Previous entry we have started a series of articles, in the area of business negotiation. We have introduced the topic of different negotiation styles and their characteristics. This time, we will describe what preparation for business negotiations should consist of and what you should take care of.
Prepare for preparations
Appropriate preparation for negotiations can determine their outcome. It could be said that preparation is a key stage in the whole negotiation process - 90% success depends on it. This is when we gather information about the other party to the negotiation, analyse the internal situation, define objectives and strategies, and prepare the team to support us.
Negotiation plan It is a good idea to list and, if possible, categorise the issues to be discussed. This will make it possible to keep the conversations on track and maintain order, especially when the topic of negotiation is multi-faceted.
It is also important to answer some key questions for yourself:
- Who do we negotiate with?
- Why are we entering into negotiations?
- What do we want to achieve from the negotiation talks?
- Where will the negotiation meeting take place?
When preparing for a negotiation, it is also a good idea to write out a potential scenario for the course of the talks, along with any questions or objections from the other side. The stage of questions or objections from the other side is called, somewhat jokingly and yet referring to real-life situations, BRUDSWASHING. You should also be ready for this. If you have a lot of time until the meeting, you should consider using the experience of the negotiating sparring partner, with which we can train our own negotiating competence.
We certainly need to find out as much as possible about our counterparty. On this knowledge may also depend further negotiation strategy. It is also important to define targets - minimum (Break Point), optimum and maximum (Opening Point). This will allow us later to define the limits below which we are not able to give way. It is also important to bear in mind that the other negotiating party is also likely to set such objectives.
Best alternative to a negotiated agreement - BATNA
BATNA is that part of the preparation for a negotiation which should be the basis for every negotiator. BATNA is his strength! It allows us to identify the best alternative in the event that the negotiations take a wrong direction or break down. Thanks to BATNA, we are able to determine which negotiation strategy to adopt: offensive, defensive or perhaps cooperative. A strategy that will guarantee maximum satisfaction. The most powerful BATNA is the alternative counterparty. From the buyer's perspective, another supplier, and looking at the negotiations through the seller's eyes, another customer who will „fix” the volume of sales, calculated in quantity or money. It should not be forgotten that BATNA can also be TIME. Managing it properly allows you to build leverage on the negotiation. It should be remembered that an effective determination of BATNA will not be possible without a prior, detailed analysis of the counterparty, our internal situation and the market situation.
Strategy at a premium
The final step in preparing for negotiations is to choose a strategy. It cannot be random and cannot fall on one alone. This is because we will not know the strategy adopted by the other party before we enter the talks. We have written about negotiation styles here:
Strategies for conducting negotiations are based on ways of resolving the conflict inherent in negotiation. These ways are: offensive, defensive, cooperative. It is difficult to determine the best method. Negotiation experts are also not unanimous in their recommendations and sometimes lean towards co-operation, involving both negotiating parties, and sometimes towards compromise. Whatever the approach, the key is to ensure that both parties feel satisfied.
Preparation for negotiations is, however, not only a strategy. Other factors should not be overlooked either, which may influence the perception by the other party of the negotiation and thus the course of the talks themselves. These include aspects such as: the number of participants in the negotiation (they cannot be random people and the composition of the negotiating team should be proportional to that of the other party); the place of negotiation (the comfort of the negotiation is as important as its content); the dress or even the smell of perfume.
If you want to ensure that your team is perfectly equipped to conduct strategic negotiation talks, provide them with expert support by choosing one of the Eveneum's available negotiation workshops or training with a negotiating sparring partner. You are welcome to contact us.
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