Negotiation as a process

* Phase 1: Before the Negotiation

Step 1: Preparing and Planning: In this step, first determine what you must have and what you are willing to give (bargaining chips). Gather facts about the other party, learn about the other party’s negotiating style and anticipate other side's position and prioritize issues. To ensure smooth negotiation, one should also prepare alternatives proposals and establish BATNA (the Best Alternative To a Negotiated Agreement).

Estimate the other party's needs, bargaining chips and BATNA. The most ideal case is to get as much as you can. You may advocate "win-win" though don't count on your opponent to be so helpful. Your opponent may try to intimidate you by creating time limits, shouting and raising doubt on your motives. For more details and suggestions on the process of negotiating, consult Negotiation/Conflict Resolution.

* Phase 2: During the Negotiation

Step 2: Setting the Tone:

Step 3: Exploring Underlying Needs: Also important is to actively listen for facts and reasons behind other party’s position and explore underlying needs of the other party. If conflict exists, try to develop creative alternatives. In a difficult situation, don't say anything. Take time out. When we say nothing we give nothing away.

Step 4: Selecting, Refining, and Crafting an Agreement: It is a step in which both parties present the starting proposal. They should listen for new ideas, think creatively to handle conflict and gain power and create cooperative environment.

Step 5: Reviewing and Recapping the Agreement: This is the step in which both parties formalize agreement in a written contract or letter of intent.

* Phase 3: After the Negotiation

Step 6: Reviewing the Negotiation: Reviewing the negotiation helps one to learn the lessons on how to achieve a better outcome. Therefore, one should take the time to review each element and ask oneself, "what went well?" and "what could be improved next time"

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