Top Tips for Effective Negotiation

• Do your research. Ensure you are fully briefed on the subject matter of the negotiation, and find out as much as you can about the person you are negotiating with, in particular their objectives and negotiation style.
• Be clear about your own objectives and the outcomes you intend to achieve. Brainstorm a range of outcomes with which you will be most satisfied, from the best possible outcome, the most realistic outcome and a fallback position, to the point at which you would walk away.
• Work out what your best alternative to a negotiated agreement (BATNA) is, i.e. know what your alternative is if you can’t get a mutually satisfactory settlement in this negotiation. Knowing what you can fall back on if you can’t come to an agreement gives you a solid basis on which to define your walking away point. Any agreement should at the very least be better than your BATNA. Keep your BATNA to yourself, at least initially. The less the other person knows about your other options, the better your position.
• Do some research to also work out the other party’s BATNA. If you know the best option they have to fall back on, it lets you know how much room they have to negotiate, and prevents you from trying to push them too far.
• Once you know both BATNAs, you can work out the balance of power in the negotiation. If one party has a much stronger BATNA than the other, or if the other party has no viable alternative options, then there is a power imbalance. If this is in your favor, you can use it to your advantage. If it is not, look at ways in which you could improve your BATNA in relation to the other party’s, perhaps by doing further research or thinking laterally. Wherever possible, keep your own position secret and prevent the other person from being aware of their advantage. The more you can level the playing field from a disadvantageous position, the better. [1]
• Work out your tactics in advance, considering how best to state your case.

Bid and Bargain

• Spend time at the beginning of the negotiation setting out and explaining your starting position.
• In the early stages of the negotiation, encourage the other party to say as much as possible, and listen carefully. Try not to challenge anything they say at this stage, but do make a note of any issues which will need to be resolved later.
• Sense when it is an appropriate time to begin putting forward your own bids, perhaps starting with those areas where you believe you will be able to achieve a consensus. It is probably not a good idea to state the whole of your case at the outset, but rather to encourage a dialog and develop your case as the discussion proceeds.
• Search for common ground, which could potentially form the basis of an agreement. Don't forget to explore possible areas of compromise, where ground could be conceded if necessary, and note any sticking points or objections which will need to be resolved later.
• Where you disagree with the other party's statements, do not interrupt, but wait until they have finished before you attempt to put forward your point of view.
• Identify any flaws in the way the other party is putting his/her case by probing and questioning any factually incorrect statements, any relevant omissions and any misuse of statistics. If you suspect they are using faulty logic, do not challenge but instead probe further by asking questions which require further justification.
• If you need more thinking time, or want to calm a situation which has become too heated or emotional, use adjournments.
• To obtain or make concessions, float ideas without any need for initial commitment from either side. If you are seeking concessions, look for hints in any negative messages that a slight movement on your part could produce the concession. Ensure these possible concessions on your part are seen as linked to moves by the other party.

Seal the Deal

• Use your judgment in deciding the best time to move towards a conclusion. Summarize the discussion, and what has been agreed, at regular intervals in order to avoid misunderstandings later. When putting the agreement together, ensure it is comprehensive, clear and in writing.
• Before leaving the negotiation, try to put in place the basis for an implementation plan. Be clear about who is responsible for what in this implementation plan, as well as putting in place appropriate arrangements for monitoring and co-ordination.
• Ensure all other parties affected by the outcomes of the negotiation are fully informed.