Goal Setting: Negotiation Preparation Part V

This post is the fifth in an eight part series focusing on negotiation preparation.

Identifying “Points”

The goal setting process starts with defining the key points in your argument:

Opening Bid—The starting point of the negotiation.

Target Point– Where you realistically expect to come to an agreement.

Resistance Point—The lowest point that you would accept a deal.

BATNA—Your Best Alternative to No Agreement, or alternative plan, if the other side will not meet you at your resistance point.

The most simplistic example of these points can be found in a salary negotiation situation. You are in talks with a company to secure a position. They have offered you the job and want you to come in to discuss your compensation package. Adequate medical, dental, and retirement benefits are a given at this company, but you are concerned about your starting salary.

• You define your opening bid at $80,000, this is the very highest you expect to be paid in this type position.
• You realistically think that you should be offered $70,000, this is your target point.
• You will not accept the job for anything lower than $60,000, your resistance point, since this is your salary currently.
• Your BATNA would be to stay at your current position for anything lower than $60,000.

Positive Thinking

By defining the points above in the planning stage, you are proactively setting goals for the negotiation. Instead of just focusing on one aspect of the negotiation, such as what the other party’s strategy will be, you are actively defining realistic, optimistic, and pessimistic outcomes. This will allow you to be more flexible in the negotiation and will make it easier to come to a satisfactory outcome for both sides.

Packaging

You must not only define possible outcomes for the negotiation, but you must also anticipate the various “packages” that may be offered. Acceptable packages comprise your bargaining mix. Each item in the bargaining mix can have its own starting, target, and resistance points. Some of these items will be important to both parties, while others may be relevant to only one side. You need to be aware of which issues affect each side of the negotiation so that you can take the information into consideration in the planning process.

Tradeoffs and Throwaways

Bargainers will also have to consider what is and is not important. Are you willing to forgo one thing to gain another? This will be your “Tradeoff.” Do you hold something of value that the other party desires, but is inconsequential to you? This is your “Throwaway.” Identify these items of significance early on and you will not have to scramble to name them during the negotiation.

Now you know the steps to identify your Goals in the planning process. The next step in the negotiation planning process we’ll cover in this series deals with Supporting Your Arguments. 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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