The key negotiation skill required to unlock the best value from complex commercial negotiation environments is to identify and understand the interests of all the stakeholders impacted by or taking part in the negotiation. In some cases, it is simple to understand both the positions & interests of participants in the negotiation. In most cases, however, it is not only tricky to identify the interests of participants; it is also difficult to identify all the key players.
How to negotiate in complex, multi-party negotiations?
1. Identify all the participants in the negotiation
This may seem obvious but in practice, it is often hard to identify and keep track of all the stakeholders in a negotiation. In a business environment, we should at least attempt to identify the following stakeholders:
a. Financial stakeholders
These are the people or groups that will finance, underwrite or give permission to conclude an agreement based on the financial terms suggested. It is important to identify all potential parties that may have an interest in the purely financial dimensions of the negotiation.
b. User/consumer stakeholders
These are the individuals or groups that will execute and support the outcome of the agreement that is reached. These are the stakeholders that will live and work with the result of the negotiations on a day to day basis.
c. Technical & legal stakeholders
These are the people or groups that will agree to and approve the technical and contractual aspects of the negotiations.
d. Guides/Gurus & other Influencers
These are the people or groups that hold significant influence over the central decision makers involved in the negotiation.
2. Identify the interests of each participant in the negotiation
There are basically two methods to identify an individual or group's interest in a business negotiation. The 1st way is to put yourself in that individual or group's shoes and to attempt to see things from his/her/their point of view. What supporting data would you need? What precedents would apply? What assumptions can you make, and validate? The 2nd way is to ask the individual or group a number of questions to help you (and them) to accurately identify their key interests. The most useful question to ask is "Why?" "Why is this negotiation important to you? Why are you assuming this position? Why are these options being explored?"
3. Create a frame that is appropriate for each stakeholder
Having identified the interests of each participant, you should now create the appropriate frame. Different people reach decisions for different reasons. It is not appropriate to highlight the same points to support decision making to all participants. You should focus on communicating the most useful frame to each participant or potential stakeholder.
4. Create an effective management structure for the negotiation
If our counter parties think of us as rational, the odds are significantly increased that they will also respond to us in a rational fashion. We can only present a common and rational 'front' if we have considered the roles & responsibilities within our negotiation team. Allocate the responsibility in the team between those that will manage the Relationship dimensions, and those that will manage or be involved in the Task related aspects.
Negotiation skills training teaches us to create an agenda that addresses the interests of all potential participants. A successful way to simplify complex business negotiations is to add structure. We need to focus on the process aspects to ensure that we make progress at every level of the negotiation. You will discover that complexity can be managed with the use of an appropriate supporting structure.
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