The heart of any negotiation is the set of issues that must be discussed, traded and/or resolved in order to come to a satisfactory agreement. Usually, these issues are initially laid out as part of the negotiation agenda (which can either be formally stipulated in a meeting document or casually addressed verbally, depending on the type of negotiation).
The important thing to remember here is that a) the agenda itself is usually a product of a brief negotiation, and b) the agenda is subject to renegotiation as the process unfolds, as new issues and ideas are put on the table during the flow of the negotiation. Changes in structure or strategy often lead to adding, reprioritizing or eliminating issues as both parties search for the best set of components to define a satisfactory resolution.
One of the most important aspects of preparing the agenda is to be aware of who is preparing it. This person will structure the agenda in a way that makes sense to them, based on the issues that are important to them. However, obviously, this doesn’t mean the agenda will address everything that is important to you. Don’t ever agree to an agenda unless there is a place on it to address your issues, too.
Another mistake that ineffective negotiators make is only negotiating the issues that are important to launch the project under discussion. It is well and good to gain as much positive momentum during a negotiation, but this often leads to downplaying questions that need to be addressed should the deal later break down. One year from now, if you should discover that the deal negotiated has big problems, will you have adequate remedies to resolve the situation? During your preparation phase, be sure and brainstorm possible sources of breakdown and conflict that could arise down the road, and include these issues on the agenda to discuss now.
Certainly, negotiations differ drastically when it comes to things like scale, scope, intensity and significance. However, at the heart of the negotiation process, the issues driving most negotiations – i.e., the kinds of details that must be resolved or traded -- fall into one of six basic categories:
These six categories are not created equal, and in a particular negotiation, some may carry more weight than others (and some categories may not apply at all). Also, an issue or a category that seems minor to you may be highly important to another party.
Understanding how to assess and trade items within these six categories can generate a variety of options for finding solutions in a negotiation. Make sure you thoroughly evaluate the deal to find ways in which issues in these six categories might come into play, so that you will recognize opportunities to trade items of value once you are at the table.
Finally, it is not uncommon for some issues in a negotiation to be lumped together and treated as part of the same issue, when in fact they are not. For instance, during hiring or salary negotiations, compensation may be described as “$75k per year plus stock options.” Stock options sounds good, but:
It would be much better to unbundle the issues of salary and stock options and discuss them separately.
Another example of bundling is product features. The sales rep may want to sell you a car or a computer at a “special” price that includes a variety of special features. The implication is that you are getting these features for free or at a reduced price because of the special deal. However, it is often better to unbundle the features in order to determine a) whether or not they represent benefits that are important to you and, b) how much money you could save by eliminating certain features from the package.
Most of the time, a deal has more “moving parts” – more issues– than either party realizes going in. The party that does the best job of recognizing and preparing to address all the important issues will usually come out ahead at the end of the negotiation.
Re-Print Permission
This article may be reprinted in it's entirety if the following
conditions are met:
January Negotiation Quick Tip of the Month – The Person Who Speaks First Loses
Eventually, every negotiation comes down to that delicate time when serious proposals are introduced and meaningful concessions are asked for and offered. When this time arrives, the skillful negotiator will know when to speak and when to be silent. The best time to be silent is when you have made a serious offer or asked for an important concession, and now it is the other side’s turn to respond. This can be a socially awkward moment, especially if your request is something major which stretches the other party beyond their comfort zone. Too often, as the person who makes the request senses the tension building, he will “break the ice” by making a clever remark or, even worse, he will somehow qualify or soften the request to make the other party more comfortable. DON’T DO THIS. The other side needs to remain uncomfortable for the time being, until they decide how to respond to your request. If you break the ice, you will let them off the hook and end up leaving money on the table that could have been yours if you had just kept quiet.
