3.1 Preparation and Planning
Learning Objective
1. Discuss the importance of thorough preparation and planning for successful negotiations
We wouldn’t step onto the stage without preparation, so how can we enter a negotiation without proper preparation and planning? Negotiation preparation and planning are the foundations for successful negotiation. These steps allow us to understand all aspects of the negotiation. Before we engage in negotiations, we need to complete our research, identify the various options (including the win-win options and alternatives) and understand the wants and needs of both parties. We also need to identify our objectives and goals for the negotiation to strategize how to achieve what we want from the negotiation process.
The more we prepare and plan, the greater the likelihood of a positive outcome from the negotiation. While this may not guarantee a specific outcome for us, it will at least give us a roadmap for our negotiation and help us to navigate the entire process better. Think of it like this: without preparation, you are a dancer trying to dance without knowing or having practiced the steps, likely leading to many missteps.
The negotiation process consists of identifying one’s desired goals – that is, what you are trying to get out of the exchange – and then developing suitable strategies aimed at reaching those goals. A key feature of one’s strategy is knowing one’s relative position in the bargaining process. That is, depending upon your relative position or strength, you may want to negotiate seriously, or you may want to tell your opponent to “take it or leave it.” The dynamics of bargaining power can be extrapolated directly from the discussion of power and indicate several conditions affecting this choice. For example, you may wish to negotiate when you value the exchange, when you value the relationship, and when commitment to the issue is high. In the opposite situation, you may be indifferent to serious bargaining.
Example
| When to Negotiate | ||
|---|---|---|
| Bargaining Strategies | ||
| Characteristics of the Situation | Negotiate | “Take It or Leave It” |
| Value of Exchange | High | Low |
| Commitment to a decision | High | Low |
| Trust Level | High | Low |
| Time | Ample | Pressing |
| Power Distribution* | Low or balanced | High |
| When to Negotiate | ||
|---|---|---|
| Bargaining Strategies | ||
| Characteristics of the situation | Negotiate | “Take It or Leave It” |
| Relationship between the two parties | Important | Unimportant |
*Indicates relative power distribution between the two parties; “low” indicates that one has little power in the situation, whereas “high” indicates that one has considerable power
Once goals and objectives have been established and the bargaining strategy is set, time is required to develop a suitable plan of action. Planning for negotiation requires a clear assessment of your strengths and weaknesses and those of your opponents. Roy Lewicki and Joseph Litterer have suggested a format for preparation for negotiation.
According to this format, planning for negotiation should proceed through the following phases:
- Understand the basic nature of the conflict. What are the primary areas of agreement and disagreement?
- What exactly do you want out of this negotiation? What are your goals?
- How will you manage the negotiation process? Here, several issues should be recognized:
- Identify the primary issues to negotiate.
- Prioritize these issues.
- Develop a desirable package that includes these important issues.
- Establish an agenda.
- Do you understand your opponent?
- What are your opponent’s current resources and needs?
- What is the history of your opponent’s bargaining behaviour? What patterns can you see that can help you predict her moves?
“The Negotiation Process” from BUS641: Strategic Negotiations and Conflict Management from Saylor Academy is licensed under a Creative Commons Attribution 3.0 Unported license, except where otherwise noted.
