Staying on higher ground.

What happens if a business negotiation degenerates into a squabble? There is no agreement and no resolution and everybody goes home unhappy. Perhaps the best way to avoid this scenario is to take control from the beginning of the negotiation.

How do you establish a “higher ground?” You come to the bargaining table with back-up. According to Dr. Chester L. Karrass, there are five types of backup that can help you stay on higher ground:

1) Guiding Principles: Agreeing on principles makes it easier to agree on details, so establish the principles at the beginning of the negotiations. For example, a guiding principle is that the seller is entitled to a fair profit.

2) Guiding History (Precedents): It makes sense to know what has happened historically between the two parties: what prices were paid, quantities negotiated, any problems or issues. You can’t argue with history!

3) Guiding Logic: Using logic and reasoning makes any negotiation more civilized and thoughtful. Logic is persuasive.

4) Guiding Standards: Standards are really guidelines. What are the standard terms and conditions, the standard prices? By sticking with standards, your viewpoint may prevail.

5) Guiding Rules, Regulations and Laws: Before you go to the negotiation, be sure to research what company policies or government regulations support your position. Rules and regulations can help increase your legitimacy

Basically, it is up to you to gather together the information (backup) that you need to set the tone for the negotiation. By using this backup and communicating it clearly to the other side, you are lining up resources to favor your position. It is hard to argue with principles, history, logic, standards and rules!

What type of backup do you use most often?