Negotiation

Overview

Systematic procedure for preparing and conducting negotiations to reach mutually beneficial agreements

Steps

Step 1: Research and gather information

Before any negotiation, gather critical information:

1. Research market data (rates, standards, precedents)
2. Learn about the other party (their situation, pressures, constraints)
3. Identify alternatives for both parties
4. Find objective criteria that could apply
5. Understand the timeline and any deadlines

Step 2: Define your position completely

Work through your complete negotiation position:

1. List your interests (underlying needs, not positions)
2. Prioritize interests (must-have vs nice-to-have)
3. Define your BATNA (best alternative if no deal)
4. Set your reservation point (worst acceptable outcome)
5. Set your aspiration point (best realistic outcome)
6. Plan your opening position (ambitious but justifiable)

Step 3: Analyze the counterpart

Develop hypotheses about the other party:

1. What are their likely underlying interests?
2. What is their likely BATNA?
3. What pressures or constraints do they face?
4. What would they consider a win?
5. What is their likely opening position?
6. Where might there be shared interests?

Step 4: Develop negotiation strategy

Plan your approach to the negotiation:

1. Decide who makes first offer (anchor if well-informed)
2. Plan your concession pattern (start high, concede slowly)
3. Identify potential tradeoffs (logrolling opportunities)
4. Prepare responses to likely tactics they might use
5. Plan information gathering questions
6. Decide on framing (gain vs loss, fairness appeal)

Step 5: Conduct the negotiation

Execute the negotiation conversation:

1. Opening: Build rapport, set positive tone, establish agenda
2. Information exchange: Ask questions, listen actively, share strategically
3. Propose: Make or respond to opening offer with justification
4. Bargain: Exchange proposals, make conditional concessions
5. Problem-solve: Look for value creation opportunities
6. Handle tactics: Recognize and respond to hardball moves

Step 6: Close and document

Finalize and secure the agreement:

1. Summarize agreed terms clearly
2. Address any remaining open issues
3. Document agreement in writing
4. Discuss implementation and next steps
5. Confirm mutual understanding
6. Set follow-up if needed

Step 7: Debrief and learn

After negotiation concludes, capture learnings:

1. What worked well in your approach?
2. What would you do differently?
3. What did you learn about the other party?
4. How does actual outcome compare to your targets?
5. What’s the state of the relationship?
6. What to remember for future negotiations with this party?

When to Use

• Negotiating salary, compensation, or benefits with an employer
• Reaching agreement on contract terms with clients or vendors
• Resolving disputes where parties have conflicting interests
• Making business deals involving price, scope, or timeline
• Negotiating partnership terms or joint venture agreements
• Handling difficult conversations where interests conflict
• Buying or selling significant items (real estate, vehicles, equipment)
• Resolving workplace conflicts between team members
• Negotiating project scope or deadlines with stakeholders
• Renegotiating existing agreements or renewals

Verification

• BATNA is honestly assessed (not inflated or ignored)
• Interests are distinguished from positions (asking “why” behind wants)
• Reservation point is set before negotiation (not moved during)
• Objective criteria identified and used (not just power-based)
• Concessions are conditional (traded, not given away)
• Agreement is documented in writing
• Both parties’ interests are addressed (not just yours)

Input: $ARGUMENTS

Apply this procedure to the input provided.