Designing the Structure

Before producing a blueprint for a building, an architect first studies the functionality of the structure—the purpose it will serve. When you are planning a negotiation, you need to think like an architect and devise a structure and a process that will best fit the purpose of the negotiation.

Structuring your approach

Every successful negotiation starts with a clear structure: defined roles, agreed rules, a set agenda, and a schedule for action. A framework for the negotiation will most likely be suggested by each of the participants. It is then subject to negotiation and joint re-creation so that all parties are satisfied that it reflects their concerns. Consult with your opposite number before you negotiate to agree all procedures that you will use. If you cannot agree on the procedures, it may be better to postpone or abandon the negotiations altogether.

Making a framework

Your agreed framework needs to be sufficiently flexible to accommodate changes in circumstance, but should at very least cover the following:

• Basic ground rules These need to be agreed with your counterpart. For example, is it acceptable to change negotiators in midstream? Are observers allowed? Is the meeting open or closed? How should people be addressed and how should priority of speech be given? What will be the course of action if you cannot reach agreement?

  All parties should agree to listen respectfully to one another, attempt to understand the positions of others, and refrain from legal proceedings for the duration of the negotiation.

• A clear agenda This should include all the substantive issues and interests that you and your opposite number wish to negotiate. Clarify the level of importance of each issue and decide the order in which issues should be discussed. Some negotiators prefer to start with easy issues, others tackle everything together.

• An agreed venue Chinese philosopher Sun Tzu’s Art of War states that one should “lure the tiger from the mountain”—that is make your counterpart leave their comfortable environment. Ask yourself how the choice of venue will affect you and your team. At the very least, ensure that you will have access to the necessary support (computers, secure phone lines, and advisors).

Managing processes

Once you have an agreed framework in place, you also need to structure the processes that will steer the negotiation through its various phases. There are three distinct processes—the negotiation process, the temporal process, and the psychosocial process—that come together in any negotiation. Each requires a different set of skills.

The negotiation process involves managing information and communications during the discussions, planning and re-planning, coordinating efforts between negotiators, making moves and countermoves (all in real time), and making important decisions under conditions of uncertainty and time pressure.

Keeping time

The temporal process involves managing time and the way in which the negotiation moves from one stage to the next by appropriately pacing the speed of each stage and synchronizing the actions of the negotiators. Many negotiations (and sales presentations) stall because the negotiators labor points for too long and are unable or unwilling to move the process toward its closure phase.

Thinking straight

The psychosocial process requires a sound knowledge of human behavior and an understanding that people will take on “roles” during negotiations. You need to be able to overcome barriers to rational negotiation and avoid psychological traps, such as the illusion of optimism, a sense of superiority, and overconfidence. Other hazards include a reluctance to reverse a decision that produces poor results or intense conflict, and competition between negotiators in the same team.

Playing by the rules

The purpose of processes and structures is not to constrain the progress of the negotiation, but to give you tools to resolve challenges or impasses. Having clear rules will allow you to:

• Move from multiparty negotiations to one-on-one negotiations.

• Change the level of negotiation, upward or downward.

• Replace negotiators who are self-serving or too rigid.

• Expedite the process by issuing a deadline.

• Change the venue or schedule.

• Conduct some of the negotiations behind the scenes by introducing a back channel.

Avoiding common mistakes

Never underestimate the risks associated with poor preparation: when you fail to plan, you plan to fail. The most common errors in forward planning include:

• Relying on secondary information

  Always seek out reliable sources of primary information. By all means read industry report analyses, reports of management projections, and corporate annual reports, but consider that these reports may sometimes be inaccurate or biased.

• Availability bias

  It is easy to find information that is widely available. Make an effort to uncover information that is not so easy to obtain.

• Confirmatory bias

  Do not filter out important information because it does not fit with your existing points of view and beliefs.

• Information asymmetry

  Do you really know as much as you think? To be safe, you should assume by default that you know less than the other party.

• Overconfidence

  If you underestimate your counterpart you will neglect to plan well. If you already think you know how a negotiation will end, you may exclude new sources of information and creative solutions.

• Underestimating resources

  In any negotiation you must be able to present supporting facts, anticipate how the other side will respond to your arguments, and prepare counterarguments. Do not underestimate how long it can take to assemble such information, especially if you require input from experts and colleagues.