Negotiation Skills for Lawyers: Win Through Great Negotiation Preparation

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Negotiation Skills Rule 101: You don’t prepare, you don’t succeed.

When studying for your law degree, have you ever tried sitting for an exam without studying?

Even if it’s an open book exam, you won’t remember where the important cases are. Without notes to refer to, your arguments won’t be as strong as they could have been.

Similarly, in negotiations, preparation is considered to be 80% of your success. Yet so many people go into negotiations thinking they can just “wing it.”

This is how even younger negotiators can outperform more experienced negotiators: By realizing that experience doesn’t necessarily translate into expertise. And that smart negotiation preparation trumps them both.

Let’s dive into how to prepare based on the 6-step preparation worksheet we use in our courses (you can download it for free here)

Getting ready like a pro

I believe it was Muhammad Ali who said something along the lines of:

“I’ve never won a battle in the ring, always in training.“

In negotiation like in sports, most of your success gets determined by what you do before you even enter the ring, ahem, conference room.

But unlike professional sports, most “professional negotiators” have no idea about the preparation game that the more successful people around them are playing (and if they are really good, you will never know that they just got a much better deal than you ;))

 

Here is your 6-step game preparation plan

Interests, Goals and Priorities, Options that are aligned with interests info to share or not share, BATNA, Prices and ZOPA

1. Interests

Interests refer to ‘why’ a party wants what it wants. This is different from a position that is ‘what’ it wants.

When representing a client, you need to speak with them to find out not just their position but, more importantly, why they are asking you for a certain action and what it means for their business.

Similarly, researching your counterparty can give you an idea of what positions they are looking for and the underlying reasons.

The better you understand your clients’ and the other side’s interest, the better you are positioned to expand the pie by offering new options that meet everyone’s interests in a more optimal way.

 

2. Goals and Priorities

To optimize your interest focus, where to push, and where to value trade, you want to figure out what parts of your position are critical, ideal or can be traded off for concessions.

Separating your interests into an M.I.T. list helps you prioritize:

  • Must have issues are your 2-3 non-negotiable interest. If you don’t get those needs met, you will leave the table.
  • Ideal goals are your stretch goals. Another 7-10 issues that optimally you would love to achieve, but are not dealbreakers.
  • Tradeable are issues that you have identified of interest to you, but not at a high priority, and so you are willing to trade those away for matters of higher interest to you first.

Now, Step 2: What do you think are those on the other side?

Once you’ve listed them out, we can go to step 3.

 

3. Creating Options That Are Aligned with Interests

Now that we have an idea of what both sides want, we can create options that align with both sides. Options refer to potential outcomes that align with a specific interest. In a negotiation, different options can be mixed and matched into different offers.

All the work you’ve done in step 2 comes into play here, especially knowing what we must have, what the ideal outcome could look like, and what we could give away. When you compare the options, it’ll give you some idea on how to make them work for the options they want while you consider how to get to your own.

During the negotiation itself you’ll learn more information on their interests and desired options. You can then adjust your options lists and strategy accordingly, such as seeing if there is room to grow the pie further or to push for what we want. You can read more about interests here.

 

4. Information Gathering and Giving

Trust is created the fastest when information is shared. To build trust, you need to be ready to go first. Having prepared what you can share should help you get away from your natural default of not sharing (“this is ALL confidential!!”).

Of course, don’t give away everything at once, but start small and create reciprocity. If done right, this will open up communications with the other side to eventually find out their interests, prices, and other information you can use to get the outcome you want.

Reciprocity plays a big part in building rapport and eventually trust with your counterparty. Preparing what information you can share gets you there the fastest.

 

5. Negotiation Power

Power in negotiations comes from how much we need – or don’t need – the counterparty.

In negotiations, this power is denoted as the ‘Best Alternative to a Negotiated Agreement’ (BATNA) or a plan B.

To prepare and boost your bargaining power, you need to ask:

  • What options do we have if this negotiation fails?
  • How can we improve our BATNA?
  • What is their perception of our BATNA?

