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There are five collaborative stages of the negotiation process: Prepare, Information
Exchange, Bargain, Conclude, Execute
There is no shortcut to negotiation preparation
Building trust in negotiations is key
Communication skills are critical during bargaining
There is no magic or mystery to negotiations or to what makes a master negotiator. There are
5 steps and practices that consistently work. The model presented here identifies the five
stages of any negotiation in a simplified framework that helps you to analyze, absorb and
apply the Best Negotiating Practices (BNPS).
This model was built from diverse client experiences at organizations around the globe since
1993. It is circular because it depicts the fluid movement of all negotiations. Collaborative
negotiations are an ongoing process, which build confidence, trust and strong relationships.
The 22 Best Negotiating Practices (BNPs) principally fall into a negotiating stage – although
some apply throughout the negotiating cycle and others cross over from one stage to the next.
Expand value
Stage 5: Execute Addressing changing interests
Strengthen relationships
Stage 1 – Prepare
There is no good short cut to Preparation. It is the first stage of any negotiation, though
people often don't give it the time it warrants. They often charge into the Information
Exchange Stage, or even directly to Bargaining.
Preparation starts with determining if this is a potential collaborative situation so that you can
select the better strategy. Next, you spend time researching information, analyzing data and
leverage, and identifying interests and positions. Finally, you have to consider the
relationship you want to build.
Employee’s interest: to get promoted, she needs to succeed on a project of high visibility.
It is critical here to focus on building rapport and trust, without which neither party will feel
comfortable sharing interests. One way to build the relationship is to do your "social
homework" in this stage by finding out and showing interest in the other party's business
culture, personality, outside interests and values.
The master's tool in the Exchange stage is trust building and the Negotiator' s Probe.
... a technique employed to encourage the respondent to give a more detailed answer to a
question and elaborate on his previous response. Example: "Anything more?" “Why do you
think that is fair?” “How did you come up with that solution?”
If your assessment in this stage of the negotiation process is positive, you move forward.
With trust developed, you explore for creative solutions that address interests and see the
potential to create real value.
Stage 3 – Bargain
Bargaining is where the "give-and-take" happens. If you think success means all take and no
give, you won't capture real value. You make and manage your concessions in bargaining.
When you give and take that which satisfies both parties' interests, you will build a lasting
relationship and a fruitful outcome. During the Bargaining Stage, you continue to create
value, and with trades, finally capture value.
There are two tools you will need from your negotiator's toolbox in the Bargaining Stage,
the Probe and Creativity.
Bargaining is your "face-time" with the other person, even when you are not face-to-face.
Like all interpersonal relations, emotions can help or hinder progress. Specific negotiator's
tools and behavioral skills matter greatly here. Finely tuned communication skills are critical
at this juncture as you explore options to create value and execute trades to capture value.
You will be most successful when solutions satisfy everyone's needs.
Stage 4 – Conclude
Stage 4 is the point in the process when you reach an agreement. It is important to find out if
the other side has the capacity to follow through with the things they said they would do. This
is the time to put down in writing the common interests and produce a comprehensive
summary of the agreement. Sometimes you have to consider strategies here to lock-in a
commitment. Be sure to agree on next steps as well. And never forget to thank the other party
for their willingness to negotiate – even when no agreement is reached.
Stage 5 – Execute
Stage 5 is implementation of the agreement. This stage may also be viewed as preparation for
the next negotiation opportunity. You must ensure that you follow through on promises made
in order to strengthen the relationship and to build trust. You will learn more in this stage
about the other side. This will lead to easier negotiations next time around. And remember
that during execution you are likely to apply the total negotiation process and Best
Negotiating Practices (BNPs) to unexpected events, failures in performance and the
inevitable changes.