Chapter 4: Negotiation: Strategy and Planning

Chapter 4: Negotiation: Strategy and Planning

Planning is a critically important activity in negotiation. As we noted at the outset, however, negotiators frequently fail to plan for a variety of reasons. Effective planning allows negotiators to design a road map that will guide them to agreement. While this map may frequently need to be modified and updated as discussions with the other side proceed, and as the world around the negotiation changes, working from the map is far more effective than attempting to work without it. A negotiator who carefully plans will make an effort to do the following:
1. Understand the key issues that must be resolved in the upcoming negotiations;
2. Assemble all the issues together and understand the complexity of the bargaining mix
3. Understand and define the key interests at stake that underlie the issues
4. Define the limits – points where we will walk away – and alternatives – other deals we could do if this deal does not work out
5. Clarify the targets to be achieved and the opening points – where we will begin the discussion
6. Understand my constituents and what they expect of me
7. Understand the other party in the negotiation – their goals, issues, strategies, interests, limits, alternatives, targets, openings and authority
8. Plan the process by which I will present and “sell” my ideas to the other party
9. Define the important points of protocol in the process – the agenda, who will be at the table or observing the negotiation, where and when we will negotiate

When negotiators are able to consider and evaluate each of these factors, they will know what they want and will have a clear sense of direction on how to proceed. This sense of direction, and the confidence derived from it, is a very important factor in affecting negotiating outcomes.

Question

1. What are the steps to implementing the strategy?

·        Define the issue

·        Assemble the issues and define the bargaining mix
- The bargaining mix is the combined list of issues

·        Define your interests
- Why you want what you want

·        Know your limits and alternatives

·        Set your objectives (targets) and opening bids (where to start)
- Target is the outcome realistically expected
- Opening is the best that can be achieved

·        Assess constituents and the social context of the negotiation

·        Analyze the other party
- Why do they want what they want?
- How can I present my case clearly and refute the other party's arguments?

·        Present the issues to the other part

·        Define the protocol to be followed in the negotiation

2. What are the key steps to an ideal negotiation plan?

·        Preparation

·        relationship building

·        information gathering

·        information using

·        bidding

·        closing the deal Implementing the agreement