Negotiation Process.

 

Negotiation can be viewed as a five-step model

 

 

 

 

 

 

Preparation and Planning

Before you start negotiation, you need to do your homework. What is the nature of the conflict? What is the history that lead up to this negotiation?  Who is involved and what are their perceptions of the conflict? What do you want from this negotiation? 

 

It often helps to put your goals in writing and develop a range of outcomes, from “most hopeful” to “minimally acceptable” in order to keep your attention focused. All these questions you also need to reflect on for the opposing side so that you can understand and anticipate their response better. When you can anticipate your opponent’s position, you are better equipped to counter arguments with the facts and figures that support your position.

 

Relationships will change as a result of a negotiation, so that is another outcome to take into consideration. If you could “win” a negotiation but push the other side into resentment or animosity, it might be wiser to pursue a more compromising style. If preserving the relationship will make you seem weak and easily exploited, you may want to consider a more aggressive style. 

 

Once you have gathered your information, use it to develop a strategy. For example, expert chess players know ahead of time how they will respond to any given situation. As part of your strategy, you should determine your and the other side’s best alternative to a negotiated agreement, BATNA. Your BATNA determines the lowest value acceptable to you for a negotiated agreement. Any offer you receive that is higher than your BATNA is better than an impasse. Conversely, you should not expect success in your negotiation effort unless you are able to make the other side an offer it finds more attractive than its BATNA. If you go into your negotiation having a good idea of what the other party’s BATNA is, even if you are not able to meet it you might be able to elicit a change. Think carefully about what the other side is willing to give up.

 

Definition of Ground Rules

Once you have done your planning and developed a strategy, you are ready to begin defining with the other party the ground rules and procedures of the negotiation itself. Who will do the negotiating? Where will it take place? Are there any time constraints? To what issues will the negotiation be limited? Will you follow a specific procedure if an impasse is reached?

During this phase, the parties will also exchange their proposals or demands.

 

Clarification and Justification

This is an opportunity for educating and informing each other on the issues, why they are important and how you arrived at your initial demands. Provide the other party with any documentation that helps support your position

 

Closure and Implementation

The final step in the negotiation is formalizing the agreement that has been worked out and developing any procedures necessary for implementation and monitoring. This requires hammering out the specifics in a formal contract. For most cases, however, closure of the negotiation process is nothing more formal than a handshake.