The Value of a Pre-Negotiation Check List

If you are a pilot, you know the necessity and the value of a pre-flight check list; you can’t afford to risk leaving the ground until you are certain that everything is in order. Well, it is pretty much the same when preparing for a negotiation; you can’t afford to start a negotiation until you have gone over your own pre-negotiation check list. This list is something you develop during the Preparation Phase of the negotiation process (remember, the five phases of negotiation are Prepare, Discuss, Propose, Bargain and Evaluate). Of the five phases, the Preparation phase is by far the most important. Most people assume that Bargaining is the most important phase, but trust me on this, if you fail to thoroughly prepare, you are probably going to leave money on the table during the bargaining phase.

The pre-negotiation check list is a quick way to run through all the decisions you need to make and the strategies you need to develop to be fully prepared to negotiate. There are a lot of factors on this list, but you need to cover them all before you sit down at the negotiating table. Your list should cover:

• Who has the power, and why? Power is often a matter of perception. Look for ways that your side can create power, even if it looks on paper like the other side is stronger. If you have anything they want, you have more power than you think you do.

• What kind of relationship or previous history do we have with the other side? Is it good? Bad? Will it create obstacles during the conversation? If so, how can you overcome them?

• Is there any common ground or goals shared by both parties? How can we use this to our advantage?

• What are the interests for each side? Remember, the interest is the true reason or motivation that brings each side to the table in the first place. Make sure you understand yours, and make every attempt to accurately identify theirs. If you don’t understand the interests, you won’t know how to offer something that the other side will appreciate, and you won’t know how to ask for things that will really meet your needs.

• What are the issues for both sides? These are the pieces that get traded around and discussed during the negotiation as both sides try to get what they want. The more you know about the issues both sides will discuss, the better prepared you will be to use them to your advantage.

• What are the opening positions likely to be? Positions represent each side’s “perfect” solution to their problem. An effective negotiator will know how to carefully guide the conversation so that people are willing to let go of their original position as they are presented with alternatives that will still help achieve their goals.

• What are the likely Wish, Aspiration and Bottom Line for both sides? It is of paramount importance that you know what yours will be, but the better you can predict what the other side’s will be, the more likely it is that you will be to prepare a proposal to force them to rethink theirs and help you achieve yours.

• What concessions can you give and ask for? What concessions might they give and ask for? Knowing this helps you keep your head during the negotiation, and focus on exchanges that will help you get what you need, and also help them come away with something of value, too.

• What tactics do you expect them to employ during the conversation? Remember, tactics are usually ways to throw you off your game, slow down the process, or uncover information that can be used against you. However, if you know when and how the tactics will be used, you can easily step around them and keep the negotiation on track

Until you have good answers to all these questions, you are not ready to negotiate. Don’t think you can go in, “trust your instincts,” do what you have always done, and come away with a big success. As Pasteur once said, “Chance favors the prepared mind.” The same thing is true if you want to become a successful negotiator.

Negotiation Quick Tip – Don’t Say “NO” Unless You Want to Slam the Door

To riff on a phrase Otto von Bismarck originally used in referece to politics, “Negotiation is the art of the possible.” It is inevitable that when parties come together to negotiate something, they will start out some distance apart on certain issues. Never assume that this opening distance represents an insurmountable obstacle, and by all means, never say “NO” unless you want to shut down the conversation altogether. The best way to address an impossible request is to provide a response outlining what is possible for you. For example, “I appreciate your opening salary offer, but since there is going to be significant overtime required for which I would not receive additional compensation, the base salary will need to be 15% higher than you have suggested.” Now, the door is still open to work out a deal.
 

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