Steps to Negotiation

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Steps to Negotiation
Lisa J. Downs

• American Society for Training Development

2
Negotiation Steps

• 1. Analysis
• 2. Preparation
• 3. Communication
• 4. Proposal
• 5. Commitment

3
Step 1 Analysis

• Diagnose the negotiation situation (i.e.,
  determine the issue at hand).
• Clarify the facts about the issue.
• Note barriers to resolving the issue.
• Examine the wants and needs of the other side in
  relation to yours.

Source Fisher, Roger, William Ury, and Bruce
Patton, editor. Getting to Yes Negotiating
Agreement Without Giving In (2nd edition). New
York Penguin Group, 1991.
4
Tips for Analysis

• Know the people engaged in the negotiation learn
  who has the authority to make a deal.
• Know your and the other sides BATNA and
  interests.
• Conduct a SWOT analysis (Strengths, Weaknesses,
  Opportunities, Threats).

Source Fisher, Roger, William Ury, and Bruce
Patton, editor. Getting to Yes Negotiating
Agreement Without Giving In (2nd edition). New
York Penguin Group, 1991.
5
Step 2 Preparation

• Create strategies to work with different
  negotiation styles.
• Examine the other sides point of view
  (relationships and potential conflict).
• Decide how to communicate (phone, email,
  face-to-face, through third party).
• Exchange information.

Source Fisher, Roger, William Ury, and Bruce
Patton, editor. Getting to Yes Negotiating
Agreement Without Giving In (2nd edition). New
York Penguin Group, 1991.
6
Tips for Preparation

• Focus on how you will investigate options for
  mutual gain.
• Prepare objective criteria and standards to
  suggest for decision making.
• Match your strategy to the situation and style of
  participants.
• Plan with the idea that anything can happen.

Source Fisher, Roger, William Ury, and Bruce
Patton, editor. Getting to Yes Negotiating
Agreement Without Giving In (2nd edition). New
York Penguin Group, 1991.
7
Common Negotiation Styles

• Aggressive (or Confrontational) Indicates a
  strong need to control situations described as
  persistent, domineering, decisive
• Assertive (or Persuasive) Indicates an approach
  using facts and logic to uphold position
  described as determined, collaborative, persuasive

Source Gosselin, Tom. Practical Negotiating
Tools, Tactics and Techniques. Hoboken, New
Jersey John Wiley and Sons, Inc., 2007.
8
Common Negotiation Styles

• Open (or Responsive) Indicates an open
  personality and good listening skills with a
  tendency to ask questions described as flexible,
  approachable, understanding
• Avoiding (or Withdrawing) Indicates conflict
  avoidance and aversion to risk described as
  cautious, compromising

Source Gosselin, Tom. Practical Negotiating
Tools, Tactics and Techniques. Hoboken, New
Jersey John Wiley and Sons, Inc., 2007.
9
Criteria and Standards

• Focus on the consistency principle Appear
  reasonable and rational in making decisions.
• Beware of deferring to authority based strictly
  on status.
• Identify the other sides standards as legitimate
  and anticipate any arguments.

Source Fisher, Roger, William Ury, and Bruce
Patton, editor. Getting to Yes Negotiating
Agreement Without Giving In (2nd edition). New
York Penguin Group, 1991.
10
Criteria and Standards

• Negotiations should involve
• A wise agreement based on principles and
  interests
• An efficient process for open communication
• An improved relationship between the parties (or
  at minimum, a neutral one)

• Negotiations should involve
• A wise agreement based on principles and
  interests.
• An efficient process for open communication.
• An improved relationship between the parties (or
  at minimum, a neutral one).

Source Fisher, Roger, William Ury, and Bruce
Patton, editor. Getting to Yes Negotiating
Agreement Without Giving In (2nd edition). New
York Penguin Group, 1991.
11
Step 3 Communication

• Explore differences and solutions.
• Use a variety of tactics to address negotiation
  styles.
• Develop rapport and build trust.
• Signal expectations and leverage.
• Probe first, then share information.

Source Fisher, Roger, William Ury, and Bruce
Patton, editor. Getting to Yes Negotiating
Agreement without Giving In (2nd edition). New
York Penguin Group, 1991.
12
Tips for Communication

• Pay attention to cultural differences in both
  verbal and nonverbal communication.
• Be sensitive to the mood or atmosphere during the
  discussion.
• Keep the people and the problem separate avoid
  focusing on egos.
• Listen more and speak less.

Source Fisher, Roger, William Ury, and Bruce
Patton, editor. Getting to Yes Negotiating
Agreement Without Giving In (2nd edition). New
York Penguin Group, 1991.
13
Nonverbal Communication

• Be aware of your counterparts nonverbal
  behaviors (i.e., gestures, tone of voice,
  posture, facial expression).
• Be aware of your own nonverbal behaviors and
  mood.
• Respond appropriately to the other sides
  nonverbal behaviors to be more receptive.

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Leverage

• If Weak
• Appeal to counterparts desire to minimize future
  risk.
• Appeal to counterparts sympathy.
• If Strong
• Let the other side know your options (not that
  youll exercise them all).
• Indicate your willingness to be flexible.

Source Shell, G. Richard. Bargaining for
Advantage Negotiation Strategies for Reasonable
People. New York Penguin Group, 2006.
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Step 4 Proposal

• Offer a solution to the issue (specific
  suggestions for action).
• Clarify roles to carry out the deal.
• Determine any deadlines and incremental steps.
• Decide a process for ongoing communication.

Source Fisher, Roger, William Ury, and Bruce
Patton, editor. Getting to Yes Negotiating
Agreement Without Giving In (2nd edition). New
York Penguin Group, 1991.
16
Tips for Proposal

• Base suggestions on uncovered interests and
  mutual gain.
• Be realistic and reasonable with deadlines and
  expectations.
• Engage others to determine next steps and
  processes.
• Match roles with individual strengths.
• Focus on achieving the primary goals of the
  negotiation.

Source Fisher, Roger, William Ury, and Bruce
Patton, editor. Getting to Yes Negotiating
Agreement Without Giving In (2nd edition). New
York Penguin Group, 1991.
17
Step 5 Commitment

• Secure commitment, not just agreement.
• Establish accountability to each other (i.e.,
  what will be lost if either party fails to
  perform?).
• Gain signatures on a written agreement to bind
  the commitment.

Source Fisher, Roger, William Ury, and Bruce
Patton, editor. Getting to Yes Negotiating
Agreement Without Giving In (2nd edition). New
York Penguin Group, 1991.
18
Tips for Commitment

• Pay attention to social rituals (signs of respect
  and trust such as a handshake).
• Consider making the commitment public through an
  announcement.
• Know what steps need to be taken to draft a legal
  contract.
• Complete a simultaneous exchange (i.e., a title
  or deed for payment).

Source Fisher, Roger, William Ury, and Bruce
Patton, editor. Getting to Yes Negotiating
Agreement Without Giving In (2nd edition). New
York Penguin Group, 1991.