The highest level of 3-D negotiation-the third dimension, for the sake of this explanation-is setup. An effective setup ensures that "right parties are approached in the right order to deal with the right issues, by the right means, at the right time, under the right set of expectations, and facing the right no-deal options."49 Identifying the right parties to a negotiation requires more nuance than simply focusing on the individuals with the highest rank. Instead, it is often more effective to target and influence the issue-area experts that executives are likely to consult in the decision-making process. Mapping stakeholders, their underlying interests, and the relationships between them is often a useful first step, which we have discussed.
Sequencing is also key to negotiation setup. Dealmakers should consider whether it is advantageous or not to include partners sequentially or simultaneously, and whether each step of the process should be public or private. Successful negotiators will also look to strengthen their no-deal options-sometimes referred to as BATNA, "best alternative to a negotiated agreement"-to improve their negotiating positions. A tightly choreographed negotiation unlocks additional possibilities for all parties, which can then be captured with an effective deal design.
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49Lax, D., & Sebenius, J. (2003, November). 3-D Negotiation: Playing the Whole Game. Harvard Business Review. Retrieved at: https://hbr.org/