Mastering the Negotiation Process and Strategy

The Negotiation Process

Negotiation involves addressing public or private issues to achieve the best possible outcome. For a negotiation to occur, the following conditions must be met:

• Intervention by two or more subjects.
• Connecting subjects through a theme that unites them.
• Conflicting or controversial positions regarding the matter.
• The desire of each party to conclude the process.
• The intent to solve the problem peacefully.

Types of Negotiation

• By the number of parties involved: Bilateral or Multilateral.
• By the strategy being used: Competitive (distributive), Cooperation (integration), or Mixed.
• By who sits at the negotiating table: Direct or Delegation.

Components of the Negotiating Process

• Subject of negotiation: Refers to the individuals who debate the issue.
• Subject and topic: The issue upon which the parties intend to reach a common position.
• Controversy: In standard negotiation processes, parties hold conflicting positions regarding the purpose of the negotiation.
• Agreement: Negotiations result in an agreement when the parties find a position in which both feel they benefit.

Main Factors Influencing Negotiation

Personal Factors

• Training: Companies require employees to be excellent professionals in their field and possess social skills useful to the business.
• Capacity for dialogue: Dialogue is an empathic conversation; a good negotiator must present their position as convincingly as possible while understanding the opposing party's views.
• Intuition: The ability of a subject to anticipate ideas, feelings, or events that may occur.

External Factors

• The information obtained by each party is crucial to the process.
• The degree of control one party can impose over others.
• The degree of dependence or independence regarding the object of negotiation.
• The environment in which the negotiation takes place can be a decisive factor.
• Negotiation experts often cite the time available for reaching an agreement as a key element.

Initial Considerations in Negotiation

The Form

• Negotiate with those who have the capacity to decide on the matter.
• Take the necessary time.
• Create a climate of trust.

The Substance

• Identify the specific objective.
• Clarify our position.
• Make some concessions to reach a deal.
• Be flexible when necessary.

Stages of the Negotiation Process

Preparation

• Setting objectives.
• Collection of information.
• Analysis of available resources.
• Setting a meeting place, schedule, and strategy.

Discussion Phase

• Knowledge of the parties.
• Discussion.

Approach Phase

This phase involves finding common ground and narrowing differences.

Closure Phase

• With agreement.
• Raw deal (No agreement).