Getting Ready to Negotiate

Whatever kind of negotiation we face—from an internal office problem to an international sale, from seeking a raise to buying a business, from dealing with a union to dealing with the Russians—lack of preparation is perhaps our most serious handicap.

Whatever kind of negotiation we face—from an internal office problem to an international sale, from seeking a raise to buying a business, from dealing with a union to dealing with the Russians—lack of preparation is perhaps our most serious handicap. Invest time wisely. On average, you should spend as much time preparing as you expect to spend in face-to-face negotiation. While some matters may be trivial, others involve high stakes, multiple issues, and several parties, justifying extensive preparation. Use a systematic approach. To be well prepared: Get your hands around the entire negotiation Use a checklist to identify areas where preparation is most helpful Focus on seven key elements: interests, options, alternatives, legitimacy, communication, relationship, and commitment Practice and learn. Treat each negotiation as an opportunity to improve your preparation skills. Review what worked well and what could be improved after each negotiation. Consider practicing preparation techniques even when you don't have an immediate negotiation coming up.

A position is simply one way to satisfy interests. A position is a means, rather than an end. Uncover underlying needs. Interests are the needs, desires, and fears that drive negotiations. They differ from positions, which are the demands or offers parties make. To identify interests: Ask "why?" and "for what purpose?" behind each position Consider both your interests and those of the other party Prioritize interests to guide decision-making Avoid common mistakes: Focusing only on your own interests Thinking only about what you want Ignoring the other side's interests By understanding everyone's interests, you can create more value and find mutually beneficial solutions.

Out of diversity—of perspectives, resources, or interests—comes the opportunity to create value. Expand the pie. Look for ways to create value before dividing it. Identify opportunities to: Achieve economies of scale Combine different skills and resources Create joint benefits Find value in differences. Explore how differences in risk tolerance, timing, perceptions, and marginal value can create opportunities for trades that benefit both parties. Brainstorm possibilities. Generate a variety of options that could satisfy both parties' interests. Avoid limiting yourself to a single position or solution. Consider: Ways to work together to make more Options that meet each party's key interests Creative combinations of resources and skills

Never underestimate the power of knowing what you will do if you do not reach agreement. Develop your BATNA. Your Best Alternative To a Negotiated Agreement (BATNA) is what you'll do if you don't reach a deal. To prepare: Identify multiple alternatives to…