Why Negotiate?: Stages of Negotiation

Why Negotiate?
It is inevitable that, from time-to-time, conflict and disagreement will arise as the differing
needs, wants, aims and beliefs of people are brought together. Without negotiation, such
conflicts may lead to argument and resentment resulting in one or all of the parties feeling
dissatisfied. The point of negotiation is to try to reach agreements without causing future barriers
to communications.
Stages of Negotiation
In order to achieve a desirable outcome, it may be useful to follow a structured approach to
negotiation. For example, in a work situation a meeting may need to be arranged in which all
parties involved can come together.
The process of negotiation includes the following stages:
1. Preparation
2. Discussion
3. Clarification of goals
4. Negotiate towards a Win-Win outcome
5. Agreement
6. Implementation of a course of action
1. Preparation
Before any negotiation takes place, a decision needs to be taken as to when and where a meeting
will take place to discuss the problem and who will attend. Setting a limited time-scale can also
be helpful to prevent the disagreement continuing.
This stage involves ensuring all the pertinent facts of the situation are known in order to clarify
your own position. In the work example above, this would include knowing the ‘rules’ of your
organisation, to whom help is given, when help is not felt appropriate and the grounds for such
refusals. Your organisation may well have policies to which you can refer in preparation for the
negotiation.
Undertaking preparation before discussing the disagreement will help to avoid further conflict
and unnecessarily wasting time during the meeting.
2. Discussion
During this stage, individuals or members of each side put forward the case as they see it, i.e.
their understanding of the situation.
Key skills during this stage include questioning, listening and clarifying.
Sometimes it is helpful to take notes during the discussion stage to record all points put forward
in case there is need for further clarification. It is extremely important to listen, as when
disagreement takes place it is easy to make the mistake of saying too much and listening too
little. Each side should have an equal opportunity to present their case.
3. Clarifying Goals
From the discussion, the goals, interests and viewpoints of both sides of the disagreement need to
be clarified.
It is helpful to list these factors in order of priority. Through this clarification it is often possible
to identify or establish some common ground. Clarification is an essential part of the negotiation
process, without it misunderstandings are likely to occur which may cause problems and barriers
to reaching a beneficial outcome.
4. Negotiate Towards a Win-Win Outcome
This stage focuses on what is termed a 'win-win' outcome where both sides feel they have gained
something positive through the process of negotiation and both sides feel their point of view has
been taken into consideration.
A win-win outcome is usually the best result. Although this may not always be possible, through
negotiation, it should be the ultimate goal.
Suggestions of alternative strategies and compromises need to be considered at this

point. Compromises are often positive alternatives which can often achieve greater benefit for
all concerned compared to holding to the original positions.
5. Agreement
Agreement can be achieved once understanding of both sides’ viewpoints and interests have
been considered.
It is essential to for everybody involved to keep an open mind in order to achieve an acceptable
solution. Any agreement needs to be made perfectly clear so that both sides know what has been
decided.
6. Implementing a Course of Action
From the agreement, a course of action has to be implemented to carry through the decision.
See our pages: Strategic Thinking and Action Planning for more information.
Failure to Agree
If the process of negotiation breaks down and agreement cannot be reached, then re-scheduling a
further meeting is called for. This avoids all parties becoming embroiled in heated discussion or
argument, which not only wastes time but can also damage future relationships.
At the subsequent meeting, the stages of negotiation should be repeated. Any new ideas or
interests should be taken into account and the situation looked at afresh. At this stage it may also
be helpful to look at other alternative solutions and/or bring in another person to mediate.
See our page on Mediation Skills for more information.
Informal Negotiation
There are times when there is a need to negotiate more informally. At such times, when a
difference of opinion arises, it might not be possible or appropriate to go through the stages set
out above in a formal manner.
Nevertheless, remembering the key points in the stages of formal negotiation may be very
helpful in a variety of informal situations.
In any negotiation, the following three elements are important and likely to affect the ultimate
outcome of the negotiation:
1. Attitudes
2. Knowledge
3. Interpersonal Skills
Attitudes
All negotiation is strongly influenced by underlying attitudes to the process itself, for example
attitudes to the issues and personalities involved in the particular case or attitudes linked to
personal needs for recognition.
Always be aware that:
 Negotiation is not an arena for the realisation of individual achievements.

 There can be resentment of the need to negotiate by those in authority.
 Certain features of negotiation may influence a person’s behaviour, for example some
people may become defensive.
Knowledge
The more knowledge you possess of the issues in question, the greater your participation in the
process of negotiation. In other words, good preparation is essential.
Do your homework and gather as much information about the issues as you can.
Furthermore, the way issues are negotiated must be understood as negotiating will require
different methods in different situations.
Interpersonal Skills
Good interpersonal skills are essential for effective negotiations, both in formal situations and in
less formal or one-to-one negotiations.
These skills include:
 Effective verbal communication.

See our pages: Verbal Communication and Effective Speaking.
 Listening.
We provide a lot of advice to help you improve your listening skills, see our page Active
Listening.
 Reducing misunderstandings is a key part of effective negotiation.
See our pages: Reflection, Clarification and The Ladder of Inference for more
information.
 Rapport Building.
Build stronger working relationships based on mutual respect. See our pages: Building
Rapport and How to be Polite.
 Problem Solving.
See our section on effective Problem Solving.
 Decision Making.
Learn some simple techniques to help you make better decisions, see our section:
Decision Making.
 Assertiveness.
Assertiveness is an essential skill for successful negotiation. See our page: Assertiveness
Techniques for more information.
 Dealing with Difficult Situations.
See our page: Communicating in Difficult Situations for some tips and advice to make
difficult communications, easier.
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Why Negotiate?

The process of negotiation includes the following stages:

4. Negotiate Towards a Win-Win Outcome

Suggestions of alternative strategies and compromises need to be considered at this

6. Implementing a Course of Action

See our page on Mediation Skills for more information.

Always be aware that:

 Negotiation is not an arena for the realisation of individual achievements.

These skills include:

 Effective verbal communication.

Find more at: http://www.skillsyouneed.com/ips/negotiation.html#ixzz3ZeMnQUA4

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