Negotiation process

prenegotiation

opening

Information sharing

Problem solving

agreement
 Pre negotiation
• Home work and questions
• Find out what are your needs
• Find out what are others needs
• Find out what are your choices
• Find out what are their choices
• How negotiable are you on this issue?
• Is there room for further discussion about the
price?
• Are you open to considering alternatives for
resolving this issue?
 Preparing to Negotiate
• Determine roles
• Examine your position
– strengths, weaknesses, BATNA (best
alternative to a negotiated agreement)
– limits, and ranges of options
• Consider the other party’s needs
– How would you proceed in their role?
• Identify and prioritize key issues
 Preparing to Negotiate

• Set goals and strategies

• Work through emotions beforehand
– “It’s nothing personal…just business”
Vito Corleone, “The Godfather”
 opening
• Introduction of parties and explanation of
the role they play in negotiation
• Purpose of the negotiation.
• Rules and norms of the negotiation
– Eg. Listen without interrupting
– Only one person speaks at a time
– Personal attacks will not be tolerated
– Participants will provide pertinent information
• Agenda for the discussion
 Information sharing
• It is the first stage of formal negotiation
• Participants explain their perception of
their problem
• The goal of information sharing phase is to
learn as much as possible about
preferences and goals.
• The parties need to be interest-focused
 Problem solving
• Ideas, suggestions, options or courses of
actions are generated in this phase.
• Two forms of doing this
– Generate options for each of the problems:
parties evaluate each of the possible solutions
based on its ability to resolve the dispute or
satisfy interests
– Creation of comprehensive package in which
parties use their differences in expectations to
create tradeoffs
 When priorities differ on issues
• Parties may go for
• Logrolling: involves in parties making concessions on
issues of lower priority to themselves but higher priority
for others
• Linkage: when parties expand the scope of negotiation
by linking the agreements
• Bridging: when both parties back off on their original
demands in favor of new options
• Cost cutting technique: when one party achieves its
interests but reduced cost to the other.
• Concessions: serve as low cost trade offs, motivators
 Phases of problem solving
• 1. generate ideas and options
• 2. separate inventing from deciding
• 3. engage in tradeoffs
• 4. agree on criteria for acceptable
settlement
• 5. select best package of options and
tradeoffs
 Constructing a draft or agreement
• Single text procedures: few from a party
prepare written document then present to
all.
• Two text procedure: two parities prepare
their own agreement and come together
and integrate
• Neutral write-up: third party prepares the
document
 Elements of agreement
• Expectations of each party (what and who)
• Implementation of agreement (how)
• Timing of implementation (when)
• Consequences of failing to abide by the
agreement
• Provisions for further discussions if
agreement needs revisions