This article provides an overview of the most important elements of negotiation, giving you a comprehensive, high-level perspective. By way of introduction, let me clarify one thing: this body of knowledge is called the negotiation process, and it serves as a framework to help you understand the phenomenon of negotiation.
In reality, the elements described below may overlap, occur in a different order, or not all appear in every negotiation. Nevertheless, the negotiation process shows us what to expect and when. This allows us to plan our actions more carefully, maintain control over the situation and conversations, and approach the entire negotiation with a strategic perspective.
The six stages of the negotiation process
1. Preparation
Preparation is thinking ahead. It helps us clarify what we want to achieve so we can analyze why we want it. On our own (or as a team), we determine what the real goal is and which of our needs it will satisfy. Preparation means gathering information about your counterpart and anticipating their goals and actions so you can respond effectively to their moves. Preparation is a projection of the future: it familiarizes us with events that have yet to unfold, so they are not foreign to us, and we feel comfortable enough to act effectively.
Read also: Negotiation Basics
The 5 fundamental attitudes that underpin the entire negotiation process.
2. Relationship building
Relationship building is getting to know the person. You can learn about someone through their history (how they arrived where they are, what decisions they made), their present (how they speak, gesture, what values and attitudes they represent), or their future (what aspirations, ambitions, plans, and visions they hold).
3. Information exchange
Information exchange is opening up to the other side. When we share something about ourselves, such as our interests, we invite people to understand us and our situation. This requires considerable courage and trust that the other party has good intentions.
Do not confuse goals with intentions. Someone’s goal may be to buy as cheaply as possible, while their good intentions are demonstrated through open dialogue and a mutual search for solutions.
4. Persuasion
Persuasion involves actions that cause someone to do, feel, or believe something. That “something” must be beneficial to the person; otherwise, we are dealing with manipulation. When someone uses persuasion on us, the most important thing is to remember our own interests and make conscious decisions based on the new information.
5. Concessions
Concessions mean acknowledging the primacy of another need. Because concession is an option in our repertoire, we do not have to worry about the trap of entrenching ourselves in our positions. Concessions are natural because it is not always possible to reconcile all interests. The art lies in making concessions gracefully, for the sake of the relationship, a sound agreement, and a constructive future.
6. Agreement
Agreement is the building block of progress. Where there is agreement, there is also forward movement, because people are not wasting time working against each other. Agreement is a critical step, often marking the beginning of a partnership. However, nothing should be forced. Agreement does not have to be reached. You always have the right to walk away from the table.
Related article: What Is Negotiation?
The definition of negotiation and its role in business.
Summary
The elements above are the building blocks of the negotiation process. Now that you have taken a broad view of the phenomenon of negotiation, you are ready to dive deeper into each of the six stages and gain practical knowledge you can apply immediately.
Start with preparation. It is the foundation on which all the other stages of negotiation stand.
