The success of the negotiation is in the planning

The drama and theatrics one sees during conflicts and confrontations easily lead one to believe that success in negotiation lies in persuasion, eloquence, and clever maneuvering. What good courtroom drama would be without these critical entertainment factors? While these elements may be the enjoyable part for some negotiators and certainly are the entertaining parts for observers, they are not the keys to negotiating success.

The following quote was so important in “Fundamentals of Negotiation” by Lewicki, Saunders, Barry, and Minton that the authors put it in italics. I point this out because I want you to pay close attention to this: “The basis for success in negotiation is not in the game or in the dramatization. The dominant force for success in negotiation is in the planning that takes place before the event.” dialogue”. .” Yes, the tactics used during negotiations are important and success is also influenced by how you react to the other party and how you implement your own negotiating strategy. However, the foundation of success is preparation.

There are many ways one can prepare for the negotiation, and none will be perfect for everyone. By sharing different strategies, I hope you can absorb what is useful for your trading style and decide what planning steps are necessary for the trades you are involved in.

In “Negotiation Basics,” the authors lay out ten areas to focus on when planning effective distributive and integrative negotiations. I want to share and briefly comment on the ten areas you should consider:

1. Definition of the problems. Analyze the general situation and define the topics to be discussed. The more detailed the better.

2. Assembly of the problems and definition of the negotiation mix. Gather the problems that have been defined into a comprehensive list. The combination of lists from each side of the negotiation determines the negotiation mix. Large trading mixes allow for many components and possible settlement arrangements. However, large trading mixes can also prolong negotiations due to the many possible combinations to consider. Therefore, the issues must be prioritized.

3. Definition of your interests. Once you have defined the problems, you need to define the underlying interests and needs. Remember, positions are what a negotiator wants. Interests are why you want them. Asking “why” questions will help define interests.

4. Knowing your limits and alternatives. Boundaries are the point where trading stops instead of continuing. Agreements beyond this point are not acceptable. You need to know your starting point. Alternatives are other offers that you could get and still meet your needs. The better alternatives you have, the more power you have during negotiations.

5. Goal setting and openings. The destination point is where you realistically hope to reach an agreement. You can determine your goal by asking what outcome you would be comfortable with or at what point you would be satisfied. The opening offer or asking price generally represents the best deal you can hope to achieve. Care must be taken in inflating opening offers to the point where they backfire because they are too unrealistic.

6. Evaluation of my constituents. When negotiating in a professional context, there are most likely many components to the negotiation. Things to consider include direct actors, opposing actors, indirect actors, interested observers, and environmental factors.

7. Analysis of the other party. Meeting with the other party allows you to learn what issues are important to them. Things to consider include your current resources, interests, and needs. Also, consider your goals, alternatives, negotiating style, authority, and likely strategy and tactics.

8. What strategy do I want to follow? Chances are you are always determining your strategy and have been throughout the planning stages. However, remember not to confuse strategy with tactics. Determine if your engagement strategy will be Competition (Distributive Negotiation), Collaboration (Integrative Negotiation), or Accommodative Negotiation.

9. How will I present the issues to the other party? You must present your case clearly and provide ample facts and arguments in support of your case. You’ll also want to refute the other side’s arguments with your own counterarguments. There are many ways to do this, and during your preparation you should determine the best way to present your problems.

10. What protocol should be followed in this negotiation? Elements of the protocol or process to consider include the agenda, the location of the negotiation, the length of time for the negotiation, other parties that may be involved in the negotiation, what can be done if the negotiation fails, and how the parties keep track of what was agreed? In most cases, it is best to discuss procedural issues before the main substantive issues are raised.

There are many different planning templates. Each emphasizes different elements in different sequences. These ten areas represent what the authors of “Negotiation Basics” believe are the most important steps in the planning process. There is more to each of these areas than I have space to describe in this column. However, if you consider each of these ten areas during your planning, you’ll be well prepared for the challenges you’ll face during negotiations.