Key Considerations for Negotiation Preparation
When preparing for negotiations, there are three critical areas to focus on:
- Gathering Information
- Understanding Priorities
- Clarifying Principles
Start by collecting both direct and indirect information that will support your position during negotiations. With today’s access to data, it’s easier than ever to gather relevant statistics and facts. For instance, if you’re looking to buy a car or a home, you can easily find data on comparable properties and pricing. Similarly, when negotiating a raise, it’s essential to have wage statistics, the organization’s history, mission and values, and insights into past collective bargaining experiences readily available.
Developing Your Negotiation Strategy
After gathering and analysing your information, you need to outline your negotiation plan. This involves understanding the key issues and determining your objectives.
1.Define Your Main Objective
What do you aim to achieve in the negotiation? For example, if you’re negotiating a raise with your boss, clarify your primary goal.
2. Identify Supporting Points
What arguments support your main objective? In the case of a raise, you might highlight taking on additional responsibilities or projects. It’s also beneficial to research industry norms regarding salary increases and the typical salary range for your role.
3. Establish a Fallback Position
What alternatives to a raise might you consider? Options may include additional vacation time, flexible hours, remote work, or company perks. While you shouldn’t present these options immediately, having them in mind provides you with a backup if budget constraints are cited.
4. Determine Your Best and Worst Alternatives
Identify your Best Alternative to a Negotiated Agreement (BATNA) and your Worst Alternative to a Negotiated Agreement (WATNA). For instance, if your boss declines to give you a raise, your best alternative might be the options you’ve considered, or a promise of a review in six months. The worst alternative would be no progress at all.
Conduct thorough research before finalizing your BATNA. For example, if you find a similar position at another company with a better salary and secure an interview, this offer could serve as your BATNA.
Remember that your BATNA and WATNA are not your primary goals but rather benchmarks to evaluate offers and counteroffers.
5. Identify Your Walk Away Position (WAP)
Clearly define your WAP—what is the minimum you will accept or the maximum you’re willing to pay? Keep this figure in mind to avoid getting caught up in the heat of negotiation, which could lead to accepting unfavourable terms or rejecting beneficial offers. If negotiating on behalf of someone else, ensure you understand their WAP to negotiate effectively.
6. Assess the Zone of Possible Agreement (ZOPA)
Analyse potential agreements before entering negotiations. The Zone of Possible Agreement (ZOPA) is where the goals of both parties overlap, allowing for a mutually acceptable outcome. Once you identify a ZOPA, you can work out the finer details within the framework that both parties find acceptable. For example, if your company can accommodate a 2% salary increase annually over three years while similar companies offer the same, and you request a 7% increase over four years, you may be operating within the ZOPA.
