This post is the seventh in an eight part series focusing on negotiation preparation.
In this series on Negotiation Preparation we have
often referred to the “other side.” We now turn to the importance of analyzing the other side prior to the negotiation. Collecting information about our competition is the critical next step in the planning process. What information do you need to about the other party to effectively prepare? Use the following list as a guide to enlighten your understanding:
The Other Side’s Objective
Your awareness of what the other side has vested in the negotiation can go a long way in finding out what they want. Knowing their interests and needs will help you to determine how much of their resources such as time, man power, and money they are willing to put forth in order to reach an acceptable agreement.
The easiest way to find out the other side’s objective: Simply Ask. This is definitely the easiest way to learn what they want. If they are unwilling to disclose all the juicy details, use what you know about them to infer this information.
The Other Side’s Reputation and Style
Do they have a reputation for being a cut-throat shark in the waters of negotiation? Or are they like the minnow that the other big fish can easily swallow whole. Knowing the other side’s reputation and negotiation style will help you in determining what approach to take with them. Sometimes you can kill them with kindness, at others times using this tactic will get you nothing but grief.
The Other Side’s BATNA
Just as you have defined your BATNA, or alternative choice in the case of no agreement, the other side is likely to have a back-up plan. You can begin to understand the other party’s next step by putting yourself in their shoes. What would you do if you were in their position and the negotiation did not go as planned? If you discover that the other side has a strong BATNA, you will be better able to pinpoint the strengths in their argument. Similarly if their BATNA is weak, you will know that making a deal with you, despite the concessions you may demand, is a better option than any other they have up their sleeve.
The Other Side’s Authority
Discovering how much authority the other side holds from the get-go can save you a lot of energy in the negotiation process. The other side only wielding a small amount of power can have positive and negative consequences for your cause. On one hand, it may be to your benefit if they are a hired negotiator and therefore do not have a personally vested interest in the outcome. On the other hand, since they don’t have that personal attachment they can stay unemotional and cool when the negotiation escalates. They also have the advantage of using the “hidden table” technique to slow things down because they have to check with the one higher up prior to reaching a final agreement.
If you are unable to learn of the limitation on their authority prior to the negotiation, outright ask the primary negotiator at the beginning of the negotiation. They have the option at this point to lie, but doing so may hinder their future position in the negotiation. If you find out that they were not telling the truth initially, trust will surely be diminished.
Now you know the steps to Analyzing the Other Side in the planning process. Next we will summarize the negotiation planning process by Putting it all Together. To follow the next steps in this series, sign up to automatically receive new posts using your RSS Reader.
Previous Posts in the Negotiation Preparation Series
Planning to Succeed: Negotiation Preparation Part I
Define Issues and Interests: Negotiation Preparation Part II
Consulting with Others: Negotiation Preparation Part III
Identifying Your BATNA: Negotiation Preparation Part IV
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