Negotiation; Principles, Process & Strategies - Kickoffall Info Hub

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Saturday, April 4, 2020

Negotiation; Principles, Process & Strategies

Negotiation is the process of bargaining, where two parties, trying to reach an agreement on mutually acceptable terms to acquire each other’s wants.
Negotiation includes the discussions & bargaining that goes on between parties before a contract is settled or a deal is agreed upon.
Nature of the Negotiation
  • Negotiation requires the involvement of two parties.
  • Negotiation requires flexibility.
  • Negotiation is a continuous process, not an event.
  • Negotiation needs effective communication.
  • Negotiation  looks for win-win situation for parties involved.
Four principles of best practice Negotiation
  1. Preparation: understanding the issues and the people and equipping the team for the process
  2. Relationship: developing a strategy for maintaining the relationship before, during and after negotiations
  3. Communication: building trust by applying open communication style
  4. Problem-solving: exploring options and strategies for reaching agreement
Negotiation Process
1.       Offer: It is the first proposal made by one party to another in the negotiation opening stage.
2.       Counter Offer: It is the offer made by the second party to the first party.
3.       Concession: It is the increase or decrease make in the offer by both or one of the parties
4.       Compromise: it is the sacrifice made by both or one of the parties
5.       Agreement: It is the point where both parties agree which is beneficial for both.
The Outcomes of the Negotiation
1.       Loss – Loss: Where both parties fail to achieve the desired outcome.
2.       Win – Loss: Where one party wins its  and other party loses
3.       Draw: Where both parties lose some  and win something
4.       Win – Win: Where both parties win to achieve the desired outcome.
Strategies for Successful Negotiation
1. Assess:
- What the benefits of participating in the negotiation.
- What is the expected cost and benefits of participating in the negotiation.
- What are the losses if avoid the negotiation
2. Prepare:
- Analyze your interests in the negotiation
- Analyze the interests of your counterpart in the negotiation
3. Interact:
- Engage with your counterpart during the negotiation; Listen to the perspectives of the counterpart
- Provide some unique information that your counterpart needs.
4. Package:
- Present the packages that address both issues and solution of both parties

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