Situation: The CEO of a company is engaged in an important negotiation. There is a debate within the management team regarding the best way to prepare and engage in this negotiation. How do you prepare and engage in an effective negotiation?

Advice from the CEOs:

• In any situation where a decision between two parties is to be decided preparation is critical.
  • Start with the basics. What is the bottom line that the company wants or needs to achieve?
  • Once the bottom line is identified, determine the strategy and what will be required to achieve this.
• The most important question is why an agreement is being sought. What is the objective and what does a win or a win-win look like? How are they different if they are?
• When meeting with the other party, listen with understanding.
  • Start by establishing norms to govern the discussions. These may include: one person speaking at a time, being up-front about objectives and positions, and the length of the discussion.
  • Avoid the distraction of thinking about the next move – know the possible moves in advance as well as the conditions and consequences associated with them.
  • Be prepared to tell the story of where the company wants to go any why the goal is important for both parties.
• Good decisions between parties are based on trust.
  • Be trusting until given a reason not to be.
  • Point out items or statements that challenge trust and ask for clarification.
• A Peer-to-Peer approach is the best alternative.
  • Look for equal give and take. Keep the conversation and negotiation balanced.
  • Don’t start with your real bottom line. Ideally, work with the other party in give and take until it is achieved.
  • Be willing to walk away if the discussion won’t fulfill the company’s needs; but if this is necessary, do it courteously. Leave the door open for possible future opportunities.

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