In Roman times, negotiation was associated with leisure, with an activity carried out during one’s free time. Today, the negotiation/leisure link may seem surprising because negotiation is more often seen as a source of anxiety and uncertainty, especially when the parties involved hold divergent points of view. It is all the more feared because its outcomes are uncertain. Negotiations unfold through exchanges during which the protagonists raise issues, sometimes bringing back topics that had previously been set aside, so that their initial wishes do not always come to fruition; and their current gains can be taken away. But no one can avoid negotiations forever (whether in personal or professional life). Continuing to dread them, hoping to experience them as little as possible, or enduring them when they arise, fuels this fear of negotiation. Let’s take the bull by the horns and see negotiation as an opportunity to find creative and mutually beneficial solutions. The more prepared you are, the more information you have, the better your overall view of the situation, the more solutions you consider based on different scenarios, and therefore the greater your chances of coming away satisfied with your exchanges. In this article, we present ten key factors to take into account in order to prepare effectively for a negotiation. These elements are grouped into three categories: knowledge of the negotiation stakeholders, the topics discussed (and likely to be discussed), and the course of the meeting. By following this practical advice, you will be better equipped to conduct a fruitful and constructive negotiation.

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Analyzing stakeholders: keys to successful negotiation

You are about to begin a negotiation and want to put every chance on your side to prepare for it. First, focus on the negotiation stakeholders and ask yourself the right questions.

The personal relationship

Have you already met the people who will be present at this negotiation? Have you only seen them in photos? Or do you not know what they look like? If the last option applies to you, still try to find out what they look like physically so you can easily recognize them on the day and avoid any hesitation. Depending on whether you have met these people or not, you could reread your notes or summaries of previous exchanges, or recall how those discussions unfolded. During your previous exchanges, were you able to gather information about their family situation, demographics, or interests? Bringing up these elements could demonstrate your listening skills.

Do you call them by their first name or use "Mr." or "Ms."? One or the other does not send the same message. Using a first name implies potential closeness, which may evolve toward informal address. Depending on the context, using a first name will be more or less appropriate. If a stranger tries to sell you a product at a high price and suddenly calls you by your first name, you may feel offended and perceive it as disrespectful. If you opt for polite "Mr./Ms.," this shows a certain distance with your counterpart and a cordial relationship woven between you.

What language style do you use with them? Is it standard or informal to deliberately create a close relationship? Is it formal to create a certain distance? Do you use informal or formal address? Your choices will influence the nature of your relationship with your counterparts.

What opinion do you have of each person making up the other party? Is it good or bad, or do you simply have no opinion? What has your instinct told you about their attitude? During your previous exchanges (if you have already had any), have you formed an image of these individuals, their qualities, or their flaws?

The mandate

The second crucial element for preparing your negotiation is understanding, among the stakeholders in the exchange, who holds power and over which decisions: this is the mandate. Do the people opposite you have the power to make decisions on their own? Or do they need approval from their hierarchy? Do they have external people to convince?

Indeed, even with the best arguments in the world, if the person in front of you cannot decide anything, your efforts will be in vain. On the other hand, if you identify the one who has decision-making power, you could influence that person by showing that other people share your point of view. You could also convince the people around the decision-maker so they support your approach.

If you are addressing several individuals, identify each person’s power and their respective influence. For example, you notice that your counterpart, Augustin, is more inclined to listen to you only if his colleague Dominique is convinced by your arguments. In that case, it is wise to first convince Dominique so that she can influence Augustin in your favor.

Finally, do not forget to reflect on your own mandate, because your counterparts will potentially try to understand yours in order to better adapt their negotiation strategy..What are the topics on which you have decision-making power? And on which do you need someone else’s validation to move forward?

Mapping

To better understand your counterparts during negotiation, ask yourself who will be present on the day. Try to understand their role in the company, their seniority, their background, and the knowledge you share with them. It is important to take into account your hierarchical relationship with them and determine whether you will begin the negotiation from a position of strength or weakness. In addition, there may be influential people who will not be present at the negotiation table but whose impact could be significant.

It is also important to consider the number of people present on each side during the negotiation. If you are outnumbered compared with your counterparts, think about how to restore balance. This may involve inviting an additional person to the table, but make sure it does not work against you. However, being outnumbered can also be beneficial to avoid information scattering, build connections more easily, and promote cooperative negotiation. The number of people involved in negotiation is not necessarily associated with its success.

