Successful negotiations start with preparation AND the right data. A data-driven bargaining strategy helps organizations make informed decisions, evaluate proposals, and understand the financial impact of potential contract changes before reaching an agreement.
Here are six ways to strengthen your approach:
- Know your baseline costs: Understand current labor costs and contractual obligations for benefits and retirement.
- Analyze proposals: Quantify the financial impact of both union and management proposals. Make certain you have evaluated both direct and indirect costs.
- Model multiple scenarios: Evaluate potential outcomes and identify the costs, savings, risks, and trade-offs of different settlement options.
- Align your negotiating team: Use a shared economic model to support informed decisions and keep negotiations focused on organizational priorities.
- Know your goals and objectives: Get direction from your leadership team and stay within the boundaries they have set.
- Keep senior management informed: Don’t be a hero; moving away from your stated goals and objectives will not result in the outcome your leadership wants.