PREPARING TO NEGOTIATE CMI / VANTAGE PARTNERS, LLC
Much like when we take a journey, if we know where we want to go, we are better able to prepare, deal
effectively with the terrain, and know when we have reached our destination. Similarly, a clear definition of
the elements of successful negotiation allows us to better prepare, diagnose, conduct, and review our
negotiations. As we have studied and participated in negotiations over the past twenty years, we have found
that the following elements are present, in one form or another, in any successful negotiation.
SEVEN ELEMENTS OF NEGOTIATION
Interests are those needs, aims, hopes, and concerns that one seeks to address in the negotiation.
Interests are not positions—the stated demands, or pre-conceived answers that people often bring into a
negotiation. Instead, interests are those things that underlie or shape a position (i.e., one’s underlying needs,
aims, hopes, and concerns).
Options are the range of possibilities on which the parties might conceivably reach agreement. They are
the possible solutions that meet at least the main interests of the negotiators. Unlike an alternative (see
below), something is an option if and only if making it possible would require the agreement of both
negotiators.
Legitimacy consists of those objective criteria or standards that can be used to determine the fairness of
a possible option. External standards of fairness might include laws and regulations, industry standards, past
or current practice, some general principle such as reciprocity or precedent, or some kind of objective process
such as appealing to the judgment of an impartial third party.
Commitment is the option, or package of options, upon which the negotiators ultimately agree. They
are the oral or written statements about what each party will or will not do, how, by when, etc.. Note that
there are times when a commitment should not be reached, since there are times that the negotiators cannot
develop a mutually agreeable solution that is better than what one or both could do “away from the table,”
without each other.
Alternatives are those things that each negotiator can do, without the other party, to meet his or her
interests. Alternatives are not arbitrarily established bottom-lines, but real walk-away possibilities. They may
be things the negotiator can do on their own or things they can do by negotiating with a party other than the
one currently “at the table.” Each negotiator will have a range of alternatives (including doing nothing,
waiting, negotiating with someone else); some may be more realistic than others, and some may better meet
one’s interests than others. Nonetheless, one of the alternatives will meet the negotiator’s interest better than
the rest – this one is the negotiator’s “BATNA” (Best Alternative To a Negotiated Agreement with the party
with whom you are currently negotiating). Note that a negotiator should not commit to an agreement that
does not satisfy his or her interests better than their BATNA.
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8
Communication relates to how the two negotiators talk with one another. This element, and the next,
relate to the process (rather than the substance) of how the negotiation is conducted. Communication in a
negotiation involves the effectiveness of inquiry, advocacy, testing assumptions, building understanding,
structuring the flow of conversations, etc..
Relationship relates to how the negotiators work and deal with one another. A good working
relationship involves, and is built by, developing trust, engaging in joint problem-solving, dealing well with
differences, etc..
DEFINING SUCCESS IN NEGOTIATIONS
The Seven Elements can be used as a measure of a successful negotiation. A clear definition of success is
especially important when we are engaged in complex interactions that may involve multiple parties,
numerous issues, long-term relationships, and many other factors both tangible and intangible. In these kinds
of negotiations, we define (and measure) a good outcome as one where we have either appropriately resorted
to our BATNA, or our agreement:
[ is better (meets our interests better) than our best alternative (our BATNA)
[ satisfies our interests very well, and theirs at least acceptably
[ is value-maximizing, made up of the best of many options invented
[ is legitimate, defensible in reference to objective criteria
[ consists of a commitment that is clear, operational and durable
[ arose out of a process where communication was clear and efficient
[ arose out a process that helped to build a good long-term working relationship
PREPARING TO NEGOTIATE
Each element and each of the above statements of success will bear a different amount of weight (have a
different degree of importance) in each negotiation. Nonetheless, each should be considered. If we choose
to use these elements to measure success, they lead us to some natural conclusions about how to prepare.
For example, if we want to satisfy our and the other party’s interests, we would be wise to consider what
those interests might be, before we go into negotiations. If we want to create an agreement that is made up
of the best of many options, it would be useful, prior to the negotiation, to brainstorm many possible options.
If we want to ensure than our final agreement is legitimate, we should…, and so on.
With this in mind, the “Quick Prep” tool on the following page lays out a set of questions you might run
through to effectively prepare for negotiations. Even if you just have a few minutes, considering the answers
to these questions will help you.
81998 CMI / Vantage Partners LLP. All rights reserved. 2
QUICK PREP TOOL
Interests • How might I be able to improve mine (i.e.,
• What are my needs, aims, and concerns? Why? make it more attractive to me and/or more
• How do I prioritize my needs, aims, and possible for me to resort to)?
concerns? • How might I be able to weaken theirs (i.e.,
• What do I think are their needs, aims, and make it less attractive to them and/or harder
concerns? Why? for them to resort to)?
• What do I think are any key third parties’
needs, aims, and concerns? Why? Communication
• What do I want to learn from them? What
Options questions should I ask?
• What possible solutions, or pieces of a • What messages do I want to convey to them?
solution, might address my and their interests? When and how should I “send” the messages
• Are there other solutions? Are there ways I can to ensure they are understood in the way I
make the ones I have invented even better? intend them?
• Going back to the “list” of my, their, and third- • What might be a useful “agenda” for the
party interests, are there any others (even if upcoming meeting?
they are just small pieces of an overall • Have we had communication breakdowns in
solution)? the past? If so, why? Based on this, what
might I do in the upcoming meeting to (begin
Legitimacy to) fix and/or avoid past communication
problems?