Knowing the topics: arguments discussed and those likely to be discussed during exchanges

The second step is to look at the arguments and topics that will be mentioned or are likely to be mentioned during the negotiation.

Motivation

To prepare for a negotiation, it is essential to understand the motivations of the parties involved. Why does each of them want to conclude this agreement? What are their interests? By identifying their motivations, you could better grasp what is at stake in the negotiation and find solutions that suit all parties (without forgetting yourself, of course).

It is also important to know whether you or your counterpart had the greater interest in concluding the agreement. If that is the case for you, it is important not to show that you are too dependent on the situation, as this could be used against you. If the other party has the greater interest, that can be a favorable negotiation point for you.

Imagine you are negotiating with a supplier to obtain a favorable rate. If that supplier needs to sell a large quantity of products to reach their quarterly target, you can use this information to negotiate a better price in exchange for a larger order. By understanding the other party’s motivations, you can find solutions that suit all the stakeholders in the negotiation.

Options on the table

Options at the negotiation table are the topics the parties discuss directly. This is the opportunity to present your proposals and listen to those of your counterpart. Before starting the negotiation, define the negotiation criteria you are going to address. Will you negotiate on a single criterion or several? Will it be about a price, a percentage, a discount, a date, staffing, or any other specific criterion?

Once your criteria have been identified, think about the different scenarios you may encounter, your counterarguments, how far you are prepared to go on each option, and what you will be able to give up. Do you see a possible zone of agreement? This is called ZOPA for Zone Of Possible. What is the minimum value you would be willing to accept? And your counterpart’s? Likewise for your maximum value and that of your counterpart. By defining your minimum value (and your counterpart’s) as well as your maximum value (and your counterpart’s), you will define your ZOPA and can start from this “zone” to build an agreement.

Finally, it can be useful to broaden your negotiation criteria in order to find creative solutions that satisfy both parties.

Off-table solutions (BATNA)

Before a negotiation, it is essential to think about your BATNA (Best Alternative To a Negociated Agreement), your Best Alternative to a Negotiation, in case the agreement fails. Indeed, this will allow you to stay one step ahead and react effectively. In a "competitive" negotiation, the party with the best BATNA, and also the one with the most alternatives, will be considered in the stronger position.

Let’s take the case of a negotiation between a salesperson from a major brand (say Coca Cola France) and one from a major distributor (imagine Auchan). If Auchan refuses to stock Coca-Cola products, it potentially loses 1% of its turnover, while for the Coca Cola France salesperson, they lose nearly 20% of their turnover. In case of no agreement, Auchan’s plan B would be to import Coca-Cola products from other countries and thus continue offering customers the products they expect, without reducing its turnover. Its BATNA would be very strong, putting pressure on the salesperson opposite, who might be ready to accept huge concessions to recover the market.

BATNA can also mean announcing to the other party that you are leaving the negotiation table. Bluffing is certainly possible but remains dangerous. So, if you cannot announce the end of negotiations, consider postponing the exchange to a time more favorable to you.

But if leaving or postponing the negotiation is not an option for you, consider creative solutions. For example, if your counterpart cannot pay the amount you requested before a certain date, think about proposing payment spread over several months or a deposit before the deadline. And if price remains an obstacle, suggest removing a feature or offering a discount in exchange for referrals to other people.

Finally, do not forget to take into account your counterparts’ off-table solutions. Some of their proposals could be advantageous for you, and it is important to consider them. In short, by thinking about your BATNA, seeking creative solutions, and exploring off-table options, you will be better prepared to negotiate and reach a mutually beneficial agreement.

Justification criteria

Once you have defined your options on the table and off-table solutions, it is important to think about the arguments you will put forward to justify your proposals. To do this, you can rely on what you know about your counterparts, their needs, their motivations, and the reasons why, without you and without your proposal, they will not be able to achieve their objectives.

For example, if you own a château and are negotiating the booking price of your estate, you can rely on the fact that you are the only one able to offer a space large enough to host more than 500 people, while your competitors only have smaller spaces. By highlighting this argument, you show your counterpart that you are essential to meeting their needs and that your proposal is the best option for them.

However, it is important not to reveal all your arguments at the start of the negotiation. You should keep certain strategic information up your sleeve and use it at the right time to strengthen your position.

Anticipating the course of negotiation: substance matters as much as form

Next comes thinking about how the negotiation will unfold. The more you picture it, the more you think about the smallest details, the more comfortable you will be, and the more you will reduce the potential stress one can naturally feel.

