book.chapter Study

When preparing for a negotiation, there are three key questions to consider: Should I negotiate? Is now the best time? And, do I hedge or go all in? Answering these helps visualize potential outcomes through a "premortem" exercise. Additionally, anticipating major setbacks and planning responses, while also considering potential upsides if aiming high, puts one in a mindset of cautious optimism - often generating the best results. An effective negotiation strategy allows for unpredictable events beyond one's control. While confidence in seizing opportunities is important, accepting negotiation outcomes involve external factors is also key. A reasonable premortem assessing upside benefits and downside threats, while planning for either scenario, enables a balanced and realistic approach. Beyond a premortem, constructing a "deal triangle" mapping out personal interests, expectations of the other party, and external constraints, positions an agreement within this triangle satisfying all sides. Personal interests include acceptable alternatives if the initial offer fails, while anticipating the other party's baseline allows countering unreasonable expectations. Mapping external constraints like deadlines or policies also defines the negotiation's boundaries. Analyzing the triangle enables assessing the likelihood of agreement through a matrix judging the odds of agreement against potential upsides. High odds of agreement with large upsides are priority targets, while unlikely agreements with small upsides are mostly avoided. This analysis enables tailoring negotiation strategies and efforts depending on the deal's positioning. Additionally, reviewing past negotiations provides principles guiding strategy: - Adaptability matters most. Circumstances remain unpredictable, requiring fluid rather than rigid approaches. - Relationships enable deals. Aligning with counterpart interests breeds collaboration rather than opposition. - Creativity and precision together enable identification of potential trades, arguments, or moves. - Study counterparts to understand priorities and temperaments. Time at the negotiation table proves more insightful than solitary preparation. - Remain alert to unknowns. Assuming unknowns checks egos and motivates consideration of other views. - Embrace unpredictability as an ally encouraging nimbleness amidst chaos. These principles helped guide the decade-long negotiation assembling the land for New York's Citibank Center. The broker discerned that a unified parcel would fetch higher prices than individual lots. He convinced Citibank to purchase the block on condition he could consolidate ownership. A discreet holding company made purchases to avoid price inflation. Complex deals like payment via shares rather than cash suited some owners. Sweeteners and win-win alternatives slowly overcame most holdouts. Only revealing willingness to build around the final holdout property secured an agreement. Adaptability, creativity, relationship building, and perseverance despite unpredictability delivered an historic deal. In summary, thoughtful preparation assessing risks, opportunities, interests and constraints establishes a sound negotiation strategy. Combined with an adaptive mindset and win-win principles, even complex deals can be secured to benefit all parties. While remaining alert to surprises, creativity amidst unpredictability can forge mutually agreeable outcomes.