This page features supplemental materials if you’re interested in further independent study of negotiation and have attended one of my Negotiation Seminars.
As a quick reminder, they are co-authored with Dmitry Grouzoubinsky from ExplainTrade.com, and are customised dependent on your needs. As well as many different training formats, we also offer bespoke negotiation consultancy.
If you have a question of any kind about negotiation, feel free to get in touch.
These are the six stages of any negotiation covered in detail;
Pre-Negotiation - Plan your planning
Preparation - Research, analyse and document your situation
Preparation - Research, analyse and document your counterparty’s situation
The negotiation itself
Concluding negotiations
Post-negotiation negotiation
The Negotiation Library
Here are the most important books on negotiation you should read next;
The American Bar Association Guide To International Business Negotiations - a good primer on cultural flags in business negotiations
Getting to Yes - on building the ‘Yes’ escalation
Never Split The Difference - on getting to ‘Yes’ through a ‘No’ escalation
Built To Sell - for more on the importance of establishing a “North Star” on your conditions early on
Behavioural Theory of Labour Negotiations - for more on distributive vs integrative bargaining
Predictably Irrational - Dan Ariely’s book that includes the science behind how we trick ourselves into being irrational; anchoring.
A Negotiation Checklist
The downloadable materials below include their own checklist, but here’s an alternative.
Remember, you don’t have to do all of these to increase your chance of a strong outcome; any work you can do will improve your performance.
PREPARATION - ANALYSING YOUR POSITION
What do I want from this negotiation? List short-term and long-term goals and dreams related to the negotiation.
What are my strengths—values, skills, and assets—in this negotiation?
What are my weaknesses and vulnerabilities in this negotiation?
Why is the other party negotiating with me? What do I have that they need?
What lessons can I apply from past negotiations to improve my performance?
Where and when should the negotiation take place?
How long should talks last? What deadlines are we facing?
What are my interests in the upcoming negotiation? How do they rank in importance?
What is my best alternative to a negotiated agreement, or BATNA? That is, what option would I turn to if I’m not satisfied with the deal we negotiate or if we reach an impasse? How can I strengthen my BATNA?
What is my reservation point—my indifference point between a deal and no deal?
What is my aspiration point in the negotiation—the ambitious, but not outrageous, goal that I’d like to reach?
What are the other side’s interests? How important might each issue be to them?
What do I think their reservation point and BATNA may be? How can I find out more?
What does their BATNA mean in terms of their willingness to do a deal with me? Who has more power to walk away?
Is there a zone of possible agreement (ZOPA) between my reservation point and the other side’s? If there clearly is no room for bargaining, then there’s no reason to negotiate—but don’t give up until you’re sure. You may be able to add more issues to the discussion.
What is my relationship history with the other party? How might our past relationship affect current talks?
Are there cultural differences that we should prepare for?
To what degree will we be negotiating electronically? Are we prepared for the pros and cons of negotiating via email, teleconference, etc.?
In what order should I approach various parties on the other side?
What is the hierarchy within the other side’s team? What are the patterns of influence and potential tensions? How might these internal dynamics affect talks?
What potential ethical pitfalls should we keep in mind during the negotiation?
Who are my competitors for this deal? How do our relative advantages and disadvantages compare?
What objective benchmarks, criteria, and precedents will support my preferred position?
Who should be on my negotiating team? Who should be our spokesperson? What specific responsibilities should each team member have?
Do we need to involve any third parties (agents, lawyers, mediators, interpreters)?
What authority do I have (or does our team have) to make firm commitments?
Am I ready to engage in interest-based bargaining? Be prepared to try to create value by trading on differences in resources, preferences, forecasts, risk tolerance, and deadlines.
If we disagree about how the future plays out, can we explore a contingency contract—that is, stipulate what will happen if each side’s prediction comes true?
What parties not yet involved in the negotiation might also value an agreement?
Have I practiced communicating my message to the other side? How are they likely to respond?
Does the agenda make room for simultaneous discussion of multiple issues?
Is an agreement likely to create net value for society? How can we reduce potential harm to outside parties?
Supplementary Content
If things get ugly… do you negotiate or resist when faced with an irrational party? Just calmly review these:
Interests: What are my interests? What are my adversary’s interests?
Alternatives: What are my alternatives to negotiation? What are my adversary’s alternatives?
Potential negotiated outcomes: Is there a deal that could satisfy both parties’ interests better than our alternatives to negotiation?
Costs: What will it cost me to negotiate? What – if anything - will I lose in terms of money, time, and reputation? Could negotiating set a bad precedent?
