At the firm of Haddaway & Daddle Ltd, young Billy is about to enter into his first ever round of head-to-head negotiations. He is certainly being thrown in at the deep end, as his opposite number has a reputation as a highly efficient negotiator. Billy is somewhat nervous at the prospect, but his anxieties are eased a little when he learns that the skilled negotiator has been called away on urgent business and he will be facing a junior member of the management team instead.

He relays his relief to Alf, his own manager, who, having been around the block a few times, smiles and shakes his head at Billy's naivety. He explains that losing the expert negotiator to a less skilled one is not necessarily a good thing, as the more skilled a negotiator is, the better he or she is to deal with.

He tells Billy that negotiations are not like a game of chess where you want to come away from the table as the victor. It is not a case of winner takes all and to the victor the spoils, but the aim is for both parties to leave the negotiating table feeling they have gained something.

"But why?" Billy asks, "Surely if we can get what we want without giving anything away then it is better for us."

"Becoming a skilled negotiator involves a lot more than being able to get your own way; the aims of your opposite number must also be taken into consideration. To enhance your chances of achieving this outcome, it pays to take time to prepare for the negotiations well in advance of the actual meeting.

To help Billy learn how to prepare for negotiations, Alf wrote out the following guidelines on a card for him:

The other party
Before looking at how you will approach the negotiating table, take some time to look at who you will be up against. Have you dealt with them before and if so, how did the negotiations go, and how does your relationship with them stand? If this is the first time you, what can you expect from them?

Set the scene
Be sure that when you contact the other party to arrange the meeting, you give them an outline of what you expect to be discussed during the negotiations. This will enable them to come to the table well prepared also. This should make the process run smoother and it will increase the likelihood of an early settlement being reached. Be careful, though, not to show your own hand while passing on information.

Your aims versus their aims
You should have a clear idea of what you hope to achieve by these negotiations, but that is only half of the process. You should also be aware of what the goals of the other side are.

What can you trade?
The very crux of negotiations is that both parties have something the other wants. From superpowers trading arms reductions during the Cold War, to kids in the school yard swapping football cards, trading is one way to increase the chances of securing your goal. The golden rule of trading, however, is to know exactly how far you are prepared to go and to stick to that no matter what.

Have a Plan B
Sometimes negotiations will deteriorate into stalemate, with neither party prepared to give any slack. In such situations other avenues should be explored to see if there is an alternative way to end the impasse. If no solution can be found, you should consider how this will affect your relationship with the other party and assess the impact to your side of no solution being agreed upon. You should look into this eventuality before negotiations take place

By preparing for negotiations in advance of the actual meeting, you should have a clear idea of exactly who you are up against, what your goals, and those of the other party are, and exactly how much you are prepared to give away. This sets the scene for far more productive negotiations than going in with a winner takes all attitude.