R.
K Institute of Management & Research
4th session – Negotiation Process / Skills of
a Negotiator Book 3- Pgs 67 to 70, Pgs 17 to 20 and
Pg 103
7 Phases of Quality Negotiation
1. Creating the Climate
2. Developing of Strategies
3. The Opening Process (start of negotiation)
4. Building Understanding
5. Bargaining process
6. Closing of Negotiation
7. Implementing the Agreement
1.Creating the Climate
• Climate may be tough, uncompromising, tensed, warm,
creative or friendly
• Decide the time and number of people in the Negotiation
• Enter the Negotiation only when you have prepared the
agenda
• Identify the issues, my interests, my limits, my alternative
• Who are the opposing Negotiators and what they want
• What Negotiation strategy do I want to select
• Both parties should be clear with their Objectives
• Location should be as per the choice of both the parties
• Location to be free from disturbances and easily approachable
2.Developing of Strategies
• Both parties should develop their own strategies –
Details of Strategies to be discussed later
• What opening questions should be asked in the
beginning
• Brainstorming is necessary for each of the party
• Agenda –whether it is Formal or Informal
• Role of each member should be clear to the rest of the
team members
• Decide who will lead discussion, verify the facts, who
will ask Questions, who will initiate in answering etc
2.Developing of Strategies
• Do not set the Agenda for the other party or dictate
the agenda
• Both parties should pre-decide the role of a member
who can handle the situation or will work to reduce
the tension
• Either party should be clear with their BATNA
• Focus should be on improving the BATNA during
deliberations with the other party
• Lastly, either parties can make suggestions cordially
3. The Opening Process
Most influential step as it sets the tone/decides the
direction of Negotiation
• Opening process is divided into 3 parts –
1. Content –topics to be settled
2. Procedure –Planning, Agenda formulation,
Control of meeting, Physical setting, Matters to
be negotiated, any other preliminaries etc
3. Personal interaction – is there a match or clash
of Personalities, influence brought to the
Negotiating table, reactions of the other party
• Do a mock Negotiation process before hand to
visualise the flow of discussion
3. Four Ps of Negotiation
• Purpose – Should be crystal clear on either side as it is
the reason for the Negotiation
• Plan – Copy of the Agenda should be sent to each
member participating in the Negotiation
• Pace – Rate at which the parties need to move and
the length of time which they anticipate or are
prepared to devote to the meeting
• Personalities – Each member should be introduced
in the beginning, their significance in Negotiation
3. Opening process - Discussion phase
• Initiate discussions in a cordial way
• Discuss with clarity on issues and exchange
positions
• Create a positive and healthy working climate
• List down the points in the order of priority
• Listen carefully and do not dominate the process
• Ask questions intermittently to clarify the points
3. Opening process - Discussion phase
Yourself Other party
Specify your Objectives Should have clarity
State your Interests and Should be able to
Prioritise them understand your priorities
Be precise and do not add Try to get as many points
too many details from them
Consolidate your Identify their Weaknesses
Strengths emphatically discreetly
4.Building Understanding
• Common Mediator or a Facilitator can be decided
• Reference person can be mentioned
• Establish your credentials and give brief details
• Ask for the credentials of the other party
• Rapport building is essentially an Informal approach
• Process is like a Warming up process
4.Building Understanding
• Critical stage of the Negotiation process
• Each party should define their ground rules before
coming to the main topic
• Negotiation should start with minor issues at first
• Each issue should be clearly defined and understood
to all to ensure healthy participation
• Parties should follow a give-and-take process
• Ego of any member should not hinder the process
• Either parties can agree to disagree on certain points
5. Bargaining process
• Bargaining is concerned with a fair deal in which both
parties are satisfed
• Ask specifically for what you want from the process
• Do not finalise without exchanging with your partners
• Good negotiator is one who secures majority of fruits
to his basket and still satisfy the other party by giving
minor things
• Decide your BATNA and be clear of the stretch
• Be within the ZOPA which is pre-determined
6. Closing process
• Final stage of Negotiation process
• Transparency be there among both the parties
• All matters discussed should be documented and
both parties should carry the final copies
• No remorse or negative feelings should remain
• Written document serves as the proof for the
future if any party deviates from the agreement
• Final outcome should always preferably be
positive or WIN-WIN
7. Implementing the Agreement
• Successful negotiation doesn’t end immediately
• Points agreed during Negotiation must be
implemented honestly afterwards
• Even Win-Win negotiation can collapse if follow-
up work is poorly done
• No remorse or negative feelings should remain
• Documents should be available to both parties
Negotiation process –Summary
• Negotiating language
• Identify the issues/problems
• Identify your interests
• Individual or a team of negotiation
• Research the other party
• Put up a proposal –respond/counter/modify
• Preparing to bargain -(SWOT of both sides)
• Set your bargaining objectives
• Identify signals –making concessions
• Reaching settlement