Similarly, if we can find out what our counterparty’s BATNA is, it can tell us how far we can push. To find that out, start with these questions:

  • What might they do if the negotiation fails?
  • Do we have information that influences their BATNA?

 

6. The Three Numbers

Knowing your target and limit prices and your counterparty’s limit prices will help you gauge how far you can push in your negotiations.

If you haven’t already, you can get our pdf version of the preparation sheet here.

The three numbers you need to prepare are:

 

There are many other elements that you can research and prepare for negotiations, but starting with these default elements like the underlying interests of both parties, goals and priorities, walkaway points, and bargaining power (BATNA) will significantly improve your chances of success.

To your negotiation success!

Dr. Claudia Winkler

 

If you enjoyed this content, join our free 10-week Email course on the fundamentals of Collaborative and Competitive Negotiation skills by clicking HERE.

Each week, you will get a bite-size email unpacking some of the most fundamental negotiation concepts that you can apply in your everyday negotiations, along with an insight video and book recommendation to go further in areas you want to learn more about.

Want to learn more about effective preparation and how you can beat even more senior negotiators? Joining one of our online courses or organizing a tailor-made live training session for your organization will put you en par with over 10,000 leading lawyers from Fortune 500 companies to Tier 1 law firms globally.

Just reach out to me at claudia@necademy.com to discuss!    

Let’s get Ripped: Building Your Negotiation Muscle!

I don’t go to the gym in January. Too crowded with people who are trying to stick to their New Year’s Resolutions.

Don’t worry if you don’t feel like working out, either. It’s not too late to build another muscle for 2024!

 

Introducing: The Negotiation Muscle

There is a major myth out there about Negotiation skills. Many people think that Negotiation is an innate skill. That people are born with it, and you either have it or you do not.

People who believe this, let me look you deep into your pretty eyes and tell you firmly but lovingly, once and for all: THAT’S NONSENSE!

Some people might have more talent to become excellent negotiators. But negotiation as a whole is a skill that must be learned.

 

Learning requires practice

Saying “I am just not good at negotiations” is like saying “I am just not strong” without having set foot into a gym. Developing Negotiation skills begins with overcoming your insecurities, fears, and other inhibitions and just making the first ask. And then another one. And then another one.

Our discomfort in making a small request in low-stakes situations keeps us from growing comfort in making a move in high-stakes negotiations.

If fear and discomfort are keeping you from negotiating for more of what you want and deserve, starting to negotiate in your daily life is your first important step.

And for my ladies reading this, as per Linda Babcock and Sara Laschever’s research (Women Don’t Ask – go read that, it’s brilliant!), we only negotiate about 25% as much as men do! If you don’t ask, you won’t get. So if you identify, please read this extra carefully.

Okay, ready to get ripped?

 

Here are 7 small hacks that help you get really good at it.

Before we start: WHAT all is negotiable?

Some things are more obvious than others, and I hope you already always negotiate these. Things like your salary (yes, annually!), buying a car, your rent, buying an apartment.

But much beyond that, to rock these big negotiations, you need to train your negotiation muscle on the small daily negotiations.

Things you may not consider a negotiation (yet): Who goes out to buy the groceries, your phone bill, newspaper subscription, gym membership, the timeline for returning a draft, your seat on an airplane, check-out time, hotel room category, the clothes in a store, and and and. Which brings us to hack number 1:

 

#1: Consider everything negotiable

For a lot of reasons, we often don’t think something is negotiable. We have never seen someone negotiate it, we have been conditioned by society that something is not negotiable, or we simply believe that just because there is a written price tag that means that this thing is not negotiable. But those are just stories we tell ourselves. Until you ask, you NEVER know if it might be negotiable. I have been surprised by the most unexpected places, what all you can negotiate!

When in doubt, I always remember that there was once a study that said that only 25% of Americans ask for a discount, but about 80% or so who do will actually get SOMETHING. Now, if that isn’t motivating, I don’t know?!

 

#2: Start a habit of asking

Call up any subscription and say “I am looking through my subscriptions to see how I can cut down on cost. I am a loyal customer, so I wanted to see if you can make me a better deal.” You never know where you can get a cheaper deal, or extra service/bandwidth/discount.

