How can you create value and setup a win-win situation for both parties in a negotiation? Make use of these bargaining techniques the next time you are at the negotiation table.
Create Value for a Win-Win Negotiation
As you prepare for a negotiation you need to ask yourself the following questions: What will I do if the deal fails? (What is my BATNA best alternative to a negotiated agreement) How should I prioritize my interests, which are the most important? What does the other side want and what is their BATNA? You can come to conclusions about these questions through in depth analysis with colleagues about both sides of the negotiation. Be sure to receive a mandate from those above you to look into opportunities for mutual gain. Be prepared to offer deals that are better than your BATNA and strategically accomplish your interests.
Integrative Negotiation Strategy: Analyze Interests
How can you uncover your counterparts less obvious interests? The best way is to ask strategic questions and observe their responses carefully. You should always be open to asking and listening in order to better understand their interests, even if you came very prepared and are ready to make an offer. The way in which you ask questions is key, because if you don’t seem authentic and empathetic, you won’t get honest responses.
Many people are apprehensive about the questions as they don’t want to reveal their own interests to their counterparts because they fear it will give the other side an unfair advantage. This is rarely true, in fact it can be very helpful at revealing your counterparts interests because you are acting as a model for the sort of response that you’re looking for.
If you get stuck in a negotiation because of an underlying value difference, try to find some overlapping values that could be an incentive to work together. For example, you could create value by being environmentally friendly. In this case, perhaps you could replace old, polluting equipment with some environmentally friendly machines. These machines would save you money in the long-run, which is your primary interest, but it would be appealing to both sides because of the common interest in of protecting the environment. Don’t allow your differences to take over your negotiations, identify value-creating opportunities by searching for a common interest.