How to Conduct Successful Negotiations

by Seth Sinclair, Member
Right now, much of our nation's senior leadership is fully engaged in serious, drawn-out negotiations on extending America's debt limit. While no one who is not there fully understands what's going on, the news media is full of stories about heated debate, participants walking out, and the progress or lack of same that's being made. Sinclair Advisory Group teaches negotiations as part of our Leadership curriculum, and since every organization and leader participates in high-stakes negotiations (even if the stakes are not as high as the credit of the United States,) this is a good opportunity to review some basic negotiation rules that will help ensure you and your organization gets the best possible deal.

First, preparation is absolutely essential. Before you enter a negotiation, consider such logistical details as timing and location. Seek a time and place that enhances (or at least does not diminish) your negotiating position.

Next, prepare your negotiation strategy. What is your ideal outcome? What is your bottom line in a minimally acceptable deal? Do you understand your Best Alternative to a Negotiated Agreement (BATNA), which defines your course of action should an agreement not be reached? What tone and tactics will you use in the negotiation session?

While preparing your own position is essential, it is just as important to anticipate the needs and actions of your counterpart. Research their priorities, separating their needs from their wants as much as possible. What tactics do you think they will use? How will you react? Try to visualize several possible scenarios and solutions that will result in an acceptable deal for both parties.

One negotiation begins, there are many techniques you can use to facilitate a successful and agreeable outcome. One is to never make clear to the other side that there's something you cannot live without. If you do, there's no doubt they'll find a way to take advantage of your need. "I can take it or leave it," is the right attitude to display-even if you really can't walk away. President Obama has made it clear in the current negotiations that we simply must have a budget deal by August 2, or the economy of the United States is at risk. Whether they actually believe it or not, Republicans have injected some ambiguity into that deadline: maybe the sky really won't fall, they say, if there isn't a final deal by that time.

Another is: don't make concessions without getting something in return. Unilateral concessions are often made in hopes of getting a quicker deal-and are just as often regarded with suspicion by the other side. I think both sides in the budget dispute are aware of this rule, and are driving hard bargains for every change in position they are willing to consider.

Yet another, which neither side appears willing to consider, is don't fight over the small stuff. If you've reached agreement on what you consider important in a negotiation, don't haggle too much over the nagging details that always accompany any large-scale process. In any negotiation, time is the enemy. The longer a negotiation takes, the better the chance the other side reconsiders their position, finds another company to negotiate with, or just plain decides they don't like you and don't want to work with you. When you've got what you really want (and I don't think that stage has been reached in the budget discussions), be very flexible about everything else.

There are many other useful techniques we can discuss further in our future blog entries. However, preparation is more important than any single tactic. Get ready by understanding what you want, knowing your counterpart, and entering with a plan. If you need help, seek support from an experienced negotiator and find opportunities to train and practice. This will put you in the best possible decision to reach a desirable outcome.