Negotiation: planning for a successful outcome

In any type of negotiation, the planning stage is probably the most important. Too often we go in ill-prepared and end up making concessions that reduce the overall profitability of the final deal. The importance of planning is to have a very clear idea before entering into the negotiation, that is,

or What are my goals?

o What does the other party want to achieve?

o What information will influence the final result of the negotiation?

o What concessions can I make?

o How am I going to achieve my goals?

o What role will other people play in the negotiation?

In general, the more time you spend planning and preparing for the negotiation, the

the more beneficial will be the end result.

Goals:

Before entering the negotiation, it is necessary to have a clear idea of ​​your objectives.

and try to solve those on the other side. Ask yourself the following questions:

o What exactly do I want to achieve with this negotiation?

o Which of my objectives:

– Should I achieve?

– Do I intend to achieve?

– Would I like to achieve?

o What options or alternatives would be acceptable to me?

or What are the other sides? objectives?

o How does the other party view the negotiation?

Information:

It has often been said that information is power. In any negotiation, there will be four types of information that are important to the bottom line.

o What information do I have that the other party also has?

o What information do I have that the other party does not?

o What information do I need to have before negotiating with the other party?

o What information does the other party need before they can negotiate with me?

This can be particularly important when negotiating with people who are focused

on price issues.

o What other things are important to this person?

o What pressures do you have on him to conclude the deal?

o How well is your company doing right now?

o How important is it that he deals with my company? etc.

The first phases of the negotiation consist of both parties obtaining more information.

before talking about a specific deal or set of alternatives. For example, if you discover

the other side has a time frame that only your company can meet, you can give

the opportunity to negotiate a more favorable price. If you know that on the other side

you have recently expanded your production capacity, you may be able to negotiate more

favorable terms in exchange for a commitment to purchase certain volumes during an agreed time

time frame.

By taking time as part of your preparation to list what you already know and

what you need to know, you will have a better chance of negotiating well in

your company name.

concessions :

Negotiation is a process of haggling through which an agreement is reached between two parties.

or more parties. It is rare that in a negotiation an agreement is reached immediately or

so that each side has identical goals. Most of the time, agreements have to

determined where concessions are given and received and this is the area where

the profitability of the final result will be decided.

When preparing for the negotiation, it is advisable to write down a realistic assessment

How do you perceive the end result? Discover the limits of your authority within

negotiation and decide what you are willing and able to concede to

Reach an agreement that satisfies all parties.

Concessions have two elements; cost and value. It is possible during negotiations

concede issues that are of little cost to you but great value to the other side. This

it is the best kind of concession that can be made. Avoid, however, giving in on issues that

they come at a high cost to you regardless of their value to the other side.

When preparing for negotiations, ask yourself the following questions:

o What is the best deal you could realistically achieve in this negotiation?

o What is the likely outcome of the negotiation?

o What is the limit of my authority?

or At what point should I walk away?

o What concessions are available to me?

o What is the cost of each concession and what is the value of each one for each side?

Strategy:

Planning your strategy is important in trading. Once you know your goals,

you need to figure out how you are going to achieve them. It is also useful to try and

see the negotiation from the other side and try to figure out what your strategy will be

to be.

During the negotiation there will be opportunities to use various tactics and you

you need to decide which of these you are comfortable with while also acknowledging the tactics the other side is using. Ask yourself the following questions:

o How am I going to achieve my objectives in this negotiation?

o What is likely to be the strategy of the other side?

o What tactics should I use within the negotiation?

o What tactics is the other party likely to use?

And finally – Tasks :

If you initiate a negotiation with a colleague or colleagues, you must decide during

the preparation phase:

o What role will each team member play in the negotiation?

o How can we work together most effectively?

Some negotiating teams complement team leaders, note takers, observers, and

specialists, each with their own authority and clearly defined functions.

Having a clear understanding of the roles within the negotiation will make the team

much more effective approach.

Copyright © 2007 Jonathan Farrington. All rights reserved