Negotiation can be viewed through two major components and the elements/steps within those components, which collectively enable a systematic approach to negotiation.
• Preparation phase for conducting negotiations (analyzing and structuring)
– Diagnosis of the situation – structure/process; Defining strategy/planning activities; Preparation for negotiating at the table
• Conducting negotiations phase (Away from the negotiation table – At the negotiation table)
– Disaggregation; Creating value; Claiming value; Closing/Connecting.
Each of the mentioned phases consists of several interconnected elements/steps that together form a cohesive whole of a dynamic character. Transitioning from one phase to another, or steps within a particular phase, does not mean that the phase/step in negotiations has closed, but rather that based on new information/moves from the negotiating parties, the process can move back and forth until a final agreement is reached or negotiations are terminated. In this text, we will focus on the preparation phase as we have thoroughly addressed the conducting negotiations phase in a series of previous texts.
Preparation phase for conducting negotiations
Through quality (and creative) work in the planning phase, negotiators need to obtain relevant inputs on several key questions:
• What is the negotiation situation?
• What outcome do we want to achieve (goal and result) in the respective negotiations?
• What stands in our way (what are the barriers) to achieving that outcome?
• How to achieve such an outcome?
Diagnosis of the situation
The first and indispensable step you need to take to create the prerequisites for successful negotiation is to diagnose all necessary aspects of the respective negotiation situation and to view the structure. The breadth and depth of the diagnosis will primarily depend on the importance of the respective negotiations, the complexity of the negotiation situation, the availability of information, and the time we have at our disposal. The diagnosis of the situation can encompass all or only some of the following elements:
• Situation frameworks: Do the existing frameworks allow for the continuation of negotiations?
• Alternatives: What will you do if an agreement is not reached?
• Participants: Who will participate or who can participate in the negotiations?
• Power/advantage: What is the basis of the existing power/advantage relationship?
• Connectivity: Are the existing negotiations connected to other negotiations?
• Disputes: What are the disputes being discussed, which can be included in the discussion?
• Interests: What is important to you, and what is important to the other side?
• Agreement/outcome: Is there an agreement that would be acceptable for you/all parties?
• Termination: What are the consequences for the parties in negotiations if no agreement is reached?
• Approach/tactics: What approach to negotiations can we expect from the other side?
Considering barriers and defining strategy
When determining the strategy, we first need to consider one question:
• Can something be done regarding the structure, or does the strategy need to be adapted to the existing structure?
If activities can be undertaken regarding the structure in the respective negotiations, then that is also part of our strategy, and if the possibility of influencing the structure is limited, or for some other reasons/circumstances it is not feasible/practical/desirable, then the strategy is built based on the existing structure. Likewise, we can base the strategy on more or fewer elements/dimensions of the structure, depending on the importance of the negotiation situation, the time we have available, or some other limiting factors.
In short, to determine the appropriate strategy, the following should be done:
• Analyze the existing situation/structure
• Determine the goal/outcome of the negotiation that should be achieved
• Decide whether it is worth going into negotiations at all
• Consider barriers and opportunities in the existing structure in achieving the goal/outcome
• Determine a strategy for removing barriers and exploiting opportunities and successfully conducting negotiations based on the existing structure/built new structure.
Based on this, by implementing a specific strategy (before and during the negotiations themselves), the goal is to eliminate barriers and build a redesigned structure of the negotiation situation that will enable us to effectively conduct the negotiation process at the table. Therefore, the emphasis is on actively shaping the structure from your side that will align with achieving the set goal, rather than passively accepting the existing situation/structure. The structure is built both in the preparation phase for negotiation and during the negotiation itself, at the negotiating table, but also when we are not at the negotiating table. Some of the possibilities for influencing the construction of a new structure are as follows:
• Changing participants/players in negotiations: Influencing who will participate by adding or eliminating participants.
• Building/strengthening the best alternative (BATNA): Improving your own alternatives or weakening the alternatives of the opposing side (or both).
• Setting the agenda: Adding items/disputes to the agenda, postponing or eliminating others, influencing the order in which discussions/negotiations will take place.
• Framing and reframing: Influencing the other side’s understanding of the negotiation situation, what it is really about and what is possible.
• Controlling information: Influencing who has access to which information and when.
• Forcing or delaying activities: Setting deadlines and other types of time pressures to compel the other side to make decisions.
• Developing the sequence of events: Considering the order in which discussions will take place with other negotiation participants and making moves in related negotiations.
Plan to ask questions and provide answers
To determine the accuracy of your assumptions, which you have established in the preparation phase based on your best knowledge, it is necessary in the first phase of the negotiation process, the disaggregation phase, to ask a series of questions that will test your assumptions. Based on the information obtained in this way, you will either confirm your assumptions or correct them, and based on that, other aspects of the negotiations.
During negotiations, initial positions are continuously adjusted based on the information obtained. Therefore, it is important to know what information you need and accordingly what questions you need to ask.
It is important to plan responses to questions you can expect from the other side in negotiations, so consider what questions the other side may ask, especially those that will be difficult to answer.
Maintain flexibility
“If you fail to plan, you are planning to fail,” says the saying. Now that you have everything prepared for negotiations, you must know that, as in life, not everything in negotiations always goes as planned. Therefore, you need to incorporate flexibility and patience into your approach to negotiations.
What can you do to be more flexible in negotiations? Try:
• Assuming that negotiations will not go as you predicted, along your ideal route
• Being ready for changes from both sides: new people and unforeseen events
• Being prepared to reconsider your goals based on new information
• Being ready to change tactics
• Considering every change as an opportunity to learn
