Success Through Preparation, Strategy, and Planning

Negotiation is a method by which people settle differences. It is a process by which compromise or agreement is reached while avoiding argument and dispute. In any negotiation, parties understandably aim to achieve the best possible outcome for their position. However, the principles of fairness, seeking mutual benefit and maintaining a relationship are the keys to a successful outcome.

In order to achieve a desirable outcome, it may be useful to follow a structured approach to negotiation. The process of negotiation includes the following stages:

1. Preparation

2. Discussion

3. Clarification of goals

4. Negotiate towards a Win-Win outcome

5. Agreement

6. Implementation of a course of action

Before negotiations begin, preparing and planning are very important.

1. The most difficult aspect in negotiating preparation is finding out about the other side. It is essential to get as much information as possible about the situation. If dealing with people from another culture, be sure you find out about its etiquette and negotiating styles: the way people negotiate, what they consider to be acceptable and unacceptable behaviour, its attitude to body language, physical contact, conversational rules, relationship building, hierarchy, attitudes to time, and so on. It is demanding work, but it will pay off in making your negotiation successful and effective. Here are some key points to check off before you start your negotiation:

· Do you know who the opponent is? Find out their names and positions. Have you (or members of your team) met them?

· Where does your opponent come from? Do you know their cultural background, language ability, personal attitudes?

· What experience does your opponent have? How did they behave in other negotiations? Are they new in their job(s)?

· What approaches and tactics did they use in the past? Can you identify any patterns or characteristics that help you to understand them better?

· Does the opponent have the authority? Will the agreement stick or does your opponent need permission from someone else?

· Do you know what your opponent wants? What are their wants and needs? What are they willing to give in order to reach those wants and needs?

· What kind of pressure (time, money) is your opponent under? Does your opponent have a time limit or are they under pressure financially?

· What possible hidden agendas and motives are there? What hidden factors might influence them? What motivates them and 'turns them on' or 'off'?

Negotiations take place between people who often view the exact same facts and statements differently. So put yourself in their shoes. Prepare a list of questions you can ask which will help you find out more.

2. Secondly, it is necessary to work out your initial bargaining position (what your needs and objectives are), decide your priorities and prepare a fallback position: conditions that you will accept if your original objectives are not met. Prepare a HIT list which refers, in negotiation terms, to H – HAVE TO HAVE, I – INTEND, T – TRADABLE (or the mnemonic L-I-M that stands for Like, Intend, Must)

A HAVE TO HAVE is an essential aspect or outcome for one of the parties in the negotiation. Generally, there are only one or two in each negotiation. However they are a MUST. You must achieve these items in order for your negotiation to be successful.

INTEND refers to something that is less essential, but still important in the negotiation. You might be prepared to be flexible with respect to these items. You only have a few of them, i.e. perhaps two to five.

A TRADABLE item is something you put in your proposal which you believe your partner would like to have. You are prepared to exchange this item for something which you would like to obtain.

Before you begin the negotiations with your partner, it is very important to determine these issues and decide which category they belong to from your point of view. These issues should be clear to all members of your negotiating team. The clearer you are about your goals and needs and of those of the opposite party, the more effective you can be as a negotiator.

When you decide on your «H's» it is best to set very clear and targeted objectives. To help you define them effectively, it is recommended to set SMART goals. Your objectives must be:

Specific –state exactly what you want to achieve

Measurable –know how much you want to achieve

Achievable – choose realistic goals for the given circumstances

Relevant – find interesting points for both parties

Timed – set a realistic deadline

To check how REAL your goals are, you can ask yourself the following questions:

Can you R ate them? How important are the goals?

Are they E xact? How clearly defined are the goals?

Are they A chievable? How realistic are the goals?

Are they L ogical? Do the goals make sense for both parties?

If you are negotiating as part of a negotiating team, be sure you allocate your roles and responsibilities.

3. Thirdly, any good negotiation has an agenda. Organizing and planning an agenda helps you in three ways:

· you identify your own issues, priorities and goals

· you identify your opponent's issues, priorities and goals

· it helps you maintain discipline

«When you know where you are and where you want to go, it is a lot easier to make the trip.»

It is very important to understand the difference between the three points: issues (the points on the agenda), positions (what you want to ask for) and interests (why you want what you want) It is essential to analyse these points from your side as well as from the opponent's side. Clarify them before you finalize your agenda.

4. Finally, before any negotiation takes place, a decision needs to be taken as to when and where a meeting will take place and who will attend. Setting a limited time-scale can also be helpful to prevent any disagreement. If you are in a position to influence the choice of venue, decide whether you prefer to:

· be on your own ground / on home ground

· go to see the other side on their ground

· meet on neutral ground

Now let's move on to a negotiating scenario. At the beginning of a negotiation, follow these steps:

· Meet and greet your opponents, i.e. representatives of the other company and introduce your colleagues.

· Offer coffee / tea and a small talk. Try to create a relaxed atmosphere and build good rapport with the other party.

· Go to the meeting room and suggest that you get down to business.

· Have a clear agenda and a timetable. Go through the agenda and ask for agreement.

· First, give the background to the negotiations. Talking about the situation is a good way of reminding people of key facts and issues.

· Then kick off the negotiations themselves, perhaps by finding out more about the priorities of the other side or talking about your own requirements.

Negotiation styles

When you are negotiating with people from other cultures, it is important to be aware of their negotiating styles, that is the way people negotiate and what they consider as 'normal' behaviour. There are big differences in the way that people from different cultures conduct negotiations. In some cultures, business partners form long-term relationships. In other cultures, the relationship lasts only as long as the contract. Let us look at an attitude to small talk, time and the basis for reaching agreement in the cultures with long-term relationships and cultures with short-term relationships. In long-term relationships small talk is important for getting to know people on a personal level before starting to discuss business. In short-term relationships work is separated from private life. When discussing business, it is considered a waste of time to talk about personal matters. Speaking of attitude to time, In long-term relationships people are willing to invest a lot of personal time in relationships. Socialising outside office hours is essential. In short-term relationships apart from lunch breaks, not much time is given to socialising. In relation to the basis for reaching agreement, you won't reach an agreement unless you like and trust your business partners in long-term relationships unlike short-term relationships where people reach an agreement on the basis of strong arguments, e.g. this is the best product / price.