The Negotiation Process

Guidelines for successful negotiation

1. Be prepared
a. Gather information – understand objectives of your side and the other
party
b. Prepare an agenda
2. Be flexible and accept a fair “split-the-difference”
3. Clarify your terms
a. Do not assume the other party knows details or specifications
4. Engage in brainstorming
5. Be empathic

The negotiation process

1. Open the negotiation
2. Present an agenda and allocate time for each topic
3. Discuss items on the agenda
4. Break to review the agreement
5. End the negotiation on a positive note

Effective Communication
Guidelines
o Listen to the other party
o Maintain eye contact
o Avoid jargon
o Use appropriate language
o Be specific

Barriers
o Stress
o Education
o Fear of a negative reaction
o Be forthright
o Paraphrase

Questions
o Bridge questions – designed to elicit additional information
o Strategy questions – confirm accuracy of request
o Clarifying questions – designed to get a better understanding

Answers
o Answer honestly
 o Avoid lying

Negotiation Styles
o Compromising
o Divide needs to achieve objectives of both parties equally.
o Use when complete agreement cannot be reached.
o Accommodating
o Establish a strong relationship for future negotiations.
o Used when items are of more importance to other party or one is in a
weaker position.
o Avoid if other party is untruthful, manipulative or unethical.
o Collaborating
o Requires sufficient time to reach a mutually beneficial agreement.
o Good for problem solving and creative ideas.
o Willing to work together.
o Do not use for minor issues or for urgent issues.
o Avoiding
o Passive lose-lose orientation.
o Do not use when issue has significant importance.
o Best to save time and resources.
o Competing
o Win-lose orientation.
o Imbalance of power.
o Avoid style when both parties are equal.
o Need to make an immediate decision
o Face having the other side create negative consequences.
o Not appropriate when objectives are unimportant or when there are several
complex objectives.

Guidelines for challenging negotiation situations

Guidelines
o Ask for documentation when you suspect a bluff
o Provide rationale if the other party makes an unfair offer
o Emphasize the need for cooperation

Pitfalls
o Threatening the other party
o Becoming emotional
o Hinders ability to communicate clearly
o Distracts your focus from objectives
o Using sarcasm