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What Is A Framework Agreement In Negotiation

Posted byadminon14 10 2021. 0 Comments

Too often, negotiators enter a negotiated and negotiating meeting with little information about the counterparty, your organization, market conditions, and competition. Many negotiators enter into negotiations with only the lowest possible or highest possible price from their own organizations. They have no specific outcome targets, no information on what additional options they can add to their agreement, and no information on what their counterpart`s position might be. This is a big mistake. You may have heard the quote from the famous baseball player and coach Yogi Berra. If you don`t know where you`re going, you`ll end up somewhere else. This quote is an absolute truth when it comes to negotiations. Having no goal is like entrusting control of the conversation and negotiation to your counterpart. If you don`t have goals, you have very little power. You don`t know what questions to ask.

You don`t know if you`re making progress or if you`ve succeeded when it`s over. You must have a number of goals for your negotiation other than getting the best deal possible. That`s probably the goal of most negotiators, but they haven`t defined what the best deal actually is, so there`s no way to know if you actually made it happen. Therefore, you need to draw up a framework agreement at the beginning of the negotiation process. Think of your framework agreement as the point of view of a goal you are targeting. The framework agreement is the ultimate agreement you could get, which is realistic. .

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