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How the Negotiation Process Works

  • Written by News Co

How Negotiations Work

There are many courses, books, and methodological recommendations about negotiations, offering the main rules and tools that help to achieve successful results. The secrets of effective negotiation strategies are always in demand. That’s why we decided to take a closer look at them. 

How to Prepare for Negotiations?

Preparing for the negotiation process is important not only for beginners but also for experienced employees.

  1. The first step is to identify the areas of mutual interest for the parties; 
  2. The next step is preparing for communication and dealing with organizational issues;
  3. After having structured the speech, it is better to choose the discussion strategy, alternative solutions, and offers. Do not forget to analyze the situation in advance and define your own goals.

After all the preparation, you should have a clear idea of the other party’s main wishes and goals. 

The Main Bargaining Steps 

Negotiation is a complicated process that can last for hours before you come to a consensus. Most researchers divide the process into three steps, each with its own intention and task:

  1. The first step is to clarify mutual interests, positions, points of view, and wishes;
  2. The next stage is the discussion. It is a confrontation of interests and concerns while the parties discuss the issue, put forward arguments, and provide evidence to support their positions and views. This part of the negotiation process is vital because its results become the foundation of the last step;
  3. The final phase is the agreement and discussing the subsequent actions. 

The Model of Effective Negotiations 

Based on our experience, here is an example of how the best negotiations go:

  • Establishing communication. It is crucial to create an atmosphere of trust and show a friendly attitude towards the other party. To succeed, you need to show a real interest in cooperation.
  • Identifying interests. Before starting the discussion, you need to declare your own goals and find out your partner's position. Thus, you will understand their interests and intentions and see how seriously they take your partnership. 
  • Atmosphere. Do not strictly focus on forcing your position. It is important to listen to the other party’s wishes and stay patient. Do not forget that your main task is to create an atmosphere of friendly cooperation. It contributes to reaching a quick and positive solution to all current issues. 
  • Cooperation. By discovering the other party’s interests, you increase the probability of partnership. Should you make the first offer in a negotiation? It depends on the situation, but you should show a willingness to make concessions.
  • Conflict resolution. You should be ready for your interests to be conflicting. To avoid any misunderstandings and find a solution, you can make some minor concessions. But it is better to prepare the ground in advance using careful arguments. 
  • Decision. It is time to settle all the requirements by signing a contract. A promising sign of successful negotiations is both sides’ positive mood after the finishing touches. 

The result of effective negotiations is attracting and retaining the client. In conditions of intense competition, you need to stay flexible, understand the potential partners’ mentality, improve your communication skills, and be responsible. One of the important factors that can influence negotiation results are the ethics and culture of business communication. The art of negotiations helps to make profitable deals, reach your goals in the shortest terms, and find the best solutions to any issue. 

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