#5 Preparation

This one is pure common sense, but often underestimated. We've heard it from our parents, teachers, professors, bosses, and even our spouses. Now you're even hearing it from your friendly mediator. If you intend to effectively communicate issues, interests, and perspectives, that are important to you, your client, and/or your company, you first must know what they are. Plan ahead and invest your time in preparing for mediation. A solid dose of preparation will boost your confidence as you move through negotiations. In addition, because you are prepared you will be able to focus on the discussions at hand, rather than scrambling for information or trying to bluff your way into a result that may be undesirable.

#4 Fair negotiations

In the broad sense, a fair negotiation is one wherein differences of opinion, interests and objectives are discussed candidly, with a common goal of reaching a conclusion that is acceptable to all. Sounds simple enough, right? The problem arises when the desire for fairness is applied literally to monetary increments.

Consider this pared down scenario, wherein all of the professionals attending mediation know this case has a settlement range of $10,000 to $20,000 - depending on certain facts and the entities involved. The first few rounds of negotiation go like this:

• Round One: $100K demand, responded to with $1K offer to settle
• Round Two: $99K demand, responded to with $1.5K offer to settle
• Round Three:$98.5K demand, responded to with $2K offer to settle

At this point, one side or the other (if not both) demands an ultimatum for the other side to "get real" or mediation will impasse. Neither side is discussing the facts of the case, and both sides have been responding "fairly", right? So why are both so frustrated?

Frustration comes when tactics do not elicit the desired response. Both sides are "negotiating" well outside the range they expect might produce an amicable settlement, and both believe they have "fairly" responded to the other side. Yet neither can see they are mirroring each other's behavior, and receiving a predictable reciprocal response.

What is the impact? At best, this early "fairness" mandates a mediation lasting a few hours longer than necessary. At worst, it causes a premature breakdown of the negotiations and we never know whether or not there was a real opportunity to resolve the case.

3 Suggestions for meaningful and productive negotiations:

1. Invest in preparation; a/k/a Know your case, priorities and objectives.
2. Negotiate based on your, your client's, and/or your company's best interest and objectives; a/k/a Be bold enough to play YOUR game vs. getting sucked into theirs.
3. Rely on your mediator to guide you through should "negotiation killers" get in the way.

Look for #3 and # 2 ranked negotiation killers coming on February 7!