One of the riskiest assumptions that ineffective negotiators make is that of believing that they know the identities and activities of all the persons or parties that could influence the outcome of the negotiation. For instance, if this is a negotiation between a vendor and a manufacturer, it would be a mistake for the vendor to assume that the manufacturer is not also talking with, or at least considering opening conversations with, other vendors. Just because you are sitting at the table doesn’t mean that there aren’t other people sitting at other tables discussing some of the very same things you are.
Also, it is likely that, while your counterpart across the table appears to be only talking with you, he or she is also interacting with other persons in the organization who have needs or agendas that will influence the ultimate outcome. Also, while you are talking things over with your counterpart, other parties from the organization may be crafting other strategies that could end up affecting you.
For this reason, it is critical that before the negotiation begins, you make a list of all the possible parties and activities that might have an impact on the structure or strategy of your negotiation, and ask as many questions and do as much research as necessary for you to get all the information you need.
Discover and Evaluate the Impact of Coalitions
In the intense, high-stakes world of foreign policy and military strategy, even the casual observer understands that building coalitions with the right allies can mean the difference between victory and defeat. One easy example of this principle is the coalition that France established with the colonies during the American Revolution, which provided the American forces with much needed naval and infantry support in several key battles. World War II was fought between two clearly defined coalitions, the Allies on one side and the Axis powers on the other. Each group was comprised of members that didn’t, in all cases, share common values (America and the Soviets, for instance) but their collaboration allowed each to more efficiently pursue important goals.
With these obvious lessons about the value of coalitions so much a part of our perception of the way the world works, it is surprising how often the value and necessity of coalitions is neglected when the topic of business negotiation is introduced. During the negotiation process, far too little attention is paid to the influence that coalitions – obvious or concealed – can have on the outcome. Coalitions between parties that have something to gain from a particular outcome often pool resources, share information, collaborate on strategy and lend extra credibility and power to one side or the other. Often, building an effective coalition with one or more interested parties makes the difference between success and disappointment in a negotiation.
Who’s On First?
Any preparations for a negotiation would be woefully incomplete without taking a moment to anticipate where alliances exist – or where they might be formed – on either side.
For instance, a vendor negotiating a contract to provide power supply units to a computer manufacturer might want to develop a very good relationship with the union representing the workers who actually manufacture the power supply units. Also, whoever is negotiating with the vendor might want to find out if the computer has any strategic partnerships with distributors, retail outlets, or international markets which might increase the value of the contract to both parties.
The reality of and potential for coalitions is present throughout the negotiation process. It is imperative that you continue to probe and analyze and speculate about how you could create coalitions to strengthen your position, and how the other parties might be building coalitions to gain an advantage for their side as well.
What kind of support would the other side need to maximize their ability to get what they want from you, and where would that support be likely to come from? Are you already aware of relationships the other parties have with other players? How are those relationships likely to influence their strategy and tactics during the negotiation?
Develop a deep Contact Database of industry insiders, analysts, colleagues, and other dependable sources of information that can help you understand when and how coalitions might or could come into play. The more you know, the better prepared you are to change your strategy when the structure changes, or change the structure from your end in a way that will force the other side to change their strategy.
Above all, make sure you are not the one at the table who acts surprised when a new player joins the game. Do your homework well in advance, and you will be prepared with a new strategy to keep you in the game.
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September Negotiation Quick Tip of the Month – Launch a Trial Balloon
No matter how much research and planning you have done before the negotiation begins, you can’t be certain of the direction the negotiation will take until you sit down at the table and begin the process of discussion, proposing and bargaining. One of the quickest ways to assess the possibilities and clarify the issues is to launch a trial balloon. In other words, lay out a hypothetical proposal. You might launch your balloon with phrases like: “What if we ?,” or “What would you think of ??” At this point, you are not trying to nail down an agreement; you are only trying to get a reaction or a counter proposal from the other side in order to learn more about what their needs, issues and expectations are. The Trial Balloon is a simple way to get the conversation started, so that you can begin to narrow down the options a find the best Win Win solution.
