Negotiation
Enterprise Ch 10
Ms. CAROL

The purpose and role of negotiation
Negotiation is all about trying to find a solution that everyone is happy with.
The process of negotiation can involve:
● Resolving disputes
● Agreeing on courses of action
● Bargaining for individual or collective advantage
● Reaching outcomes to satisfy the interests of those involved.

Three main stages of a negotiation:
1. Planning
2. Conducting the negotiation
3. Measuring success

Planning a negotiation
What will happen in a negotiation cannot be predicted. That is why it is important to
have a clear focus so you can stay calm whatever happens in a meeting.
Planning involves two main stages:
1. Setting objectives
2. Identifying benefits and drawbacks of a proposal

Setting objectives
Thinking ahead is important to a successful negotiation.
Ask yourself the following questions:
● What do you want to achieve from the negotiation?
● What do you think the other size (person or organisation) wants?
● What are you going to say and how are you going to say it?
● Who are you going to be negotiating with?
● What will you do if you cannot get your first choice? What are you prepared to accept, offer or
give up to reach a compromise agreement?
● Will you insist on getting exactly what you want or are you willing to collaborate with other side
to find an alternative solution?
● Have you listed the consequences for both sides if your proposal is not accepted?
● At what point would you walk away from the negotiation, why?
The answers to these questions will influence your negotiating strategy.

Possible outcomes
● a collaborative approach can often provide the best result as it aims to
achieve a win-win outcome. This is where both sides gain something from
the process.
● Some negotiations will end in a compromise agreement (also known as
win-lose/lose-win) with both sides getting a slightly different outcome than
originally/intended.
● If you adopt a competitive approach (win-lose) you must be sure you are
right and the other side has no choice but to accept your proposal. If you
are not willing to compromise at all you must be prepared to leave the
meeting with nothing (lose-lose)

Choosing evidence to use
Any information used must be accurate, well presented and include all the relevant facts.
Example: to convince someone to invest their hard earned money to your business you
should show you are well prepared. You cannot provide poor tasting food as a sampler if
you plan to open a restaurant.

Benefits and weakness of a proposal
Write down possible advantages and disadvantages for both sides of accepting your
proposal. Try to identify what they may want in return for an agreement and any reasons
why they may or may not accept your proposal if necessary.

Arguments and counter arguments for the proposal
The other side may put forward reasons that go against some or all points you
plan to make as part of your case.
Identify key details that you think the other side may disagree with. Think abut
why they may be opposed to it so you can be ready with a suitable response.
If you cannot think of a suitable answer it may be that wha you are proposing is
unreasonable. You still have time to change parts of your proposal if necessary.

Skills required for a negotiation
● Persuasion
Good communication skills are important part of being successful negotiator.
Practice is important as it can take time to develop effective skills.
You will need to be able to explain points in clear and simple language, and do so with
confidence.
● Listening
knowing how to listen is important. You need to know what the other side said so you
could ask the right questions and don’t miss out on important information to help you
reach a successful outcome
● Problem solving
● Decision-makinG
● Initiative

Conducting the negotiation
Setting the tone. It is important to create the right atmosphere
● When and where - find the suitable time and place for the meeting.
● Get to know the other side - build trust first so that they may feel more at ease
instead of going direct to the point.
● Language - what you say and how you say it plays a big role.
● Be confident and calm - do not feel intimidate and relax so you can think more
clearly

Presenting your proposal
● Explain simply and clearly to the other side what you want and what you are
willing to offer them and why they should accept your proposal.
● Be specific - only use materials and information relevant to your proposal
● If using visual aids, photocopies handouts, print enough copies for everyone.
Check any equipment you would need for the presentation is available and it
orks.

Understanding other points of view
you need to get the other side to share their requirements with you. The best way
is ask questions.

Reaching an agreement
When both sides are happy with what's being proposed.you can finalize the deal.
Put down in writing what has been agreed so everyone knows what has been
decided for future reference.

Measuring success
The purpose of this stage is to identify what went well and to consider how you
could improve next time.
There are a wide range of evidence you can use:
Amount , cost or price paid, feedback received from third party or some self-
assessment.

Some questions that might be helpful to you when you
are measuring success.
Outcome:
● Did you get what you wanted? Was the other side happy with the
outcome?How do you know or why do you think this?
● If the negotiation was unsuccessful, why do you think this?

Process:
● How well did you do when planning and conducting the negotiation?
● Had you anticipated their counter arguments?
● Did you manage to set the right tone?
● Did you use simple and clear language? Did you ask the right questions? Did
you listen carefully to the points and arguments made by other side?
● Did you manage to persuade them to change their point of view? How did you
achieve this?
● Would you change your negotiation strategy next time?
● Which enterprise skills did you use?

Business improvement cycle

END.