Implementation: If we reach a deal, is it likely to be carried out?
The following five analytic challenges are associated with virtually any negotiation campaign:
Envision the ultimate target deal. What is the ultimate target deal, and which parties must support it? Does lasting success require a larger coalition of support?
Identify key parties. Mapping backward from the ultimate target deal, what internal and external parties must or might be involved? Which could possibly play a role in various supporting negotiations?
Identify fronts. On what bases can these parties be grouped into a manageable number of fronts—for example, into shared industries, cultures, or interests?
Assess any interdependencies among fronts. Are the fronts largely independent, or can they affect one another, whether positively or negatively? Does progress (or lack thereof) in negotiations within one front change the odds of success for negotiations in other fronts? If so, how?
Prepare to negotiate among fronts. How should the broader fronts be orchestrated so they come together to best set up the ultimate target deal? For example, should you negotiate sequentially or simultaneously, privately or very publicly
James K. Sebenius—the Gordon Donaldson Professor of Business Administration at Harvard Business School
Tips on mitigating the risk of deception during a negotiation:
Assure your counterparts that they will meet their goals. When you express optimism that you will both meet your goals, you convey that you view negotiation as a problem-solving (rather than winner-take-all) enterprise and reduce the likely of competitive—and unethical—moves.
Convince your counterparts that they are making progress. It’s easy to lose sight of how far we’ve come in the thick of a negotiation. Pointing out the progress that counterparts have made will help increase their satisfaction, reduce their frustration, and help maintain a collaborative atmosphere.
Point out how your goals and your counterpart’s are linked. Our goals are often more closely intertwined than we might expect, and it can be wise to suggest that if they try to take advantage of you, they may harm themselves in the process.
Suggest that your counterpart has limited alternatives to the current deal. If you truly believe that your counterpart can’t get a better deal elsewhere, it can be useful to highlight this fact. The more committed the other party is to doing a deal with you, the more ethically they are likely to behave.
Imply that you have strong outside alternatives. Hinting that you have a strong BATNA (best alternative to a negotiated agreement) conveys to your counterpart that perhaps you need them less than they need you. If this is indeed the case, the warning should further deter the other party from lying and other deceptive behavior.
Point out shared social identities (age, job history, marital status, etc.). Bonding over your similarities will bring you closer together and may deter unethical behavior.
Encourage counterparts to identify with an ethical organization, such as their trade group. Reminding negotiators that they’re accountable to certain industry standards should also help promote honesty.
Note your connections to your counterpart’s social network. They’re less likely to try to deceive you if the news could get back to their friends and colleagues.
Remind your counterpart of the legal implications of unethical behavior. You might also make a joint commitment upfront to negotiate openly and honestly.
Mention the prospect of future personal or social support. Consider proposing becoming a gateway to valued social or business networks.
Extract from Harvard University’s blog
Tips on defining your BATNA; your Best Alternative To a Negotiated Agreement:
Do a thorough comparison. Don’t just compare your current deal to your BATNA on a single focal issue, such as price. Instead, take time to compare the two possibilities point by point. When you do so, you may discover hidden advantages of one or the other.
Assess probabilities. Because your BATNA may not be a sure thing, try to calculate your probabilistic BATNA—the full range of possibilities if the current negotiation fails and the probabilities associated with each. This type of analysis can help you identify holes in your BATNA, determine your risk tolerance, and identify possible moves and countermoves.
Examine their BATNA. You also need to consider the other party’s BATNA as carefully and objectively as you scrutinize your own. Asking “What will they do without a deal?” can provide valuable insight.
Links
Greece and their debt negotiations - A fascinating case study
Slate’s Negotiating Series - A short series of podcasts applying research on anchoring to the real world. Contact me for the podcast files.
Three Things I Learned The Hard Way - Three things to avoid by learning from my mistakes.
Random Thoughts
On anchoring, and price; "We cling to whatever starting point we're given."
Think of the number you think the your counterparty has in mind, then ask for less (if you're buying) or more (if you're selling). If you go to an extreme you may be laughed out of town, but it is often a good idea to do so, as you’ll like discover the other party’s breaking point. Then use their 'walkaway' point to begin.
This only applies when you're sure that the other person doesn't know a LOT more than you.
Generally, you want to open (remember the social security number research... set the tone), providing you've done your research.
Set your own 'walkaway' limit so you don't blow through negotiation bias.
Schmooze ! You need some trust... eye contact! Personal connection!
If you hear a weird lowball... "What are you basing that on?"
Conclusion
If you’ve got this far, you are probably ready to talk about our more in-depth negotiation training… get in touch!