Or, looking to buy this new luxury duvet? Email 2-3 sellers and tell them that you would love to get one for Xmas/a birthday whatever the reasons but that you are still hesitant about the price and if they could e.g. give a 15% discount. I have even done that with Amazon 3d party sellers, and it works!

 

#3: Let them compete / Improve your BATNA

BATNA – your alternative, is the strongest tool in your negotiator toolbox. So always get a few different offers and let them negotiate against each other. I recently had a safety grill installed for my kids on our balcony. Having 3 providers quote for the same thing got me 50% off the most expensive quotation. You don’t even have to negotiate much, you just keep pointing out that another provider has offered a better price, but you would love to work with them and ask if they could match.

 

#4: Humour

Negotiation is not a fight, it’s a dance! Doing it with appreciation, charm, and humour works best. People like to give things to people they like.

E.g. hubby and I are in his shoe store. After a while, I walk up to the salesperson saying “My husband is eying the 3rd pair already, we need to start talking about a bulk discount or I will have to drag him out of here.“

Quick wit also works well. Cashier: “Do you need a corporate invoice”? “No, but we would take a corporate discount if you have?” – 20% off in the home improvement store because of some random coupon she finds in her drawer. How much easier can you have €600 thrown at you for doing close to nothing?

Of course, this doesn’t always work. But the point is to practice. And not just “the ask”, but also dealing with the rejection. Or the alternative people throw at you. Surprising moments such as “Can you do something else (points at the price tag)? “No, but I can throw in a hug” (😲) teaches you valid lessons in handling responses with poise and expect and reply to the unexpected.

 

#5: Think beyond the money

Great negotiators never forget the non-momentary stuff. It’s not always money. Often, there are non-monetary options that the other side can give you much more easily, and that are valuable for you. E.g. more days off from work, waiving the climbing gym initiation fee, getting 12 months for 10, getting a free personal training session, a free room upgrade, a spa voucher, an airport pickup, a voucher for your next visit, etc.

Even if you end up getting no discount, you might walk out with something.

 

#6: Look out for their interests (and trade for yours)

Good deals are always a two-way street. If you can find things that are beneficial to them, they are more likely to i) agree and ii) give you a good deal. When we negotiated our rental contract in Singapore (at the worst time..) we offered a variety of things to get a better price that we thought could be of interest to the landlord. Things like painting the place, an earlier move-in date, a longer contract term, an up-front payment, etc. 10% off the asking price at a time when people snatched up apartments!

 

#7: Show that you have done your research

Information is power. Knowing what other people are making, how much other stores are charging, what margins there are, what sales targets they have etc allows you to say “Can you match ..“, “What rate can you give us if we book directly with you and you don’t have to shell out 15% to booking.com?”

 

Summing Up:

  1. Consider everything negotiable.
  2. Get into a habit of asking.
  3. Let providers compete/improve your BATNA.
  4. Use humor and connect with people.
  5. Think beyond money.
  6. Look out for their interests.
  7. Show that you have done your research.

 

Ready to get to work?

Stay tuned for the next Negotiation Nugget. I will share with you an 8-week workout plan for your negotiation muscle that you can follow to become more comfortable with high-stakes negotiation by increasing your comfort in the daily ones.

To your negotiation success!

Dr. Claudia

Your Negotiation Whisperer

 

If you enjoyed this content, feel free to sign up for our free 10-week Email course on the fundamentals of Collaborative and Competitive Negotiation skills by clicking HERE.
Each week, you will get a bite-size email unpacking some of the most fundamental negotiation concepts that you can apply in your everyday negotiations, along with an insight video and book recommendation to go further in areas you want to learn more about.

 

How to Anchor in a Negotiation to significantly sway the numbers your way – Part 3/3

Today you will learn: How to set an Anchor in a Negotiation; how to avoid getting anchored; when and how to make the first offer; how to make a clever counter.

