A critical negotiation skill in your business negotiations is how you go about preparing your objectives.
I want to provide you with 3 key points that we cover in our negotiation skills training programmes to consider when you are getting ready for your negotiations.
1. What is the absolutely ideal result for you in this negotiation?
What would a fantastic deal (one that you would be extremely happy to agree to) look like?
We call this your aspiration base - in other words, the level at which you will aspire to close the deal.
You should remember that it is key in your negotiation to always ask for a little more than you would like to receive. This means that you should always have an aspiration base that is higher than your planned outcome. By asking for a little more than you would like to achieve you enable yourself to make a concession to your counterpart in return for a counter concession.
On the positive side, you may just get what you regard to be ideal if you ask for it! Don't fall into the trap of making decisions on behalf of your counterpart by saying to yourself they will not be happy with that .Take note that I am not advocating that you make extreme demands - extreme requests are highly risky and dependent on the cultural context within which you find yourself.
2. What is the absolutely minimum acceptable outcome for you in this negotiation?
At what stage will you decide to terminate or suspend your talks?
If you do not decide on a specific point at which it will no longer be possible or desirable for you to conclude a deal, then you may become vulnerable to closing a deal that you will not be happy with. This is critical to do as you could easily become emotionally committed to reaching agreement at all cost because you may think that your individual reputation is at stake.
3. What do you think are the aspirations and minimum acceptable transaction levels for your counterpart?
It is also important that you consider the aspirations and minimum acceptable deal levels from your counterparts viewpoint. This will never be an exact science but through proper planning and investigation of supporting information you may be able to get a good idea of what kind of agreement is the standard in your line of business or type of negotiation.
By considering the aspirations and minimum acceptable deal levels from your counterparts perspective, you will be able to identify the bargaining range. Knowing the agreement range or zone of possible agreement (ZOPA) will help you to see if a deal is possible or not.
Most negotiation training programmes will teach you that the agreement range is defined as the area of overlap between your minimum acceptable deal level and the minimum acceptable deal levels of your counterpart.
Remember that 99 percent of your success at the negotiation table is dependent on the quality of your preparation. You should spend at least as much time planning for negotiations as you expect to be busy negotiating. If you expect to be in negotiations for an hour, then you should spend at least the same time in preparations.
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