Negotiation is the process of settling disputes with different viewpoints and goals. If you’re a natural negotiator, or need to improve your skills knowing the basics will help you to create and claim value as well as manage fairness issues and achieve a successful outcome.
You should prepare for a negotiation by defining your goals and gathering the necessary information and research needed to achieve them. This will allow you to anticipate potential counter arguments, and formulate a strategy for achieving success.
Understanding the interests of other parties, including their fears, desires and needs is essential to anticipate possible objections. In addition, you should be able to clearly articulate your own interests, and the motivations behind them. If you can do this you will appear more convincing and credible.
Finally, you should be open to compromise within the limits of reason. Taking an inflexible position at the beginning of negotiations is not the best approach, as it could be seen as a lack of desire to come to an agreement. Instead it is better to offer to give up something you are passionate about, but only if it is compatible with the other’s interest.
Another important aspect of preparing for negotiations is to know your walk-away point (your BATNA, or best alternative to a bargained deal). This will aid you in deciding when to stop a discussion, as you won’t be able to continue to negotiate in the hopes of reaching an equitable agreement if the other party is in a state of despair.