Omni HR Consulting

This short course is designed to develop your negotiation skills during the first two stages of the negotiation process: planning, preparation and information exchange.

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<h2>Welcome to Successful Negotiation: Planning, Preparation and Information Exchange</h2>

 

By the end of this module you will be able to:

<ul>
	<li>Understand the skills required for successful negotiations.</li>
	<li>Learn how to deal with conflict.</li>
	<li>Identify your ‘hot buttons’.</li>
	<li>Learn to control your emotions.</li>
	<li>Explore how to counter manipulation and psychological pressure.</li>
	<li>Evaluate the different persuasion techniques.</li>
	<li>Improve your listening skills.</li>
	<li>Learn how to read body language.</li>
	<li>Explore your communication skills.</li>
	<li>Develop your questioning skills.</li>
</ul>
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Learning Outcomes

Negotiation itself goes through four phases: planning &amp; preparation, information exchange, bargaining and closing.

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This module will focus on the first two phases: Planning &amp; Preparation and Information Exchange. Planning and Preparation starts with information gathering, followed by formulation and strategy development, which involves establishing your bargaining position by defining your BATNA, WATNA, and WAP. It also involves gathering information about the issues to be addressed in the negotiation. Power and control of the direction in negotiation comes from preparation, and it is vital before any planned interaction with the other party. 90% of the negotiation process is done before the first meeting.  

 

An effective negotiator always comes to the table very well prepared, while at the same time, finding a balance between preparation and flexibility. An effective negotiator is always prepared for the unexpected and has responses to these events pre-planned. An inexperienced negotiator who is well prepared can effectively and successfully make their argument and “win” their case against a seasoned negotiator. Petersen and Lucas (2001) suggest intelligence gathering as the first step in planning and preparation, and define intelligence gathering as:

 
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Introduction

It is important to gather accurate intelligence such as market conditions and future trends, as well as how such issues will affect all parties involved. Gathering information on all the participants is crucial, as their characteristics will influence the process and outcome of the negotiation. Characteristics to review can include demographic variables, such as experience, age, gender, education and national culture. Petersen and Lucas (2001) present research findings on how individual negotiator characteristics can have an influence:

 

<img src="https://s3.ap-southeast-2.amazonaws.com/s3.go1.service/omni-hr.mygo1.com/apiom/5934562/1626262911/1626262971-3-demographics.png" style="height:644px;width:800px;" alt="1626262971-3-demographics.png" />

 

Several situational constraints may influence pre-negotiation planning and preparation. Peterson and Luca (2001) suggest that these factors include organisational goals, prior behaviour of parties, trust, degree of powers symmetry, location, team make-up, time constraints and the competitive and collaborative nature of the encounter. According to Petersen and Lucas (2001), competitive and collaborative behaviours include: 

 

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Intelligence Gathering

Formulation and Strategy Development

Before determining your WATNA, BATNA, WAP and ZOPA, consider alternatives:

<ul>
	<li>If we do not reach an agreement, what alternatives do you have?</li>
	<li>Are these good or bad alternatives?</li>
	<li>How much does it matter if you do not reach an agreement?</li>
	<li>Will the failure to reach an agreement cut out future opportunities?</li>
	<li>What alternatives may the other person have?</li>
</ul>

 

BATNA is:

 

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<img src="https://s3.ap-southeast-2.amazonaws.com/s3.go1.service/omni-hr.mygo1.com/apiom/5934562/1626268112/1626268173-6-batna-infographic.png" alt="1626268173-6-batna-infographic.png" />

Identifying your WATNA and BATNA - BATNA

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WATNA is:

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Identifying your WATNA and BATNA - WATNA

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In preparing, planning, and practising, a negotiator should use imagination to anticipate and predict what the outcome might be.

Shawe (2019) suggests that: 

 

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You also need to keep your WAP to yourself, just as you do with your BATNA and WATNA. If the other party knows you would be willing to take less than what is on the table, then you will be negotiating from a position of weakness.  Once you have your WAP, it is equally important that you stick to it. This WAP should not be unrealistically low because you may come across as a bit of a pushover, but rather you should let the other party know you are willing to walk away at a particular point. 
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Identifying your Wap

The Zone of Possible Agreement (ZOPA) is an area of overlap between the desired outcomes of both parties, and where both parties can live with the outcome, as seen by the following image.

