Negotiations Training

Knowing Where You Stand:
Establishing Desired Outcomes Prior to Negotiating

Imagine setting out on a boat to explore the Amazon River basin. As you prepare to set out, you ponder on the sprawling network of smaller rivers, tributaries, lakes and swamps. In some desolate areas, tribes who have never set eyes on outsiders may react in a hostile manner. In other areas, venomous snakes, crocodiles, piranhas and other dangers lay in wait, looking for their next meal. You wouldn't dare leave without having a plan or knowing where to go. You would be foolish and putting your life on the line. Surely, you would have a hard time finding volunteers to tag along your dangerous (and potentially one-way) mission.

A negotiation is no different. Each negotiation is rife with dangers. "Savages" who are out to bludgeon you with unfair terms and conditions, "snakes" who will be glad to double-cross you when presented with the opportunity and other pitfalls lay in wait for unprepared negotiators. Ironically, while 99.9% of us wouldn't dare set foot in the Amazon River basin with the proper preparation, many of us walk into negotiations without a clue as to where to go and what outcome to purse. Need we say how foolish this can be?

That's why we believe one of the traits of an effective negotiator is the ability to prepare prior to a discussion and understand what one wants to accomplish before even starting. It is crucial to know to establish the following:

* Your Wish
* Your Aspiration
* Your Bottom Line

You may have heard these terms. The concept of a Wish, Aspiration and Bottom Line is quite simply yet many fail to grasp it. Simply put, you need to know

* Your best case scenario... your Wish
* What you expect your outcome to be... your Aspiration
* The absolute least you are willing to accept... your Bottom Line

If you could design the perfect outcome, that would be your wish. The price, terms and conditions would be exactly what you desired. Yet, you realize that these perfect situations are rare so you have a general understanding what you can reasonably expect in a negotiation. This is your aspiration. Aspirations should be set high so as to not leave money on the table. If you fail to set your aspirations at a reasonable level, you will have less room to negotiate with the other party. By setting a high enough aspiration, you also run the possibility of lower the other party's aspiration. At the same time, having a bottom line gives you a standard that says, "I will go as far as X. If the other party wants me to go further than that, I will walk away".

Not only is it important to determine your Wish, Aspiration and Bottom Line, you should never walk into a negotiation without having those three items written down. Why? If you can't see your target, you don't know what to aim for. This is similar to what we teach about goals. You can reach a goal if you can't see it. Write down your Wish, Aspiration and Bottom Line so as to keep yourself from wandering too far "into the jungle" and giving too much away.

An example of a Wish, Aspiration and Bottom Line:

Wish - I want to buy the house for $250,000.00 and have the seller fix the foundation, replace the water heater and pay for all the closing costs.

Aspiration - I want to buy the house for $260,000.00 and have the seller fix the foundation.

Bottom Line - I want to buy the house for $260,000.00 and pay for the foundation repair out of my own pocket. Anything more and I walk.

Know where you stand. Establish a Wish, Aspiration and Bottom Line.