Preparing for a negotiation can be a daunting task. However, by asking yourself the right questions, you can navigate this process with confidence and clarity. Let's explore seven key questions that can guide your preparation and enhance your negotiation skills.
Negotiating
Everyone negotiates something every day
- Success in any negotiation comes from education, preparation, and practice
- 90% of negotiations are in the planning
- To create real opportunities in negotiations, we have to understand the fundamental principles to help identify our goals and the interests of the other parties involved
What commitments should you plan to make?
The best outcomes in any negotiation come when we prepare ahead of time
- This eliminates surprise and the likelihood of a low subjective value, which research tells us can lead to low economic outcomes in future negotiations
- Before any negotiation, consider what commitments, which can be a formal contract or a verbal agreement, are you willing to make
What do the people affected by negotiation really want?
Identify potential stakeholders-not just those sitting at the table, but also parties who are unseen but clearly present, like clients-and their needs, wants, and motivators.
- The more you understand the interests of every party involved, the better the chance you have to help them get what they want.
Is this a one-round or multiple-round game?
Depending on whether you think the relationship has a future or not will determine your behavior.
- If it’s best for your self-interest to always choose Option A and it always hurts you when the other party chooses Option B, your goal in a short-term relationship might be to choose A, but in a long-term one, to merely prevent the other person from choosing B.
What am I going to do if I don’t reach a deal?
What are some realistic courses of action available
- Researching and knowing these alternatives-yours and theirs-is your source of power
- In order to identify the best alternatives, you need to know what’s called your “Best Alternative to a Negotiated Agreement,” or BATNA.
What’s the best way for each side to communicate what they want?
Through clear and trustworthy communication, we can learn what the other party’s preferences really are.
- Once you find that out, there may be a lot of ways to address their preferences that don’t cost you as much
Create value by capitalizing on shared interests
In negotiations, many of us focus on claiming value, but often neglect to consider the possibilities when we create value
- Before going into that discussion, you’ll want to establish good rapport
- Discuss shared interests upfront
- Make sure the other parties understand that the “pie” is a big and expanding one
What criteria seem most relevant and persuasive?
In order to put forth proposals that are seen as fair, negotiators should use criteria that all parties are familiar with
- Example: When selling your home, think of all the ways you can propose the value of your home such as assessed value and proximity to good schools.
