Cultivate an Interest in Interests

 

Negotiations can become confusing in a hurry if you don’t take time during the preparation phase to clearly define and understand your interests: these are the needs, concerns and goals that form the basis for bringing you to the negotiation table in the first place. If you don’t do this from the very beginning, you might easily get caught up in the issues and trade-offs that arise during the heat of the moment and end up giving away something that could undermine the very interests that are most important to you.

Taking the time to define your interests may seem a little too basic; after all, shouldn’t these already be obvious? Maybe, and maybe not. The best way to find out is to answer these two simple questions as you begin to prepare for every negotiation:

1. When the negotiation is finalized, I will be very satisfied if I have achieved the following goals or gained the following items of value:

2. The above accomplishments are important to me/us/the organization BECAUSE:

Now, as important as the items may be under question number one, they really only have value because they allow you to achieve the "BECAUSE" of number two. It is the answers in number two that form the basis for your most important interests, and anything that doesn’t help you capture these interests is at best a bunny trail and at worst a trap!

Be thorough and honest when generating your answers under the second question. Of course, you and your company may have engaged in this negotiation because you need to obtain new technology at a reasonable price so you can grow market share and increase the profitability of your company. But, are those the only reasons (interests) that have value to you? Are you trying to grow the company so you can sell it? Are you trying to please your boss by being successful in this negotiation so he will reward you with a nice bonus? Have you faced this other party across the table before and have always come away feeling like you could have done better, so that now you urgently want to get the best deal this time so you don’t feel like a failure ? again?

Don’t neglect any possible interests (reasons), because if they exist at all, they will come into play (either consciously or unconsciously) and influence how you structure the negotiation and how you shift your strategy to maintain the best hope of meeting every one.

Just as your interests are very important to you, the other party’s interests are no less important to them. While your talents as a mind reader may be insufficient to tell you everything you wish you knew, you should still make a very focused effort to develop all the insight you can about the interests that may be motivating the other side.

We can begin with a thought experiment. Put yourself in the other party’s shoes and ask yourself the same questions as before, but from the other side’s point of view.

1. If I were sitting on the other side of the table, when these negotiations are finished, I think I would be very satisfied if I had achieved the following goals or gained the following items of value:

2. I believe the above accomplishments would be important to me/them/their organization BECAUSE:

This simple exercise will go along way toward helping you to understand or get in touch with what might be going on beneath the surface on the other side of the table.

However, there a couple of other very helpful techniques you can use to collect information:

DO YOUR HOMEWORK. Research everything you can about the company and the people you are negotiating with. To the extent that you possibly can, try to become the greatest living expert on everyone and everything involved in this negotiation. Ultimately, it is the side with the most knowledge that ends up with the most power.

ASK GOOD QUESTIONS. As you interact with the parties involved both before and during the formal negotiation process, take advantage of opportunities to ask appropriate open and closed questions that might give you insights into their motivations, interests, needs and concerns. Don’t be pushy, but don’t hesitate to ask for clarification, explanation, confirmation, etc., and don’t forget to observe body language and tone of voice when possible. You will be pleasantly surprised at how much you will uncover once you learn how to ask good questions at the right time, in the right way.

 

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March Negotiations Quick Tip – Don’t Say "NO" Unless You Want to Slam the Door

To borrow a phrase from Otto von Bismarck, "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.