In this video, I would like to discuss with you a crucial issue for negotiators. How to evaluate the quality of a deal? At the end of a negotiation, you have to decide whether to say yes or no. Either you accept the deal and then it is a serious commitment for yourself and for your organization, or you say no to the deal and you will have to do with your solutions away from the negotiation table. Either way, you will be accountable. Either way, you don't want to regret the wrong move. So, when the potential deal is on the table, do not rush to the conclusion. Deal or no deal? Step back and think. Remember that the purpose of negotiation is not to reach a deal. It is to reach the best possible deal. Indeed, there are bad deals to which you should have said no too. As a result in the last stage of a negotiation when the potential deal is on the table, I advise you to go through the following checklist, which can really help you make the right move. This 10-point checklist is based on the three dimensions of any negotiation, which we have identified earlier in this mooc. People, who is involved in this negotiation? Problem, what is at stake in this negotiation? Process, how do we run this negotiation? On the people dimension, three checks. First, check that the negotiation has maintained, or improved, the relationship between the parties around the table. If this deal is at the expense of the relationship, it could be the last deal you ever make with this partner. Think long-term. It is still time to do something to improve the relationship, and this we call sweeten the deal. Second, check that the deal is within the instructions of your mandate. Usually, we negotiate on behalf of someone else, our boss. Are we sure that the deal respects the instructions we were given. Third, check that the deal takes into account important stakeholders, people who are not at the table, so it's easy to forget them, but they are important for their successfulness, smooth implementation of the deal. There is still time to factor them in. Now, on the problem dimension, four checks. Check, of course, that the deal satisfies your motivations. What really is important for you? Usually, people do not forget this one. Five, check that your motivations are better satisfied with this deal than they would be with your plan B, your best solution away from the table. Otherwise, you're wasting your time. Six, check that the solutions at the table create as much value as possible. Do not leave value creation opportunities on the table. Other ideas may still be included in the deal to make it even more interesting, maybe for both sides of the table. Seven, check that these solutions can be explained, thanks to objective justifications. Your hierarchy will ask you why the deal looks like this. For instance, why eight percent in a certain contract clause. You cannot simply answer, ''Well, because we thought with the other guy that it was a really nice number.'' You must be able to provide the reason why you ended up at eight percent. Maybe specific stakeholders will also ask you similar questions, and you have to give a rational explanations. Now, on the process dimension, three last checks. Number eight, check that the implementation of the deal is clearly organized. Who does what, when, etc. Failing to agree on the organization of the execution of a deal means organizing a future failure. Nine, that's why you need to check also that there is no misunderstanding. Communication should clearly state rights and obligations of each side. You may also want to discuss communication towards third parties and stakeholders on a given point of agreement here. Do we also agree to let it be known by others? Or do we agreed to keep it as discreet as possible? This may open new room for negotiation. Last but not least, number 10. Check that the logistics again is ready for the final validation and signature, especially in some cultures, a ceremony will be held or drinks will be shared, and you do not want any logistical details to be in the way. If you want to know more about this important issue in negotiation, read chapter eight of our book, The First Move. Remember, the purpose of a negotiation is not to reach a deal. It is to reach a good deal. Evaluation before decision, that makes the whole difference.
