Effective negotiation hinges on thorough preparation, which involves clearly defining desired outcomes, understanding your own and the other party's positions, and planning the process and tactics.
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the first stage of any negotiation is
preparation and in this video I'm going
to cover the things you need to think
about and do during the preparation
stage of your negotiations begin with
the end in mind that's the advice in
Stephen Covey's seven Habits of Highly
Effective People it's habit number two
and that works very well as advice for
the preparation stage of a negotiation
begin with the end in mind think about
what you want to achieve the outcome
you're looking for and the first thing
to really focus on in the preparation
stage is the whole goal of your
negotiation what is it that you want
once you know what you want you what
your goal is it's time to think about
your objectives what are the measures of
a successful outcome for you and we can
think of objectives for negotiation in
terms of three things first there's what
you want to get all the things you want
to have as a result of this negotiation
and secondly there's how much you are
prepared to exchange for this and the
third thing is the conditions the
conditions that you want to attach to
the negotiation and the conditions
you're prepared to accept from the
negotiation put all of that together and
what you're effectively doing is writing
the agreement from the negotiation in
some detail some people like to think of
objectives in terms of the smart
framework to make sure your objectives
are well written and there are lots of
different ways you can articulate the
smart framework my preference for
negotiation purposes is to think of s
for specific be as specific as you can
about what you want to achieve and what
you're prepared to give and the
conditions that you might impose or
might be prepared to accept and when I
think about specific I think that
measurable quantities is part of
specific therefore the aim of smart
stands for meaningful there is no point
in going into a negotiation unless you
can achieve meaningful outcomes it's a
waste of time otherwise some people like
to haggle and they end up wasting time
on negotiations that they could just
settle by pressing a Buy button on a
webpage so think about the meaning and
the value of the negotiating process and
make sure that it's all going to be worthwhile
worthwhile
the a of smart stands for achievable
there is no point
identifying preferred outcomes preferred
cost that you know isn't going to be achievable
achievable
do your research figure out what's
available and how much you might expect
to pay for it and yes a good negotiation
will get you the best terms available
and maybe even marginally better terms
than are available but they're not going
to revolutionize over the whole world
you are not going to change the laws of
supply and demand have physics I'm going
to have our fault responsible make sure
that the outcome you want the amount
you're prepared to pay the terms and
conditions you might impose an accept
are responsible if they do good for the
organization you represent and they are
likely to be fair for the counterparty
to the negotiation and for any other
stakeholders and finally t4 timeframe
think about the timeframe within which
you want to negotiate also think about
the timeframe over which the agreement
is likely to extend some negotiations
are about a short one-off transaction
others are about long-lasting
relationship and a contract that can go
into years and years thinking about the
right timeframe not only for conducting
the negotiation but for the outcome is
important the next thing to think about
is your bottom line you will walk away
limit the point at which if the offer is
insufficiently good you will just walk
away from the negotiation knowing there
is no point and a term I like very much
is the best alternative to a negotiated
agreement Batna coined by Fisher and ury
in the book getting to yes the best
alternative to a negotiated agreement is
what you would do if the negotiation
failed or if you couldn't enter into the negotiate
negotiate
in the first place what would you do
instead any terms conditions any outcome
and cost that comes out of your
negotiation which leaves you in a worse
position than your best alternative to a
negotiated agreement is effectively a
negotiation about how much we're going
to lose knowing your Batna gives you
your walkaway point your bottom line if
an offer is made during a negotiation
which is below your Batna doesn't mean
you immediately get up and walk away but
it does mean you know that if you can't
raise the offer above your Batna above
that bottom line then you will have to
walk away and you can't help the
counterparty that that's the case you
won't share with them your walkaway
point because then they might raise
their offer a smidge above it but
telling them that they are still well
below the point where you're gonna have
to walk away will make them think twice
next draw a pataga a comparison between
your position and interests and their
position in interest
the sorts of things that I will include
on this table are what I need and what I
think they need what I want and what I
think they want my priorities and what I
think are their priorities what I
already have and what they already have
and what I could offer and what I think
they could offer and the value of what I
think I could offer and the value of
what I think they could offer all of
this gives you your negotiating
parameters the variables within the
negotiation and it's important therefore
each of these you know the value to you
and the value to them because it is the
differential values that are usually the
basis for agreeing a fair and equitable
settlement if something is worth more to
me than it is to the other party then I
am going to be prepared to pay an amount
that satisfies them and likewise if I
can offer them something that is worth
more to them than it is to me and then I
have something I can trade to gain a
good agreement the next thing to think
about is your opening position have the
confidence to prepare a high initial
position to state as an outcome almost
certainly the other party will do the
same and you will both know that that's
the case but it does delineate the
maximum negotiating room now clearly if
these are too far apart
it is possible because that's somewhere
in the middle is a point where a
negotiation could reach but neither of
you are prepared to accept we'll come to
that in another video but knowing your
initial position is vital
the other two positions you need to know
of course are your bottom line and in
between your initial position and your
bottom line is where you think you are
likely to end up an acceptable position
and this is going to be a range of
course now you've thought about where
you want to end up it's time to think
about how you're going to get there and
to do the hard work look in the
dictionary preparation comes before
success and there's a lot of hard work
to do and a big chunk of it is research
research into the history of your
organization's relationship with their
organization looking to the people that
are concerned find out as much as you
can about them use publicly available
information like LinkedIn to find out a
bit about the people you're going to be
working with and ask people who might
know them and then think about the
context research into the organization
they represent and its suppliers its
customers its competitors its
competitive market what it provides the
range of its services all of that could
provide valuable information knowledge
and even leverage in your negotiation
and what about the culture of their
organization and perhaps even the
internal politics what does that tell
you about how you can approach the
negotiation to maximum advantage and
finally facts and data make sure you
have all of that at your fingertips and
a big part of your preparation must be
to organize that data so if you need to
access it quickly journey negotiation
you can find it quickly either on your
computer your personal device your
tablet or phone or it folders and files
and you must have it
in a form that you can read it off
quickly but where the counterparty can't
see necessarily what it is you're
looking at because that knowledge may
give them an advantage in the moment
next you
to think about your plan for the process
of negotiation what are the options and
alternatives you have and what is the
sequence of your preferences and
priorities among them what concessions
can you make what concessions can you
ask for what are the long-term
considerations for the relationship and
how important is the relationship
compared to the immediate outcome of the
negotiation and what issues do you enter
the negotiation with and what issues do
you foresee arising during the
negotiation and once you've thought
about the plan now you need to think
about the tactics for the negotiation
itself the immediate day-to-day and
minute-to-minute factors of the
negotiation like where the meeting is
going to be held
who's going to come along to the meeting
the roles they're going to play the
timings how you're going to signal to
colleagues that it's time for a timeout
the sequence with which you want to
handle particular issues and what you'll
do to cope with setbacks and finally
prepare your opening think about and
discuss how you're going to start the
negotiation process off when you meet
the other party
so there's a lot to do to prepare for
any negotiation but perfect preparation
prevents poor performance if you want
good results from your negotiation it
will pay you to prepare well please give
us a thumbs up if you liked this video
there's loads more weight management
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I look forward to seeing you in the next
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