Eight Steps of Negotiations

Prepare
Argue
Signal
Propose
Package
Bargain
Close
Agree

PREPARE

Prepare carefully well in

advance
Prepare for
negotiations and not
defending
Be ready for
opportunities
Reconsider your
preparation items

Five key areas of preparation

Objectives
Information
Concessions
Strategy/Style
Tasks

Preparation- objectives
Define

what outcome you want to achieve

from the negotiation- ISSUES
The realistic expectation against each issuesINTEND
Minimum acceptable position on intendsMUST ACHIEVE or AVOID
What is the ideal outcome you want WISH
LIST

Step 1-Preparation- Objectives

Do

the same for your opponent ISSUES,

INTEND, MUST ACHIEVE & WISH LIST

As

negotiations progress keep your

objectives under constant review: are they
still realistic? Should your INTEND be
boosted by a few WISH LIST items? Should
you move on an INTEND to protect a MUST?

Elements of Negotiations
VALUES
POSTION
NEEDS
NEEDS

SATISFIERS
NEEDS BLOCKERS

VALUES
Deeply

held preferences that shape our goals

and means to fulfill them. Transmitted
through socialization and enduring. Values
are shared and often culture specific . Values
create needs that we want to fulfill.

POSITIONS
An

opening demand that the negotiator

believes will satisfy need.

Positions

can be changed in skillful

negotiations

NEEDS
Needs

are specific in a negotiation , but are

derived from the values we hold. They have
to be dug out by skillful questioning and then
a suitable need satisfiers can be used to
move the negotiation forward .

If

we are not clear about our needs we may

bargain away some thing we value

NEED SATISFIERS
These

bring focus to the negotiation and

create a positive environment , which can
then be used to change positions

NEED BLOCKERS
They

are threatening and do not lead to

collaborative negotiations

Tactics of Negotiation
ATTACK-

creates negative energy

EVADE- can be used meaningfully
INFORM- clears the environment
OPEN- helps in understanding needs
UNITE- build rapport Emphasize common
ground- reframe propose solutions

PREPARATION- Information
Research

both parties
Analyze the basis of power for both
Do SWOT for both
Prepare questions in advance
What is the BATNA of the opponent
What is their awareness in regard to your
issues and needs
Brutally admit to assumptions and biases

BATNA- Best Alternatives in a

Negotiation Agreement
Ideal----------------------------------A

Intend---------------------------------B
Negotiations Zone

Must

avoid--------------------------- C

PREPARATION- Concessions
Where

can we be flexible?
What concessions can we make?
What can we give in order to what we want
TRADE
What value the concessions have to the other
party?
What will you ask in return?

PREPARATION-Strategy
Keep

it SIMPLE and FLEXIBLE

Avoid confusing strategy ( means) with
objectives ( objectives)
E.g. Take the train ( strategy ) to London
(objectives ). If you meet a gate adjourn or
reconsider .

Understand the preferred

styles of each other
DEFERENTIAL-

Respect and Hierarchy

SUBSTANTIVE-

Material issues

RELATIONAL-

Trust and good faith

PROCEDURAL-

Agenda and rules

Understand your personal

style
IMAGINATIVE-

creative , intuitive, integrative

and inspiring
FACTUAL- clear, focused, informed , verify
RELATIONAL- solve conflict,listen,
encourage, listen and maintain relations ,
constructive
ANALYTICAL- logical and process oriented
EVALUATIVE- weigh , measure and moniter

PREPARATION- Tasks

Leader- conducts the negotiation, gives information, expresses

opinions, makes proposals, trades concessions.

Summarizer- asks questions to test understanding, draws

attention to , clarifies , summarizes to buy thinking time, confirms
areas of disagreement and agreement . Does NOT give personal
opinions, information's, and concessions,
Observer- watches, listens, records and tries to understand the
motivation , concerns, priorities, & inhibitions,

STEP 2- ARGUE
It

is an opportunity to

Exchange information
Review issues
Structure expectations
Test assumptions
Probe motives
Explore opportunities
Identify inhibitions, & chinks
Influence, persuade & inform
Review sanctions & concessions

STEP 4- Signal
Signals

indicate change in stance

They are verbal or non verbal
When opponent moves from absolute to
qualified statements it is a signal
Listen , reward, expand and confirm signal
Signals indicate when to make a proposal

What are qualified statements

Can

you explain the reasons?

Suppose I agree to that what can you offer?
Which aspects are you unhappy with?
Why is it important?

STEP 5- PROPOSE- ENTRY

OFFER
Open

realistically- entry offer

A realistic proposal is based on facts that
support the proposal
Address the key issues & your intend list
Matches the other parties BATNA

Making proposals
Propose

Explain Summarize
Invite response
If you have to modify the proposal the
secondary proposal is tentative
If there is a grievance suggest a solution

RECIEVING PROPOPSALS

Never interrupt
Question clarify summarize
Response could be No- this gives the other party the
initiative.
If Yes- Are you missing an opportunity to add some
thing from your wish list?
Instant counter proposal- leads to haggling and
arguments
Adjourn- gives time to consult and think
Detailed response encourages repackaging, to make
the proposal more acceptable
Considered counter proposal- best response
TRY TO GIVE THEM WHAT THEY WANT ON YOUR
TERMS

More about proposals

If

you are asked to concede something from

your intend list then add something from your
wish list
Remember the strengths of your proposal
Proposal set the agenda
A proposal beats arguments

STEP 6 - Package

Packaging adjust the variable without increasing the offer in

order to make the proposal more acceptable
If you have opened realistically then you may reach a deal
without making any adjustment or concessions.
In order to do get more out of the other identify inhibitions and
interests and address the package to them.
If you use a competitive stance likelihood of identifying needs
about inhibitions are low , so use a cooperative stance
Proposals are solutions to needs
Think creatively about all the variables or services while
packaging

Styles of Negotiations

Co operative
Long term relationship
Voluntary relationship
Trust
Private and informal
Tolerance of others views
Emotional detachment
Skilled negotiations
Win - win

Competitive
on recurring transactions
Mandatory relations hip
Suspicion
Public and formal
Intolerance of others
Emotional involvement
Poor negotiators
Win lose

Step 7- Bargain

Bargain is any trading activity , You can bargain at any

stage of the negotiation:
For information
For concessions
For signals
For time for the deal

The fundamental rule in bargain is TRADE. You should

always have an answer to the question What did you
get in return?
Be prepared to concede in areas of lesser importance to
gain in areas of greater importance
Put an unreasonable price to an unreasonable demand

Step 8- CLOSE

Trial closure is useful device for drawing out issues.

Ask Are you saying if I agree to both of those items you will be
satisfied? - this insures if there are hidden issues they will
emerge

What is the most important closing opportunity a minor

question that the other party asks about your proposal e.g.
does that include delivery ? or Would that be back dated?

If both parties are happy

Closing concessions should be :

Conditional ( on the deal)
Specific
Small

Dont get greedy

Agree

Agree to what is agreed- any ambiguity gets cleared up easily

When to go for adjournment

When

you feel you need to reconsider your

objectives
New critical information emerges
Your strategy is over taken
Stuck in circular argument
When you need time to repackage

How to make adjournments

Summarize

the position the negotiation has

reached
Withdraw to a private place and discuss with
your team before breaking away
Agree on a new meeting date
Give home work to the other party