Fundamental principles surrounding negotiations

Abstract

This paper is about some of the basic, foundational and fundamental principles surrounding all negotiations. An understanding and appreciation of these will ensure you get all your negotiations off to a flying start, making sure you are prepared and able to handle many of the brickbats and setbacks that will almost inevitably come your way. Over the next few paragraphs you will learn the importance of thorough preparation and the steps with which you should familiarise yourself, including conducting ‘an audit of the barriers to an agreement’ to save time poring over the reasons why a deal ‘died’. You will be introduced — if you were not already acquainted — to the Best Alternative To a Negotiated Agreement (BATNA): why it is so important, what you should be doing during your negotiations to strengthen it, and how it differs from a ‘bottom line’. Knowing the difference between ‘distributive’ and ‘integrative’ negotiations is explained, as is why you should always (with the odd exception) make the first offer, providing it is within a reasonable Zone of Possible Agreement (ZOPA). You will be introduced to ‘break points’, ‘fixed pies’ and the fundamental distinction between ‘positions’ and ‘interests’ and why taking the time to decipher the difference is a huge aid to you arriving at a great deal. Finally, I will highlight some of the tricks and techniques used by the other side in an attempt to pressure you into giving in and, perhaps more importantly, how you sweep them aside and render them useless.