7 Steps of Successful Negotiation

Negotiation involves two or more parties, who each have something the other wants, reaching agreement through the process of bargaining. This training will explain the principles of negotiation as well as giving you the confidence and skills to achieve a mutually acceptable outcome.

In this online training you will learn about the 7 Steps of Negotiations:

1. Preparing and Understanding the Principles of Negotiation 
2. Identifying your Objectives
3. Assessing the Opposition 
4. Choosing a Strategy
5. Conducting a Negotiation 
6. Dealing with Unhelpful Behavior
7. Closing a Negotiation 

Step 1a. Preparing for Negotiation

To negotiate successfully you need a game plan - your aim and a strategy for achieving it. Preparing thoroughly before a negotiation will lead to more success.

The art of negotiation is based on attempting to reconcile what constitutes a good result for you with what constitutes a good result for the other party.

The core skills required for successful negotiations include:

• The ability to prepare well
• The ability to be able to listen to and question others
• The ability to prioritise well
• The ability to define objectives, yet be flexible about some of them
• The ability to explore a wide range of options

By taking the time to learn these you will enhance more than just your bargaining abilities.

Different negotiation types require different skills. In business each instance of negotiation displays certain characteristics. It may be formal or informal, ongoing or a one off, depending on who is negotiating for what. The parties involved in a business - such as employees, suppliers, managers, and customers - all have different interests and individual points of view. Whichever group you belong to, you need to reconcile such differences through negotiation.

Important points to remember are:

• When negotiating, you need to know where you are prepared to give ground - or not
• Anything that applies to you as negotiator applies to the person with whom you are negotiating
• Negotiation implies that you are willing to compromise on the issue under discussion
  
• A matter under negotiation may be intangible and therefore must be defined before negotiation can proceed

Step 1b. Understanding the Principles

With a proper understanding of the process involved (preparation, proposal, debate, bargaining and closing) negotiating can create a successful outcome for all parties. Central to this is the principle of exchange: you must give in order to receive.

Stages -

The key to negotiation is to realise that all parties need to gain something of value in exchange for any concessions they make. Only then can they all come away feeling successful. Try to achieve this by understanding that what is valued by your party may not be valued by the other.

Flexibility is a vital characteristic around any negotiating table. The balance of power between the parties fluctuates as negotiations progress.

Go to Negotiation Objectives