Copyright SK 1999
13 Step- 4 Negotiation - Process Guidelines
General Strategy: Set the players (know their effects on each other),
reduce tension, increase accuracy of information, control # of issues,
seek commonalities, enhance alternatives
(General Strategy adapted from Negotiation,
by Roy J. Lewicki, David Saunders and John Minton, 3rd Edition, McGraw Hill,Higher Education, Burr Ridge, IL, 1999. )
Definition: Success is an agreement detailing and securing the advancement of all the parties'
individual goals for a specific time period.
Step 1. Establish Internal Understanding with primary goals.
View the negotiation more as a puzzle than a problem, then solve the puzzle by defining the
problems and related concerns, differentiate symptoms, determine causes, ad criteria for evaluation,
and postulate solutions.
Define future-oriented goals for Specific Outcomes and for Personal Interaction
Consider Organization's goals & outcomes vs. Relationship goals & outcomes
Good habits+Good humor+ Good heart+ Good values= Good attitude=success
Step 2. Research and prepare for meetings (see additional worksheets
available - $9.95 from NSCompany)
Define the Negotiation in terms of Interests; theirs first, then yours.
Define each party and any stakeholders they have (stockholders, too).
Develop options and assess BATNAs(from Fisher and Ury -Getting To Yes-1991).
Crunch the numbers last, then fit your strategy to their interests.
Success will come from understanding them, not you.
Step 3. Open negotiations - information gathering and assessments
A. Create a relaxing stimulating environment to foster agreement.
Be reasonable, respectful, responsible, and use the Platinum Rule:
Treat them the way they want to be treated.
Explore several safe topics to begin.
Question - How would you like to begin?
Establish a sense of humor and worldliness about the fallibility of ourselves, the process, and the task at hand.
Remember, unbelievable as it seems, the world will continue long after us!
B. Establish Mutual Goals
*****Negotiation # 1 - Guarantee your honesty, ask for theirs? Engender commitments for respect,
integrity, joint-gain initiatives Acknowledge Competition but respect values; Pursue values of
understated strength, and success over ambition?** "We must combine the toughness of the serpent
and the softness of the dove, a tough mind and a tender heart". (Martin Luther ring Jr.)
Agree from the beginning that it's OK to disagree
C. Establish the authority and restrictions of both parties in the negotiation. Don't pull any punches.
Question - On what matters can we make final agreement today?
D. Explore and Clarify the facts: Be sure to be diplomatic!
Be cautious in sharing information until you build reciprocity.
Exchange accurate, relevant, objective information to empower both parties.
Remember: Information is the fundamental asset of a negotiator.
Get to the facts ASAP (be aware of culture) by asking who, what, where, when, and why of everything. Don't assume!
Clearly confirm facts if possible or agree to negotiate any disagreements and the relevant importance
of those disagreements, or agree to not negotiate untouchable things, i.e. an agreement about
disagreement which can be used as a building block for further negotiation.
4. Work together for mutual benefit
Encourage a focus of "We have a problem (puzzle) to solve together"
Strategically initiate trust steps which fulfill needs
Legitimize and Listen to their interests: (not yours)
Remember not to shoot the messenger. Ask how they arrive at their
numbers, positions, and deadlines?
Seek an elegant solution: Is there a solution that ties the parties
together, instead of breaking them apart?
Address the future as well as the present.
Establish the other side's interests as well as any positions they offer.
Put yourself in their shoes, and their socks too. Think like them, not you Who am they? Who are their
stockholders?
A. Address their concerns. Be positive in explaining yours too.
B. Listen to what they are saying, not what you are thinking.
C. Write down their interests; a short pencil is better than a long memory. Confirm the definition of terms
- don't assume! Make sure you are all reading out of the same prayer book
5. Do an attitude, process, and progress check
Make negotiating fun. As Sherlock Holmes said, "Come Watson The game is afoot." Break the tension by
telling a joke or two.
Negotiate on several small things first, then go on to the major issues. Be careful to leave several items for
the end to barter with.
Develop process skills as part of the process. Learn to separate the people from the problem.
Know when to take a break, i.e. if things are too fast, too heated, or too confusing.
Statement - Before we continue, I have to take a quick break.
Begin to assess the other side's negotiation posture. Note if the other side has a win/lose
mentality or a win-win mentality, or if they are unsure (does it change depending on the person or situation?)
Question - In a broad sense, can you see us settling on an agreement today?
