This post is the third in an eight part series focusing on negotiation preparation.
Prior to any negotiation, proper preparation requires that you confer with others who have an interest in the negotiation at hand. These “others” can be generally broken down into two major categories: the stakeholder(s) and the other party(s).
Consulting with Stakeholders
Like it or not, sometimes you will be required to bring others in on your plan that have a stake in the negotiation. You may have to consult with your peers when you are apart of a team, disclose your plans when negotiating on the behalf of another, or are answering to a higher authority (like your boss). Here are some ways to handle internal negotiations with your stakeholders prior to the big event:
Team—Gather all ideas from your team in the planning process. Agree ahead of time on the issues, the tactics you’ll use, and who will lead each part of the negotiation. Even though working with a team can complicate the dynamics of the planning process, usually having others in on the deal will benefit your side. Two head think better than one, three heads think better than two, etc… Saddled with a competent team, you can select how to best use each individual’s skills to strengthen your negotiation position.
Example—You and your spouse are looking to purchase a new car. You decide together what you want and the maximum you are willing to spend. You delegate your wife to tackle the negotiations, while you use your expert mechanical knowledge to thoroughly inspect the car’s condition.
Boss—If you are the primary negotiator in a work-related negotiation, you will probably be consulting with, and ultimately answering to, another above you. You may have other interests in the negotiation, but it is vitally important to gather your boss’s expectation for the outcome of the negotiation, as well as what tactics they think you should use. If you do not take their advice and the negotiation goes the wrong way, you can bet on having to face them later and explain why you did not head to their advice. I am not saying that you cannot take your own interests into consideration, but you must also work in what they want.
Example—You are negotiating a compensation package with a potential employee who you think will become a vital new member of your team. You want to sign them on, whatever the cost, but you know that you need to work within the approved amount your boss has given you for this new hire. You try to encourage the potential employee to look at more than just his compensation, like opportunities for advancement, when deciding whether or not to accept the offer.
Principal—When you are an agent working on the behalf of another, the principal, you must collect their expectations prior to the negotiation. You may discover in the process that their expectations are unrealistic. Or you may find out that the tactic they wish for you to use is not appropriate. It is your job not only to negotiate to the best of your ability on their behalf, but also to manage their expectations of the outcome in negotiations.
Example—As a real estate agent you are responsible for objectively representing the interests of your client (however ridiculous they may seem to you). A large part of your job is managing their expectations while still respecting their wants and needs and trying your best to find a fair balance between the two.
Consulting with the Other Side
Now that we have outlined consulting with your stakeholders in the planning process, we turn to approaching the other side prior to the negotiation. It is wise in any negotiation to consult with the other side to lay the ground rules.
Agenda—Agree ahead of time what issues will be on the table. This ensures that there are no surprises, on either side, and that you are both adequately prepared to negotiate each item.
Location—Decide where the negotiation will be held. Lobby for holding the negotiation on your turf to gain the home field advantage. If the other party is unaware of this benefit, they might concede without putting up a fight. If they do catch on to your plan to gain the upper hand, suggest holding the negotiation on neutral territory, like a hotel conference room or a coffee shop.
Time Allocated—How much time is allotted for the negotiation is equally important as the place. Agreeing on a start and end time will circumvent any disagreement of these issues during the negotiation. You do not want to be distracted by side issues during the actual event. Also, discuss if breaks will be permitted during the negotiation.
Other Parties Allowed?—Discuss if the negotiation will include only the primary negotiators, or if other parties are to be included. You will want to know if they are planning to bring an expert, team member, or another observer so that you can be prepared with your own back-ups.
Contingency Plan—Agree upon a plan of action to take if you are unable to reach a settlement in negotiations during the allocated time. Will you extend the negotiation, come back to it at a later date, or walk away? Knowing what the next step will be can alleviate any pressure you may feel to reach an agreement RIGHT NOW.
Now you know the steps to take when consulting others in the planning process. The next step in the negotiation planning process we’ll cover in this series deals with Identifying Your BATNA (Best Alternative to No Agreement). 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
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