Negotiation is a method of solving disputes, based on differing views and goals. Understanding the basics will enable you to to create value and achieve it, as well as manage concerns about fairness and come to a positive outcome, whether you are a natural-born negotiator, or you have to work on it.
You should prepare for the negotiation by defining your objectives and obtaining the required information and research to achieve them. This helps you anticipate counterarguments and develop strategic plans for success.
It is also crucial to know the other party’ interests, as well as their desires, needs and worries in order to anticipating potential objections. It is also important to be able explain your own personal interests and the motivations behind them. If you do that, you will be resource more convincing and credible.
Finally, you should be willing to compromise, within the limits of reason. It’s not a good idea to adopt a rigid position at the beginning of negotiations, because it can be interpreted as a lack of confidence in reaching an agreement. Instead, offer concessions on something you consider important, but only if the other party is also interested.
Another important aspect of preparing for negotiations is knowing your walk-away point (your BATNA, or the best alternative to a negotiated agreement). This will help you decide when to end the discussion, as you won’t be able to keep negotiating in the hope of achieving an equitable agreement if the other party is unable to find a solution.