At blueprint, we believe that success can be planned, that winning is by design, and that you are the architect of your outcomes. Here are 5 tips to help unleash your potential the next time you are at the table:
- Value the Proposition: Work to understand exactly what it is that you want to achieve and be crystal clear about this. Understand the numbers, sure, but also understand the softer things that you may achieve, and try to put a value on them (e.g. the improvement in relationship, freezing out a competitor, future opportunity for growth etc.). Now comes the real trick... do the same for the person you are dealing with... intimately try to determine what exactly is in it for them. What will they get out of the deal if it goes through as planned? In our experience, good businesses are pretty good at working out what’s in it for themselves; the real trick is to equally seek to understand what is in it for the other party. It's the balance of what is in it for you AND what is in it for them that can determine who wants the deal more and what concessions should be tabled.
- Determine the Balance of Power: Produce a 'power analysis'... What things are giving you power in the lead up to this deal? What things are giving the other party power? Who holds the balance of power? Is it 50%-50% or 80%-20% or 30%-70%. Seek to understand this balance and then, importantly, try to produce a plan that will alter the balance of power more in your favour prior to the meeting taking place. This may mean that you have to do something (e.g. check out competitor pricing or check your supply chain logistics model, check specifications of product etc.). Whatever it is that you determine could give you more power, try to do it before the meeting date.
- Build your 'Shopping List': This is such an important step. We believe that the success of your next negotiation will almost certainly lie in the length and quality of your shopping list. What is it that you could ask for in order to make the deal work for yourself. Make a list of things that you want from the other party, don't be afraid to ask for them, and never run out of things to ask for.
- Build your 'Currency list': There is no such thing as a free lunch, in negotiation you have to be prepared to make concessions, at Blueprint we call these concessions 'Currencies' and you will literally swap shopping list items for currencies. Just as you would go to a supermarket with a shopping list in your hand and currency in your wallet, you take a tin of beans off the shelf because it is on your shopping list, when you get to the checkout you pay for it with the currency in your wallet. Negotiation is no different, be prepared to ask for what you want from your shopping list, but recognise that you may have to offer a 'currency' to pay for it. What things are you prepared to concede in order to make this deal work? Think about it and prepare your list of currencies. Remember that it is not weak to 'give' in negotiation, the trick is to ensure that you don't start a precedent and to ensure that you get something of at least equal value back in return.Recognize also that all shopping list items have value, and all currencies have cost associated with them. It is wise and prudent to conduct a full cost-benefit analysis at this stage of your planning to ensure that the deal works commercially for you.
- Plan Your Tactics: There are so many things to consider here so, at this planning stage, give sufficient time to think about them (e.g. are you going into a hostile or a friendly environment? Will the deal be done at their office or yours? Who will be present on both sides? What will your opening gambit be? What do you anticipate theirs will be? What will be your first shopping list request and currency offer? What is your walk away position?). Remember to give equal consideration to the tactics the other party may employ and you counter-tactics.