While many individuals feel as if successful negotiations are simply the product of natural skill, the key behind reaching an optimal agreement is preparation – know the issue, know yourself, and know your party. Preparation includes knowing your needs and limits, understanding what the other party wants and anticipating their limits, asking the right questions, and being creative in your proposed solutions. Good preparation allows you to strategize and to think on your feet in the negotiation room.
One of the most popular forms of negotiation preparation involves using a Seven Elements approach, as first outlined in Getting to Yes: Negotiating Agreement Without Giving In by Roger Fisher, William Ury, and Bruce Patton.
The Seven Elelements include:
- interests,
- options,
- legitimacy,
- alternatives,
- communication,
- relationship, and
- commitment.
By considering all of these different elements of a successful negotiation, you can enter the negotiating room fully prepared and fully informed.
First, consider both your interests and the other party’s interests. Interests are not positions. Interests are merely the reasons behind a position. Your interests in reaching an agreement may be readily apparent to you. However, the other party’s interests may not. Try to put yourself in their shoes. Why did they agree to sit down at the table with you? What will they get out of this agreement? After you devise a list of interests, circle the common interests. You will highlight these shared interests at the negotiation. Starting off a negotiation on the same page creates a foundation for agreement down the road. It also creates a sense of mutual understanding at the table and opens lines of communication. A good agreement fulfils interests, not positions.
Second, brainstorm options for the agreement. Not every agreement involves just a black-and-white agreement on a monetary amount. How can you create value? What options create value for both parties? For example, if you are negotiating an employment contract with a new employee, think outside salary. Options can include benefits such as health care and paid time off, training, trade association memberships, telecommuting, and more. Options create value and help fulfil even more shared interests.
Third, consider how you can add legitimacy to these options. What objective criteria or standards create a sense of fairness in the transaction? This dissolve a sense of arbitrariness from negotiations. For instance, if you are negotiating on a real estate purchase, you can use property appraisals or recent sales as objective criteria.
Fourth, think about the alternatives for both parties. What alternatives do you have if you do not reach agreement? What alternatives might the other party have? The BATNA is the Best Alternative to a Negotiated Agreement. This is your plan B. If you have a great BATNA, you know you can walk away from negotiations if your interests aren’t being met or if things become hostile. This puts the value the agreement creates in perspective. Never forget that the other side might have other competitive offers.
Fifth, focus on keeping lines of communication open. Ask about the other side’s alternatives. Ask about their interests. Before going into the negotiation room, write out a list of questions that you need to ask. Also strategize on the most effective way of framing your interests and how to communicate shared interests to the other party.
Sixth, assess your relationship with the other party. Where is it now? Where would you like it to be? Why is it like that? How can you improve it? Transparency, active listening, and empathy are great ways to improve negotiations and subsequently, relationships.
Finally, consider the commitments at stake. What level of authority do you have – can you execute a final agreement at the negotiating table or do you need to have your Board vote on a proposal? What level of authority might the other party have? What steps do you (or they) need to take in order to get a final agreement?
Writing down your answers and information for each element and bringing that information with you to the negotiation room will prove to be invaluable.