Tactics for Readying Yourself for Bargaining Sessions
In the world of negotiations, success often hinges on meticulous preparation. Leigh Thompson, a professor at Northwestern University, emphasises the importance of self-assessment and understanding one's objectives before diving into any negotiation.
Thompson's first question for negotiation preparation is simple yet profound: "What do I want?" This question sets the foundation for defining your goals, whether in a price negotiation or a job negotiation involving salary, benefits, and responsibilities.
However, Thompson warns against engaging in such little negotiation preparation that you don't know what you want. Over-aspiring negotiators may end up without a deal, while under-aspiring ones may feel like the victim of the "winner's curse."
A crucial aspect of preparation is calculating your reservation value, or your walk-away point. This helps you avoid accepting a deal worse than your Best Alternative to a Negotiated Agreement (BATNA) or rejecting a deal better than your BATNA.
Understanding the other party's reservation value can also help you determine how much they may be willing to give. For a job seeker, determining BATNA would involve identifying other job opportunities, assessing the value of each, and considering what the employer will do if the negotiation ends in impasse.
The concept of BATNA was first introduced by Roger Fisher, William Ury, and Bruce Patton in their book "Getting to Yes: Negotiating Agreement Without Giving In."
In addition to understanding BATNA, Thompson recommends several steps for effective negotiation preparation. These include defining your Zone of Possible Agreement (ZOPA), using anchoring, practising scenarios, gathering information, managing dynamics, employing silence as a tactic, offering multiple options, building rapport and trust, controlling meetings and asking better questions, and reviewing negotiations for improvement.
These steps complement the strategies discussed in Thompson's book "The Mind and Heart of the Negotiator," focusing on preparation, building relationships, and managing the negotiation process effectively.
For those interested in business negotiation strategies, the Program on Negotiation at Harvard Law School offers a free special report. By following these preparation steps and strategies, negotiators can significantly improve their odds of achieving mutually beneficial deals.
- Thompson's book, "The Mind and Heart of the Negotiator," proposes strategies for effective negotiation, such as preparation, building relationships, and managing the negotiation process.
- Negotiators who understand their Best Alternative to a Negotiated Agreement (BATNA) can avoid accepting deals worse than their walk-away point or rejecting deals better than their BATNA.
- To prepare for a negotiation, Leigh Thompson recommends steps like defining your Zone of Possible Agreement (ZOPA), practising scenarios, gathering information, managing dynamics, employing silence as a tactic, offering multiple options, building rapport and trust, controlling meetings and asking better questions, and reviewing negotiations for improvement.
- In the world of business, understanding negotiation strategies can be crucial for careers, as they can help in making important decisions related to finance, law, and various aspects of business and education-and-self-development, contributing to personal growth.
