Negotiation Phases One -Exchanging Information
Negotiation Phases One -Exchanging Information
The first step to getting the things you want out of life is this: Decide what you want.
– Ben Stein
Introduction
The first phase of a negotiation consists in the exchange of information between the parties. Neither side engages in confrontational behaviour when stating their positions on the issues under consideration. The most difficult part of this phase is deciding what information to reveal and what information to keep hidden. Negotiating with a metaphor of “poker” is a good idea because it accurately describes the way in which negotiating parties will want to “allow” each other to think. Providing your negotiating counterpart with information about your position will allow them to gain a general understanding of your position. After all, you can’t just walk into a negotiation blind. An excessive amount of information, on the other hand, can come back to haunt you.
Establishing a Positive First Impression
You should engage in some light small talk with the other participants in the negotiation before you begin working on your proposal or contract. This will assist in creating a positive atmosphere. You might discover that you have some things in common with the other participants (such as common interests or favourite sports teams).
If you rush into the negotiation without first exchanging pleasantries with the other party, the other party may interpret your actions as pushy and aggressive. In the eyes of some, this is an admirable negotiating style to employ. Negotiation is one of those situations where it is advisable to have as many strings as possible attached to your arrow. Becoming “human” and easy to relate to reduces the likelihood that the other party will believe you are someone who needs to be controlled, and may even work to your advantage. It goes without saying that when it comes to introductions and preliminaries, it is best not to be too casual about things. Above and beyond any other consideration, when all parties are fully aware that there are issues to be debated here, it will appear a little improvised. Formality also encourages accuracy in the details – how many negotiations have come to a grinding halt because one party failed to remember the name of a counterpart or made an accidentally offensive remark because they were unaware of a critical detail, you have to wonder? The best way to introduce yourself is to convey a sense of relaxed friendliness while maintaining a sense of restraint. Without giving the impression that you are here to bleed your counterpart dry, you will put them on the defensive and entrench their position, which will work to your disadvantage. However, projecting self-confidence will assist you in gaining the upper hand in negotiations. If you appear to be in a hurry to get negotiations completed and an agreement signed, the impression will be created that you are trying to get out of the whole process with the least amount of losses possible – which will not make you a formidable negotiating counterpart.
Brief check
In negotiation, even when not based in reality, the expectation that someone is “tough” or “cooperative” becomes a self-fulfilling prophecy at the bargaining table. When you approach an allegedly tough competitor with suspicion and guardedness, he is likely to absorb these expectations and become more a more competitive negotiator.
What to Say and Do
You don’t want to give a detailed statement about your position on specific issues at the beginning of a negotiation. Negotiation can take place on this point, if you so desire. Whenever the other party tries to pressure you into stating your bargaining position too soon, respond by saying something like, “That’s an important question.” “But first, let’s make sure we’re all on the same page about the issues we’re discussing today.” If you can think of a reason why the other party would be in a hurry to get you to state your position, it might be beneficial to do so.
The likelihood is that they have been preoccupied with this issue for some time prior to entering negotiations, and they will want to get negotiations over with as soon as possible so that they do not have to worry about giving up more than is necessary. Then, by concentrating on laying out the framework, you will do no harm in keeping them waiting for the information they are looking for. At the very least, one party’s opinion on what should be included on the agenda will differ from the other party’s opinion on how the issues should be framed in the course of negotiations. It is possible to frame the same issue in a number of different ways, and even the simplest form of words can be highly contentious. It is important to reach agreement on the topics for discussion because it allows both parties to find common ground while also preparing both parties to recognize that they will not be able to complete negotiations unless they make significant progress on some issues.
Keeping Certain Information Private
Keep information from being released can be challenging business to navigate. You don’t want to come across as secretive or deceptive, but you also don’t want to give away your bargaining position before it’s time. When faced with this situation, the most effective strategy is to make an attempt to establish an agenda for the negotiation. To put it another way, say something like, “Let’s get a few general issues settled before getting into specifics.”
