Negotiation Process

Negotiation skills can be required to differing degrees in a wide variety of situations, from closing a sale to establishing a trade deal or major contract. In all negotiations, a similar process can be adopted:

PREPARE -> PLAN -> CONDUCT ->EVALUATE ->FOLLOW UP

Prepare – Assess the objectives of both sides of the negotiations. Decide what your best and worst outcomes would be and then decide on your target outcome. What are your objectives during the negotiations?

Plan – Work out your approach as an ideal sequence of events. Consider counter-proposals and how you might handle those. What could you concede and when might it be appropriate to concede?

Conduct – Exchange positions with the opposition, listen carefully and question thoroughly. Establish ground rules and create a positive atmosphere wherever possible with positive tone of voice and body language, if applicable. Detail your proposal and specify your requirement clearly. Seek compromise, win-win if at all possible. Bargain if necessary, but remember your best and worst possible alternative outcomes.

Evaluate – Consider any counter proposal carefully, weighing up your position and your target outcome. Don’t concede without having reiterated the value of your original proposal. Have you achieved your goals? What did you learn from the negotiation?

Follow up – Accept or reject the counter proposal and continue either until mutual agreement is reached or until it becomes clear that mutual agreement is not possible.

Skills in conducting a negotiation

When conducting a negotiation, the key aim will be to achieve agreement between the parties. To do this, the negotiators must remain calm, communicate clearly and assess their position both before and during the process.

 

Figure 3. Negotiation

 

Problem Analysis

Effective negotiators must have the skills to analyse a problem in order to determine the interests of each party in the negotiation. A detailed problem analysis identifies the issue, the interested parties and the outcome goals. For example, in an employer and employee contract negotiation, the problem or area where the parties disagree may be in salary or benefits. Identifying the issues for both sides can help to find a compromise for all parties.

Preparation

Before entering a bargaining meeting, the skilled negotiator prepares for the meeting. Preparation includes determining goals, areas for trade and alternatives to the stated goals. In addition, negotiators study the history of the relationship between the two parties and past negotiations to find areas of agreement and common goals. Past precedents and outcomes can set the tone for current negotiations.

Active Listening

Negotiators have the skills to listen actively to the other party during the debate. Active listening involves the ability to read body language as well as verbal communication. It is important to listen to the other party to find areas for compromise during the meeting. Instead of spending the bulk of the time in negotiation expounding the virtues of his viewpoint, the skilled negotiator will spend more time listening to the other party.

Emotional Control

It is vital that a negotiator have the ability to keep his emotions in check during the negotiation. While a negotiation on contentious issues can be frustrating, allowing emotions to take control during the meeting can lead to unfavourable results. For example, a manager frustrated with the lack of progress during a salary negotiation may concede more than is acceptable to the organisation in an attempt to end the frustration. On the other hand, employees negotiating a pay raise may become too emotionally involved to accept a compromise with management and take an all or nothing approach, which breaks down the communication between the two parties.

Verbal Communication

Negotiators must have the ability to communicate clearly and effectively to the other side during the negotiation. Misunderstandings can occur if the negotiator does not state his case clearly. During a bargaining meeting, an effective negotiator must have the skills to state his desired outcome as well as his reasoning.

Collaboration and Teamwork

Negotiation is not necessarily a one side against another arrangement. Effective negotiators must have the skills to work together as a team and foster a collaborative atmosphere during negotiations. Those involved in a negotiation on both sides of the issue must work together to reach an agreeable solution.

Problem Solving

Individuals with negotiation skills have the ability to seek a variety of solutions to problems. Instead of focusing on his ultimate goal for the negotiation, the individual with skills can focus on solving the problem, which may be a breakdown in communication, to benefit both sides of the issue.

Decision Making Ability

Leaders with negotiation skills have the ability to act decisively during a negotiation. It may be necessary during a bargaining arrangement to agree to a compromise quickly to end a stalemate.

Interpersonal Skills

Effective negotiators have the interpersonal skills to maintain a good working relationship with those involved in the negotiation. Negotiators with patience and the ability to persuade others without using manipulation can maintain a positive atmosphere during a difficult negotiation.

Ethics and Reliability

Ethical standards and reliability in an effective negotiator promote a trusting environment for negotiations. Both sides in a negotiation must trust that the other party will follow through on promises and agreements. A negotiator must have the skills to execute on his promises after bargaining ends.

Tips for successful negotiation:

  1. Know what you want: The clearer you are on your interests and goals, the better your chance of success increases.
  2. Know the other side: Learn as much as you can about the people with whom you are going to be negotiating. Know their negotiating style (DiSC©), negotiation skills, their backgrounds, hopes, fears, aspirations, and their interests. Little things do not mean a lot, they can mean everything.
  3.  Consider the timing and method of negotiations: Alter the game to win-win problem solving by negotiating skilfully using interests, not positions.
  4.  Prepare point by point: Negotiators who prepare will outperform those that do not.
  5.  Offer benefits for accepting your offer: You are much more likely to close if you present the benefit…the “what’s in it for them?” test.
  6.  Frame your negotiation around one or two key points: Keep it as basic as possible by framing and reframing to keep things on track and reach agreements more efficiently.
  7.  Know your BATNA: Your personal power comes from the ability to walk away if you are unable to reach an agreement. Effective negotiators not only know when to walk away, but also how to walk away leaving the relationship intact.
  8.  Prepare options for mutual gain: Be creative. Find unique ways for both sides to get their interests met. “What if we tried this?”
  9.  Listening is the most powerful negotiation skill: It will help you learn where your interests are shared with the other side, where they are in opposition, and get a satisfactory outcome.
  10.  Use the power of the draft: Always put your negotiated agreements in writing.

The best way to handle conflict during negotiations is to alter your view of the process from being a series of compromises to an exercise in joint problem solving.

To resolve conflict, a negotiator must try to understand the causes of the conflict, use their best communication skills to alter perspectives and persuade the parties to see each other’s position, set a positive tone for difficult conversations and meetings and recognise when to take action to prevent a situation from escalating. The skilled negotiator uses language to encourage open-minded thinking and to guide towards resolution.

Listening is a very important part of building relationships. Active listening is about adopting a deeper level of listening and communication that which occurs in ordinary conversations, which can improve relationships, help reduce conflict and fosters understanding.