Many of us feel anxious at the thought of having to negotiate, but, whether we like it or not, negotiation is part of everyday life, both at work and in our personal lives. Negotiation is when two people communicate with the aim of achieving goals that may initially seem contradictory or mutually exclusive. Successful negotiation ends in a win-win situation, in which each party obtains what’s important to them without compromising the needs of the other.

80% of a successful negotiation lies in the preparation. Anyone who’s well prepared can enter into a negotiation without coming out in a cold sweat. 

The first step is to decide on your limits. For example, if you’re negotiating a mortgage with your bank, what’s the maximum rate you’re willing to pay? This requires time and preparation: comparing the conditions of various banks and showing your bank the best offer you’ve found.

Then, what will be your alternative if your discussions aren’t successful? This is where BATNA (“Best Alternative to a Negotiated Agreement”) comes in. Would you be willing to change your bank or even abandon your purchase if you didn’t manage to stay below the maximum rate you’d decided on? This framework is essential in any negotiation: you have the psychological benefit of knowing there’s an alternative solution if the negotiation fails. You’re not under pressure.

Finally – and this is the most important thing – establish what the other party needs. Don’t assume that the ball’s totally in your bank’s court: making a deal with you is in its best interests and it will do everything in its power to stop you running off to the competition. 

“But work relationships aren’t as simple as that”, you’ll tell me. Don’t be so sure: the same principles apply to any negotiation.

Eric* would like to take on more responsibility at work. If he isn’t successful, his BATNA will be to request a new job in a service that can offer him the responsibility he wants. Eric has made discreet enquiries and identified the services that require his skills and have the necessary budget. He also knows that his boss needs his experience and values stability in his team. 

Negotiation is a rational activity, not an art reserved for a handpicked elite. By preparing well, starting to plan early, collecting all the essential information and, above all, keeping a fallback position in mind, anyone is capable of negotiating with a cool head.

*Names have been changed

Pierre Gildemyn

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