10♠️ ️To negotiate strongly… Prepare to walk away 

Have you got a big deal coming up? Is it a tough negotiation? Have you got a really skilled team on the other side negotiating hard with you? How are you going to get the best results? Negotiation is a critical skill for business leaders, as it can significantly impact outcomes in deals, partnerships, and other strategic initiatives. However, tough negotiations can be challenging, and it's essential to have a strong strategy to achieve favourable results.

Problem or challenge:

Many business leaders struggle to negotiate effectively in high-stakes situations, leading to suboptimal outcomes. They may be reluctant to walk away from a deal, even if it's not in their best interest.

Complexities:

Effective negotiation requires a delicate balance between assertiveness and flexibility. It can be difficult to maintain a strong stance while also exploring mutually beneficial solutions. Additionally, the emotional dynamics of negotiation can make it challenging to stay focused and objective.

Solution 

The simple deals are dealt with by people on our team, but the big ones come to us. So how do we get the best result from a negotiation? I once had the good fortune of going on a training course run by a gentleman called Calum Coburn.

I learned many things from Calum, but one of them stands out head and shoulders above the rest. It's to focus on your BATNA. The Best Alternative to a Negotiated Agreement.

If you want to be successful in negotiation, don't focus on that negotiation. Well not beforehand, anyway. Not completely. Instead focus on your alternative. What will you do if you don't win the deal? What is your plan B? The more you strengthen your plan B, the better deal you'll get for your plan A.

You see, when you're sitting there in the negotiation, when you're sitting at the table, when they're being very tough with you, if you've got a BATNA, you're going to call their bluff. You'll be able to stand up to their negotiating skills.

Being prepared to walk away makes you a much tougher negotiator. Certainly, if you can imagine the contrast. You have only one alternative: this plan A. In that circumstance there’s a lot of pressure to accept everything they put to you, especially if they're prepared to walk away unless you agree. So make sure your plan B is a credible, viable option, such that you could walk away.  Then you won't need to and then you'll get a good deal - the best version of plan A.

Benefits:

By implementing these strategies, you can expect several benefits, including:

• Improved negotiation outcomes: A strong BATNA can help you secure better deals and avoid unfavourable compromises.

• Increased confidence: Knowing that you have a viable alternative can give you more confidence during negotiations.

• Enhanced reputation: A reputation for being a tough negotiator can improve your standing in the business community.

• Strengthened relationships: By focusing on value creation, you can build stronger relationships with your negotiating partners.

Why it works:

A strong BATNA gives you the power to walk away from a deal if it's not in your best interest. This creates leverage and allows you to negotiate from a position of strength. By focusing on value creation, you can also explore mutually beneficial solutions that may not have been considered initially.

Measurement:

The effectiveness of your negotiation skills can be measured through various metrics, such as:

• Deal outcomes: Track the outcomes of your negotiations to assess whether you are achieving your desired results.

• Negotiation time: Measure the time it takes to reach agreements to evaluate your efficiency.

• Relationship quality: Assess the quality of your relationships with negotiating partners to determine if you are building trust and rapport.

• Internal satisfaction: Gather feedback from your team to evaluate their satisfaction with your negotiation skills.

By developing a strong BATNA and focusing on value creation, you can become a more effective negotiator and achieve better outcomes for your business. I encourage you to practise these strategies in your next negotiation and see the difference they can make.