In Part 1 you saw how you need to set your Limit Price with the help of your BATNA. Part 2 showed you how to set an effective Goal Price.

This week, let’s talk about the 3rd Number: the Opener.

This number has particular power. Dare I say it is almost magical. Why?

The first number that is being put on the table has a significant effect on the negotiation outcome. It is called the “Anchoring effect”.

The Anchoring Effectis a cognitive bias that describes our tendency to rely too heavily on the first piece of information we receive when making decisions or judgments.

For example, if you start a negotiation by suggesting a high price for a product or service, that high price becomes the anchor. Subsequently, the other party may use that anchor as a reference point when making counteroffers or determining what they are willing to pay.

Want to dive deeper? In this video, we will do a little experiment to find out how anchoring works and I am sharing some examples and studies. You will also see how the Beatles lost 100 Mio. Pounds because of bad anchoring.

Takeaway

Here are 3 points to remember to use the anchoring effect to your advantage:

  1. Prepare the first offer/anchor: Whether you plan to go first or decide to go second, you need to have that opener prepared. Because either, you need to use it, OR you need it to protect you from being anchored. It doesn’t matter how smart you are, unless you have a firm opener in mind, you will be anchored!
  2. Make the first offer: 90% of people hate making the first offer. Understanding the anchoring effect should make you reconsider that. Every time that you are not running a risk of e.g. claiming way too little and the other side would have actually given you more, do put out that first offer.
  3. Make a clever counter: If you don’t open, don’t go off your initially planned opening number and come closer to them. If anything, go the other way! They anchor extreme, so should you. Because statistically, you end in the middle. Even better: make them come closer to you first. Saying something like “We really wanna work with you but that number is just so far out of what we had envisaged.. Can you move a little closer to us” might just get you a lower offer. When you open then, you have already moved the bargaining range to your advantage.

Pro Tip: Where is the fine line between setting an optimist anchor and putting out an offensive first offer?

(Hint: Which of the 4 Harvard Pillars can you apply?)

Number 4!

Objective Criteria!

As long as you can quote any objective criteria.. i.e. as long as you can say “I want X.. BECAUSE” you are in the safe zone where it is highly unlikely that the other side will walk out. This does not have to be your best criterion. Any variation of one of your criteria, as long as it has some legitimacy, will do. There is also magic in the word “because”, but that is for another time.

Keep Negotiating! And make sure you are setting a clever anchor!

Yours,

Dr. Claudia

Your Negotiation Whisperer

If you enjoyed this content, feel free to sign up for our free 10-week Email course on the fundamentals of Collaborative and Competitive Negotiation skills by clicking HERE.
Each week, you will get a bite-size email unpacking some of the most fundamental negotiation concepts that you can apply in your everyday negotiations, along with an insight video and book recommendation to go further in areas you want to learn more about.

Give yourself negotiation power with Limit Price & BATNA – Part 1/3

Today you will learn: Setting your Limit Price – Calculating your BATNA – Knowing the exact point when to leave a negotiation (with video example for calculating your BATNA in a court case).

There are 2 key forms of negotiation:

1) Collaborative Negotiation (aka Harvard win-win)

2) Competitive / Distributive Negotiation (aka Bargaining)

The best negotiators master both forms and know how to integrate them by first growing the pie with win-win strategies and then securing the bigger piece of the pie with distributive negotiation strategies.

This month I want to focus on how you secure the biggest piece of the pie and share the three key numbersyou need to prepare for any monetary (=distributive) negotiation.

  1. Limit price
  2. Goal Price
  3. Opener

These numbers are so key, that the GC of a Fortune 500 company I work with tells his managers to not even knock on his door before they have them hashed out. And it takes them a day, sometimes two, to do just that. So take good note!

Let’s dive in and talk about the first one, the Limit Price.

Your Limit Price is best determined by your BATNA (Best Alternative to Negotiated Agreement). BATNA is the answer to the question “What will I do if this deal/negotiation tanks?” This needs to be specific! Not just “I’ll just get another job” or “We will acquire another business” or “We will just take it to court if we cannot settle” but which job, for how much, when, under what terms, what is a likely outcome in court?

