Negotiation Excellence Successful Deal Making

Negotiation Excellence Successful Deal Making

1. Planning and Preparation for Effective Negotiation

   • Planning and preparation go beyond what negotiators should do before negotiation. Because negotiation is a dynamic communication process where new information

2. Negotiation Analysis: Know the Situation, negotiation Analysis:

   • An essential component of effective preparation is to conduct a well-rounded analysis of the bargaining situation, to understand not only one’s own positions, interests, priorities, and alternatives, but also those of the counterparts.

3. Analyze the negotiation context: Opportunities and constraints

   • Negotiations do not take place in a vacuum. The historical, economical, legal, and socio-cultural contexts all determine the codes of conduct that shape negotiators’ perception of what is permitted or not permitted, expected or not expected (Watkins, 2000)
     • Aspects to consider when analyzing a negotiation situation:
       • 1. Assess the historical, political, legal, and cultural context in which negotiations take place
       • 2. Assess the purpose of the negotiation: Deal-making or dispute resolution?
       • 3. Assess the nature of the conflict: Are ideologies involved?
       • 4. Assess the temporality of the negotiation: One-shot or longterm?
       • 6. Assess external constraints: Place.
       • 5. Assess external constraints: Is time an issue?
       • 7. Assess external constraints: Communication channels

4. Analyze the negotiation structure and components

   • Diagnosis of the negotiation context should be complemented with a careful analysis of the structure of the negotiation, including who are the involved parties, what issues are to be negotiated, what are each party’s positions, interests, and preferences for these issues, and what are their best alternatives to a negotiated agreement (BATNA)
     • 1. Identify the negotiation parties.
     • 2. Define the issues.
     • 3. Understand the underlying interests.
     • 4. Consider alternatives
     • 5. Create a scoring system and sort out preferences.
     • 6. Determine the target/aspiration and reservation/resistance points.
     • 7. Assess your negotiation style.
     • 8. Practice perspective taking.
     • 9. Assess the relationship with the other party.