Sadly, many managers enter a negotiation without having clearly defined the optimal goal they are aspiring to achieve in that negotiation, or aspire to a goal which is far too low.

7 KEYS TO BEING

 A BETTER NEGOTIATOR

KEY NO 1 - KNOW YOUR ASPIRATION BASE

Sadly, many managers enter a negotiation without having clearly defined the optimal goal they are aspiring to achieve in that negotiation, or aspire to a goal which is far too low. This inevitably results in an outcome that is way beneath what could have been achieved, as their low aspiration target is very likely be eroded by the concessions they will need to make to advance the negotiation. Their underlying psychology and expectation often results in little more than a split-the-difference exercise.

Negotiators need to appreciate that the initial target they set is the outer limit of what they could achieve, and that there is no way in which the outcome will extend beyond this target; it will in fact only move the other way. Furthermore, they also need to appreciate that their aspiration base set the other party's minimum expectation.

KEY NO 2 -KNOW YOUR REAL BASE

As important as it is to develop a high aspiration base, negotiators must also know when to walk away from the negotiation. Not clearly defining this point beforehand inevitably results in a tendency to stay in the negotiation beyond the point where it is meaningful. Trying to ascertain this point as the negotiation unfolds is highly dangerous as it may then be psychologically very difficult to act against the flow.Know what it is that you must have if the negotiation is not to be a self-destructive exercise.

KEY NO 3 - KNOW YOUR BEST ALTERNATIVE TO A NEGOTIATED AGREEMENT

Before entering a negotiation it is imperative that a negotiator determines what his/her BATNA would be should an agreement not be possible.

• Where would a walk-away leave him/her in terms of satisfying his/her interests?
• What alternative way/options would there be for satisfying his/her interests?

 Unless negotiators are very clear on whether they can walk away from a negotiation and what options would be available to them if they should, they will inevitably find themselves heavily pressurised to reach an agreement, as they will then be pessimistic about the consequences should the negotiation not succeed.

 A good BATNA allows a negotiator to be firm when negotiating, and provides the power and confidence needed to walk away from a negotiation when an agreement that is mutually beneficial is not possible.

A BATNA is the best outcome a negotiator can expect if the negotiation results in an impasse. It is the standard against which any proposed agreement should be measured as it determines what a minimally acceptable agreement is. In the case of an employment offer, the BATNA could therefore represent an alternative offer.

KEY NO 4 : EXPLORE THE  ZONE OF POSSIBLE AGREEMENT 

The seller wants to get the maximum amount possible for their proposal, but generally may also set a limit for the least amount they will accept. The least amount they are willing to accept, is known as the seller's 'Reservation Price'. This is the amount where they draw the line, also know as the 'walk away' from the deal point.

The buyer, on the other hand, wants to pay the least amount possible, but may consider a higher amount that they might be prepared to pay as well. The maximum amount they are prepared to pay is also known as the buyer's 'Reservation Price' or 'walk away' from the deal point.

The differences between these respective lows and highs of both the seller and buyer, are their range of expectations. When you have a common ground or overlap between these two different ranges, this is known as ZOPA or the Zone of Possible Agreement.

Of course, common sense dictates that if there is no overlap in the expectation ranges of the seller and buyer, agreement becomes highly unlikely. Similarly, even where ZOPA exists, the agreement might still not materialize,when the parties are unable to agree regardless. The letter 'P' in ZOPA meaning a possible agreement, will more probably occur, but it's not a definite

KEY NO 5 - FOCUSING ON INTERESTS RATHER THAN POSITIONS

Life is far easier when people have the sense to see things our way It can be troublesome if the short-term objective of minimizing conflict gets in the way of developing and achieving long-range goals. Interest-based negotiation techniques can help us focus our energy on the process and guide that process towards yielding a satisfactory result.

Most negotiations are repeat performances. We tend to deal with the same bankers, suppliers, clients, directors, managers, etc., for a long time. It is important to recognize and give proper weight to the context in which a negotiation is taking place; if it is within an on-going relationship, the significance of that relationship must be considered.

We can take positive steps to prepare for the decision-making process and we can monitor our own behavior - and that of other participants -- as the process goes forward. By following a few common sense rules we can reduce conflict and turn it into cooperation and reach solutions that really work for all the participants.

When preparing for a negotiation, or after it has begun, don't just ask "What do they want?" It is also important to ask, "Why do they want it?“

 It is equally important - and often more difficult - to ask the same questions about your own views. Many successful negotiators find they will be more successful if they focus on understanding their interests as they enter discussions. If they haven't started out with a perfect package, the ideas of others may actually improve their final result.

Negotiators who arrive with a complete package can create real problems. Modifications to their ideas might be taken personally, they may be stubborn, and reaching a satisfactory resolution is made more difficult.

KEY NO 6 - FOCUS ON INTERESTS NOT POSITIONS

Focusing on interests rather than positions makes it much easier to concentrate on the real problem at hand and not to become person focused.

 To succeed in a negotiation it is often necessary for a negotiating party to make itself vulnerable by first sharing its interests and reasoning before proposing a solution, thereby creating the trust needed for the other party to feel sufficiently secure to share its interests.

That the interests of the negotiators do not necessarily coincide with those of the constituency they represent .

KEY NO 7  - CHECK YOUR ASSUMPTIONS - THEY TEND TO BE WRONG

One of the greatest dangers negotiators face is their tendency to assume certain things without checking that these assumptions are correct.

This very often not only leads to the other party being framed in a particular way, but also results in inappropriate attitudes and behaviour that prevent a mutually beneficial agreement from being concluded.

Where two parties, a developer and an environmentalist, are for example negotiating an industrial development near a very sensitive wetland, and the developer believes the environmentalist is, as are all environmentalists, part of a lunatic fringe that is hell-bent on preventing all development, this will strongly influence how the developer approaches the environmentalist. Although the developer's assumption may be totally unfounded, it unfortunately could, as all too often happens, become a self-fulfilling prophecy, as it is likely to compel the environmentalist to act accordingly.