374 / PREPARING TO NEGOTIATEUnderstanding your
counterpart
It is important to understand the issues
and interests of the other party before
you start the negotiations. Negotiators
come to the table because they each need
something from one another, so you must
identify your counterpart’s key issues and
interests. How important is each one?
Which are the deal breakers and which
may they be willing to concede?
Try to assess whether it is you or your
counterpart who holds the power. What
are your counterpart’s strengths and
weaknesses? What is their level of
information and expertise? How badly do
they want to make a deal with you? Do
they have other attractive options? Are
they pressed for time? If you know that
the other side has a tight deadline that
you are able to meet, you may be able to
negotiate a better price. Similarly, if you
know that your counterpart has recently
expanded production capacity, you may
be able to gain better terms for larger
volumes of orders.
Can your counterpart walk away from
the table and exercise a Best Alternative
To a Negotiated Agreement (BATNA)?
This term is used by negotiators to
describe the course of action taken
if negotiations break down.Thinking strategically
Much of what occurs in the negotiating
room is, in fact, determined by what
happens outside the negotiating room.
This requires you to think strategically
about your situation in relation to the
situation of your negotiating counterpart.
For example, in some negotiations, you
and the other party may be representing
others. Make sure you are very clearabout the identity of your constituency,
and that of your counterpart. What are
their expectations for the negotiators and
can you influence them?
If there are several negotiating
parties, analyze all of them and begin
to think in terms of coalitions. With
whom and how can you build a winning
coalition and how can you block a
threatening coalition?CONSIDER THE
TIMESCALE
Shape your negotiating
strategy with respect to the
timescale. You can be more
blunt in a short, one-time
negotiation than in a long
negotiation that is part of
an ongoing relationship.Tip
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