The 7 Elements of Negotiation

The 7 Elements of 1. Interest: All of the needs, wants, desires, and fears that motivate us
to negotiate.
Negotiation 2. Alternatives: All of the things the parties can do without the
consent of the other parties at the table.
Pri Hermawan 3. Options: Possible solutions that satisfy one or more of the parties’
School of Business & Management interests and require agreement to take effect.
Institut Teknologi Bandung 4. Legitimacy: Objective or reasonable standards to establish what is
fair, right or acceptable.

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The 7 Elements of Negotiation (cont’d) The Four Ps

5. Commitment: The written or oral declarations of what the parties
agree to do or not to do.
6. Relationship: Behaviours and emotions that impact the ability of
the parties to constructively work through their differences.
7. Communication: All verbal or non-verbal means of exchanging
information.
• Purpose: The scope of our negotiation. What are we trying to
accomplish?
• Product: The material output of the negotiation. What do we need to
have at the end of our negotiation?
• People: The authority of the key decision-makers in our negotiation.
Who needs to be involved to achieve our purpose?
• Process: The path of our negotiation. What is the best way to
accomplish our purpose given the desired product and people?

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