What are the best practices for identifying and prioritizing concessions in advance?

1 Identify your interests and alternatives

Before you enter a negotiation, you need to know what you want and what you can accept. Identify your interests, or the underlying reasons and motivations behind your position, and rank them in order of importance. For example, if you are negotiating a salary, your interests may include your financial needs, career growth, recognition, and work-life balance. Then, identify your alternatives, or the options you have if the negotiation fails, and determine your best alternative to a negotiated agreement (BATNA). This will help you set your reservation point, or the minimum outcome you are willing to accept.

2 Analyze the other party's interests and alternatives

Similarly, you need to understand the other party's perspective and what they value. Analyze their interests and alternatives, and try to estimate their reservation point and their BATNA. This will help you identify potential areas of agreement and conflict, and anticipate their possible reactions and responses. You can also use this information to craft value-creating offers that address both parties' interests and create a positive negotiation climate.

3 Generate a list of possible concessions

Based on your interests and alternatives, and the other party's interests and alternatives, generate a list of possible concessions that you are willing and able to make in the negotiation. Concessions can be tangible or intangible, such as price, quantity, quality, delivery, service, warranty, reputation, trust, or goodwill. Think of concessions that are low-cost to you but high-value to the other party, and vice versa. Also, think of concessions that can be linked or traded for other concessions, or that can be bundled or unbundled to create different packages.

4 Prioritize and sequence your concessions

Once you have a list of possible concessions, prioritize them according to their importance and impact on your goals and relationship. Assign each concession a value or a weight, and rank them from high to low. This will help you decide which concessions to make first, which to hold back, and which to avoid. You can also sequence your concessions according to the negotiation strategy and style you want to adopt. For example, you can start with a large concession to signal cooperation and goodwill, or with a small concession to test the other party's willingness and flexibility.

5 Plan your communication and presentation

Finally, you need to plan how you will communicate and present your concessions to the other party. Concessions are not only about the substance, but also about the process and the perception. You need to convey the rationale and the value of your concessions, and highlight the benefits and the costs to both parties. You also need to frame your concessions as part of a collaborative problem-solving approach, and not as a sign of weakness or desperation. Moreover, you need to manage your expectations and emotions, and avoid making concessions too quickly, too frequently, or too unconditionally.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?