Part 1:
The Harsh Truth: Are You Preparing or Just Winging It?
As negotiation leaders and trainers, we’ve all seen it: the executive who walks into a high-stakes meeting armed with little more than a strong opinion and a vague target number. They view preparation as “too much work,” relying instead on charm or aggression to carry the day.
Ask yourself honestly: Are you investing in preparation, or are you just winging it and hoping for success?
Winging it is the most common tactical error in negotiation. It transforms a strategic dialogue into a reactive brawl. Mastering the craft starts with an unflinching commitment to groundwork that defines not just what you want, but what you need and what you must do if the deal fails.
A seasoned negotiator understands that a deal is won long before the meeting starts. Research shows that 85% to 90% of your time should be allocated to preparation, with only 10% to 15% dedicated to the actual negotiation itself. You must NEVER go into a negotiation without preparation; no matter how great a negotiator you are, being unprepared will not achieve the right result.
The Non-Negotiable Foundation: Your Success Roadmap
A successful negotiator doesn't enter the room until three critical points are defined for both sides. If you haven't calculated these, you haven't prepared.
| Concept | Definition | Your Objective |
| MDO (Most Desirable Outcome) | The absolute best possible agreement, serving as your benchmark. | Set this aggressively, defining the lowest price or best terms you could achieve. |
| Interests | The underlying needs, desires, and fears driving your position. | Go beyond what you say you want (your position) to determine why you want it. This is the source of value creation. |
| LAA (Least Acceptable Agreement) | Your bottom line; the terms you must achieve. Settling for less is not acceptable. | Define this strictly before negotiations begin to leverage new information in handling offers and counteroffers. |
| BATNA (Best Alternative to a Negotiated Agreement) | Your non-deal alternative—the most attractive course of action you will pursue if the current negotiation reaches an impasse. | This is your ultimate source of power. You must know your BATNA and actively work to strengthen it before talks begin. |
| Reservation Point | The "walk-away" point; the indifference point between accepting a deal and pursuing your BATNA. | This must be determined before the discussion starts to prevent rash decisions under pressure. If the other party’s offer is worse than your Reservation Point, you walk. |
The Preparation Checklist: Seeing the Full Picture
You must analyse your own perspective and the perspective of your counterpart. Many fail by focusing only on their own goals. A negotiation is a two-way street. Remember, successful negotiation involves more than just price.
Core Questions to Answer Before You Sit Down:
- What are my long-term goals and interests? How do they rank in importance?
- What objective criteria and benchmarks support my preferred position? (e.g., market rate, industry precedent).
- What do I genuinely believe the other side’s interests, BATNA, and Reservation Point are? How can I find out more?
- Is there a Zone of Possible Agreement (ZOPA)? If your Reservation Point and theirs overlap, a deal is possible. If they don't, you need to add more issues to the discussion to create a ZOPA, or be ready to walk.
Preparation must also include assembling a fact base, which may involve tools like a clean sheet cost build-up for pricing analysis, and creating negotiation fact packs. You must plan the agenda and determine when and what concessions you will give, and when and what you will ask for.
The Challenge:
Are you dedicating 85-90% of your effort to this deep analysis, or are you hoping to "figure it out" once you're already at the table?
"Mastery is built in the silence of preparation, not the heat of the moment."