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    Negotiation Steps

    Uploaded by

    Rohin Gupta
    The document outlines the eight steps of negotiation: 1) Prepare, 2) Argue, 3) Signal, 4) Propose, 5) Package, 6) Bargain, 7) Close, and 8) Agree. Preparation involves defining objectives, gathering information, identifying concessions, determining strategy and style, and assigning tasks. The steps then involve arguing positions, signaling willingness to change, proposing offers, packaging proposals, bargaining through trading concessions, closing the deal through trial offers, and finally agreeing on the terms. Effective negotiation requires understanding both parties' values, positions, needs, and styles through preparation, communication, and problem-solving to reach mutually agreeable outcomes.

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    © All Rights Reserved
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    Negotiation Steps

    Uploaded by

    Rohin Gupta
    162 views33 pages
    The document outlines the eight steps of negotiation: 1) Prepare, 2) Argue, 3) Signal, 4) Propose, 5) Package, 6) Bargain, 7) Close, and 8) Agree. Preparation involves defining objectives, gathering information, identifying concessions, determining strategy and style, and assigning tasks. The steps then involve arguing positions, signaling willingness to change, proposing offers, packaging proposals, bargaining through trading concessions, closing the deal through trial offers, and finally agreeing on the terms. Effective negotiation requires understanding both parties' values, positions, needs, and styles through preparation, communication, and problem-solving to reach mutually agreeable outcomes.

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    The document outlines the eight steps of negotiation: 1) Prepare, 2) Argue, 3) Signal, 4) Propose, 5) Package, 6) Bargain, 7) Close, and 8) Agree. Preparation involves defining objectives, gathering information, identifying concessions, determining strategy and style, and assigning tasks. The steps then involve arguing positions, signaling willingness to change, proposing offers, packaging proposals, bargaining through trading concessions, closing the deal through trial offers, and finally agreeing on the terms. Effective negotiation requires understanding both parties' values, positions, needs, and styles through preparation, communication, and problem-solving to reach mutually agreeable outcomes.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    162 views33 pages

    Negotiation Steps

    Uploaded by

    Rohin Gupta
    The document outlines the eight steps of negotiation: 1) Prepare, 2) Argue, 3) Signal, 4) Propose, 5) Package, 6) Bargain, 7) Close, and 8) Agree. Preparation involves defining objectives, gathering information, identifying concessions, determining strategy and style, and assigning tasks. The steps then involve arguing positions, signaling willingness to change, proposing offers, packaging proposals, bargaining through trading concessions, closing the deal through trial offers, and finally agreeing on the terms. Effective negotiation requires understanding both parties' values, positions, needs, and styles through preparation, communication, and problem-solving to reach mutually agreeable outcomes.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 33

    Eight Steps of Negotiations

    Prepare
    Argue
    Signal
    Propose
    Package
    Bargain
    Close
    Agree

    PREPARE

    Prepare carefully well in


    advance
    Prepare for
    negotiations and not
    defending
    Be ready for
    opportunities
    Reconsider your
    preparation items

    Five key areas of preparation

    Objectives
    Information
    Concessions
    Strategy/Style
    Tasks

    Preparation- objectives
    Define

    what outcome you want to achieve


    from the negotiation- ISSUES
    The realistic expectation against each issuesINTEND
    Minimum acceptable position on intendsMUST ACHIEVE or AVOID
    What is the ideal outcome you want WISH
    LIST

    Step 1-Preparation- Objectives


    Do

    the same for your opponent ISSUES,


    INTEND, MUST ACHIEVE & WISH LIST

    As

    negotiations progress keep your


    objectives under constant review: are they
    still realistic? Should your INTEND be
    boosted by a few WISH LIST items? Should
    you move on an INTEND to protect a MUST?

    Elements of Negotiations
    VALUES
    POSTION
    NEEDS
    NEEDS

    SATISFIERS
    NEEDS BLOCKERS

    VALUES
    Deeply

    held preferences that shape our goals


    and means to fulfill them. Transmitted
    through socialization and enduring. Values
    are shared and often culture specific . Values
    create needs that we want to fulfill.

    POSITIONS
    An

    opening demand that the negotiator


    believes will satisfy need.

    Positions

    can be changed in skillful


    negotiations

    NEEDS
    Needs

    are specific in a negotiation , but are


    derived from the values we hold. They have
    to be dug out by skillful questioning and then
    a suitable need satisfiers can be used to
    move the negotiation forward .

    If

    we are not clear about our needs we may


    bargain away some thing we value

    NEED SATISFIERS
    These

    bring focus to the negotiation and


    create a positive environment , which can
    then be used to change positions

    NEED BLOCKERS
    They

    are threatening and do not lead to


    collaborative negotiations

    Tactics of Negotiation
    ATTACK-

    creates negative energy


    EVADE- can be used meaningfully
    INFORM- clears the environment
    OPEN- helps in understanding needs
    UNITE- build rapport Emphasize common
    ground- reframe propose solutions

    PREPARATION- Information
    Research

    both parties
    Analyze the basis of power for both
    Do SWOT for both
    Prepare questions in advance
    What is the BATNA of the opponent
    What is their awareness in regard to your
    issues and needs
    Brutally admit to assumptions and biases

    BATNA- Best Alternatives in a


    Negotiation Agreement
    Ideal----------------------------------A

    Intend---------------------------------B
    Negotiations Zone

    Must

    avoid--------------------------- C

    PREPARATION- Concessions
    Where

    can we be flexible?
    What concessions can we make?
    What can we give in order to what we want
    TRADE
    What value the concessions have to the other
    party?
    What will you ask in return?

