Business & Real Estate

Negotiation is a dynamic communication process in which two or more parties attempt to resolve differences and parochial interests directly through dialogue to achieve a solution or a satisfactory agreement.

Let’s look at each of the steps in the process of negotiation:

Preparation
Good preparation is the key to success in any negotiation. According to research, 80% of a negotiation is won before sitting at the table.

In preparation, we determined what we want to achieve through negotiation (our goals), what arguments and use negotiation tactics, and how we are willing to settle.

For the latter, which is key in any preparation, is to determine our BATNA (best alternative to negotiation), and our backup point (the minimum that we are willing to accept).

In determining our BATNA and our backup point, we know when no agreement is better (when possible agreement is lower than our backup point) and, therefore, when withdrawing from the negotiations.

In addition, a BATNA and well-defined backup point will give us the perspective to know when an agreement is beneficial to us, when to stand firm, and when it is possible to make concessions.

A note on the BATNA and reservation point is that we must be as objective as possible when you define them, taking into account all factors involved, including some intangible and difficult to measure, such as the value of the relationship.

Another point is that we must strive to improve our BATNA before and during the negotiation process, because the better our BATNA better our position to achieve a favorable settlement, for example, could find new customers or suppliers, or in any case, improve the agreements we have with the current.

But in addition to an analysis of our situation, we want to achieve, and the actions we perform, the preparation is also important to collect and analyze as much information as possible from the other party.

We must analyze what aims (goals), their motivations, needs and interests, their alternatives to negotiation, your BATNA, your point of booking, negotiating style, negotiating tactics commonly used, their strengths and weaknesses etc.

For which we could analyze the pre-negotiation dialogue we have with the other party, or seek information from other sources such as customers, their suppliers, their website, their previous negotiations, etc.

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