Types of negotiations

There are three main types of negotiations:

1. The win-win format: two parties try to find a mutually beneficial agreement and establish the basis for a lasting relationship.

2. Both teams look more for independent advantage with less emphasis on a long-term relationship.

3. The win-lose format: when two sides see their counterparts as opponents.

Planning negotiations

Effective planning is crucial to meeting negotiation objectives. If the parties are to reach a stable agreement, specific events must take place before the parties ever come to the table.

1. Parties must frame the problem, and recognize that they have a common problem that they share an interest in solving.

2. In the early stages of framing, negotiators must also determine their goals, anticipate what they want to achieve, and prepare for the negotiation process. The combined list of issues and priorities from each side determines the negotiation agenda.

3. After assembling issues on an agenda, the negotiators must prioritize their goals and evaluate the possible tradeoffs among them.

4. Planning involves assessing the other party's priorities and interests and trying to get a better idea of what that party is likely to want..Don’t forget the cultural peculiarities of the other side!

5. Planning for negotiation also involves the development of supporting arguments. Negotiators must be able to present supporting facts and arguments, anticipate how the other side will respond to these arguments, and respond to the other party's claims with counter-arguments.

6. Work out different scenarios ahead of time. Being caught by surprise will NOT strengthen your position! Think through all the different possibilities which may eventuate and plan for each and every one of them.

7. Set up the negotiation meeting itself, if this is appropriate. If you can choose the time and the place, you can add further control over the tone of the meeting.

8. Invite the other party to the negotiation meeting.

The negotiating process

After small talk to establish a good rapport, both groups normally present their opening position. However, strategies and tactics have been prepared and there is usually room to maneuver. Parties will prepare an ideal position but will be prepared to make concessions and move to a fallback position to meet the required conditions. Proposals and counter-proposals will be made as part of this process. It may also be necessary to identify and overcome obstacles to a settlement. After a great deal of bargaining or haggling, both parties should compromise without losing face. Finally, a deal will be reached and a contract will be signed.