Negotiations – Preliminary Tips & Techniques
Being a good negotiator is a skill you will find useful in many situations. The skills you will develop will facilitate your being more effectively assertive, being a better problem solver, and being a better conflict manager. Developing the skills is sometimes tedious and requires a lot of practice. The payoff is both substantial and positive, though.
At first, it will be useful to move through the negotiation process in a step–by–step manner. With practice and experience, you will gradually get to a point where effective negotiating is second nature to you and is not something that requires a lot of detailed activity. At first, though, it is important to develop a negotiating plan and then seek out opportunities to practice. It is a little like learning to play the piano. Learning how is tedious and time consuming. Being able to play well, however, is a very satisfying thing indeed.
What do you want that I have, control, or can do? As odd as it may seem, this is frequently the step that inexperienced negotiators leave out. Very specifically, what do you want that I have? Here, we are talking about things, about concrete and tangible objects. What do you want that I control? Here we are talking about opportunities, resources, time, or other less tangible ‘things.’ What do you want me to do that I can do? Here, it is important to think in terms of things that anyone with my skills, in my position, and with my resources ‘can do.’ In very specific terms, what do you want from me?
With ‘it’ referring to what you want, can I actually give it to you? This is another point that amateur negotiators frequently overlook. What they want is something that the other person cannot, as a matter of individual choice, give to them. Perhaps other people are involved, maybe it is not something that the individual has the right or authority to simply give away, perhaps it is not something that the person can actually do, or maybe there are other factors that have to be taken into consideration other than simply deciding to give it to you. Under these conditions, simply negotiating with you is not enough, since I cannot simply give you what you want. Be sure that your negotiations are directed to the individual or people who can give it to you. Who all do you need to include in the negotiations? You should not leave anyone out.
Assuming I can give you what you want, under what conditions do you think I can give it to you? If you believe that I will simply give it to you without conditions, there is nothing about which to negotiate. Simply ask me and I will give it to you. Here, though, let’s assume that you think I will give it to you under some conditions. In specific terms, what are those conditions?
Under what conditions will you accept it – accept what you want – assuming I am willing to give it to you? Yes, you undoubtedly have conditions. Suppose you want to use my car for a week while yours is in the shop. It is my car, and I can let you use it. You think I will let you use it if you agree to take good care of it, bring it back with a full tank of gas, and you pay my bus fare for the week. Suppose my conditions are a little different, however.
I agree to let you use my car for one week if you agree to make my car payments for one year. You will undoubtedly say, ‘No way.’ The point is that you do have conditions. Under what conditions will you accept what you want if I give it to you?
A successful negotiation is a conditional transaction. We do business under certain conditions. If you are still in the game to this point, you have a clear statement of what you want, a set of conditions that you think I will have in doing business, and your conditions for doing business. Make a chart with two columns with the left column including a list of your conditions and the right column including a list of my conditions. Now, what are the points of convergence: conditions on your list and on mine? The more points of convergence there are, the further along the negotiations are going in. Your goal, of course, will be to reach a point where there is complete convergence, a point where the conditions on your list are the same as the conditions on my list.
What are the points of divergence: conditions that are on your list but are not on mine and conditions that are on my list but not on yours? Being careful to be very specific, now, make a master list that includes only our points of divergence, noting beside each point whether it is my condition or your condition. We will then negotiate our points of divergence.
As a central negotiating principle, keep in mind that you are never negotiating about what you want. That is a given and is actually nonnegotiable. If you did not want it, there is no point in pursuing it. We are simply negotiating the terms and conditions under which I will give it to you: our points of divergence. Amateur negotiators frequently fall into the trap of focusing on what they want. Skilled negotiators focus on the points of divergence: what we will call the transfer conditions.
CONSIDERATION AND LIMITS
What do you have, what do you control, or what can you do that would be of value to me? Look at my transfer conditions. You may use them as a guide for determining what may be of value to me in this particular negotiating situation. Make a list that includes what you can give to me in this particular negotiating situation. Make notation of why you think it would be of value to me. What benefits will I derive? What you give to me combined with the benefits I will derive from it represent the consideration you are offering in the negotiation.
As a summary point, you have determined what you want, have determined the transfer conditions, and now have determined what your consideration can be to induce me to follow through with the transfer. The stage for negotiating is set.
What are your negotiating limits? Review your list of consideration elements. Can you actually transfer control of them to me? What are the long and short term implications for you of making this transfer? Once you have considered the implications, revise your consideration list to include only those things you can give to me without jeopardizing yourself over time. This final list is what constitutes your negotiating limits: the maximum consideration you are prepared to introduce into the negotiations. At no point, and especially not during a specific negotiating session, should you go beyond your negotiating limits, no matter how tempting it may be. Yes, you may miss an opportunity once in a great while. The advantage to you is this: making an unexpected offer you cannot refuse is a game run by truly skilled negotiators. Assume that he/she is at least as skilled as you are and is not about to ‘give away the store.’ What seems like an unexpected prize will usually turn out to be something for which you will pay dearly and without the benefit of prior thought or analysis. As good negotiators say, ‘Never come to the bait!’
Importantly, following all of the above steps gets you to what you think will be the final outcome of the negotiations. You think you will get what you want, the full consideration I have to offer. You have also determined your negotiating limits: the maximum consideration you will offer. If you want, simply make your best offer on a take it or leave it basis. This is, of course, not negotiating. It is rather simply making a nonnegotiable offer. What should you do if you want to negotiate, though? Simply list the preliminary transfer conditions: the least you are willing to accept and what you believe – hope – might be the least I would accept in return. These then represent the minimum transfer conditions. If you have carefully completed your preliminary work as outlined above, negotiations may now begin.