The Art of Negotiation

There are multiple situations that we face in our day to day life wherein we are consciously or subconsciously in a negotiation conversation. And each situation, we adapt a different style and behave and handle the situation differently. Is there some science and process to it? Definitely yes :-).

But what is Negotiation?

‘Negotiation is a process in which two or more parties, who perceive a difference in interests or perspectives, attempt to reach an agreement.’?

Remember, it is an ATTEMPT to reach an agreement.

• How can the attempt be successful?
• What do we mean by successful wrt to a context?
• What preparations can be made before starting a negotiation?
• Is there a process or framework that can be applied? Can it be used in all situations?

Let us try to figure out answers for all these and to many more questions on Negotiations.

Outcome of a negotiation, depends on the nature of the relationship between parties.

• Independent - parties are not dependent on the each other.
• Dependent - one of the party is dependent on the other party.
• Interdependent - there is an interdependency on each of the parties.

Negotiation conversions can be distributive or Integrative. In a negotiation, a party can create a value for the other party as well claim a value.

• a negotiation having both value creation and value claiming, is integrative (non-zero sum).??
• a negotiation having only of them and not the other, for each party is distributive (zero sum, you win at the cost of the other party).

Remember, value is subjective. You may think that you are creating a value for the?other party, but the other party may not perceive this as value.

As per the legendary Dr. Kenneth W. Thomas and Dr. Ralph H. Kilmann (Thomas-Kilmann model). there are 5 different approaches/modes that people respond while in a negotiation or conflict situation. And they are based on two dimensions, assertiveness and cooperativeness. It depends on how much one cares of self and how much one cares for others.

Negotiation planning process:

in most cases, a clear planning process can be applied for negotiation. It may take some time, but once practiced and?applied few times, you will follow it naturally. Here are the process steps:

1. Define your goal clearly? (what do you want? put down both substantiative and relationship goals)

2. Identify issues that needs to be resolved to achieve your goal(hurdles to reach your negotiation goal)

3. Define your interests concerning the other party.

4. Know your options/alternatives for negotiation. (if you don't want to negotiate, what option do you have?)

5. Know your walkaway point, limits, resistance point...

Now, more important. We have to iterate all these again. Do all these again, by stepping onto other party's shoes. This is really critical, without understanding the other party's needs, goals, context etc negotiation can never be fully successful.

Have I used this process and have I won many negotiations?

Well, I have started using this process for quite some months now. All I can say is, it is definitely very useful. I plan and go a to a negotiation, and take decisions consciously. This is what makes me like this process. In many cases, I have not really won the deal. But, I have neither repented for it, as the decision was taken consciously.