Prepare to negotiate

Ever have to negotiate for something? Here are some tips to help you go in a bit more prepared:

• It's not all about you - find out more about the person you're negotiating with
  • What are their interests?
  • How much power do they really have in the negotiation (i.e. are they the decision maker, a representative of the true decision maker)?
  • What can you find out about how they've conducted themselves in past negotiations of a similar nature?
  • Are they ruled by emotion or fact?
  • How important is this negotiation to them?
  • Talk with people who know them, and see if you can find a "coach" to help you understand their style.
• Get clear on your boundaries
  • What do you want out of the negotiation?
  • What's the minimum you'll accept?
  • What is your list of deal-breaker points?
  • At what point will you walk away?
  • What "sacrifice" points can you add into your starting position to give yourself some room to move?
  • What would a "win-win" look like?

• Practice makes perfect
  • Try to anticipate how various scenarios could play out if during the negotiation (a mindmap can help).
  • Rehearse your position, counter offers under various scenarios, etc.
    • Include supporting facts and data to help you defend your positions.
  • Don't forget to prepare for how you want to communicate a "walk away" if the deal doesn't work for you.
  • Create an outline to organize your thoughts, anchor your main points, and keep you grounded in the heat of negotiations.
• Level the playing field

  • If you can't gain the "home field advantage" by holding the negotiations at your home or office, try to steer toward "neutral territory" for the meeting.

    • If you are meeting at the other person's office, push to hold the negotiations in a conference room rather than their office.
    • If you are invited to their home, try to have the meeting moved to a restaurant, coffee shop, or some other more neutral venue.
  • If you're uncomfortable with conflict, a phone conversation or written negotiation may be easier to handle than a face-to-face negotiation.
  • If you have trouble holding your own in negotiations, consider recruiting someone else to negotiate on your behalf.
• Keep your cool

  • Try to stick to an objective position if you can - remaining calm and collected will be an advantage.

    • Practice and preparation make this easier.
  • Reserve the right to "sleep on it" if you need time to think things through. This is especially handy if you are an introvert that needs time to process.
    • But don't let things linger indefinitely - decide on a finite time to consider things, then make the go/no-go decision within that time frame.
  • In business negotiations, remember that "Business is business" and try not to let it turn into a lingering grudge if you don't "win" the negotiation.
    • This is easier if you make sure you don't go deeper than the "minimum" you established during your preparation; don't violate your "deal-breaker" points, and don't forget to walk away if the deal won't work for you.

This is by no means a complete list, and each negotiation situation is unique. However, these points should stimulate your thinking and help you enter negotiations feeling more prepared and with a better strategy so you can walk away with an outcome that's acceptable to you.

Any tips to add? These points are more applicable to business negotiations, since that's where I spend lots of time - how would your list be different for non-business negotiations?

Comments

[Rosa Say]

This is a terrific post Dwayne, thank you for the thought you put into it for us. We offer some pointers on negotiating for win-win agreements within our Managing with Aloha class on Lōkahi, (harmony and unity, and considered the Hawaiian value of teamwork) and what you’ve offered here will help me polish up my coaching notes!
Do you have any specific advice to offer after the fact, i.e. with follow-up?
Rosa

[Stefano]

Dwayne, thank you for your precious guidance.

Even more difficult is when the other person belongs to a different culture.
I'm taking a cross-cultural management course in my MBA and it is fascinating. A thoughtless act can compromise the most elaborate negotiation. Don't take for granted that what is acceptable, respectable or just for you is the same for others!
As a reference, this is our textbook.

http://www.pearson.ch/HigherEducation/PrenticeHall/1471/9780131968585/International_Management_Managing_Across.aspx