Negotiation Tactic #18 – Clarifying the Ground Rules

Summary: Creating rules to help enable a win-win negotiation.

Although creating ground rules for conducting a negotiation is not necessary with the majority of counterparts, it may sometimes be in your best interest to do so.

Example

At a negotiation between the union and management team of a Fortune 100 company, the union president and 25 of his closest friends showed up to negotiate. Parts of the negotiation resembled the scene in the famous movie Animal House, when the student body held a trial to formally put the naughty fraternity on probation. There were so many sidebar conversations and comments made by people not leading the negotiation, it was difficult to tell who was really in charge of the union’s team. Just as management started to make progress, someone on the union team would disagree. In this case, the first issue that should have been negotiated was how many players each team could have in the room at one time and who would be allowed to speak on behalf of each team.

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15 Rules of Negotiation

Negotiation is a process that can be learned

By following the 15 rules outlined here–and practicing, practicing, practicing–you can perfect your skills at negotiating deals in which everyone wins.

  1. Remember, everything is negotiable. Don’t narrow a negotiation down to just one issue. Develop as many issues or negotiable deal points as you can and then juggle in additional deal points if you and the other party lock onto one issue.

  2. Crystallize your vision of the outcome. The counterpart who can visualize the end result will most likely be the one who guides the negotiation.

  3. Prepare in advance. Information is power. Obtain as much information as possible beforehand to make sure you understand the value of what you are negotiating. Remember, very few negotiations begin when the counterparts arrive at the table.

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