The Process of Negotiation

1. Preparation and planning:
• Do your homework. What is the nature of the conflict? What is the history leading up to this
negotiation? Who is involved, and what are their perceptions of the conflict? What do you want
from the negotiation? What are your goals?
• You also want to prepare an assessment of what you think the other party to your negotiation’s
goals are.
a. When you can anticipate your opponent’s position, you are better equipped to counter his or
her arguments with the facts and figures that support your position.
• Once you have gathered your information, use it to develop a strategy.
• Determine your and the other side’s Best Alternative To a Negotiated Agreement (BATNA).
a. Your BATNA determines the lowest value acceptable to you for a negotiated agreement.
b. Any offer you receive that is higher than your BATNA is better than an impasse.
2. Definition of ground rules:
• Who will do the negotiating? Where will it take place? What time constraints, if any, will
apply?
• To what issues will negotiation be limited? Will there be a specific procedure to follow if an
impasse is reached?
• During this phase, the parties will also exchange their initial proposals or demands.
3. Clarification and justification:
• When initial positions have been exchanged, explain, amplify, clarify, bolster, and justify your
original demands
• This need not be confrontational.
• You might want to provide the other party with any documentation that helps support your
position.
4. Bargaining and problem solving:
• The essence of the negotiation process is the actual give and take in trying to hash out an
agreement.
• Concessions will undoubtedly need to be made by both parties.
5. Closure and implementation:
• The final step—formalizing the agreement that has been worked out and developing any
procedures that are necessary for implementation and monitoring
• Major negotiations will require hammering
out the specifics in a formal contract.
• For most cases, however, closure of the
negotiation process is nothing more formal
than a handshake.