The negotiation process – Phases, techniques and common procedures
Posted: Thu Dec 05, 2024 7:17 am
In all business activities, the negotiation factor appears in many departments and is carried out both internally between members of the company, and externally with clients, suppliers, distributors, administration, etc. However, there are some common characteristics to all negotiation processes: "Common interests" and "Conflicting interests".
P. Kotler said back in 1974 that the most important skills for any manager or executive were leadership and the ability to negotiate. Unfortunately, this is something that is not taught in our country's universities.
Basically, every negotiation is characterized by a series of ideas, goals or intentions that are similar, if not identical, for all participants in the negotiation. These are called common interests .
Faced with them, as expected, there are discrepancies, different views on the facts or the agreements that are intended to be reached. These are the so-called conflicting interests .
However, although these two characteristics are undoubtedly the most representative of any negotiation, it should be noted that they are not the only ones. By analyzing various negotiations, the following can be discovered:
German Pineiro's BlogStocks of different strategies.
Dependency between the parties.
Use of various types of communication .
Use of various tactics or techniques.
Existence of dilemmas.
Facing risks.
In a negotiation process, there will obviously be at least two parties involved, so it is logical to think that each of them will have carefully planned their strategy, which will hardly coincide with that of the other party or parties. In addition, it happens that both positions are needed, since the aim is to reach an agreement that benefits everyone.
You may also be interested in: Competitive Strategy - M. Porter's 5 Competitive Forces
To reinforce and argue their positions, those involved in a negotiation will use different supports: from written material, gestures, mannerisms, tone of voice, computer material, false calls... and will try to use different techniques to try to achieve an advantageous position over the other party.
At some point in the negotiation, the first dilemma will arise, that is, one of the parties is surprised by having to make a decision on a topic or issue that had not been planned. The decision-making process by the members of a negotiation will mean that they have to take certain risks; some may be reasonably controlled, but others will be beyond all prediction and in some cases will even be beyond the decision-making capacity of the executive/manager.
PHASES OF THE NEGOTIATION:
As with any process, a negotiation must be developed in a series of clearly differentiated stages:
Preparing for negotiation.
Discussion.
Proposition.
Negotiation.
1. Preparing a negotiation:
It is well known that improvisations only lead to more improvisations, so negotiations must be prepared. While it is true that even when a negotiation is carefully prepared with the appropriate strategies, it can later get out of hand, it is also true that if the strategies are planned in advance, the chances of failure increase greatly.
In the days leading up to the negotiation date, the negotiator must do his homework and be able to answer the following questions:
What type of negotiation is this?
What will be our objectives in the negotiation?
What is the profile of the other party and what information do we have about him/her?
What are the key topics and points to be analyzed beforehand?
What are the arguments to defend our position?
What concessions are we willing to make?
At what point can the negotiation be broken?
You may also be interested in: Reputation marketing, the case of the Spain brand – Spain is different
2. Discussion.
This is the phase or stage in which each of the parties communicates their intentions to the other. It is largely used to present the positions and for each of the parties to get an idea of the objectives that the other participants are seeking, as well as what they are willing to give in on and what they are not. In this phase it is important to know how to listen and observe the positions of the other participants.
3. Proposition.
There would be no point in talking about negotiations if different proposals cannot be made and put on the table to achieve an agreement. When we propose, we could say that we are laying the foundations for reaching the desired agreement. However, when developing proposals, we must at least try to ensure that they are realistic and achievable.
4. Negotiation.
We are in the culminating phase. This is where two important moments in any negotiation are contained: closing the negotiation and the final agreement. This is the moment when objections arise, and we must try to identify them and try to resolve them as soon as the opportunity arises. It is advisable to summarise what was previously agreed point by point in this phase.
TIPS TO INCREASE EFFECTIVENESS:
Observe the opponent closely.
Be flexible. Small concessions can open up big paths.
Don't talk too much. It is better to listen than to talk, especially in the preliminary phases.
Put yourself in someone else's shoes.
Be understanding.
Don't be in a hurry.
Pay attention to the message.
Weakening the opponent. Using their weak points to attack them so that they are then weak when it is time to attack their strong points.
Consult before making decisions, even if it means interrupting the negotiation.
In case of refusal, explain the reasons so that they are understood by the other party.
You may also be interested in: Social networks that are considering going public. Will Facebook be the first?
PROFILE OF A GOOD NEGOTIATOR:
Ability to put oneself in someone else's shoes.
Be patient.
Listening and observation skills.
Open and flexible mindset.
Creativity.
Leadership.
Own initiative.
Self-control.
Self-confidence.
Persuasiveness.
Realistic and reasonable.
Ambitious and persevering.
Analytical.
It is important to remember that the success of an executive and his company is often determined by his negotiation skills, so this is a topic that all executives, managers and business owners should learn about in order to improve their skills in order to achieve their goals both on a personal and professional level.
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P. Kotler said back in 1974 that the most important skills for any manager or executive were leadership and the ability to negotiate. Unfortunately, this is something that is not taught in our country's universities.
Basically, every negotiation is characterized by a series of ideas, goals or intentions that are similar, if not identical, for all participants in the negotiation. These are called common interests .
