Negotiations – The crucial steps towards a successful negotiation

KLCC_handshakeIt is always good to go into negotiation prepared. The more important the outcome of the negotiation is, the more prepared we should be going into it. Unfortunately, most of the time, we lack the luxury of time for them.

But even if we have got only half an hour, or so to prepare, these are the crucial steps we have to take:

  1. Identify your key goal
    1. The goal should not be a demand nor a position, but interests. Interests help to answer the ‘why’ question. Saying “I want the bigger car!” is a demand/ position. It leaves no room for a negotiation, because the other party can just as easily stake a position and say, “No way! I want the bigger car!”
    2. The colleagues should articulate why they desire the bigger car.  This will get them closer to defining their goals.  For example, one colleague might want the bigger car to impress the company’s clients.  The other colleague might want the bigger car to ferry more goods to the clients.
    3. If the two colleagues articulate their goals, they might come to an arrangement in which they can share the bigger car, etc.
  2. Brainstorm your options
    1. Negotiations seldom end in mutual settlement.  Sometimes one party may pull rank to get what they want.  If this happens, you need to be ready with some alternative courses of action.
    2. It is always a good idea to brainstorm your options beforehand. Here are some guides on brainstorming:
      1. Define your problem or issue as a creative challenge, and a time limit
      2. Suspend all initial judgment.  Just list all options that come to mind
      3. Strive for quantity
      4. Reserve judgment and evaluation until later
      5. Also look at ways to mix, match and combine different options
  3. Strategise your opening move
    1. Your opening offer should clearly articulate your goal and suggest how to reach it.
    2. State it clearly and directly, but do not position your offer as a demand. Start off with something like this “In the spirit of getting the discussion started, I’ve mapped out a set of terms that works for me …” Or “I want to respect your time, so I have prepared a proposal that I would like to get your reaction to …”
    3. Be firm on your interests but flexible on how to achieve them
    4. Do not make insulting, take-it-or-leave-it offers, because, most people will opt to leave it.