You're preparing for a contract negotiation. How can you use data to give yourself an edge?

1 Define your objectives

Before you enter a negotiation, you need to have a clear idea of what you want to achieve and what you are willing to compromise on. Data can help you define your objectives by quantifying your value, your alternatives, and your priorities. For example, you can use data to calculate your market rate, your best alternative to a negotiated agreement (BATNA), and your reservation price (the lowest acceptable offer). You can also use data to rank your preferences and trade-offs on different issues, such as salary, benefits, duration, and scope.

2 Research your counterpart

Knowing your counterpart's interests, needs, and constraints can help you tailor your offer and anticipate their responses. Data can help you research your counterpart by providing insights into their background, reputation, and behavior. For example, you can use data to check their credentials, their past contracts, and their negotiation style. You can also use data to identify their sources of power, their motivations, and their pain points.

3 Prepare your evidence

Data can also help you prepare your evidence to support your claims and counter any objections. Data can help you select the most relevant and credible information to back up your arguments and persuade your counterpart. For example, you can use data to show your achievements, your benchmarks, and your projections. You can also use data to compare your offer with similar cases, industry standards, and best practices.

5 Test your assumptions

Data can also help you test your assumptions and avoid any biases or errors in your judgment. Data can help you validate or challenge your beliefs and expectations about the negotiation and the counterpart. For example, you can use data to confirm or refute any claims, arguments, or proposals made by the counterpart. You can also use data to review or revise your own objectives, alternatives, and priorities.

6 Evaluate the outcome

After the negotiation, data can help you evaluate the outcome and learn from the experience. Data can help you measure the results, the satisfaction, and the performance of the negotiation. For example, you can use data to compare the final agreement with your initial objectives, your BATNA, and your reservation price. You can also use data to assess the quality, the fairness, and the durability of the relationship with the counterpart.

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?