Steps to a negotiation plan

R.M. Boylan BSc. M.A.

Steps Involved in the Negotiation Process

Preparation

Discussion

Clarification of Goals

Negotiate Towards a Win-Win Outcome

Agreement

Implementation

Follow-Up

Review of Steps Involved in the Negotiation Process

1. Preparation

Preparation is the most critical phase of the negotiation process, often accounting for about 70-80% of the total time spent on the negotiation. This phase involves thorough research and planning to ensure you are well-equipped for the discussions ahead.

• Research: Gather information about the other party, including their interests, needs, and past negotiation behaviors. Use tools such as online databases, news articles, and industry reports.

  
  

• Identify Your Goals: Clearly define what you want to achieve from the negotiation. This includes primary goals and acceptable alternatives (BATNA - Best Alternative to a Negotiated Agreement).

  
  

• Collect Information: Reach out to stakeholders, colleagues, or industry experts who can provide insights into the other party’s position. Use surveys, interviews, or informal discussions to gather data.

  
  

• Prepare Your Strategy: Develop a negotiation plan that outlines your approach, possible concessions, and tactics. Consider using negotiation software or tools to map out scenarios.

  
  

2. Discussion

The discussion phase is where the actual negotiation begins. This is typically face-to-face or through virtual meetings. You can also phone the person if this does not impose yourself on them.

• Set the Agenda: Start the meeting by outlining the topics to be discussed. This helps in maintaining focus and structure.

  
  

• Active Listening: Pay attention to the other party’s points and concerns. Use active listening techniques to demonstrate understanding and build rapport.

  
  

• Effective Communication: Clearly articulate your position and interests. Use persuasive language and ensure your points are backed by data or examples.

  
  

3. Clarification of Goals

During this step, both parties need to clarify their respective goals to ensure mutual understanding.

• Ask Questions: Engage in open-ended questions to uncover underlying interests and priorities.

  
  

• Summarize and Confirm: Periodically summarize what has been discussed to confirm understanding. This can prevent miscommunication.

  
  

• Document Goals: Keep a written record of the goals discussed, which can serve as a reference throughout the negotiation.

  
  

4. Negotiate Towards a Win-Win Outcome

The aim here is to find solutions that satisfy both parties. This requires creativity and flexibility.

• Explore Options: Brainstorm potential solutions that could meet both parties' needs. Encourage collaborative thinking.

• Evaluate Solutions: Assess the pros and cons of each option, considering how they align with both parties' goals.

• Make Concessions: Be prepared to give and take. Identify what you can concede without compromising your own goals.

  
  

5. Agreement

Once a mutually beneficial solution is identified, it’s time to formalize the agreement. This will likely involve many departments. In the pharmaceutical industry it involved obtaining consensus from all levels above in my department, approvals from legal, finance, medical and marketing. Often times because forecasts were based on clinical studies and epidemiology a lot of work goes into developing the health economic models for the legal agreement terms.

• Draft the Agreement: Create a written document that outlines the terms of the agreement, including specific responsibilities and timelines.

  
  

• Review Legal Requirements: Ensure the agreement complies with relevant laws and regulations. Consult with legal experts if necessary.

  
  

• Obtain Signatures: Have all parties sign the agreement to make it binding.

  
  

6. Implementation

This phase involves putting the agreed terms into action.

• Assign Responsibilities: Clearly define who is responsible for what actions as per the agreement.

  
  

• Set Timelines: Establish deadlines for each component of the implementation to ensure accountability.

  
  

• Monitor Progress: Regularly check in on the implementation process to address any issues that arise.

  
  

7. Follow-Up

After implementation, it’s important to follow up to ensure the agreement is being upheld and to address any ongoing concerns.

• Schedule Check-Ins: Arrange regular meetings to discuss progress and resolve any emerging issues.

  
  

• Evaluate Outcomes: Assess whether the goals of the negotiation have been met and if the relationship has improved.

  
  

• Maintain Relationship: Continue to nurture the relationship with the other party for future negotiations or collaborations.

  
  

By following these steps meticulously, negotiators can enhance their chances of achieving favorable outcomes while fostering positive relationships with the other party.

The negotiation process typically involves several key steps that help ensure all parties' requirements are met, facilitating a successful agreement. Below are the main steps in the negotiation process along with references and scholarly sources that provide further insights.

Importance of Following the Process

Following these steps ensures that all requirements are accounted for, as each phase is designed to facilitate understanding, communication, and collaboration among parties. By adhering to this structured approach, negotiators can:

• Identify and clarify interests and needs.

• Build relationships and trust, which are essential for long-term agreements.

• Encourage open communication, leading to more creative solutions.

• Ensure that all parties feel heard and valued, reducing the likelihood of disputes.

• Facilitate a smoother implementation of the agreement.

  
  

In summary, adopting a systematic approach to negotiation not only fulfills the needs of all parties but also creates an environment that encourages collaboration and mutual gain.

Key elements of the Negotiation Process

1. Preparation

Preparation involves gathering relevant information, understanding the needs and interests of all parties, and setting clear objectives. This step is crucial as it lays the groundwork for a successful negotiation.

• Reference: Fisher, R., Ury, W. L., & Patton, B. (2011). Getting to Yes: Negotiating Agreement Without Giving In. Penguin Books.

  
  

2. Opening the Negotiation

This step includes establishing rapport and outlining the agenda. It sets the tone for the negotiation and helps in building trust among the parties involved.

• Reference: Lewicki, R. J., Saunders, D. M., & Barry, B. (2015). Negotiation (7th ed.). McGraw-Hill Education.

  
  

3. Bargaining

The bargaining phase involves discussing terms, making offers, and counteroffers. Effective communication and active listening are essential here to identify mutual interests. Bargaining is not negotiating. Bargaining is a phase where two negotiators test each other out. When it goes on too long it escalates conflict.

• Reference: Thompson, L. (2014). The Mind and Heart of the Negotiator (6th ed.). Pearson.

  
  

4. Closing the Deal

This step includes finalizing the agreement and ensuring that all parties are satisfied with the terms. It is critical to confirm that all requirements are met to avoid future conflicts.

• Reference: Raiffa, H. (2002). Negotiation Analysis: The Science and Art of Collaborative Decision Making. Harvard University Press.

  
  

5. Implementation & Follow-up

After the agreement is signed, it is important to implement the terms and follow up to ensure compliance. This helps in maintaining relationships and addressing any arising issues promptly.

• Reference: Curhan, J. R., & Pentland, A. (2007). "Thin Slices of Negotiation: Predicting Outcomes from Conversational Dynamics." Journal of Personality and Social Psychology, 92(1), 1-14.

  
  

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