The pivotal negotiation skill required to unlock the most value from complex business negotiation situations is to identify and understand the interests of all the players affected by or taking part in the negotiation. In some cases, it is easy to understand both the positions & interests of participants in the negotiation. In most cases, however, it is not only difficult to identify the interests of all parties; it is also difficult to identify all the stakeholders.
How to negotiate in complex, multi-party negotiations?
1. Identify all the participants in the complex negotiation
This may be stating the obvious but in reality, it is often hard to spot and keep track of all the stakeholders in a negotiation. In a business environment, we should at minimum try to identify the following stakeholders:
a. Financial stakeholders
These are the people or groups that will finance, support or lend authorisation to reach an agreement based on the financial terms proposed. It is important to identify all potential individuals that may have an interest in the financial dimensions of the negotiation.
b. User/consumer stakeholders
These are the people or groups that will implement and support the outcome of the agreement that is reached. These are the parties that will live and work with the result of the negotiations on a day to day basis.
c. Technical & legal stakeholders
These are the individuals or groups that will agree to and approve the technical and contractual elements of the negotiations.
d. Guides/Gurus & other Influencers
These are the parties or groups that hold important influence over the key decision makers involved in the negotiation.
2. Identify the interests of each stakeholder in the negotiation
There are primarily two methods to identify an individual or group's interest in a commercial negotiation. The 1st way is to put yourself in that individual or group's position and to try and see things from his/her/their point of view. What supporting information would you require? What precedents would come into play? What assumptions can you make, and validate? The second way is to ask the individual or group a number of questions to help you (and them) to accurately identify their key interests. The best question to ask is "Why?" "Why is this negotiation important to you? Why are you assuming this position? Why is this option being explored?"
3. Create a frame that is appropriate for each stakeholder
Having identified the interests of each participant, you should now shape the appropriate frame. Different people take decisions for different reasons. It is not useful to highlight the same points to support decision making to all participants. You should focus on communicating the most appropriate frame to each participant or potential stakeholder.
4. Create an effective management structure for the negotiation
If our counter parties experience us to be rational, the odds are greatly increased that they will also react to us in a rational fashion. We can only present a unified and rational 'front' if we have thought about the roles & responsibilities within our negotiation team. Allocate the focus in the team between those that will manage the Relationship dimensions, and those that will manage or be involved in the Task related activities.
Negotiation skills training teaches us to create an agenda that addresses the interests of all potential stakeholders. A successful way to simplify complex commercial negotiations is to add structure. We need to focus on the process aspects to ensure that we move forward at every level of the negotiation. You will find that complexity can be managed with the use of an appropriate supporting structure.
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