Preparation is widely considered the most important factor in negotiation success. Walking into a negotiation unprepared is like going to court without a lawyer. Key preparation steps include defining your goals clearly, determining your BATNA, researching the other party's interests and likely BATNA, identifying the ZOPA, preparing questions in advance, planning your opening, and anticipating counterarguments. A structured negotiation agenda, which lists the topics to be discussed in a logical order, also helps you control the flow of the discussion. Setting the agenda yourself gives you power over the framing of issues, and you can choose to address easier items first to build momentum or tackle the hardest ones first to avoid last-minute deadlocks.
Leverage is the relative power each party has to influence the outcome, and understanding its sources is essential to negotiation strategy. Leverage can come from a strong BATNA, unique value you provide, time pressure on the other side, information asymmetry, and the other party's specific needs and alternatives. Information asymmetry deserves special attention because it occurs whenever one party has more or better information than the other, giving the better-informed party a significant advantage. You should always research thoroughly before negotiating and be strategic about what information you reveal during the discussion itself.
The role of power in negotiation is more nuanced than it might appear. Power comes from multiple sources including BATNA strength, information, expertise, legitimacy, relationships, time, and the ability to reward or punish. Critically, power is perceptual: it depends on what the other party believes you have, not just what you actually have. There is also a distinction between positive leverage, which provides benefits; normative leverage, which uses standards and precedents; and negative leverage, which makes the other party suffer through threats or consequences. While negative leverage can be effective in the short term, it often damages relationships and tends to backfire. Patience is itself a strategic form of leverage because the party under more time pressure typically makes more concessions; it is therefore wise to avoid revealing your deadlines, resist rushing the process, and recognize that most concessions happen in the final stages of a negotiation.