Stages of negotiation explained
There is less time to sit down with that partner or client to try to reach an agreement. Before that time, it is necessary to to be ready to face a process that will be divided into the following 5 negotiation phases:
- Preparation. There are no shortcuts to good preparation. It is the first of all the phases of negotiation., although the time required is often not guaranteed, as it is common to proceed directly to the information exchange stage, or even directly to negotiation. Preparation begins by determining whether there is a potential collaboration situation or not. The conclusion of the analysis will allow for the selection of the best strategy. Then, it is necessary to focus on research, identifying interests and positions. Finally, it is necessary to take into consideration the relationship one wishes to build.
- Information exchange. This stage takes place when one party begins to commit to the other, share information and explore options that address interests, what each person needs, rather than positions, what each person asks for later in the negotiation stage. In this phase, it is fundamental to focus on building a good relationship and trust, without which neither party will feel comfortable sharing interests. One way to build the relationship is by discovering and showing interest in the other party's culture, personality, external interests, and values.
- Negotiation. It is the core stage., where the «give and take» takes place. But success does not mean winning at the expense of the other party's defeats. Of all the stages of negotiation, it is in this one that making concessions is most important.. When you not only aim for points but are also able to concede things that satisfy the other party's interests, you can build a lasting relationship and a fruitful outcome. During the negotiation stage, you must aim to continue creating value.
- Closure. It is at this point in the process that agreement is reached.. It is important to ascertain whether the other party has the capacity to fulfil the things they said they would do. This is the time to put common interests on record and produce a comprehensive summary of the agreement. Sometimes strategies need to be considered that allow securing commitment And, at the same time, it's worth thanking the other party for their willingness to negotiate, even when an agreement isn't reached.
- Execution. It is time for the implementation of the agreement.. This stage can also be seen as preparation for the next negotiation opportunity. Each party must ensure they fulfil promises made to strengthen the relationship and build trust. It is worth bearing in mind that, during execution, it is likely that all phases of the negotiation may need to be restarted, with regard to certain points, motivated by unexpected events, performance failures or unavoidable changes.
Now that the negotiation phases hold no secrets for you, all that's left to do is close the deal and set your sights on the next agreement that will improve your business's competitive position..