The process

Before starting the negotiation, it is important to think about the order of the topics you will address and how important they are to you. What is the most important topic you want to address? What is the second priority topic? Depending on the relationship you have built with others, your hierarchical relationship with them, your past exchanges, the language style you have used with them so far, but also their cultural codes and yours, you will need to find the best way to greet them. A handshake perhaps, or a cordial exchange of glances, or should you let your counterpart decide how to greet you? After the greeting come the first words you will say; they can create an atmosphere favorable to discussion and make a good first impression on your counterpart, so choose them carefully!

Then, it is advisable to let your counterpart speak by adopting an active listening posture. This means you must pay attention to what they say, seek to understand their position, and ask open-ended questions to encourage them to argue their point. This active listening will allow you to obtain important information to refine your proposals and find a solution that suits both your counterpart and yourself. “I heard that your budget cannot go beyond €3,000, and I understand your situation. Based on what you shared with me and what is possible on my side, I can reduce certain production costs to fit your budget without lowering the quality of our service.”

Once you have clearly understood your counterpart’s position, you can summarize what was said to show that you listened and understood their stakes. This recap can also serve as a transition to highlight the advantages you are offering your counterpart.

When you reach an agreement, it is important to summarize the terms of the deal and thank your counterpart for their commitment. It is also recommended to restate the commitments made by both parties and set the next steps (e.g., sending a contract, scheduling a next meeting, etc.).

In summary, preparing for a negotiation involves taking many factors into account such as the order of topics to address, active listening, summarizing, proposing solutions, and concluding the agreement. By following these steps, you increase your chances of achieving a fruitful negotiation.

Communication

When preparing for a negotiation, it is important to think about the structure of your exchanges. You could then create three columns:

• A first column in which you write the topics you want to address during the negotiation. This means drawing up a list of your priorities in terms of discussion topics. You will thus keep in mind the points you absolutely want to cover.

• A second column where you list the elements you want to obtain during the negotiation. This can include information about your counterpart’s budget constraints, specific needs, or expectations regarding your proposal. It is important to note that this column may evolve depending on the information obtained during the exchange.

• Finally, a third column where you note the information you do not want to share during this negotiation. This may include confidential information, your negotiation margins, or your intentions regarding concessions. By listing the information not to be shared, you can avoid mistakes that could harm your position.

With these three points, you will have an overall view of what you want to obtain from the negotiation. You can then determine a course of action to follow and stay focused on your objectives throughout the negotiation.

Logistics

Mastering logistics is essential to reduce the number of elements you have to manage and, consequently, your mental load during the negotiation.

The choice of negotiation venue is crucial, whether by phone, video conference, or in person. You must take into account your own comfort and the message the venue sends to your counterpart. If the meeting takes place at your premises or in a place you know well, you will be more at ease and able to focus on the negotiation itself. If you go to your counterpart’s premises or a neutral location, this may place you in a position of strength or weakness, depending on the circumstances. In addition, the choice of place can send a message: for example, if you travel physically to meet your client, this can show that you are ready to make efforts to build a solid relationship.

The choice of date and time is also important because, again, it sends a message to your counterpart. If you have limited time, you can choose to set an end time to show that you are busy and have other commitments to honor. This can help you obtain concessions from your counterpart. If, on the contrary, you do not set an end time, you show that you are ready to take the time needed to reach an agreement.

As for note-taking, you must ensure that it does not prevent you from following the conversation and paying attention to your counterpart. It is important to choose the right medium for taking notes, depending on your preferences and the negotiation context. If you opt for a computer, make sure to charge it before the meeting and place it so as not to create a physical barrier between you and your counterpart.

Finally, if you plan to share presentations or documents, remember to prepare them in advance and test them to avoid technical issues during the meeting. If you want to offer a book or handout at the end of the negotiation, make sure this is appropriate and sends a positive message to your counterpart.

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Negotiation is an essential part of personal and professional life. A proactive approach can transform negotiation into an opportunity to unlock disagreements and bring forth new ideas that benefit both parties.
By asking yourself about the ten key factors—your personal relationship with counterparts, their mandate (and yours), mapping the stakeholders involved, each party’s motivations (and yours), options on the table, off-table solutions you could share if needed (and if possible, guess others’), justification criteria that will allow you to be convincing, process, communication, and logistical aspects—you can improve your chances of success and achieve satisfying results. Understanding stakeholders, meticulous preparation of the topics discussed, and the way the negotiation unfolds, all while adopting a constructive and flexible attitude, are all keys to conducting a fruitful negotiation.