The nine negotiation strategies are planning, information gathering, clarification and justification, generating options, choosing criteria, distinguishing between positions and interests, developing options, weighing and bargaining, and communication and problem-solving.
Planning involves setting goals, gathering and analyzing the necessary information, clarifying your own interests and objectives, and creating the overall strategy to maximize the chance of a successful outcome.
Information gathering means collecting facts and data to be used in the negotiation process. This allows you to better understand the situation, to build a good case, and to have the right information to support your offers and acknowledge the other party’s requests.
Clarification and justification involve making sure that offers and requests are understood and accepted, setting expectations, and explaining the reason for and import of specific requests.
Generating options looks at potential solutions that work for both parties. It involves brainstorming and discussing a range of potential approaches that satisfy both sides, providing the flexibility to find a compromise if necessarily.
Choosing criteria helps you to evaluate the options available. It looks at the interests and needs of both sides, the ability to implement the solutions, and assessing how it fits into the overall negotiation strategy.
Distinguishing between positions and interests looks at the motivations behind requests. It looks at view the negotiation through the other person’s eyes and to focus more on their underlying needs, rather than just being stuck on a particular solution.
Developing options looks at different creative solutions to the issue. It looks at using a more creative approach, such as using ‘value creating’ solutions that accommodate both parties’ needs by offering something to each side.
Weighing and bargaining looks at what each side can and can’t accept, and focuses on building on the common ground. During this stage of the process, you can also look at ways to provide something of value to the other party as part of a final deal.
Communication and problem-solving takes the solutions generated and puts them into effect. The aim is to come to an agreement and put in place the necessary steps to resolve the issue. This includes developing communication and problem-solving skills to understand the other side’s viewpoint, working together to build consensus, and actively listening.
What are the 10 rules of negotiation?
The 10 Rules of Negotiation are as follows:
1. Preparing in advance: Preparing in advance is a crucial part of the negotiation process. Take the time to research the other side’s interests, goals and bargaining position. Set your targets and practice your case before the actual negotiations begin.
2. Listen Twice as Much as You Talk: One of the keys to successful negotiations is to keep the conversation balanced and evenly distributed. Don’t be scared to be silent and let your counterpart talk.
This will provide valuable insight into the other person’s interests and preferences.
3. Control Your Emotions: During negotiations it is important to remain objective and professional. Don’t engage in personal attacks or lose your temper. Take a deep breath and try to keep your emotions in check.
4. Use Open Questions: Open and probing questions give you greater control of the conversation. Ask questions that start with who, what and why as opposed to yes or no questions. This can help you to uncover the hidden elements of a negotiation.
5. Establish Upfront Your Bottom Line: At the very beginning of negotiations, it is OK to state reasonably and politely your minimum acceptable terms. This will provide a benchmark and a basis of comparison as the negotiation progresses.
6. Do Not Show Your Hand: Maintain a certain level of secrecy and don’t let the other side know too much about your interests and goals.
7. Do Not Accept the First Offer: Don’t accept the first offer right away. This will indicate that you are not prepared to negotiate or that you do not have sufficient leverage. Instead, use the proposal as a starting point for further discussions.
8. Respect Deadlines: Deadlines motivate people to keep up their efforts and provide a sense of urgency. Much can be achieved in a short timeframe by escalating the pressure.
9. Watch for Warning Signs: Negotiations fail when the parties get too attached to their positions. It is important to remain flexible, creative and open-minded.
10. Look for Win-Win Solutions: Aim to identify joint solutions that are better than any offer presented by a single party. This will ensure that both parties benefit from the outcome and build goodwill for future negotiations.
What are 4 key criteria used in negotiating a contract?
Four key criteria used in negotiating a contract include:
1. Identification of Needs: Before negotiations even begin, both parties must identify their needs and what each is willing and able to offer. This step helps ensure that negotiations reach a compromise that is good for all involved.
2. Establishing Negotiating Positions: Once both parties have outlined their needs and interests, it’s time to establish their respective negotiating positions. This part of the negotiation is focused on creating a plan that details each side’s ideal outcome.
3. Developing a Framework for the Contract: Once the negotiating positions have been laid down, it’s time to come up with a framework for the contract. This outlined agreement should address the needs of both parties while protecting their interests and outlining timelines and responsibilities.
4. Engage in Negotiation: This is the process of making mutual concessions that take both parties closer to an agreement. This part is where the two sides negotiate and come up with a contract that meets the needs of both parties.
Ideally, it should be a win-win solution that protects each side’s interests while paving the way to a future relationship.
What does the 4 C’s stand for?
The 4 C’s refer to the four key criteria that are used when evaluating the quality and cost of a diamond: Cut, Color, Clarity, and Carat.
Cut refers to the way in which a diamond has been crafted and relates to the sparkle and light reflective qualities. Cut is graded using criteria such as the diamond’s symmetry, proportions and polish.
Color is the second C and relates to the amount of colour within the diamond. The whiter a diamond, the higher its value, with the least amount of colour being graded as D and the highest being graded as Z.
Clarity refers to internal characteristics known as inclusions, and external features known as blemishes. It’s the size, nature and position of the inclusions that determine the clarity grade of the diamond.
Carat is the fourth C and is the measured weight of the diamond such as 0.50 carat, 1 carat, etc. The larger the carat weight, the rarer and more valuable the diamond.
