3 – Discussion, proposal, negotiation
3
Negotiating means minimizing the concerns of the other party, explaining your proposal in the context of the value you offer; negotiating is the key to creating value through agreements that make both parties better off than they would be without the agreement.
The value of something sometimes goes beyond the mere concept of price: it is equal to the perceived benefits (the satisfaction of the interests of those who desire that something) minus the perceived price.
Excerpts from Black Moves First
Life, whether we like it or not, constantly forces us to make choices and decisions; and many of these decisions lead to negotiations that we would often prefer to avoid because they involve mixed feelings and complex emotions.
Deciding when not to negotiate is often a complex and difficult issue that requires the same analysis and time that we should devote to preparing for a negotiation.
Even when a negotiation is simple, we should always at least analyze the interests, needs, desires, and basic motivations (whether explicit or not) of both ourselves and our negotiating partner; then we should move on to the options, which consist of the choices the parties could consider among those available to satisfy their interests; finally, we should think about the solutions we will pursue if the agreement is not successful, analyzing the best alternative to a negotiated agreement.
This is the moment to take advantage of what you have generated during the preparatory phase: involve your negotiating partner so that he or she also contributes equally, with as many options as possible, freeing and unleashing creativity. When both parties work together and share ownership of the work, they are the authors and it is easier to reach agreement.
At this stage, options are possibilities. They are not offers or commitments.
They are often not associated with numbers or timelines, and for that reason they need only be possible, without any evaluation against your BATNA or fairness criteria.
Keep in mind that clarifying the authority of your negotiating partner also makes legal sense: you may find yourself negotiating with someone who lacks effective representation and therefore cannot bind the party he represents to a contract.
There are short negotiations that begin and end with a single meeting where the participants can (and do) make all the decisions and commitments involved; then there are negotiations (especially in the world of business and public policy) that are much more complex, requiring not only a series of meetings to discuss the various points, but also activities to be carried out before and after each meeting to ensure that all the necessary information is gathered, the right people are consulted, and potential pitfalls are explored.