Little tools can make a big difference.
Negotiation concepts are simple in theory and incredibly difficult in practice. Here are basic concepts that can elevate your negotiation capability.
The Negotiator’s Multi-tool.
The negotiator’s multi-tool is the most simplified way that we know of to equip a negotiator; the ability to identify the Seven Elements of negotiation help us to shift from reaction to strategic response.
INTERESTS
INTERESTS are the motivations (needs, concerns, desires, hopes, and fears) beneath the positions expressed by the parties. Positions are what we want, Interests are why we want them. The better we understand the parties’ interests, the better chance we’ll be able to generate high-value OPTIONS.
OPTIONS
OPTIONS are the full range of possibilities the parties might agree upon. OPTIONS are, or might be, put “On the table.” There is a crucial distinction between OPTIONS and offers; Offers seek COMMITMENT, or formal agreement; OPTIONS are potential components of a deal. Good OPTIONS meets the parties’ INTERESTS.
STANDARDS
STANDARDS (a.k.a. “Objective Criteria” or “Legitimacy”) are third-party, neutral benchmarks, which determine the “fairness” of an agreement (as well as its process). STANDARDS exist beyond the will of either party. STANDARDS could be legal precedents, market data, industry standards, or unspoken social norms like reciprocity or deference.
RELATIONSHIP
RELATIONSHIP (a.k.a. “Rapport”) refers to the history amongst the parties, their power dynamic(s), the degree to which they trust one another, and the gap between the COMMUNICATION the sender intended and the impact the COMMUNICATION has on the receiver. We preach separating of the people from the problem and adopting the unconditional positive regard of an “I-THOU” vs. an “I-it” RELATIONSHIP.
COMMUNICATION
COMMUNICATION refers to the signals sent between the parties, both explicitly and implicitly. High-quality communication minds the gap between the intent of the messages we send and the impact it has on the receiver(s). That is, the parties understand each other - even if they disagree.
ALTERNATIVES
ALTERNATIVES are the walk-away possibilities that each party has if an agreement is not reached. Neither party should agree to something that is worse than their BATNA or Best Alternative To a Negotiated Agreement. Whereas Options are “On the table”, ALTERNATIVES (in negotiation speak) are the courses of action each party can pursue '“Away from the table”, without the other party,
COMMITMENT
COMMITMENT refers to oral, written, or implicit statements about what the parties will or won’t do. Strong agreements have the organic buy-in of their stakeholders and are stronger to the extent that implementation is planned for (practical, realistic, durable, easily understood by those who are to carry them out, and verifiable if necessary). We want to commit quickly on good process and carefully on substantive terms.
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