Negotiation

Planning

&

Stages

Negotiation
Negotiation is a process of moving (self or others) from No to Yes Voluntary Decision Making Claiming Value A Set of activities that involves two or more individuals or parties to come to an agreement for individual and collective advantage.

Planning
Planning Elements

WHERE

WHO

WHY

WHAT

WHAT IF

HOW

WHEN

Who
Identify and understand clearly about the Parties involved in the negotiation process and fixing our roll to it. Identification Parties Details(To be filled) Buyer Seller Agents / Mediators Arbitrators Decision Maker Influencer Understanding Our Role: (To Fill) To fill in each parties Expectations, Perceived Skill Levels, Attitude, Cooperative behaviour. Parties Buyer Seller Agents / Mediators Arbitrators Decision Maker Influencer Expectations Perceived Skill Levels Attitude Co-operative Behaviour

Why
Choose from the following / fill the purpose of negotiation & perceptions towards the same. Purpose Yes/No Business Deal Personal Issue Conflict Resolution Putting a point (Any other reasons)

What
In this section we should fill all the details we need to know before entering a negotiation process. What Are we negotiating for? (CNWD) Should be the negotiation plan? (TYPE) Is the best offer for us? (BATNA) Is the available range on the table? (ZOPA) Are the elements & value? (BMx) Is deal breaker for us? (RV) Should be our strategy to claim value in total (TV) If the deal does not happen? (What if) Should be my anchor? (Anchoring) Details

What If - How
While planning we must be aware of different situations we might face. For every situation we should have a thought through and pre-decide our action to control the situation. Here is a list of situations we might face and action suggestions. Situation Negotiation process is going nowhere. Other party sets the anchor and you believe it is too high. Process is going haywire. Environment is heating up. Other party is not leaving its stance on an issue. Other party is not letting you speak. Action Attempt to bring the process back on track by focusing on value on the table. Ignore the anchor value and put your position forward base on the value you believe is fair. Take a break and let everyone gain back their composure. Get a third party to control the situation. Figure out a solution acceptable to him for the negotiation to continue. Be patient and listen to his comments. Simultaneously prepare for what you need to put forward based on his talk. Focus of discussion is moving towards Try and bring the focus back to

position. Ego of parties is influencing the process. Other party is not satisfied with the deal. Agreement for you reaches a point of contentment Solution provided by you is not acceptable to the other party. Other party is not being collaborative and has an adamant mind set. If forced to allow Concessions

interests. Try to separate the problem and people. Explain the value generated for the other party from the deal. Try to bring negotiation to a closure

Look out for alternatives. Control your behavior and talk in a collaborative vocabulary. Dont forget in labelling the concession

How, When & Where

In this part we have to decide broadly on the tone of the meeting. Negotiation should be done at a time and place where we feel comfortable and there are no external factors influencing our behavior. Tone Meeting Time Meeting Place Deadlines(if any) Ambience / Arrangements if any Comments on above parameters if any:. Formal/Informal

Stages of Negotiation Process Pre

Get Information
Systematic Investigative Analyze Innovate Strategize

Develop Solutions

Identify 7 Key elements

Parties
Interdependent, common interest, wish to resolve

Interest
Bargaining mix - CNWDT

Value
Total value of Transaction & Relationship - BMx

BATNA
Next Best alternative

Barriers
Mental limits

Power
Perceived - Based on other party - should be acknowledged by others

Ethics
Principles of transaction/ relationship, Trust & Credibility

6 Step Process
Identify Bargaining Mix
(for Each)

Assess Your BATNA

Assess your RV Assess Others BATNA Assess Others RV Evaluate ZOPA Advantage: Anchoring Can open the negotiation nearer to opponents RV

Process Now

Meeting and time

Choose a neutral place and suitable time

Introduction

Icebreaker Try and set the tone and build rapport Discover commonalities

Process

Try and set the anchor. Get the maximum out of other partys ZOPA Follow principled negotiation methodology Try and create value for other party as well Control your emotions Try to follow the guidelines of What If section

Process Post
PSN ? PSS Post Settlement Settlement Though won the agreement with some inefficiencies (some price cuts) due to agents force, after the exit of agent, if we really have the ability to create additional value (Strong DVP) for the customer we will be in a strong to pitch our proposition once we are dealing with the party that stands to benefit from hearing us out. Dont assume that we are struck with an inefficient agreement, if both sides can be made better off, we can always revise the agreement after we have won the deal.

Process Post
Revisit the agreement

Identify who will do what

Decide the time by when to do

Decide how to do Identify key indicators to measure the performance of negotiation

Create a lessons learned document