In the preparation and planning stage, you (as a party in the negotiation) need to determine and clarify your own goals in the negotiation. This is a time when you take a moment to define and truly understand the terms and conditions of the exchange and the nature of the conflict. What do you want to walk away with? Show
You should also take this moment to anticipate the same for the other party. What are their goals in this negotiation? What will they ask for? Do they have any hidden agendas that may come as a surprise to you? What might they settle for, and how does that differ from the outcome you’re hoping for? This is a time to develop a strategy for the negotiation. We’ll talk more about strategies in the next section. Definition of Ground RulesAfter the planning and strategy development stage is complete, it’s time to work with the other party to define the ground rules and procedures for the negotiation. This is the time when you and the other party will come to agreement on questions like
Usually it’s during this phase that the parties exchange their initial positions. Clarification and JustificationOnce initial positions have been exchanged, the clarification and justification stage can begin. Both you and the other party will explain, clarify, bolster and justify your original position or demands. For you, this is an opportunity to educate the other side on your position, and gain further understanding about the other party and how they feel about their side. You might each take the opportunity to explain how you arrived at your current position, and include any supporting documentation. Each party might take this opportunity to review the strategy they planned for the negotiation to determine if it’s still an appropriate approach. This doesn’t need to be—and should not be—confrontational, though in some negotiations that’s hard to avoid. But if tempers are high moving into this portion of the negotiation process, then those emotions will start to come to a head here. It’s important for you to manage those emotions so serious bargaining can begin. Bargaining and Problem SolvingThis is the essence of the negotiation process, where the give and take begins. You and the other party will use various negotiation strategies to achieve the goals established during the preparation and planning process. You will use all the information you gathered during the preparation and planning process to present your argument and strengthen your position, or even change your position if the other party’s argument is sound and makes sense. The communication skills of active listening and feedback serve the parties of a negotiation well. It’s also important to stick to the issues and allow for an objective discussion to occur. Emotions should be kept under control. Eventually, both parties should come to an agreement. Closure and ImplementationOnce an agreement has been met, this is the stage in which procedures need to be developed to implement and monitor the terms of the agreement. They put all of the information into a format that’s acceptable to both parties, and they formalize it. Formalizing the agreement can mean everything from a handshake to a written contract. Practice questionSalescoLet’s take a look at this process in action. A team from a retail organization, Salesco, is looking to purchase widgets for resale directly to the consumer. You lead a team from WholesaleCo and are interested in negotiating an offer to sell these widgets to them at a wholesale cost.
The negotiation process is complete. Books have been written, and classes have been taught on the art of negotiation. The ability to master negotiation strategy is a coveted skill in the business world. Now that we understand the basics of the negotiation process, let’s take a look at some of the negotiation “experts” that are out there and how they finesse the process to get the best results. What are the 5 stages of negotiation process?Negotiation Stages Introduction. There are five collaborative stages of the negotiation process: Prepare, Information Exchange, Bargain, Conclude, Execute.. There is no shortcut to negotiation preparation.. Building trust in negotiations is key.. Communication skills are critical during bargaining.. What are the 7 steps of the negotiation process?Seven Steps To Negotiating Successfully. Gather Background Information: ... . Assess your arsenal of negotiation tactics and strategies: ... . Create Your Negotiation Plan: ... . Engage in the Negotiation Process: ... . Closing the Negotiation: ... . Conduct a Postmortem: ... . Create Negotiation Archive:. What are the 8 steps in the negotiation process?The Eight-Stage Negotiation Process. Prepare: Know what you want. ... . Open: Put your case. ... . Argue: Support your case. ... . Explore: Seek understanding and possibility.. Signal: Indicate your readiness to work together.. Package: Assemble potential trades.. Close: Reach final agreement.. Sustain: Make sure what is agreed happens.. What are the six steps in the negotiation process?The Six Stage Negotiation Process. Stage 1 – Statement of Intent. ... . Stage 2 – Preparation for Negotiations. ... . Stage 3 – Negotiation of a Framework Agreement. ... . Stage 4 – Negotiation of an Agreement in Principle (AIP) ... . Stage 5 – Negotiation to Finalize a Treaty. ... . Stage 6 – Implementation of a Treaty.. |