Negotiation preparation is as much an organizational task as an individual one. For example, when determining their best alternative to a negotiated agreement or BATNA (the point at which the negotiators ought to walk away from the table), executives should check in with key organizational leaders. If senior managers are unwilling to invest time in such a conversation – or if they offer less-than-helpful advice such as, “Whatever you do, don’t lose that account!” – an executive can’t be held responsible for poor negotiation preparation.
The solution? Develop a negotiation preparation worksheet that will engage the entire organization in the necessary preparation and gauge executive performance after the fact. A preparation worksheet not only obligates a negotiator to account for all the factors that ought to be included in a negotiation strategy, but it also requires high-level sign-offs on all relevant estimates. In this manner, a concrete basis for performance reviews becomes available once the negotiation ends; negotiators and their supporters can check intentions against results.
Keep in mind that you should link bonuses and other rewards not just to negotiation outcomes but to outcomes in light of initial expectations. That is, review agreements in light of the value created above the BATNA agreed upon before the negotiation began.
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