Faced with them, as expected, there are discrepancies, different views on the facts or the agreements that are intended to be reached. These are the so-called conflicting interests .
However, although these two characteristics are undoubtedly the most representative of any negotiation, it should be noted that they are not the only ones. By analyzing various negotiations, the following can be discovered:
German Pineiro's BlogStocks of different strategies.
Dependency between the parties.
Use of various types of communication .
Use of various tactics or techniques.
Existence of dilemmas.
Facing risks.
In a negotiation process, there will obviously be at least two parties involved, so it is logical to think that each of them will have carefully planned their strategy, which will hardly coincide with that of the other party or parties. In addition, it happens that both positions are needed, since the aim is to reach an agreement that benefits everyone.
You may also be interested in: Competitive Strategy - M. Porter's 5 Competitive Forces
To reinforce and argue their positions, those involved in a negotiation will use different supports: from written material, gestures, mannerisms, tone of voice, computer material, false calls... and will try to use different techniques to try to achieve an advantageous position over the other party.
At some point in the negotiation, the first dilemma will arise, that is, one of the parties is surprised by having to make a decision on a topic or issue that had not been planned. The decision-making process by the members of a negotiation will mean that they have to take certain risks; some may be reasonably controlled, but others will be beyond all prediction and in some cases will even be beyond the decision-making capacity of the executive/manager.
PHASES OF THE NEGOTIATION:
As with any process, a negotiation must be developed in a series of clearly differentiated stages:
Preparing for negotiation.
Discussion.
Proposition.
Negotiation.
1. Preparing a negotiation:
It is well known that improvisations only lead to more improvisations, so negotiations must be prepared. While it is true that even when a negotiation is carefully prepared with the appropriate strategies, it can later get out of hand, it is also true that if the strategies are planned in advance, the chances of failure increase greatly.
In the days leading up to the negotiation date, the negotiator must do his homework and be able to answer the following questions:
What type of negotiation is this?
What will be our objectives in the negotiation?
What is the profile of the other party and what information do we have about him/her?
What are the key topics and points to be analyzed beforehand?
What are the arguments to defend our position?
What concessions are we willing to make?
At what point can the negotiation be broken?
You may also be interested in: Reputation marketing, the case of the Spain brand – Spain is different
2. Discussion.
This is the phase or stage in which each of the parties communicates their intentions to the other. It is largely used to present the positions and for each of the parties to get an idea of the objectives that the other participants are seeking, as well as what they are willing to give in on and what they are not. In this phase it is important to know how to listen and observe the positions of the other participants.
3. Proposition.
There would be no point in talking about negotiations if different proposals cannot be made and put on the table to achieve an agreement. When we propose, we could say that we are laying the foundations for reaching the desired agreement. However, when developing proposals, we must at least try to ensure that they are realistic and achievable.
4. Negotiation.
We are in the culminating phase. This is where two important moments in any negotiation are contained: closing the negotiation and the final agreement. This is the moment when objections arise, and we must try to identify them and try to resolve them as soon as the opportunity arises. It is advisable to summarise what was previously agreed point by point in this phase.
TIPS TO INCREASE EFFECTIVENESS:
Observe the opponent closely.
Be flexible. Small concessions can open up big paths.
Don't talk too much. It is better to listen than to talk, especially in the preliminary phases.
Put yourself in someone else's shoes.
Be understanding.
Don't be in a hurry.
Pay attention to the message.
Weakening the opponent. Using their weak points to attack them so that they are then weak when it is time to attack their strong points.
Consult before making decisions, even if it means interrupting the negotiation.
In case of refusal, explain the reasons so that they are understood by the other party.
You may also be interested in: Social networks that are considering going public. Will Facebook be the first?
PROFILE OF A GOOD NEGOTIATOR:
Ability to put oneself in someone else's shoes.
Be patient.
Listening and observation skills.
Open and flexible mindset.
Creativity.
Leadership.
Own initiative.
Self-control.
Self-confidence.
Persuasiveness.
Realistic and reasonable.
Ambitious and persevering.
Analytical.
It is important to remember that the success of an executive and his company is often determined by his negotiation skills, so this is a topic that all executives, managers and business owners should learn about in order to improve their skills in order to achieve their goals both on a personal and professional level.
Related articles:
Monitor, optimize and engage: Three basic techniques in an Online Reputation Management strategy
Social Media Marketing – Changes in the decision-making and purchasing process
The 3 common mistakes in Content Marketing
Most common errors or failures on SME websites in Spain
The 5 most common User Experience mistakes related to web design – UX
CategoriesBusiness Management
The business world is back to school after the summer holidays
Types of Mailing or direct advertising through mail
Blog sections
Present
Blockchain
Cloud Computing
Ecommerce
Companies
Business Management
Gurus a benefits of using the cambodia phone number list nd Thinkers
Marketing
Online Marketing
New Technologies
Miscellaneous and Curiosities
Latest published articles
Growth Hacker: Functions, tasks and profile
Complete guide to indexing your website and avoiding penalties for duplicate content
The best tips and tricks for learning languages online
The Power of Press Releases: How to Build a Narrative that Wins Over the Media
How automation is transforming digital marketing
Technology consultancy: what it is and what advantages it has for your company
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