Negotiation preparation

Situation analysis and determination of strategy

Short or long-term partnership

Co-ordination (low conflict potential; short time horizon of partnership)

Preservatiom of one's energy and resources. Flatmates designing new door plate, someone stealing your seat while going to bathroom

Competition (high conflict; short partnership)

"Player " can't be punished for his behaviour

Temporary reorganization managers, top political level, markers with protagonists in fast-changing positions (Russia, CEE), real estate market, market for equity

What is at stake? Existence, job or only peripheral effects?

Relationship (low conflict; long-time partnership)

Nearly all human interrelations designed for long term: partners deciding on furniture, lobbyists, friends picking a movie, reporter-informant.

Partnership (high conflict; long-time relationship)

Supplier or client relationships; banks, financial industry (banks, investment brokers), law firms, comsulting companies, auditors

Legitimisation

Collect supporting data - gather evidence, market standards or precedents that validate your demands and show they are fair or standard

Use third-part endorsements - reference expert opinions, policies, or industry benchmarks to strenghten your position

Reinforce credibility - grounding arguments in data, you create stronger foundation for your case adn build trust with the partner

Target definition

Analysing and determining your objectives in ansystematic and clear manner

Link to strategy - align targets with broader strategy (competitive, collaborative etc.) thus ensuring consistency in approach

Negotiation partner profile

Know the other side - Nixon-Khruschchev example

Consider their restraints - time, budget, authority that may impact their flexibility or offer potential leverage

Evaluate decision-making style - are they more collaborative or competitive, cautious or risk-tolerant

Assess partner's needs and interests - priorities, pain points, what they may stand to gain or lose

Best alternative (BATNA)

Best solution could be breaking off the negotiation

Brings parties closer to their individual targets than the possible agreement could

In many cases parties conclude with an agreement, leaving them worse off

Psychological pressure to agree and to not waste the time and energy already spent

Other means to satisfy one's interests apart from the actual negotiation

Maybe better to postpone or call upon an arbitration court

Deals exclusively with the remaining options if the negotiation fails

Determines "walk away" or "break off" point

Easier to say no