Everybody gets involved in a negotiation process at some point in time. Whether its a discussion about bedtime with our children, with a salesperson on the price of a car or contract negotiations in the business world … the principles are really the same.
I was recently at a presentation by Dr. David Saunders who is the Dean of the Business School at Queen’s University in Kingston, ON. Dr. Saunders is also co-author of the world’s three largest selling negotiation textbooks, among numerous other books and papers. In his presentation he regaled us with his Ten Rules of Negotiation and I thought they were worth repeating.
1. Be Prepared. Seems obvious, but when David talked about preparation he suggested really getting inside the head of the other side and playing out all potential scenarios. In many ways, the preparation is like a chess game … what might my opponent do, and what will the implications be? The better the preparation is directly related to the level of success.
2. Diagnose the Fundamentals of the Negotiation. If both sides are negotiating in a win-win approach, that’s OK. If you are negotiating from that philosophy and the other side is not … then you have a problem. A win-lose negotiation strategy will work just fine if both sides adopt that approach … each starting at an extreme position and edging in to a solution, that in the end should be a win-win.
3. Work the BATNA (Best Alternative To a Negotiated Agreement). You should know your own limits before you start, and try to understand their limits too. Then try to trade off to get the best position for your side. If I give this will you do that … easier to do this when you know each other’s BATNA for all components of a negotiation.
4. Be Willing to Walk!
5. The Master Paradox. A reflection that the world is not black and white, and that truth and trust are sometimes relative. In a negotiation, how “truthful” should you be … and how “trusting” that the other side is being truthful?
6. Remember the Intangibles! Sometimes there are other factors at play … could be an ego, a need to win, a perceived need to hurt the protagonist or any other underlying issue.
7. Actively Manage Coalitions. Who else could support either side? What other environmental issues are there … and how could they come into play?
8. Protect Your Reputation.
9. Rationality and Fairness are Relative. What seems fair to one side might be perceived as grossly unfair to the other side.
10. Continue to Learn from Experience. Today’s negotiation is a schooling for tomorrow’s.
Some excellent pointers for everyone involved in any kind of negotiation … which of course is everyone … can I stay up till 11pm tonight Mom? Johnny’s Mom let’s him!