Good Negotiation

Good negotiation always focuses on improving the situation, focusing on which problems you intend to solve, and what kind of expectations you expect to reach.

At the negotiation table, everything is dynamic, some are under control, some perhaps not, and there is no “one size fits all” negotiation approach to make a good deal. So how to set objective criteria that have been successfully used to evaluate options in complex, multi-party negotiations:

Industry benchmarks or standards: In business deals, looking at typical terms, pricing, or service level agreements within the industry can provide neutral points of reference.

Example: Using average commission rates or standard warranty periods as a basis for negotiating a sales contract.

Historical precedents: Examining how similar issues or disputes have been resolved in the past can help establish fair and consistent outcomes. Example: Referring to the terms of previous collective bargaining agreements as a starting point for labor contract negotiations.

Third-party assessments or appraisals: Bringing in independent experts to evaluate the options based on objective criteria like market value, risk assessment, or technical feasibility. Example: Hiring a real estate appraiser to determine a fair price range for a commercial property transaction.

Cost-benefit analysis: Thoroughly evaluate the quantifiable costs, benefits, and tradeoffs of each proposed option to determine the best value. Example: Conducting a detailed cost-benefit study to compare different infrastructure investment proposals.

Agreed-upon decision matrices: Collaboratively developing a scoring system or decision matrix with weighted criteria to systematically evaluate the options.

Example: Creating a matrix to assess different supplier proposals based on factors like quality, delivery time, and total cost.

Relevant laws, regulations, or organizational policies: Ensuring proposed options comply with applicable legal, regulatory, or internal requirements. Example: Verifying that a real estate transaction aligns with local zoning laws and the company's procurement guidelines.

Good negotiation always focuses on improving the situation, focusing on which problems you intend to solve, and what kind of expectations you expect to reach, The key is to identify impartial, measurable standards that all parties can accept as a fair basis for comparison and decision-making. This helps depersonalize the negotiation and focus the discussion on objective criteria.

Posted in: Communication,Global Perspective