In preparing for your next business or labor negotiation, it is critical that the interests of the team be aligned with those of the firm, union or group.
In a recent article, I stated that negotiation is 80 percent preparation and 20 percent execution. Yet, the results of our surveys of local middle and upper managers about their negotiation preparation strategies indicated that their level of preparation varied greatly. The responses ranged from a total lack of preparation, to days of assembling information and developing strategies.
Let’s review a sample of their responses and discuss how you should prepare for your next negotiation.
When is it enough?
- "As much as one tries to anticipate, there are always surprises."
- "I usually plan the strategies in my head a day or two prior."
- "Not much. It’s pretty much impromptu. I have to think on my feet."
- "I spend a fair amount of time researching the company and its products."
- "Whatever time is required to find, document, and understand all reasonably associated facts."
- "Sometimes I like to think about things overnight and provide possible solutions the following day."
- "When it’s a contract review, I’ll spend hours."
- "Usually the dollar amounts involved and the level of complex specifications dictate the time spent planning."
- "I spend a lot of time informally walking through the negotiation in my head."
- "I prepare ahead of time and try to fully understand the situation to the best of my ability. I ask questions beforehand and do my information gathering."
- "Preparation is being familiar with the situation and analyzing all of the components to reach a successful conclusion."
It depends on the situation, and the subject.
- "If it is something small I do not plan at all. If it is something such as re-negotiating a contract I put a lot more time into it."
- "The more serious the subject, the more time I spend preparing for it."
- "The bigger the task/topic, the better prepared you need to be."
- "The greater importance or concern I have, the more preparation I will place into the planning process."
- "It depends on the seriousness of the discussion and my comfort level with the subject."
- "If this is a negotiation that will have a significant impact on my team, I will set aside a block of time to prepare my materials and rt out my thoughts."
- "The more serious the potential consequences, the more time I devote to preparation."
- "For large budget programs, I spend quite a bit of time discussing the pending negotiation with internal stakeholders so any ‘new’ perspective does not surprise me."
- "I try to accumulate as many facts as possible related to the items negotiated. For work it depends on what is being negotiated."
The data speaks
As you can see from these responses, the level of preparation varies based upon the seriousness of the negotiation, the subject matter, the impact on the individual or their team and the perceived value of the negotiation. These same factors influence the amount of time invested in the preparation. In order to be properly prepared, team leaders need to follow these steps:
1. Review the results of the previous negotiation.
Start by looking at agendas from previous negotiations. Review the meeting minutes and the negotiation notes. Study the arguments presented by both sides and review each side’s concessions.
2. Review the operating experience during the term of the previous agreement.
There are a number of questions that need to be addressed prior to the next negotiation. What implementation or service related problems have you experienced during the term of the agreement? What contract language needs to be clarified or changed so that the agreement functions more smoothly?
3. Assemble your team and assign roles to team members.
Determine who should be on your team based on the need for expertise. You should consider who would be on the other side’s team. Assemble a cross-functional team that represents the people who will be involved in the negotiation and implementation of the agreement. In this way, you insure that all individual and global issues are raised and included on the agenda. Each team member should play a specific role in the negotiation. Someone should take notes, one member should be an observer, and another should listen, while another should be the team leader.
4. Generate data pertinent to the upcoming negotiation.
Accurate data is crucial to the development of your strategies and tactics. You need to develop ‘baseline data’ for comparisons that include a summary of economic factors (inflation, interest rates, etc.), costs (both unit and total), and financial criteria (ROI, etc.). A number of questions that need to be asked are as follows. What has changed in the business operating or competitive environment since the last negotiation? What has changed in the economic or regulatory environment since the last agreement?
5. Role-play the negotiation with your team.
This is a critical step in the preparation sequence. Set up a number of dry runs when possible. Engage in role-playing in which one person assumes the persona of the opponent to teat your strategies and tactics. Contact an individual in your organization that has the same position as the person whom you are negotiating against and ask for their input about your approach. Adjust your strategies and tactics based on the feedback from your team and the experts.
6. Assemble your agenda.
One you have determined your strategies and tactics, it is time to assemble your agenda. This exercise will assist you in deciding how much time will be needed to execute the negotiation. It will also assist you in prioritizing your issues in the negotiation. Once the agenda is finalized, exchange it with the team leader of the other side. The sharing of agendas permits both sides to be prepared for a productive negotiation and establishes rapport and trust in the process.
Following these steps will help you better prepare for your next negotiation. It will increase the probability of success in achieving your goals in the negotiation. These same steps work when the negotiation is between two individuals. Remember, 80 percent is preparation, 20 percent is execution. Any time not spent on preparation will be spent on execution, which is more time-consuming and expensive.
Be prepared
1. Review the results of the previous negotiation.
2. Review the operating experience during the term of the previous agreement.
3. Assemble your team and assign roles to team members.
4. Generate data pertinent to the upcoming negotiation.
5. Role-play the negotiation with your team.
6. Assemble your agenda.
