book.chapter Preliminary steps - setting objectives

Before diving into the intricacies of negotiation, it's crucial to take a step back and clearly define your objectives. Understanding what you aim to achieve is the first step towards ensuring that your negotiation efforts are directed towards meaningful outcomes. Often, individuals jump into the negotiation process, focusing on the immediate back-and-forth without considering the broader implications of their goals. This tactical approach overlooks the strategic aspect of negotiation, emphasizing the journey over the destination. Without clear negotiation goals, you risk expending time and effort on matters of little significance, potentially harming long-term relationships for concessions that ultimately hold no value. Moreover, without a goal, recognizing a favorable deal becomes challenging. The essence of any negotiation should be to create value for all involved parties and distribute this value in a manner that strengthens, rather than diminishes, the relationship between them. While this concept might seem idealistic and hard to implement, it's fundamental to understand that without mutual benefits, no substantial agreement can be reached. By focusing on creating and sharing value, the nature of the negotiation shifts significantly. When the other party realizes your intent to forge a deal that benefits them as well, it lays the groundwork for a strong, enduring relationship based on successful negotiations that demonstrate a genuine desire for mutual benefit. Instead of squabbling over the division of the existing resources, aim to expand the overall pie. Traditionally, negotiations have centered on dividing the economic benefits within the agreement zone, with the more powerful party often securing a larger share. A more enlightened approach involves both parties collaborating to enlarge the agreement zone itself, ensuring that regardless of the division, both parties benefit from the increased economic value. This collaborative effort not only leads to larger deals and transactions but also transforms the negotiation atmosphere from adversarial to cooperative, fostering opportunities for future profitable engagements. To effectively enlarge the agreement zone and achieve a successful negotiation, it's imperative to consider multiple variables beyond just price. For instance, if a client requests a reduction in consulting fees, negotiating on additional terms such as contract duration, introductions to new business divisions, and first rights to new business can extend the agreement zone and facilitate a deal that enhances the relationship. This approach underscores the importance of setting clear goals for the negotiation, focusing on the 'why' rather than just the 'how', to ensure meaningful outcomes and lasting partnerships. As Brian Dietmeyer and Rob Kaplan highlight, understanding your destination is crucial before planning the journey, emphasizing the significance of goal-setting in the negotiation process.