• What standards or criteria might I use with
them to determine which options are most
defensible? Relationship
• Are there any fair processes we might use to • What kind of working relationship would I like
judge the appropriateness of certain options? to (continue) to build with them (i.e., what
would be the attributes of such a relationship –
• Are there any standards, criteria, processes, etc.
for example, mutual respect, well founded
that would be particularly useful to apply to
trust, consistent joint problem-solving)?
particular options I have just brainstormed?
To particularly controversial issues in the • Based on my goal, what kind of things should I
negotiation? do, and what kinds of things should I make
sure to not do, in the upcoming meeting?
Commitment • To the extent we have had relationship
problems in the past, what has caused them?
• What level of authority do I have to reach a
Based on these causes, what might I do in the
commitment?
upcoming meeting to (begin to) fix and/or
• What level of authority do I think they have? avoid these past problems?
• What level of commitment do I think we
should strive for in the upcoming meeting (i.e., Other
reach a final commitment, a joint
• Based on my answers to the above, where do I
recommendation, a list of options we will each
need to do more thinking or “homework”?
consider more fully before our next meeting,
etc.)? • Is there any internal negotiating, investigating,
or clarifying I need to do before going to
negotiate?
Alternatives
• Are there any pre-discussions I want to have
• What are my alternatives? Of these, which is
with the other party before we “begin”
my best (BATNA)?
negotiations (e.g., about how we should
• What do I think their alternatives are? Of conduct the negotiations, how and/or what we
these, which do I think is their best (BATNA)? might each prepare ahead of time, etc.)?
81998 CMI / Vantage Partners LLP. All rights reserved. 3
GETTING READY
Whether you have five minutes or a couple of hours, we find that it always helps to prepare by running
through the “Quick Prep” list of questions. If you only have time to go through them in your mind, that is
fine. Of course, it is even better if you can write your answers down, so that you can refer to them as you
move from question to question (e.g., look at the listed interests as you invent possible options). As you
answer the questions, try to brainstorm – invent without assessing your answers. You can later decide, after
inventing as many possibilities as you can, which you think actually make sense, and which you might share
within the negotiation. Also keep in mind that while it is crucial that you think about their interests and
possible alternatives, you are only going to be able to make your best guess at what those interests and
alternatives actually are. These hypotheses, at least about their interests, will need to be tested in the
negotiation.
Any amount of time you spend considering these preparation questions will increase your chances of
conducting a successful negotiation. However, when you find yourself faced with a more difficult or
complicated negotiation, and you have more time to prepare, consider using the attached preparation sheet,
alone or with a small group, in advance of the negotiation. The attached “Seven Element Preparation Tool”
is a simple and straightforward way to structure and capture your thoughts, and guide you through a
systematic and effective preparation session.
As you consider the elements and these preparation tools, please note that they are applicable to preparing for
more than just formal negotiations over such things as terms and conditions, scopes and schedules, and the
like. They are, in fact, just as applicable to preparing for situations where you must persuade or influence
another person to do such things as consider a new idea, a different focus, or an alternative way of doing
something. Furthermore, they are just as applicable to internal situations with peers, managers, and reports,
as they are to external ones with customers, suppliers, and partners.
The purpose of this memo has been to offer you some advice about, and guidance on, more effectively
preparing for negotiations. Of course, nothing can guarantee success in every negotiation. Nor should any
guideline be applied blindly in every context. Nonetheless, we believe, every negotiator, no matter what style
or strategy he or she might choose for conducting any given negotiation, can strongly benefit from preparation
that covers the ground of the Seven Elements.
81998 CMI / Vantage Partners LLP. All rights reserved. 4
CMI Seven Element Preparation Tool
®
Parties And Issues Interests
The Parties (List both individual and organizational interests, needs,
(You may want to draw a diagram) concerns, hopes and fears)
Ours
Theirs
Important Issues
(Subjects that need to be dealt with)
1.
2.
Others
3.
©1997 Conflict Management, Inc. All rights reserved.
SEVEN ELEMENT PREP TOOL - 2
CMI Seven Element Preparation Tool
®
Options Legitimacy
(List possible options for each issue or major interest) (Identify objective standards relevant to any issues or options
you have identified)
Issue #1 Issue #1
Issue #2 Issue #2
Issue #3 Issue #3
©1997 Conflict Management, Inc. All rights reserved.
SEVEN ELEMENT PREP TOOL - 3
CMI Seven Element Preparation Tool
®
Alternatives Commitment
Your Alternatives Elements of a framework agreement
(circle your BATNA) at the end of a negotiation
n
Ways to improve n
What authority do you have?
Their Alternatives
(circle your estimate of their BATNA)
What authority does the other party have?
Ways to test or, if appropriate, worsen What level of commitment do you want?
This Next End
Meeting Meeting(s)
n Expressing Views?
n Generating Options?
n Joint Recommendations?
n Tentative Agreement?
n Firm, Signed Deal?
©1997 Conflict Management, Inc. All rights reserved.
SEVEN ELEMENT PREP TOOL - 4
CMI Seven Element Preparation Tool
®
Relationships Communication
Currently Preferred Plan the Meeting Plan the Dialogue
n Meeting purpose n Listen for/Questions to
n Products or outputs ask
n People n Talk about/Information
n Process to disclose
Opening n Possible communication
Agenda problems/Possible steps
Roles of team members to avoid problems or
Groundrules improve communication
n Assumptions to test
If gap exists, diagnose possible causes.
In light of these causes, what specific steps might
you take to change the current relationship to the
preferred one?
©1997 Conflict Management, Inc. All rights reserved.
SEVEN ELEMENT PREP TOOL - 5
