by | Focus | Common Barriers | Approach | |
| 1-D | Tactics
(People and Process) |
Interpersonal issues, Poor communication | Act “at the table” to improve Interpersonal processes and tactics |
| 2-D | Deal design
(Value and Substance) |
Lack of feasible or desirable agreements | Go “back to the drawing board” to design deals that unlock value that lasts |
| 3-D | Setup
(Scope and Sequence) |
Parties, issues, BATNAs and other elements don’t support a viable process or Valuable agreements | Make moves “away from the table” to create a more favourable scope and sequence |
Setup involves setting a stage for a positive outcome of the negotiation. The environmental factors play a huge role in the negotiation, so it pays to do appropriate research to gain as much knowledge as possible about your negotiating partner.
The first phase of every negotiation is the Setup: setting the stage for a satisfying outcome to the negotiation. The more you can stack the odds in your favor before you start negotiating, the better the deal you’ll be able to strike:
- Who is involved in the negotiation, and are they open to dealing with you?
- Who are you negotiating with, and do they know who you are and how you can help them?
- What are you proposing, and how does it benefit the other party?
- What’s the setting will you present your offer in person, by phone, or some other means?
- What are all of the Environmental factors around the deal do recent events make this deal more or less important to the other party?
Structure is the terms of the proposal. By thinking on the Structure of your proposal in advance, you can have valuable options for your partner to consider, and eventually reach Common Ground.
The second dimension of negotiation is Structure: the terms of the proposal. In this phase, you put together your draft proposal in a way they’re likely to appreciate and accept:
- What exactly will you propose, and how will you Frame your proposal to the other party?
- What are the primary benefits of your proposal to the other party?
- What is the other party’s Next Best Alternative, and how is your proposal better?
- How will you overcome the other party’s objections and Barriers to Purchase?
- Are there Trade-offs or concessions you’re willing to make to reach an agreement?
Discussion is actually presenting the offer to the other party. This is where you work on the details, remove Barriers to Purchase, and more. Discussion continues until the parties reach an agreement or quit negotiating.
Prepare the Three Dimensions of Negotiation to increase greatly the chances of reaching an agreement that benefits both parties.
The third dimension of negotiation is the Discussion: actually, presenting the offer to the other party. The discussion is where you actually talk through your proposal with the other party. Sometimes the discussion happens the way you see it in the movies: in a mahogany-walled boardroom, across the table, toe-to-toe with the CEO. Sometimes, it happens over the phone. Sometimes it happens over e-mail.
Whatever the setting, this is the point where you present your offer, discuss or clarify any issues the other party doesn’t understand, answer objections and remove Barriers to Purchase, and ask for the sale.
Regardless of what happens during the discussion phase, the end result of every round of discussion is either:
- “Yes, we have a deal on these terms,”
- “We don’t have a deal quite yet here’s a counteroffer or another option to consider,” or
- “No, we don’t have a deal there’s clearly no Common Ground, so we’ll suspend negotiations and reserve the right to talk to somebody else.”
