|
The whole process of negotiation can be broadly divided into 3 stages –
- A preparation phase before the negotiation begins.
- The actual process of negotiating.
- The implementation and follow up of the agreement.
Prior to the actual interaction that leads to an agreement between various parties, the preparation for a successful negotiation process is essential. The achievement of the target has to be systematic and strategic move. This asks for a detailed and minute analysis. A manager needs to be clear about his perspective.
1) Evaluate relative strengths
Before embarking on negotiation there is a need to assess the party’s relative strengths. This strength can be defined as the power to influence others so as to have an upper hand over the final outcome. Each side has certain bargaining power on the back of which the whole negotiating process can be carried. While weighing relative strengths, the judgment regarding four things is involved :
-> The amount of authority that each party possesses to conduct negotiations and the ability of the parties to make decisions.
-> The strength of each party to get sanctions or benefits that are unrelated to the matter under negotiation.
-> The logic or equity in the arguments.
-> The firm determination with which each party pursues its case.
2) Set the objectives
While planning negotiations, an assessment of relative strength should be linked to the determination of objectives. Usually, the stronger one’s position is, the higher the level of objective achievement is there. The passing of the agreement takes place depending upon three different possible settlement levels.
-> The ideal or the best possible deal.
-> The expected settlement level.
-> The worst, though still just acceptable deal.
As a negotiator, one needs to identify the top line objectives, the best achievable outcome and the outcome that can be acceptable at the lowest level. It is vital to consider the other party’s viewpoint as well as one’s own. One objective of negotiations is to help the other party feel satisfied with the outcome and not to be too aggressive in the process.
3) Keep an eye on the other side
For conducting successful negotiation, an eye on the other party’s plans, strengths and weaknesses helps in deciding a winning strategy. What are the objectives of the other party ? The facts and arguments they are likely to put forward and their overall winning strategy, all this knowledge is useful for preparing on the underlying and unstated issues. Besides, exchanging factual data before negotiations helps in overcoming delays or confusions. Checking of the issue, detailed facts and arguments, exchanging details are all preparatory assessments.
4) Decision regarding the style and the scene
This is planning of more actual negotiation. The negotiations can be conducted in number of different styles. They can be discursive or brisk, formal or informal, assertive or persuasive. Depending upon the role and responsibility of the individual the expression of these styles differ. Besides, whom to involve in the discussion process and whom not to involve, is a crucial task. Minutest details like the location of the negotiation site, the seating arrangements, refreshments to be provided, documentation aspects all need special attention. Negotiations are surely affected by the style, pace and composition of the negotiating teams but equally important are the seating plans, breaks and conducting of the session itself. It is also useful to keep some record of the outcome of negotiations to ensure a common understanding.
5) Setting of the Agenda
It is important to chalk out a plan of action in advance to avoid misunderstandings and common errors. If a clear cut guideline regarding what is to be done is provided, a lot of time and effort can be saved. The agenda may be formal or informal. If the subject, scope and purpose are fixed in advance, confusion can be avoided. It is useful to remember that the progress of negotiation is influenced significantly by the first speaker. One way of securing a strong opening position is to volunteer a brief rehearsal of the background before full negotiations begin.
6) Pleading your case
To win the maximum favor in negotiation, tactics have to be used to strengthen one’s position during the bargaining process. Prior to introducing a new issue, its acceptability by the opposite parties need to be rated. Compromise and concession are the essential aspects of negotiation. Equally necessary is the attachment of conditions to the concessions. The use of emotion in negotiating should be avoided. At times during discussions, people start getting emotionally attached. It is professionally dangerous to rise to the bait of personal attack. There are occasions, when a controlled display of emotion may be beneficial. For this, the two conditions are, that the emotion must be sincere and its use should be a conscious decision, not an instant reaction.
It is advantageous for a good negotiator to be a good listner. The most common fault occurs in saying too much and listening too little. To keep the heaviness out, use of humor reduces the tension. Use of humor also avoids a confrontational mode.
Experienced negotiators usually do not commit themselves to definite statements until they are confident that this will not prejudice their position. The art of reading between the lines help in avoiding perceptional errors.
7) Timing and Adjournments
The maximum time for which an individual can maintain continuous attention and involvement, is somewhere around two hours. Henceforth, while planning negotiations, thought needs to be given to the time-scale. The longest period for effective continuous negotiation is about two hours. For this the time allotted for presentation can be 15 to 20 minutes and ideal time for individual contribution at the beginning of the discussion is two to three minutes.
Breaks and adjournments are helpful revival from monotonus discussions. They provide time to consider progress or new proposals within the team and avoid rash decisions. It also helps in bringing an end to unconstructive and personalized arguments. Besides, during the adjournment sessions the parties can have an opportunity for informal and casual talks.
8) Arriving at an agreement.
The closer the negotiation comes to end, the more sensitively the discussion needs to be handled. While weighing the benefits of the agreement, besides immediate returns the quality of long–term relationships also should be the crux.
The final offer and agreement needs to be timed to coincide with the discussion which is positively constructive. Before finalizing, it is advisable to check that all the aspects in the deal have been taken care of, particularly dates for implementation, completion time and definition and meaning of each term. Ensure that both parties fully understand what has been agreed and get the confirmation in writing. Those issues that still remain unsolved can be carried forward for future negotiations.
9) Effective Implementation
Arriving at an agreement is not an end in itself. The purpose with which negotiations are carried is to reach an outcome or action. An agreement is not successful until it has been effectively implemented. Adequate information and explanation should be supplied to those who are affected or apply the agreement.
10) Handling Breakdown
It is not necessary that negotiations always prove successful. At times an agreement may not be achieved and this requires other arrangements. A contingency plan should be kept ready in case of failure of the negotiations. The major options for handling breakdowns are either to go ahead on your own and take a decision that is best or seek third party intervention.
|
