In a series of posts about business negotiations We have written, among other things, about how to prepare for them and what negotiation styles are. This time we will touch on negotiation scenarios.
How to prepare a negotiation scenario? Is it necessary every time? What does preparing a negotiation scenario give you?
Negotiation scenario - What is it? What is it used for?
Negotiation scenario is a kind of project brief. We create it in order to accurately prepare the course of the negotiation talks at a preliminary stage before the meetings start.
Such a document is primarily intended to help us get to know better the counterparty with whom we plan to start the negotiation process. In the post on international negotiations, we wrote about factors that do not go unnoticed during negotiations. It is worth bearing them in mind, but not only when the other party to the negotiation represents another country. When negotiating with compatriots, we should also gather as much information about them as possible. It is a matter of learning about the company culture and mission that the company in question follows, as well as knowing what negotiating styles, if any, the other negotiating party uses.
On the basis of the data collected about the counterparty, we can proceed to the preparation of the scenario negotiations.
What does a negotiation scenario consist of and how do you prepare it?
When creating a negotiation scenario, we should include a number of important elements, such as sample dialogues, possible objections from the other party or our argumentation of individual elements of the offer. In order to be best prepared for a real negotiation, it is also a good idea to test it. This can be done, for example, by using the negotiating sparring partner or as part of your own team in the company of a so-called 'team'. the negotiating shadow.
The negotiation scenario should consist of two options: positive and negative, and take into account four fundamental factors.
- Initial offer
It is the negotiator's proposal presented to the other party first, at the start of the negotiation talks. Its level should be optimal - not too high and not too low. a threshold that is too high could discourage the counterparty and close the way to further talks at the outset. Too low, on the other hand, carries the risk of closing the way to possible concessions at a later stage.
- Minimum threshold
The next factor that should be in the negotiation scenario is the minimum threshold that we want to reach. This is a ceiling below which we cannot go. Otherwise, it would involve us incurring a loss. It should also be remembered that we define the minimum threshold for two versions of the scenario - optimistic and pessimistic.
- Maximum threshold
Potentially, there is no upper limit to negotiations. Potentially - the more the better. Nonetheless, it is nevertheless useful to set a maximum negotiation threshold that we can reach with positive and smooth negotiation talks.
- Costs and benefits; strengths and weaknesses
One of the extremely important points in a negotiation scenario is to identify our strengths and weaknesses and, at a minimum, approximate them for the other negotiating party. The same is true for costs and profits. Although these figures are difficult to estimate with complete accuracy, it is worth doing so at least at an estimation level.
Polish 
English