Post #4: Negotiation Analysis. An Introduction

Negotiation Analysis. An Introduction

“Questions are the gateway to knowledge. To obtain greater insight, ask better questions.” 

(c) Greg Williams, The Master Negotiator & Body Language Expert

Being successful in a negotiation comes from hard and long preparation. So one of the most important things before starting negotiating is to ask right and intelligent questions. In these posts I will talk about some approaches which I personally find important to apply while negotiating.

1. BATNAs: What will the respective parties do if they don’t come to agreement?

As I mentioned in my previous posts, BATNA is the Best Alternative To Negotiate Agreement. In other words, it is a Plan-B when an agreement is not reached. However, it does not mean that it is out the bottom line in which we have no other choice than accept the deal. It means that we have to identify and articulate our best or doable alternatives to a negotiated agreement. We should all foreknow the implication, the consequences, the risks, the time pressure and the costs of our and their BATNA. If we do not want the result to be “zero-sum”or distributive we must lead a deep and careful analysis to improve our BATNA. Moreover, we have to identify the best and worst alternatives open to the other side and to understand how we can make their Batna worse for them. 

2. Interests: What are their fundamental needs and priorities?

Assessing interests is important before and during negotiation and even at the end when agreements are being refined and implemented. Unfortunately, getting an answer to this question isn’t always straightforward, so it’s important to identify potential stakeholders and their needs and motivators. There is not just those sitting at the table, but also parties who are unseen but clearly present. In sum, the more we understand the interests of every party involved, the better the chance we have to help them get what they want, which in turn, can often help us get what we want. 

3. Value: How can value be created—and who is likely to get it? 

After identifying our interests and those of our negotiators, the next question we will ask is how value is created. Value is generated in negotiation by capitalizing on differences, not necessarily by finding common ground. Differences may be in valuation, expectations, discount rates, or attitudes toward risk. Unless they are creatively exploited, the parties will squander opportunities that could benefit them both. 

4. Barriers: What obstacles might prevent agreement (or the maximization of value), and how can they be overcome?

One of the barriers is the high concentration on a strategic behavior and on value-creating opportunities trying to win at all costs. The second one is called a psychological and interpersonal barrier. It is very important to maintain control under emotions and not to judge your opponent according to some social stereotypes during negotiations. Careful negotiation analysis also means recognizing possible barriers to agreement as well as structural elements that might be advantageously rearranged. 

5. Ethics: what is the right thing to do? 

All mentioned tasks reveal important moral and ethical issues. It is something about what is wrong and what is right? Knowing the norms of ethics and negotiation can be useful whether we are negotiating for ourselves or on behalf of someone else. We should ask ourselves the following questions: would I advise anyone else in my situation to act this way? Do I want others to treat me in this way? It plays a lot on the emotional aspects and conscience of each negotiator.

Conclusion: 

This lesson helped me understand that rigorous negotiation analysis is necessary for success. However, it is not sufficient. In my opinion, it is not enough to make good negotiation strategies, a negotiator must have personal qualities and know how to persuade his/her counterparts. We have to listen to them in order to demonstrate to the others that we have heard and understood what they have said. We also must have the creativity ability because sometimes results depend on the counterparts’mood and attitudes with whom we will deal.