If your negotiating partner(s) am uncooperative or untrustworthy, or obviously subverting a win-win dynamic
- strategically disengage by: Steadfast reciprocity/ secure your existing position and gains/ use labelling/
make options for future interactions/ improve BATNA/quit
Empower your negotiating partner(s) by making this a cooperative process
Empower yourself by recognizing power dynamics and realities
Know the difference between power perceptions and power facts
6. If necessary, deflate the other side's expectations
Explain your limitations and the reasons for them.
Offer positions strategically which set parameters for the negotiation
Deflect any unusually high positions by asking for justification.
7. Negotiate Objective Standards
*****Negotiation# 2 - Negotiate specific standards which are acceptable to all parties.
8. Create value as you begin to solve the puzzle together
Use bargaining to fulfill needs, create reciprocity, and engender trust
Preserve the relationships by trying to "save face" for both parties.
Seek Pareto efficiency. Reinforce the dynamic that "We can fulfill our
needs together" better than we can if we compete for resources
Make commitments only after exploring related Issues of quantity, quality, timeliness, guarantees,
deadlines, especially payment terms, delivery dates, etc. (even on small items)
Enhance the other side's interests, e.g. if one side (S-1) wants the cost of the other side (S-2) to be lowered,
could (S-1) instead raise the income of (S2). Conversely, if (S-2) wants more money,
could (S- 1) help reduce (S2s) expenses.
Create unique solutions.
Make the soup bigger by adding things in: Look to the future together for mutually beneficial agreements.
(18 camels-Fisher)
Name your mutual constituents and stakeholders.
Postulate extremes to increase perceptions and awareness.
Hypothesize: use "what if" to frame up potential deals.
If you are at a sticking point, pretend a deal: Make a deal based on giveaways you won't give to
facilitate discussion.
As much as possible, resist your intuition in favor of standards
9. Reinforce commitment to a pareto mindset
Seek out of the box solutions (employ your intuition here!)
Utilize a puzzle-solving and perspective-taking view
Expect agreement. Don't make a battle a war. Assume it's easier and quicker than you think to come to
agreement - until time and difficulty prove otherwise
Some days cookies, some days crumbs! If necessary, make your agreement conditional.
Attempt to negotiate an acceptable agreement; one that if all else fails both sides could live with.
Then work hard to improve it.
If agreement isn't possible, don't be afraid to walk away, BUT, before you do,
assess your position and interests. See # 10
10. Reassess positions and interests (
before committing to a deal)
Survey the playing field: Define the negotiation in terms of power perceptions and realities. Determine
strengths and weaknesses of all sides Be wary of being misinformed, (unintentionally or otherwise)
Assess the relevance first, then the accuracy and validity of any information used in your decision-making.
Be willing to question everything!
Flip the deal, would you take their cut of the pie?
Ask yourself questions. What am I missing?
Reassess your own and the other side's BATNAs
If the deal isn't being made, ask the other side to clarify how you can better meet their interests.
Ask yourself if, in this case, a bird in the hand is worth two in the bush? Have you seriously considered
their offer? Ask yourself why their offer couldn't work
Reassess the risk and consequences of not gaining agreement: recognize the chaos factor,
suspended negotiations create an uncontrolled and potentially damaging environment.
Remember - "never cut what you can untie."
11. Make the deal by satisfying mutually beneficial goals
Negotiation # 3 - Compromise and cut the deal
A. Be a winner by using initiative, focusing on your individual goals as well as your mutual goals,
being responsible to both parties~ and using maximum effort to achieve these goals.
B. If the other side's proposal is inadequate, ask them to answer how or why they feel their
proposal meets your interests.
C.. Remember, if the deal you cut is too one-sided, it will likely adverselv affect you in
future negotiations-
12. Test Understanding and secure agreement
Negotiation # 4 - Negotiate the checks and balances.
A. Nail it down! Reconfirm the specifics of the agreement.
B. Double check your terminology, your time frames, the wording of the agreement, etc.
Make sure it works. Think of ways it will be tested and address those issues by establishing
verifiable auditing procedures to ensure the agreement for both parties
13. Share the credit and reaffirm the interests served
Notes: To Break an Impasse, Ask:
#1 Assuming we could come up with a reasonable settlement, can we work on what the
characteristics of that agreement would be?
#2 Can we put the money aside for a moment and focus on ?
#3 If your life depended on this, would you do xxxx?
Be Smart. Always negotiate honestly; there is no substitute for a clear mind, a friendly demeanor,
and a good sense of humor.
Copyright SK 1999
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