This always needs to be a specific number! Yes, even and especially going to court! The below video excerpt from our Master Negotiator Course shows how to calculate your BATNA in a business dispute lawsuit.

The bottom line is: The more specific your alternative and the more you work on improving it, the greater your negotiation power.

Knowing your BATNA is critical because it is your walkaway point. Too many times, people overpay or undercharge because in the heat of the negotiation, due to poor preparation, or due to the length of the negotiations (sunk cost principle) they do not realize they would have gotten a better deal somewhere else.

Sometimes the best deal is no deal. You have to know where that walkaway point is for your situation to apply it, regardless of whether this is a settlement negotiation, your salary, a new home or any other purchase or business contract.

Improve your BATNA – give yourself negotiation power!

Keep Negotiating!

Dr. Claudia

Your Negotiation Whisperer

Next Topic: Goal Price. How “let’s do the best we can” NEVER gets you the best you can – setting ambitious goals in negotiations.

PS: Book recommendation for German lawyers who want to dive deeper: Jörg Risse: Prozessrisikoanalyse: Erfolgsaussichten vor Gericht bestimmen. Highly recommend!

If you enjoyed this content, feel free to sign up for our free 10-week Email course on the fundamentals of Collaborative and Competitive Negotiation skills by clicking HERE.
Each week, you will get a bite-size email unpacking some of the most fundamental negotiation concepts that you can apply in your everyday negotiations, along with an insight video and book recommendation to go further in areas you want to learn more about.

A Bite-sized Negotiation Tactics List: From Basic to Advanced

Negotiation, a fundamental aspect of business interactions, demands skill and strategic insight. In business, negotiation tactics are used everywhere from closing multi-million dollar contracts and settling legal disputes all the way to negotiating a pay raise with your manager.

In this guide, we’ll provide you with a quick list of negotiation tactics both basic and advanced to help you succeed in business. If you’re new to negotiation, you should check out the introduction to legal negotiation for a quick primer!

Basic Negotiation Tactics 

Negotiation is an art form – one that requires finesse, strategy, and a keen understanding of human behavior.  The ability to effectively prepare, establish rapport with opposing parties, listen actively, and emphasise compliance with relevant laws sets apart those who excel in this field from those who falter.

Negotiation can be competitive or cooperative, and the tactics below can help you increase your chances of gaining favourable outcomes in both.

1. Preparation is Key

  • Conduct extensive research about the opposing party.
  • Understand the framework, industry standards, and precedents related to the negotiation.
  • Anticipating possible objections and preparing well-founded counterarguments is also a part of negotiation fundamentals.
  • Do as much homework on your counterparty as possible. This will give you a clue as to why they’ll want what they want (interests).
  • You can also check out our negotiation preparation list.

2. Building Rapport and Trust

  • Establish a professional and respectful rapport with the other party.
  • Find something about them that you can appreciate and find commonalities
  • Demonstrate integrity and authenticity to foster trust, which can facilitate smoother agreements
  • From your preparation, you can be the first to share information to get them to reciprocate and share more about what they want
  • You can also read more about building rapport here.
  • When you are soft and supportive of the person and hard on the problem – at the same time – it creates cognitive dissonance, which can help in your negotiations.

3. Know When to Focus on Interests and Not Positions

  • Positions focus on ‘What I want’ while interests focus on ‘Why I want that position’
  • Focusing on positions leads to bargaining, where it goes to ‘what I can win so he gets less’ while focusing on interests can find value to both sides and creates more flexible options.
  • While focusing on interests can make the pie bigger for all parties, it requires a level of rapport and trust first. If you’re not careful about when you start focusing on interests instead of positions, you could get taken advantage of.

4. Active Listening

  • Practice active listening to comprehend the other party’s concerns and priorities.
  • Respond thoughtfully to demonstrate understanding and build rapport.
  • Be aware of your own cognitive biases and take time to review what they’ve been saying. You might have missed key information that they are presenting.

