Effective Agreements' blog has included several entries touching on negotiations, and this newsletter has addressed several issues as well. Let's see about putting them together as a primer for establishing contract negotiating advantage:
1. Be Prepared. Not very original, but this concerns a negotiation, maybe worth millions of dollars, not remembering a flashlight. Being prepared requires:
- Having read the agreement many times
- Preparing a negotiation strategy that details what concessions will be made for what terms and when
- Having sign off from management on the negotiation plan
- Having permission from management to walk the deal if necessary.
2. Use of the right negotiating team and roles:
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One person who negotiates and is the only person to speak for your side
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One person who only takes accurate notes of the proceedings, especially noting the agreed to and open terms and conditions
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One person who is left free to listen and advise the negotiator when necessary.
3. Negotiate for advantage, but not for destruction
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Give concessions slowly
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Only change your position in small increments
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Do not negotiate a deal that the other side will discover is too much to its disadvantage. That path leads to the dark side. (Oops, sorry about that.) That path leads to a lack of cooperation and difficulty working together on a regular basis, then possibly to litigation.