Negotiation Framework, Part 3: Make It Work

When it comes time to start a negotiation, there are generally two ways of approaching it. The first is to dive in head first, figuring it out as you go. The second is to research every angle and then plan all details, creating a rigid plan of attack. I’d like to propose to you a third approach – a hybrid – because there are benefits to both approaches, and the magic of a negotiation is all in how you balance between those extremes.

Knowing where you’re going in your discussions and what your end goals are is critical, so creating a framework of goals and strategies before you engage in discussions or document revisions is important. But just as critical is cultivating your adaptability, and knowing how to roll with the punches once negotiations really get going.

In this 4 part series, you’ll learn more about creating that framework of goals and strategies, which rather than being restrictive, will actually give you increased freedom to ‘play’ as a negotiator.

In Part 1, we looked at how to dream big – but then take time to figure out which goals are worthy of a place in the Ideal Outcome.

In Part 2, you figured out what your options were, and this means that you’re no longer afraid of what will happen if the deal falls through.

In this part of the series you’ll complete your negotiation goal framework by establishing your ultimate deal breakers and defining exactly how much room you have to play with during discussions. And next time, we'll dive into just how to make the most of the freedom you've created for yourself.

MAKE IT WORK (AKA 'Least Acceptable Agreement' LAA)

Your Make It Work scenario is where you list out your absolute bare minimum needs in order to close the negotiation. With each element that finds its home on the Make It Work list, you need to be comfortable saying “I’d rather achieve this, than end up with my Plan B”. You’re creating as much wiggle room and space to play as possible in between your Ideal Outcome and moving to a Plan B.

If you’d love that 25% price increase (Ideal Outcome), but 5% would do…that may be your Make It Work.

What if your client offered 1%? Would you walk away from the deal?

If the answer is no, that you’d still take 1%, then guess what – 5% isn’t your Make It Work, 1% is.

A good way of thinking of this may be to head back to drivers’ education class. As you’re approaching a green light, you’re asking yourself “Can I make it?” and the answers are “yes, yes, yes, yes, no!” and the no is where you hit the brakes and keep yourself, your passengers and your fellow drivers safe.

In your negotiation, how far can you move from your Ideal Outcome before this “no!”? That’s your Make It Work.

A note about deal breakers: A lot of the times, deal breakers are financial. But there are some other elements in a negotiation that can push you to your Plan B as well.

For me, ethical business practices are a deal breaker. The financial savings can be huge, or the revenue uptick significant – but if a counterpart hems and haws and isn’t willing to commit to conducting business in a responsible and ethical manner…then that’s a sign that I need to move to Plan B…asap. I just can’t Make It Work.

Did you hear Tim Gunn’s voice saying "Make It Work" as you were reading, and imagine yourself a stressed out designer trying to salvage a garment before the runway show? (Just me? Ok then. But salvaging a garment and salvaging a negotiation aren’t too far off from one another.)

Check out the rest of the series: Part 1, Part 2, Part 4

~~~

Devon Smiley is a Negotiation Consultant & Speaker for entrepreneurs, startups and corporates. With 15 years of experience and over $5billion in deals closed, she helps clients around the world shake off ineffective negotiation techniques and habits and embrace a creative, collaborative approach to getting their best deals yet.

To learn more about how Devon can help you and your team build their negotiation skills, get in touch at [email protected] or here on LinkedIn.