Negotiation Framework, Part 4: Space To Play

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 Part 3, you got clear on your negotiation walkaway point and how low you are willing to go (financially or otherwise) before declaring a deal a no-win.

Today, we're diving into how to make the most of the freedom you've created thanks to having a structure in place, and how to use this freedom to your strongest advantage in your negotiations.

SPACE TO PLAY (AKA 'the sandbox' 'wiggle room')

If all of the structure so far has you worried that planning a negotiation in advance is the equivalent of putting yourself in handcuffs during the actual conversations, fear not. By establishing your best case, worst case, and alternatives ahead of time you've actually created a rather sizeable space to play with your options - a nice big sandbox in which you can get busy creating your negotiation masterpiece.

Even better? By gaining approval for this framework from your executives before you start discussions you can avoid having to run back to HQ for each and every proposal - you're able to be far more autonomous.

To make the most of this Space To Play, you'll want to have information on all of the variables that will come into play in your discussions. Time to get creative. To think beyond the quantity, price, delivery variables that are your mainstays. The more variables you can come up with the more creative you can be, and as a bonus, by thinking of these in advance you minimize the risk of being caught off guard when a counterpart throws a request out there.

For example, you may want to consider:

• Reporting requirements
• Shipping conditions, insurance coverage
• Aftermarket support, Field support
• Performance guarantees
• Environmental policies
• Liability limitations
• Renegotiation terms
• ...any activity that occurs from the moment the contract is signed is ripe for negotiation!

Continue your negotiation prep by mapping out potential proposals using these variables. What trades can you make? Which are floating to the surface as your top priorities? Where do you think your counterpart's priorities will be? How creative can you get with these combinations? (Think of them as little Lego building blocks...red + blue isn't the only combo that can lead to solid outcomes. Throw some green and yellow into the mix!)

Even if they never see the light of day, having fleshed out potential proposals and counterproposals will improve your agility in discussions.

Over the 4 instalments of the Negotiation Framework series we've covered setting ambitious yet credible goals, uncovering our alternatives, establishing no-fluff walkaway triggers and capitalizing on that structure to play to our heart's content within our negotiation sandbox. The benefit to taking the time and exercising the discipline to create a structure? Increased flexibility, improved agility, fewer agreement mistakes, and a streamlined process thanks to pre-approval potential.

Now those are some great reasons to stop winging it.

Check out the rest of the series: Part 1, Part 2, Part 3

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Devon Smiley is a Negotiation & Commercial Consultant for entrepreneurs, startups and corporates. With 15 years of experience and over $5 billion 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 devon@devonsmiley.com or here on LinkedIn.