A critical negotiation skill in your business negotiations is how you go about preparing your objectives.
I would like to share with you 3 critical points that we cover in our negotiation skills training workshops to think about when you are planning for your negotiations.
1. What is the absolutely ideal result for you in this negotiation?
What would a fantastic agreement (one that you would be extremely happy to agree to) look like?
We call this your aspiration base - in other words, the level at which you will aspire to close the transaction.
You should know that it is important in your negotiation to always ask for a little more than you expect to get. This means that you should always have an aspiration base that is higher than your planned outcome. By asking for a little more than you would like to achieve you allow yourself to make a concession to your counterpart in return for a counter concession.
On the positive side, you may just get what you regard to be ideal if you ask for it! Don't make the mistake of making decisions on behalf of your counterpart by saying to yourself they will not consider that .Take note that I am not suggesting that you make extreme requests - extreme demands are very risky and dependent on the cultural environment within which you are negotiating.
2. What is the absolutely minimum acceptable outcome for you in this negotiation?
At what stage will you decide to end or postpone your discussions?
If you do not decide on a specific point at which it will no longer be feasible or desirable for you to close a transaction, then you may become susceptible to reaching an agreement that you will not be happy with. This is critical to do as you could easily become emotionally committed to reaching agreement at any cost because you may think that your personal reputation is at stake.
3. What do you think are the aspirations and minimum acceptable deal levels for your counterpart?
It is also critical that you consider the aspirations and minimum acceptable deal levels from your counterparts viewpoint. This will never be an exact science but through proper planning and investigation of supporting information you may be able to get a good view of what kind of transaction is the norm in your line of business or type of negotiation.
By considering the aspirations and minimum acceptable agreement levels from your counterparts viewpoint, you will be able to identify the bargaining range. Knowing the bargaining range or zone of possible agreement (ZOPA) will help you to see if an agreement is possible or not.
Most negotiation training workshops will teach you that the bargaining range is defined as the area of overlap between your minimum acceptable deal level and the minimum acceptable deal levels of your counterpart.
Remember that 99 percent of your success in negotiation is dependent on the quality of your planning. You should spend at least as much time preparing for negotiations as you expect to be busy negotiating. If you expect to be in negotiations for an hour, then you should spend at least the same time in preparations.
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