PHASES OF NEGOTIATION

1. PHASES OF
NEGOTIATION

2. Whatisnegotiation?
Negotiation is an interactive process
between two or more negotiators
or parties seeking to find common
ground on issues of mutual interest,
where the negotiators or parties
seek to make a mutually acceptable
agreement that will be honoured by
all.
I

3. PHASES OF NEGOTIATION
“NEGOTIATION IS NOT AN EVENT, IT IS A PROCESS”
1
PREPERATION
2
INFORMATION EXCHANGE AND
VALIDATION
3
BARGAIN
Identify potential value
Begin to understand interests
Develop fact-base
Discovering and creating value
Assess interests
Build rapport and trust
Create and distribute value
Address interests
Make and manage concessions

4. PHASES OF NEGOTIATION
4
CONCLUDE
5
EXECUTE
Capture value
Confirm interests have been met
Thank them
Expand value
Addressing changing interests
Strengthen relationships

5. STAGE1-PREPARATION
Preparation starts with determining if
this is a potential collaborative situation
so that you can select the better
strategy. Next, you spend time
researching information, analyzing data
and leverage, and identifying interests
and positions. Finally, you have to
consider the relationship you want to
build.
Point 1- Initial points to
consider
 Should I be negotiating?
 What I need to know
 Organize information
Point 2-Research covers
 Players and stakeholders
 The fact base
 Standards and benchmarks
Point 3- Analysis includes
 Re-organizing data
 Anticipating what will happen
 Assessing strengths and risks
Key Elements of Negotiation Preparation

6. continuation of elements
Point 4 -Identification of your and their
 Interests
 Positions: Goals, Most Desired Outcomes, and Least Acceptable Agreements
 Best Alternatives to a Negotiated Agreement (BANTA)
 Concessions
Point 5- Know the relationship you want to build
 Plan to build trust
 Prepare for emotional reactions
 Develop Probes to discover "Don't knows" and test
 Assumptions

7. 1 2
STAGE2-
INFORMATION
EXCHANGE
The Information Exchange Stage occurs when you begin to engage
the other side, share information and explore options that address
interests – what you each need, as opposed to positions – what
you each ask for later in the Bargaining Stage.
It is critical here to focus on building
rapport and trust, without which neither
party will feel comfortable sharing interests.
One way to build the relationship is to do
your "social homework" in this stage by
finding out and showing interest in the
other party's business culture, personality,
outside interests and values.

8. Four Critical
Assessments are made in
the Exchange Stage:
Trustworthiness – Are
they honest and
dependable?
Competency – Are they
credible and able?
Likeability – Can you
work well together?
Alignment of Interests –
Are your interests
aligned with theirs?

9. STAGE3-
BARGAIN
Bargaining is where the
"give-and-take" happens.
During the Bargaining Stage,
you continue to create
value, and with trades,
finally capture value.
 To be trusted, you must
be generous
There are two tools you
will need from your
negotiator's toolbox in the
Bargaining Stage,
the Probe and Creativity.
When you give and
take that which
satisfies both parties'
interests, you will build
a lasting
relationship and a
fruitful outcome.
1
2

10. S
T
A
G
E4-
CONCLUDE
Conclusion is the point in the
process when you reach
an agreement.
1 2
It is important to find out if the
other side has the capacity to
follow through with the things
they said they would do. This is
the time to put down in writing
the common interests and
produce a comprehensive
summary of the agreement.
Sometimes you have to
consider strategies here to
lock-in a commitment. Be sure
to agree on next steps as well.
And never forget to thank the
other party for their willingness
to negotiate – even when no
agreement is reached.

11. STAGE5-
EXECUTE
Stage 5 is implementation of
the agreement.
This stage may also be viewed as preparation for the next negotiation opportunity.
You must ensure that you follow
through on promises made in
order to strengthen the
relationship and to build trust.
You will learn more in this stage
about the other side. This will
lead to easier negotiations next
time around.
And remember that during
execution you are likely to apply
the total negotiation process
and Best Negotiating Practices
(BNPs) to unexpected events,
failures in performance and the
inevitable changes.

12. Negotiation skills
Negotiation skills are qualities that allow two or more parties to reach a compromise. These
are often soft skills and include abilities such as:
Communication
Persuasion
Planning
Strategizing and
cooperating

13. Tips to improve your negotiation skills
Identify the
final goal.
Practice
building
rapport.
Be willing to
compromise.
Consider
imposing
time
restrictions.
Take the
multiple
offer
approach.
Exercise
confidence.
Don’t take
“no”
personally.
Understand
your
weaknesses.
Practice.

14. “Successful negotiation is not about
getting to ‘yes’; it’s about mastering
‘no’ and understanding what the path
to an agreement is”
THANK YOU
TEAM 12