What criteria do you use to evaluate the opening stage of a contract negotiation?

1 Goals and interests

One of the first criteria to evaluate the opening stage of a contract negotiation is whether you have clearly identified and communicated your goals and interests, as well as understood those of the other party. Goals are the specific outcomes you want to achieve from the negotiation, such as price, terms, or deadlines. Interests are the underlying reasons, motivations, or needs that drive your goals, such as quality, reputation, or relationships. By articulating your goals and interests, you can demonstrate your value proposition, align your priorities, and avoid misunderstandings. By listening to the other party's goals and interests, you can discover their sources of leverage, their pain points, and their potential trade-offs.

2 Information and research

Another criterion to evaluate the opening stage of a contract negotiation is whether you have gathered and analyzed sufficient and relevant information and research to support your position and strategy. Information and research can include market data, industry trends, competitive analysis, legal requirements, best practices, or benchmarks. By having reliable and accurate information and research, you can establish your credibility, justify your proposals, counter any objections, and identify any gaps or opportunities in the negotiation.

3 Rapport and trust

A third criterion to evaluate the opening stage of a contract negotiation is whether you have built rapport and trust with the other party. Rapport is the degree of mutual understanding, respect, and empathy between the negotiators. Trust is the confidence that the other party will act in good faith, honor their commitments, and respect your interests. By building rapport and trust, you can create a positive and collaborative atmosphere, reduce resistance and conflict, and increase the likelihood of reaching a mutually beneficial agreement.

4 Agenda and process

A fourth criterion to evaluate the opening stage of a contract negotiation is whether you have agreed on an agenda and process for the negotiation. An agenda is a list of topics or issues that need to be addressed and resolved in the negotiation. A process is a set of rules or guidelines that define how the negotiation will be conducted, such as the format, timing, sequence, roles, communication channels, or decision-making criteria. By agreeing on an agenda and process, you can ensure that the negotiation is focused, organized, transparent, and fair.

5 BATNA and ZOPA

A fifth criterion to evaluate the opening stage of a contract negotiation is whether you have determined your BATNA and ZOPA, and how they compare to those of the other party. BATNA stands for Best Alternative To a Negotiated Agreement, and it represents the most favorable option you have if the negotiation fails. ZOPA stands for Zone Of Possible Agreement, and it represents the range of outcomes that are acceptable to both parties. By determining your BATNA and ZOPA, you can assess your bargaining power, set your reservation and aspiration points, and gauge the feasibility and attractiveness of the negotiation.

6 Opening offers and responses

A sixth criterion to evaluate the opening stage of a contract negotiation is whether you have made or received effective opening offers and responses. Opening offers are the initial proposals or demands that each party makes to the other, and they signal their expectations, intentions, and flexibility. Responses are the reactions or counteroffers that each party gives to the other, and they indicate their level of satisfaction, interest, and willingness to negotiate. By making or receiving effective opening offers and responses, you can establish a favorable anchor, create value, and generate momentum for the negotiation.

7 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?