5. Emphasize Legal Compliance

  • Ensure all proposed agreements adhere to legal regulations and industry standards.
  • Highlight compliance as a cornerstone of the negotiation, emphasizing the importance of legal integrity. This is important when signing off on the deal or contract.

Advanced Negotiation Tactics

Imagine that you’re surrounded by high-powered executives and sharp-witted lawyers engaged in a tense legal negotiation that could make or break your company’s future. How can you ensure that you have tried your best and emerge as the victor in this high-stakes game?

Remember that legal negotiations are not just about compromise; they are opportunities to assert your value proposition while staying within legal boundaries.

Here is an advanced list of negotiation tactics designed specifically for business settings.

1. Creating Leverage

It is essential to identify your strengths and leverage them during the process. Whether it’s offering unique services, high-quality products, or having a market reputation for excellence, highlighting these advantages can give you an edge at the negotiating table. By researching and citing relevant cases that support your position or argument, you can provide solid evidence to back up your claims.

Legal precedents carry weight and can be persuasive when presented in a negotiation setting. They demonstrate your knowledge of applicable laws and add credibility and legitimacy to your arguments. 

2. Use of BATNA (Best Alternative to a Negotiated Agreement)

It is crucial to have a strong BATNA (Best Alternative to a Negotiated Agreement) as a safety net. This refers to an alternative option or plan you can fall back on if the negotiations do not result in a satisfactory agreement. It provides you with leverage during the process.

By asserting your position without appearing aggressive, you can maintain a constructive and collaborative atmosphere, increasing the likelihood of reaching a mutually beneficial outcome.

You can read more about this in our post about limit prices and BATNAs.

3. Keep the ZOPA in Mind (Zone of Possible Agreement)

The Zone of Possible Agreement (ZOPA) is the range within which you and your counterparty can find common ground during negotiations. For sales negotiations or bargaining, the ZOPA exists between the buyer’s highest willingness to pay and the seller’s lowest acceptable price. If an overlap exists between these points, a mutually beneficial agreement can be reached.

Understanding and identifying the ZOPA can help you focus on realistic terms and avoid impasses. If there is no overlap, reaching an agreement may be impossible without adjusting expectations or terms.

You can find out more about this in our post about ZOPA.

3. Employing Silence as a Tactic

Silence can prove to be an incredibly effective weapon in negotiation. By strategically maintaining silence, one can prompt the other party to divulge additional information or potentially make further concessions.

The power lies in the discomfort that silence creates, as it compels individuals to fill the void with their own words. This often leads to unexpected revelations and insights, providing a significant advantage to those skilled at this technique. 

4. Conditional Offers and Contingencies

When negotiating, you can present conditional offers that link concessions to specific actions or reciprocations from the other party. This approach helps establish a sense of fairness and ensures that both sides contribute to the agreement. Additionally, utilising contingencies can be beneficial to safeguard against legal issues that affect negotiations. 

Ethical Considerations in Legal Negotiations

1. Transparency and Honesty

  • Maintain transparency throughout the process.
  • Avoid misleading statements or misrepresentations, which could lead to legal consequences. 

2. Avoiding Unethical Pressure Tactics

  • Refrain from undue pressure tactics or coercion, which can make agreements void.
  • Uphold ethical standards, even when negotiations become intense or competitive. 

Negotiation tactics in business and law are multifaceted, requiring a nuanced understanding of principles and human psychology. By integrating legal compliance, strategic preparation, and ethical considerations, negotiators can navigate the complexities of business negotiations with finesse and integrity. 

At The Negotiation Academy, our courses teach a list of negotiation tactics and instill a deep understanding of the nuances involved. Join our programs to master the art of negotiation while upholding legal and ethical standards.

Check out our online courses and customized live training and embark on your journey to becoming a skilled negotiator!

If you enjoyed this content, feel free to sign up for our free 10-week Email course on the fundamentals of Collaborative and Competitive Negotiation skills by clicking HERE.
Each week, you will get a bite-size email unpacking some of the most fundamental negotiation concepts that you can apply in your everyday negotiations, along with an insight video and book recommendation to go further in areas you want to learn more about.