People often use the expression ‘to make a big deal about something’ referring to when someone discusses something as if it is really important. In the corporate world, big deals are indeed important. Billions of dollars are often at stake when a number of large corporations come together to make a deal. Deal making is an essential skill and there are many misconceptions about it. In this post, I want to examine what the elements are of effective negotiation whether it is a big deal or not.

These are not the only elements on successful negotiation. Probably the best approach I know of is 3-Dimensional Negotiation as outlined by Jim Sibenius.

1) Prepare for the Outcome: You must firstly prepare for the negotiation by understanding at what point to stay and what point to walk away.

2) Prepare yourself: You need to make sure you are in a rational state rather than an emotional state.

3) Tactics: This involves the ability to create rapport with others, establish a good working relationship, credibility and trust.

4) Strategy: This is all about thinking the deal through in terms of consequences. it involves learning to prepare a number of different outcomes based upon their reactions and predicting successfully their responses to you.

5) Aftermath: Once you have done a deal, it is important that you frame the deal as being in all parties best interests. Deals are rarely one time events.

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