Sofema Aviation Services (SAS) www.sassofia.com considers the key negotiation strategy to prepare for the best outcome when negotiating aircraft lease agreements or other critical aviation contracts.
Introduction
Without a doubt, a lack of preparation is the primary reason for coming unstuck. However, it does not have to be so and with careful planning you can avoid many of the traps and pitfalls typically encountered during a negotiation.
Consider that not everything you do during the preparation phase will turn out to be relevant – however, in the big picture you cannot be over-prepared.
If we can achieve a detailed understanding of all elements we can not only deliver a flexible approach, we will also have ammunition for tough negotiations.
Let’s Consider Step by Step Why We Are Going to Enter into a Negotiation
The following is a sample list of questions to consider as you prepare for your negotiation. As you review the list to decide on the relevance and applicability of your question set.
1. Why is this negotiation taking place?
a) What are my Short-Term Objectives?
b) What are my Medium-Term Objectives?
2. Regarding Our Personal Attributes – What are we bringing to the Negotiation?
a) Strengths,
b) Key Competencies,
c) Additional Skills,
d) Value Added (Previous Experience).
3. And now my weak points – related to this negotiation:
a) What are my weaknesses?
b) What are my vulnerabilities?
c) What can I do to mitigate any known & understood exposure?
4. What lessons can I apply from past experience (Directly or Indirectly)?
a) What would improve my / our performance?
b) Have I researched sufficiently (to my satisfaction) any relevant information?
5. Where will the negotiations take place?
a) Home or Away – Consider the Pros & Cons.
6. How long do we expect the Negotiations to Last
a) Have we prepared? – If we are the host we want it to run smoothly people need to be fed, watered, and comfortable (but not entertained).
b) If we are visiting are we time-constrained? – if yes why can we free ourselves up so we do not create any unnecessary barriers?
7. What are my interests in the upcoming negotiation? How do they rank in importance?
a) Do I have an acceptable Plan B? Also consider:
b) How can I improve or strengthen my Plan B?
8. What is my minimum reservation point (the point where there will be no deal)?
9. What is my high-level aspiration – an ambitious but achievable goal?
10. What do I understand about the other sides expectations?
a) How important is each issue to them?
b) What do I know regarding their reservation point?
11. Is some flexibility to achieve an agreement between my reservation point and the other sides reservation point (Consider that additional points/elements can be added to the discussion)?
12. Do I have a relationship history – can this be used to influence the current discussions?
13. Are there any cultural differences which should be factored into the negotiation process?
14. How much of the process will be electronic?
a) Are we prepared to conduct some of the negotiations for example by email?
b) Are we prepared for the pros and cons of negotiating via email, teleconference, etc?
15. Should I approach parties on the other side in a particular order?
16. What is the hierarchy within the other side’s team?
a) What are the indicators of influence and potential tensions?
b) Could these internal dynamics affect talks?
17. What potential ethical pitfalls should we keep in mind during the negotiation?
18. Do I have competitors for this deal?
a) How do our relative advantages and disadvantages compare?
19. What objective benchmarks, criteria, and precedents will support my preferred position?
20. Team Composition:
a) Who should be on my negotiating team? – Why?
b) Who should be our spokesperson?
c) What specific responsibilities should each team member have?
21. What 3rd Party involvement will we require?
a) Agents,
b) Lawyers,
c) Mediators,
d) Interpreters.
22. My Authority:
a) What authority do I or my team have?
b) Are we able to make firm commitments?
23. Is it relevant to explore a contingency contract to identify any fallback positions?
24. Can any parties who are not involved in the negotiation add value to our agreement?
25. Have I practiced communicating my message to the other side?
a) Do I know how likely they will respond favourably to my message?
26. Can we enter into a simultaneous discussion of multiple issues?
27. What other questions would you add to our negotiation preparation checklist?
Next Steps
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Sofema Aviation Services (www.sassofia.com) and Sofema Online (www.sofemaonline.com) offer multiple soft skills training including the following course: Aviation Leadership and Management Skills Development – Developing Negotiation Skills – 1 Day
For additional details or if you have any questions, please email team@sassofia.com
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Aircraft, aviation, Aviation Training, Aircraft Lease, Aviation Leadership, Aviation Leadership and Management Skills Development, Aircraft Lease agreements, SAS blogs, Developing Negotiation Skills, Negotiation Strategy, Negotiation, Negotiation Skills
