The six basic steps in negotiating

1)Getting to know one another

Negotiating is like any social situation that has a business purpose. It moves more smoothly when the parties take a little time to get to know one another. It is helpful to assess those involved before negotiations begin. Individual backgrounds will provide an excellent guide to the level of importance placed on the issues, and the degree of expertise brought to bear on the subject. A good rule of the thumb is to keep the beginning friendly and relaxed, yet businesslike.

2)Statement of goals and objectives

After the opening, negotiating normally flows into a general statement of goals and objectives by the parties involved. Specific issues may not be raised at this time because each party is just the beginning to explore the needs of the other. The person who makes the opening statement should wait for feedback from the other party to learn if they have similar goals and objectives. Normally it is a good idea to make the initial statements positive and agreeable. This is no time for hostility or defensiveness. You must build an atmosphere of co-operation and mutual trust.

3)Starting the process

Some negotiations are complex and have many issues to resolve. Others may have only a few. Individual issues may vary greatly in complexity. In a negotiation no one can predict the direction until both parties have presented the issue. There may be hidden needs neither party has raised, but these will surface as things proceed. A skilled negotiator will study the issues closely before negotiations begin in order to determine

4)Expressions of disagreement and conflict

Once the issues have been defined, disagreement and conflict will occur. This is natural and should be expected. Good negotiators never try to avoid this phase because they realise that this process of give and take is where successful deals are made. Disagreement and conflict, if handled properly will bring negotiators together. When presenting the issues, most negotiators will explain what they want. It is the task of the other negotiator to find out what they need. Few negotiators will get what they want, even in a successful negotiation. But good negotiators will get to work as much as possible, yet understand compromise may be necessary, and a modification of goals maybe required. The confrontation involves stress but it is important to remember that conflict resolution under these circumstances is not a test of power but an opportunity to reveal what they need properly understood this should lead to possible areas of Agreement or compromise.

5) Reassessment and compromise

At some time, one party will normally move towards compromise. At such a time, the other negotiator should listen carefully to see if an attempt to compromise is being offered. The response should be carefully stated. Too quick an attempt to pin something down may cause the other party to withdraw because the climate may not seem conducive to giving and getting.

6) Agreement in principle and settlement

When agreement is reached it is necessary to affirm it. A decision about how the final settlement will be obtained is needed, especially if additional approval is required. This normally means placing the agreed terms in writing. If possible, this should be done while the parties are together so they can agree on the language. This will reduce the danger of a misunderstanding. Since agreement is the ultimate objective of any negotiation, it is important to identify the level of any authority of the party you are negotiating with at the outset. Some sellers, for example will negotiate in order to identify your position, and then inform you they do not have the authority to accept your terms. When you have the authority to make an agreement in an attempt to manoeuvre a better deal for the seller.