At the outset of negotiations, both parties will be on the defensive to some extent and will want to get a sense of who they are dealing with before proceeding with the negotiations. Because the agenda items are dealt with first, both parties have an opportunity to “size up” their counterparts and consider what they hope to gain from the negotiation as well as what they are capable of gaining. The most significant advantage of these early discussions is that the first tentative negotiations can be conducted without jeopardizing the entire process by making or breaking it. It is possible to gain a more realistic understanding of the person with whom you are interacting from this point. This could have an impact on how you proceed with the negotiations. The moment you walk into a room of negotiators and declare after a few minutes of introductions that “OK, so this is what we’ve come for, and if we don’t get it, we’re going to walk away,” you might as well not even be in a negotiation. Furthermore, if you indicate early in negotiations that you are willing to settle for a deal that is more or less favourable to your counterpart, you are simply setting the stage for them to accept everything you are prepared to offer, and even more, as a result of your actions. Your ability to negotiate successfully is dependent on your ability to discern what to say, when to say it, and when to remain silent.
Brief check
Even with the best preparation, you may not always be able to negotiate a successful outcome. You must plan for what to do in case negotiations fail. If you allocate time and resources to planning alternative solutions, you can avoid unnecessary stress and poor business outcomes.
Failure to Reach a Consensus
Re-scheduling of a subsequent meeting is required if the negotiation process fails and an agreement cannot be reached. This prevents all parties from becoming embroiled in a heated discussion or argument, which not only wastes time but can also have a detrimental effect on future relationships.
The stages of the negotiation process should be repeated at the next meeting, as well. Any new thoughts or interests should be taken into consideration, and the situation should be re-evaluated. It may also be beneficial at this point to consider other alternatives and/or enlist the assistance of a third party to mediate the situation.
There are times when it is necessary to engage in more informal negotiations. When a difference of opinion arises in such circumstances, it may not be possible or appropriate to proceed through the stages outlined above in a formal manner.
Nonetheless, recalling the key points made during the various stages of formal negotiation can be extremely beneficial in a variety of informal situations as well.
Each of the three elements listed below is critical to the success of any negotiation and is likely to have an impact on how the negotiation concludes:
Attitudes: underlying attitudes toward the process itself, such as attitudes toward the issues and personalities involved in a particular case, or attitudes related to personal needs for recognition, have a significant impact on all negotiations.
Always keep in mind that negotiation is not a forum for the realization of individual accomplishments or goals. Those in positions of authority may feel resentful of the necessity of negotiating. Certain aspects of negotiation may have an impact on a person’s behaviour; for example, some people may become defensive when confronted with a difficult situation.
Knowledge: The greater your understanding of the issues at hand, the greater your ability to participate in the negotiation process. To put it another way, good preparation is essential.
Prepare for the interview by doing your homework and gathering as much information as you can about the issues. Furthermore, it is necessary to comprehend the manner in which issues are negotiated, because different methods of negotiating will be required in different situations.
Interpersonal Skills: Effective negotiation requires strong interpersonal skills, which are necessary both in formal situations and in less formal or one-on-one negotiations. These abilities include the following: Effective verbal communication, Active Listening, and the reduction of misunderstandings are all important aspects of successful negotiation techniques. When it comes to successful negotiation, assertiveness is a must-have skill. It increase your ability to confront and dealing with difficult situations as well as the strength of your working relationships by fostering mutual respect.
Practical Application
Charlie and Joshua were sitting across the table from each other, their poker faces on. Both were managers of their companies. While Charlie was representing his real estate company, Joshua was representing as a tenant of a small retail business.
The issue was the renovation of the premises as it had become very old and run down. Charlie was not willing to spend and Joshua was not sure how to get the landlord i.e., Charlie to share at least half of the cost for renovation.
When the two met, neither of them wanted to put their cards on the table during the negotiation. So Joshua decided to set a comfortable scene by engaging in some light small talk before beginning to work on his proposal. Is move assisted them creating a positive atmosphere.
Charlie was confident that his negotiating chip would be declared a winner because being a landlord he had a strong hand. It felt like Joshua was shaking in his boots because his hand was dead weight. Charlie made a stab at it and offered his part of the bargain as a test. Joshua felt relieved when he realized that they were on the same page as each other. Charlie did not want to loose an old tenant because he was not certain how long it would take to find new tenants. On the other hand, Joshua did not want to move out as it would mean additional cost for his company. They were both rooting for the same outcome, so they felt like a match made in heaven.
