How to prepare to negotiate
Negotiation - the process of arriving at mutual satisfaction through discussion and bargaining with another party - is an essential management skill. Managers negotiate to settle differences, to determine the value of services or products, or to vary terms or agreements. The smart manager enters negotiations with a clear strategy in mind. Planning for negotiation will improve its outcome for you; and the following advice will prove useful...
1. Identify the issues for negotiation.
Before you can negotiate anything effectively, first clarify what exactly the real issues for negotiation are. Identifying these issues is like separating the wood from the trees. For example, the focus of your negotiations could relate to staff health and safety (the trees). But what is the specific issue (the wood) in this topic about which you will be trying to negotiate the best deal for yourself or your team?
2. Set clear goals for the negotiation.
Knowing what you want out of any negotiation is most important. Your preparation needs to focus on your goals. Try to write them down. They may be as straightforward as 'To have improvements made to the community centre without any costs being incurred by the community'. Once you have identified your goals, you will then be able to decide on any fall back position you would be prepared to consider. For example, your goal may be to get the improvements to the community centre carried out at someone's expense: your fall back may be to pay half of the costs.
3. Gather information about the other side.
If you have information about the other side at your fingertips, you strengthen your position at the negotiating table:
- What can you find out about your opponents?
- What are their strengths and weaknesses?
- What will be their concerns?
- What is their financial position?
- What's important to them?
- What do they have that you badly need?
- What do you have that they want?
- How important is it for them to leave the negotiations with their reputation in place?
Have facts at your fingertips. Many negotiations fail to get the desired results because the negotiator deals, instead, in broad generalisations. The use of a phrase like 'It's the government's fault' is an example of a generalisation. You need to be able to name the person in the government so that some meaningful action can occur. It's important for you to impress (or bluff) your opponent with your level of preparation.