    PREPARATION-Strategy
    Keep

    it SIMPLE and FLEXIBLE


    Avoid confusing strategy ( means) with
    objectives ( objectives)
    E.g. Take the train ( strategy ) to London
    (objectives ). If you meet a gate adjourn or
    reconsider .

    Understand the preferred


    styles of each other
    DEFERENTIAL-

    Respect and Hierarchy

    SUBSTANTIVE-

    Material issues

    RELATIONAL-

    Trust and good faith

    PROCEDURAL-

    Agenda and rules

    Understand your personal


    style
    IMAGINATIVE-

    creative , intuitive, integrative

    and inspiring
    FACTUAL- clear, focused, informed , verify
    RELATIONAL- solve conflict,listen,
    encourage, listen and maintain relations ,
    constructive
    ANALYTICAL- logical and process oriented
    EVALUATIVE- weigh , measure and moniter

    PREPARATION- Tasks

    Leader- conducts the negotiation, gives information, expresses


    opinions, makes proposals, trades concessions.

    Summarizer- asks questions to test understanding, draws


    attention to , clarifies , summarizes to buy thinking time, confirms
    areas of disagreement and agreement . Does NOT give personal
    opinions, information's, and concessions,
    Observer- watches, listens, records and tries to understand the
    motivation , concerns, priorities, & inhibitions,

    STEP 2- ARGUE
    It

    is an opportunity to

    Exchange information
    Review issues
    Structure expectations
    Test assumptions
    Probe motives
    Explore opportunities
    Identify inhibitions, & chinks
    Influence, persuade & inform
    Review sanctions & concessions

    STEP 4- Signal
    Signals

    indicate change in stance


    They are verbal or non verbal
    When opponent moves from absolute to
    qualified statements it is a signal
    Listen , reward, expand and confirm signal
    Signals indicate when to make a proposal

    What are qualified statements


    Can

    you explain the reasons?


    Suppose I agree to that what can you offer?
    Which aspects are you unhappy with?
    Why is it important?

    STEP 5- PROPOSE- ENTRY


    OFFER
    Open

    realistically- entry offer


    A realistic proposal is based on facts that
    support the proposal
    Address the key issues & your intend list
    Matches the other parties BATNA

    Making proposals
    Propose

    Explain Summarize
    Invite response
    If you have to modify the proposal the
    secondary proposal is tentative
    If there is a grievance suggest a solution

    RECIEVING PROPOPSALS

    Never interrupt
    Question clarify summarize
    Response could be No- this gives the other party the
    initiative.
    If Yes- Are you missing an opportunity to add some
    thing from your wish list?
    Instant counter proposal- leads to haggling and
    arguments
    Adjourn- gives time to consult and think
    Detailed response encourages repackaging, to make
    the proposal more acceptable
    Considered counter proposal- best response
    TRY TO GIVE THEM WHAT THEY WANT ON YOUR
    TERMS

    More about proposals


    If

    you are asked to concede something from


    your intend list then add something from your
    wish list
    Remember the strengths of your proposal
    Proposal set the agenda
    A proposal beats arguments

    STEP 6 - Package

    Packaging adjust the variable without increasing the offer in


    order to make the proposal more acceptable
    If you have opened realistically then you may reach a deal
    without making any adjustment or concessions.
    In order to do get more out of the other identify inhibitions and
    interests and address the package to them.
    If you use a competitive stance likelihood of identifying needs
    about inhibitions are low , so use a cooperative stance
    Proposals are solutions to needs
    Think creatively about all the variables or services while
    packaging

    Styles of Negotiations

    Co operative
    Long term relationship
    Voluntary relationship
    Trust
    Private and informal
    Tolerance of others views
    Emotional detachment
    Skilled negotiations
    Win - win

    Competitive
    on recurring transactions
    Mandatory relations hip
    Suspicion
    Public and formal
    Intolerance of others
    Emotional involvement
    Poor negotiators
    Win lose

    Step 7- Bargain

    Bargain is any trading activity , You can bargain at any


    stage of the negotiation:
    For information
    For concessions
    For signals
    For time for the deal

    The fundamental rule in bargain is TRADE. You should


    always have an answer to the question What did you
    get in return?
    Be prepared to concede in areas of lesser importance to
    gain in areas of greater importance
    Put an unreasonable price to an unreasonable demand

    Step 8- CLOSE

    Trial closure is useful device for drawing out issues.

    Ask Are you saying if I agree to both of those items you will be
    satisfied? - this insures if there are hidden issues they will
    emerge

    What is the most important closing opportunity a minor


    question that the other party asks about your proposal e.g.
    does that include delivery ? or Would that be back dated?

    If both parties are happy

    Closing concessions should be :


    Conditional ( on the deal)
    Specific
    Small

    Dont get greedy

    Agree

    Agree to what is agreed- any ambiguity gets cleared up easily

    When to go for adjournment


    When

    you feel you need to reconsider your


    objectives
    New critical information emerges
    Your strategy is over taken
    Stuck in circular argument
    When you need time to repackage

    How to make adjournments


    Summarize

    the position the negotiation has

    reached
    Withdraw to a private place and discuss with
    your team before breaking away
    Agree on a new meeting date
    Give home work to the other party

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