Step 1 – What does a win look like?
Establish the top of your negotiating range by identifying your GOALS and deciding on your specific OBJECTIVES (deal points).
Step 2 – What is the bottom of the range?
Identify your BEST ALTERNATIVE – or Plan B in case this negotiation ends badly. What are you left with? This sets the lower limit of your negotiating range.
Step 3 – Variables, deal-points, and agendas
Identify your top variables from Step 1, prioritize them, and score them into what you’d LIKE to achieve for each variable, what you think is a reasonable INTERMEDIATE level, and what your ‘NEED IT OR NO WAY” walk-away point.
Step 4 – Choose your negotiating style.
What’s the power-balance like in this negotiation? Use your matrix from step 3 and your Best Alternative analysis from step 2 to determine what your STYLE you should employ. You must decide if you should be competitive, collaborating, accommodating or avoiding. Your negotiating style is a decision – not destiny.
Step 5 – Tactics and Counter-tactics
Execute you plan with appropriate TACTICS and behaviors. Don’t talk COLLABORATOR while using high-pressure tactics that say COMPETITOR. Know what they care about and prepare a plan for giving them what they want as you get what you want.
Here’s a helpful checklist to help you prepare your negotiating plan.
Step 1: Goals and objectives
Stakeholders – Yes, No, Both & Maybe
Variables or deal points ________________________
Power Assessment 🙂 😐 🙁
Constraints — Yours________________
Constraints – His ___________________
Step 2: Establishing a floor
Best Alternative Analysis –
Step 3: Scoping Variables
Agenda check — How does this negotiation fit in with your overall goals from step 1?
0% Doesn’t directly contribute to my main goals.
25% Contributes to my goals, but I’ll still have to look for new counterparties.
50% This negotiation plays a significant, possibly strategic, role.
75% This negotiation is my most important single piece of business right now.
100% identical. This is my goal.
101% + Time to reassess your goal or your objectives. You are not analyzing your goal system properly.
3 Key Variables or deal-points that you want the other side to deliver. This is your goal system – restated in terms of the actual price, product, or performance you are discussing to with the counterparty. If your goal is to own a reliable car, your variables would include type of car, new or used, price, warranty, service, and possibly financing. If you can’t put a price or value on something, your counterparty will.
Like to achieve for each variable. Opening offer
Need to achieve. Walk-away
Step 4: Styles
Assess your power balance (hint – how much do you need this deal?):
I’m in control.
My position isn’t as strong as his.
I’m in a weak position.
What’s your opening Style?
Competitive – Win Lose
Collaborative – Win Win
Accommodating – Lose Win
Avoiding – Lose Lose
Step 5 – Tactics
What’s your final Style?