Planning for negotiations
A complex negotiation requires specific planning to be successful. Without planning, a negotiator cannot possibly have the information required to effectively argue with a strong stand in a complex negotiation. Sufficient time needs to be committed upfront to the planning for a complex negotiation. Planning negotiation includes:
- Establishing specific objectives and also the range of those objectives. Objectives may need to be categorised as „must have? and "would like to have?. Although building relationship is important, the parties should not be afraid to isolate the most important objectives and areas of concern, and put them on the table for discussion at an early stage. After the objectives have been stated, you have to make sure that they remain the primary focus of the negotiations. You should avoid getting lost in details and contractual languages, and should be flexible enough to consider alternative methods for achieving objectives and overcoming concerns. Nothing brings negotiations to halt faster than one partner?s proposal of final plans or offers that, at least in the eyes of the other partner, must either be accepted or rejected without much discussion. Failure to do this will lead to agreeing to something that is not in your company?s best interest, or delaying the negotiation process.
- Ensuring the right people are negotiating. Participants involved in the negotiation process should include all persons who will have substantive responsibilities in executing the relationship, as well as representatives of senior management with authority to make commitments on behalf of each party. It is also wise to pay careful attention to the rank and status of negotiators for the other side.
- Analysing the other party's strengths and weaknesses as well as your own. This will help you to formulate convincing arguements or support for your arguements. You should also identify areas of flexibility within the arguement points. Gathering sufficient information about the other party is very important. This may not be difficult for items which you are already purchasing. Otherwise, you must peruse trade journals, government reports, annual reports, commercial databases, Internet or resort to direct enquiries to supplier?s personnel.
- Understanding the other party's needs for example, if supplier desires market share and volume, he will want the whole contract and not part contract. If supplier is supplying for your business for the first time, it would be preferable to create a small contract with an eye on future business.
- Differentiating between facts and issues. Facts are reality or truth which cannot be negotiated about. Issues are items or topics to resolve during a negotiation and are to be identified in advance.
- Establishing a position on each issue. The negotiator should develop a range of positions on an issue - a minimum acceptable position, a maximum or ideal outcome, a most likely targeted position.