 

<img src="https://s3.ap-southeast-2.amazonaws.com/s3.go1.service/omni-hr.mygo1.com/apiom/5934562/1626268833/1626268893-10-sellers-and-buyers-range-2.png" style="height:495px;width:800px;" alt="1626268893-10-sellers-and-buyers-range-2.png" />

 

The area in the middle is your ZOPA.

Identifying your Zopa

When you are about to go ahead with a planned negotiation, as we have learnt, you need to:

<ul>
	<li>Clarify your goals; </li>
	<li>Gather information;</li>
	<li>Negotiate with your own side if necessary (to allow you to have mandate); </li>
	<li>Develop your BATNA, WATNA, WAP and ZOPA; </li>
	<li>Prepare the setting; and </li>
	<li>Prepare yourself mentally. </li>
</ul>

 

When doing research and preparing for negotiations, there are three important considerations:

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Personal Preparation

Stolz, (n.d) suggests the following:

 

<img src="https://s3.ap-southeast-2.amazonaws.com/s3.go1.service/omni-hr.mygo1.com/apiom/5934562/1626269092/1626269153-12-stolz.png" style="height:120px;width:800px;" alt="1626269153-12-stolz.png" />

 

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Negotiation Preparation

Negotiation Preparation Checklist

Exchanging Information

After the preparation stage is done, it’s time to work with the other party to define the ground rules and procedures for the negotiation. This is normally done before the negotiation event occurs and might be circulated along with the agenda. 

Ground rules may cover the behaviour of all parties, as well as the role or behaviour of any third party, the methods or process to be used, and/or the substance of the discussions. This may also sometimes be referred to as a protocol.

 

<img src="https://s3.ap-southeast-2.amazonaws.com/s3.go1.service/omni-hr.mygo1.com/apiom/5934562/1626269757/1626269817-14-setting-ground-rules.png" style="width:800px;" alt="1626269817-14-setting-ground-rules.png" />

 

Spacey (2018) outlines 24 examples of Ground Rules:

 

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Click to learn more about <a href="https://simplicable.com/new/ground-rules" target="_blank" rel="noreferrer noopener">Spacey's 24 Examples of Ground Rules</a>

Setting Ground Rules

Here some quick rules are given by Jansen (2011): 

 

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List of Ground Rules

The Importance of Small Talk

Click to learn more about <a href="https://blogs.transparent.com/language-news/2014/04/14/small-talk-is-a-big-deal-perceptions-of-chit-chat-around-the-world/" target="_blank" rel="noreferrer noopener">Small Talks is a Big Deal</a>

 

Click to learn more about <a href="https://writesaver.co/business-meeting-cultures-around-the-world/" target="_blank" rel="noreferrer noopener">Business Meeting Cultures Around the World</a>

 

Click to learn more about <a href="https://hbr.org/2016/03/having-a-difficult-conversation-with-someone-from-a-different-culture" target="_blank" rel="noreferrer noopener">Having a Difficult Conversation with Someone from a Different Culture</a>

What to Share

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Click to learn more about <a href="https://www.youtube.com/watch?v=OyV8LELM_HM" target="_blank" rel="noreferrer noopener">An Introvert’s Guide to Small Talk</a>

 

Click to learn more about <a href="https://www.huffpost.com/entry/key-to-mastering-small-talk_n_59444b97e4b06bb7d273303a" target="_blank" rel="noreferrer noopener">The 10 Big Rules of Small Talk</a>

 

Click to learn more about <a href="https://www.realsimple.com/work-life/work-life-etiquette/manners/10-big-rules-small-talk" target="_blank" rel="noreferrer noopener"> This is the Key to Mastering Small Talk</a>

 

On another point, want to know how to make people instantly like you?

