Negotiation tips to strike a better deal

In the past, we have recommended a number of critical preparation steps for negotiators, such as assessing the likely bargaining zone and securing a negotiating mandate from other members of your organisation. Negotiators often assume that once they have done this type of solo homework, they are ready to dive into the back-and-forth business of creating and claiming value with their counterparts. But they are missing a crucial step: the preparation that parties to a negotiation should do together. In particular, you should take time to discuss jointly how the negotiation process will unfold. If you fail to do so, you risk making talks much more difficult than they need to be.

When you discuss the negotiation process with the other parties involved, you raise a number of important issues that can steer your talks in a profitable direction. How can you convince a sceptical counterpart of the value of taking time to discuss the process? Explain that designing an efficient negotiation up front will save time in the long run and help you reach more valuable, longer-lasting deals, recommend Robert C Bordone and Gillien S Todd of Harvard Law School.

Once you have convinced your counterpart of the need to discuss the negotiation process, you can go into more detail. Here is a checklist of eight questions you might ask and answer together:

1. Who will be at the negotiating table? Beside the principal parties you have already identified, is there anyone else who should be present at your talks? Are lawyers, assistants or other experts invited to attend? If you are negotiating in teams, who will be present on each side, and what role will each person play at the table? When you jointly decide who will be present at your first official meeting, you avoid unpleasant surprises.

2. Where will we negotiate? Do not assume that the other side will be coming to you or vice versa. Your counterpart may have an entirely different idea than you do about where you should negotiate. If you have a preference regarding the location or communication mode of your negotiation, prepare to make a case that will appeal to the other side's interests and possible concerns. Otherwise, talk through the pros and cons of your possible meeting locations together. Keep in mind that conceding to your counterpart on relatively minor process issues, such as where to meet, builds trust and goodwill that may come in handy later.

3. Must any up-front conditions be met? At times, one or more parties may have specific qualms about entering the negotiation. Such preconditions are a valuable tool that negotiators often overlook, according to Harvard Business School and Harvard Law School Professor Guhan Subramanian. Remember that your entry into a negotiation has value. Instead of giving that value away, propose one or more conditions that will enable a smoother negotiation for both sides.

4. What issues will we cover? You may know exactly what you want to discuss with your counterpart, but she may have a very different agenda in mind. For this reason, take time to brainstorm a list of all the issues you might cover, while resisting the urge to discuss them during this pre-negotiation stage. You might also talk about how you will handle opportunities or wrinkles that emerge during the course of your talks, such as a shift in the economy for better or worse.

5. What approach will we use? We typically encourage negotiators to carry out talks with twin goals in mind: creating value for both sides and claiming value for yourself. If this approach appears to suit your upcoming negotiation, explain to your counterpart that you expect to share information about your interests and explore options that will benefit you both, advise Bordone and Todd. Work together to pick a negotiating strategy that is acceptable to both sides.

6. What ethical standards will guide us? Most negotiators enter talks with the intention of being fair and just. Yet people often have different standards of fairness, depending on their perspective. Moreover, we sometimes unintentionally violate our own moral code – for example, by justifying unethical behaviour or imitating the bad behavior of others. Expressing your intention to behave fairly and honestly throughout the negotiation will bring ethical concerns to the surface. This in turn could inspire all involved to be especially vigilant about their manner of decision making.

7. How will we finalise the deal? For legal reasons, it can be wise to discuss in advance how you will seal your eventual deal. Will a verbal agreement be sufficient, or should parties sign on the dotted line to show their commitment? You should also discuss each other's negotiating authority. Will one or both sides need to sell a proposal back at the office? If the answer is yes, then you know to include extra time for this approval and be prepared for delays and roadblocks.

8. What is our timeline? Clarifying how much time each party has to hammer out a deal can eliminate stress and confusion once talks officially begin. If you know why someone is rushing through the process, you will either be more tolerant of the need for speed or you will know to look for a negotiating partner with more time to spare. If neither side is facing a firm deadline, you might consider imposing one so that talks do not drag on forever. In addition, consider creating a timeline that sets goals for each stage of the negotiation.

Not all of the eight questions here will be relevant to all of your negotiations, of course, and there probably will be other questions you can add to the list. The key is to pause to consider your process, as doing so will likely save you time and money in the long run.



- Courtesy The New York Times Syndicate's Global Business Perspectives