract management leader.