 

Click to learn more about <a href="https://introvertdear.com/news/how-to-master-small-talk-as-an-introvert/" target="_blank" rel="noreferrer noopener">How to Master Small Talk as an Introvert</a>

What to Keep to Yourself

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It is at this stage that all parties will make their initial proposal. Remember, a proposal is a tentative suggestion. When you make your opening proposal, make sure it is a concrete proposal and offers a real solution. If your offer is unreasonable, this might affect your credibility negatively.

Since the idea of a proposal is to test the water as to a possible solution, it is not important which side goes first, unless conditions dictate who goes first (from the protocol).

In making your proposal, you may make use of anchoring bias, but be careful that this proposal does not offend the other party. This is a tendency to be biased towards the first number that is given in a discussion (the anchor), and then adjust from that point.

 

Click to learn more about <a href="https://www.pon.harvard.edu/uncategorized/what-is-anchoring-in-negotiation/" target="_blank" rel="noreferrer noopener">What is Anchoring in Negotiation</a>

 

Click to learn more about <a href="https://www.youtube.com/watch?v=xwYrJ9Kq51o" target="_blank" rel="noreferrer noopener">Anchor Effect Explained</a>

 

Click to learn more about <a href="https://www.youtube.com/watch?v=VNCkyMr-kt0" target="_blank" rel="noreferrer noopener">Anchoring – How to Negotiate</a>

 

Negotiations are often more effective when parties start with issues they agree on, then to another, that is a little more challenging and then end with one where they are furthest apart in opinion. This allows parties to start off positively and work on shared interests. 

Just remember, you want to keep the negotiation moving forward. If you immediately start off on the big issues and conflict arises on this one point, then the negotiation may stall there. That is why you should design your agenda to discuss these smaller, more agreeable items, first. Starting off with small concessions gets everyone in a positive state of mind, and more inclined to be open as the negotiation progresses.

Opening the Negotiation

Read the following case study (Bruce, 2014) and answer the questions below.

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How may this scenario have changed if the farmer would have made the same bottom line offer to help with the rental, but would have inverted the sentences so that the offer for leaving in one week would have been brought up first?

Case Study

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Once you have both laid your initial proposals on the table, you both now can explain, clarify or justify your position. All parties can now share insight into their feelings on the issue at hand. You might also explain how you came to this position, based on your initial preparation or research.
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One of the main problems with proposals is where the negotiator uses vague language to describe their proposal. Some examples of this would include terms like (Patil, 2012):

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Rather, in giving your proposal, make use of assertive language (Patil, 2012):

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Once you have given your proposal, then keep silent and wait for the other party to respond.

Once all proposals have been made, you might respond with some conditional counteroffer or acceptance. Patil (2012) suggests that you never say “No!” or “Yes”, say “Yes, if…”. 
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Proposals

Patil (2012) stresses the importance of a vague yet conditional offer, and give the following examples: 

<img src="https://s3.ap-southeast-2.amazonaws.com/s3.go1.service/omni-hr.mygo1.com/apiom/5934562/1626271191/1626271251-22-offers-03.png" style="height:366px;width:500px;" alt="1626271251-22-offers-03.png" />

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Patil (2012) suggests the following common errors in making proposals:

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	<li>The offer is presented before the condition, which always weakens the impact on the listener.</li>
	<li>The offer is specific.</li>
	<li>Use of question-proposal which is always weaker than a statement-proposal to make no condition.</li>
</ul>

 

When the other party voices their proposal, make sure you don’t interrupt and listen in full (remember your active listening techniques). Then make use of the pause. Make sure you don’t reject any initial proposals outright, rather ask questions and get clarity on the proposal. Your response to a proposal should be in the form of a question and shows that you are genuinely interested in their offer. 

Once you have made your initial proposals and perhaps made some smaller concessions on less important issues, you are now ready to move on to the negotiated issue at hand and start bargaining with all parties.

Resource Guide

<h3>Congratulations on completing this course!</h3>

 

Reflect on what you have learned in this module and consider how you can actively utilise it in your role as manager.

Successful Negotiation: Planning, Preparation and Information Exchange

What you'll learn

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