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The critical negotiation skill required to unlock optimal value from complex commercial negotiation environments is to identify and understand the interests of all the players impacted by or participating in the negotiation. In some cases, it is easy to understand both the positions & interests of parties in the negotiation. In most cases, however, it is not only difficult to identify the interests of stakeholders; it is also difficult to identify all the key players.

How to negotiate in complex, multi-party negotiations?

1. Identify all the stakeholders in the negotiation

This may be stating the obvious but in practice, it is often difficult to spot and track all the stakeholders in a negotiation. In a business environment, we should at minimum attempt to identify the following stakeholders:

a. Financial stakeholders

These are the individuals or groups that will finance, underwrite or lend authorisation to conclude an agreement based on the monetary terms proposed. It is key to identify all potential individuals that may have an interest in the purely financial aspects of the negotiation.

b. User/consumer stakeholders

These are the individuals or groups that will implement and support the outcome of the agreement that is reached. These are the people that will live and work with the output of the negotiations on a day to day basis.

c. Technical & legal stakeholders

These are the parties or groups that will sign off and approve the technical and contractual dimensions of the negotiations.

d. Guides/Gurus & other Influencers

These are the individuals or groups that hold significant influence over the pivotal decision makers involved in the negotiation.

2. Identify the interests of each stakeholder in the negotiation

There are essentially two ways to identify an individual or group's interest in a negotiation. The first way is to put yourself in that individual or group's position and to attempt to see things from his/her/their perspective. What supporting data would you require? What precedents would apply? What assumptions can you make, and test? The second way is to ask the individual or group a series of questions to help you (and them) to accurately identify their key interests. The best question to ask is "Why?" "Why is this negotiation important to you? Why are you assuming this position? Why are these options being explored?"

3. Create a frame that is appropriate for each stakeholder

Having identified the interests of each stakeholder party, you should now position the appropriate frame. Different people take decisions for different reasons. It is not appropriate to highlight the same points to support decision making to all stakeholders. You should focus on communicating the most appropriate frame to each stakeholder or potential stakeholder.

4. Create an effective management structure for the negotiation

If our counter parties experience us to be rational, the odds are significantly enhanced that they will also respond to us in a rational fashion. We can only present a unified and rational 'front' if we have considered the roles & responsibilities within our negotiation team. Split the focus in the team between those that will manage the Relationship aspects, and those that will manage or be involved in the Task related activities.

Negotiation skills training teaches us to create an agenda that addresses the interests of all potential stakeholders. A successful way to simplify complex negotiations is to add structure. We need to focus on the process elements to ensure that we make progress at every level of the negotiation. You will find that complexity can be managed with the use of an appropriate supporting structure.

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