Standard Negotiation Process

The process of negotiation is very simple.Negotiation follows a four step path including:

• Preparation
• Information Exchange
• Bargaining
• Commitment

It is a kind of universal change that takes place over four stages of steps and for better and best results, both partners must be very well versed with this change.

The initial step that starts negotiation is preparation where you prepare yourself for negotiation considering the issues and goals that you want to attain at the end of the negotiation process.

Information exchange is the phase where both the parties get together to share and understand the concept of negotiating and then they decide what all issues and goals are to be discussed. After assuring the issues they put forward the point of their concern to the other party.

Bargaining: After putting all the concerned points together in front the parties settle for a mid way settlement that is normally known as bargaining. It is a process that gives a win win situation to both the parties as they settle for a particular goal.

Commitment: it is that form of the negotiation where both parties promise each other to provide them with what they have settled for. This is the last process of negotiation and it leads to the end.

Let us now examine the process of negotiation in detail and give stress on every aspect related to it.

Understanding each phase in detail

Preparation: This is one of the most important factors that need to be considered while negotiating. It involves preparation on following areas.

Information: You must be aware about all the aspects related to negotiation and must be well versed with the problem. You must have a clear idea about the problem and the solution that you think fits well according to you in the process of negotiation. Also try and get as much information as you can about your opponent.

Evaluation: You must evaluate your as well as your other party's leverage before you start the process of negotiation. While evaluating one must also keep in mind the points that are a concern for the other party as it might happen that what we evaluate at high point might be of least concern to the other or vice versa.

    Analysis
    Rapport with the opponent Evaluation
    Goals

Analysis: Understand about the issues that you think are the problems and find out what are the concern areas.

Rapport with the opponent: It is very important that you must have a good rapport with your opponent. A cooperative opponent will help you put forward your point positively or else you will have to employ a negotiator so that your point is well understood.

Goals: Goals are what you look for while negotiating and these are the things that you want to achieve at the end of the negotiation.

Type of Negotiation: A competitive or cooperative negotiation will make you understand the result that you are looking for. You must choose whether it is going to be a face to face negotiation or on fax or on telephone because the type of negotiation is very important in the process. You must also determine at the early stage whether you need the help of a negotiator or mediator.

Budget: It is again a very vital aspect of the entire negotiation process. You must determine what shall be the cost that you will be spending for this entire process in negotiating. You must be ready to share the burden with your opponent as it is two way process and if your goals are higher than his make sure that he pays really high to your goals.

Plan: What shall be your strategy? What do you intend to follow as your negotiation plan.

After going through in detail with all the points that are a concern at the initial stage of negotiation let us now understand the second phase of negotiation.

The bargaining with the other party

Just like the initial phase, this phase of bargaining also consist of many aspects that one should consider while preparing for negotiation. This is a very important phase which acts as a decisive platform for both the parties. It is one of the deciding factors of negotiation. This phase consists of the following:

Important points of second phase of negotiation

• Logistics
• Opening offers
• Related offers

The logistics: it considers all the aspects that are related to negotiation and answers the questions of when, where and how will you negotiate. If you are in a multi party negotiation it plays a very important role. What strategy you are going to adopt to convince the other party. How shall you negotiate with the other party and where will this negotiation take place so that both the parties are comfortable discussing.

Opening Offers: This implies to the offer that you have prepared yourself to present in front of the other party to begin the negotiation with. It all depends on the first offer remember, who ever makes the good and the first offer he is most likely to have chances of winning and making his point understood.

Subsequent Offer: This is the offer that you have in reserve in case if your first offer is rejected or it is the adjustment that you will make according to your opponent. You need to have a backup plan so that in case your first offer is completely rejected, you must immediately retaliate with the second plan.

• Your tactics
• Concessions
• Resolution

Tactics: You must emphasize more on the tactics that you will employ while negotiating. Also consider the point of tactics that your opponent will apply so that you have an edge over them.

Concessions: What are the concessions that you are ready to offer to your opponent and what strategies do you intend to apply in doing so. You must have a concession plan so that you can lure your opponent in listening to your conversation of negotiating.

Resolution: How do you think that problem or the issue can be resolved? What all are the possible ways of settling an issue that you have raised in the negotiation process.

After completing the second phase completely we must now work towards the closure of the process. This end phase will involve

• Documentation
• Closure
• Implementation

Documentation: You must check before closing your negotiation that whether you have covered all the important aspect of you goal and issue

Closure: This is the end result of all the negotiation that you have carried out so far with the other party.

Implementation: Remember it is not over until it is over. You must implement the strategy that you have decided during this process, so that a fruitful result comes out.

After reading the above discussion it is fairly understood that negotiation is a planned process and if we work closely on all the above mentioned aspects then we will get a sure short way to a successful negotiation.

Negotiation is not a one day process you need to plan it well in advance about the area of concern on both the parties related to negotiation, it is only then when the negotiation will reach its desired results and will be fruitful for both the people involved in the process.