BUS641: Strategic Negotiations and Conflict Management

3a. Examine the steps to develop a plan for a negotiation session

• Why should you have a plan for a negotiation?
• What are a few steps in planning for a negotiation?
• What is BATNA, and how can you use it in a negotiation?

Planning your negotiation is important if you want to examine the process and help determine the outcome. While it will not guarantee the outcome you want, it will help you to be better prepared.

The steps to develop a negotiation plan may vary depending on the situation, the people involved, and the outcome wanted by each side. The steps might include considering options, completing research about the negotiation or the other side, determining the wants and needs of each side, imagining what a win-win scenario would look like, and what your backup plan might be just in case it does not go as planned.

Best Alternative to a Negotiated Agreement (BATNA) is another way to review the entire negotiation process. BATNA is a strategy you can use to help you plan the negotiation process, and it may help you determine alternative ways to settle a negotiation.

To review, see Why is a Plan Needed?.

 

3b. Examine how to create value during the negotiation process

• Why would it be important to create value?
• What is an example of how you might create value during a negotiation?
• How might you use integrative bargaining to create value?

It is important to create value in a negotiation, and this may mean finding a creative win-win situation for all parties to agree to. Or if a win-win cannot be accomplished, then perhaps, at a minimum, create a solution that might allow both parties to move forward, even if slightly after the negotiation process. Creating value means that you can show the opposition why a certain path is good for both parties.

In a previous unit, we discussed using integrative bargaining, and this is another strategy to help you create value to get to a win-win resolution. Integrative bargaining looks for the best solution for both sides and by showing the opposition the value, they may be more likely to agree to a resolution. For example, in a real estate negotiation, one side might offer a slightly higher price in exchange for additional features they know the other side wants. By showing that added value and understanding wants and needs, you can work together to accomplish a solution that works well for all sides.

To review, see Build Trust and Find Common Ground.

 

3c. Examine the stakeholders in the negotiation process

• Why is it important to determine who the stakeholders are in a negotiation?
• Who are the stakeholders in your negotiation?
• How do stakeholders influence the outcome of a negotiation?
• What are the types of stakeholders in a negotiation?

Stakeholders are people with something to win or lose in any negotiation; they are the main decision-makers in a negotiation, and these are the people to ask about wants and needs. There are primary and secondary stakeholders involved in the negotiation process. One thing to keep in mind is that secondary stakeholders are most likely not key decision-makers in a negotiation, and it will be important to determine this as quickly as possible because you need to focus on the people who will make the final decision.

Primary stakeholders are the people that will be directly affected by the negotiation outcome. Sometimes, secondary stakeholders may oversee a negotiation, and sometimes, they may just have a stake in the outcome of the negotiation. Secondary stakeholders might include banks or governmental agencies.

To review, see Stakeholders Wants and Needs.

3d. Evaluate the possible outcomes of a conflict

• Why is it important to try to determine the outcome of a conflict?
• How can you determine the outcome of a conflict?
• Can planning help you to evaluate potential endings to a conflict?

Determining possible outcomes should be part of the planning process when you map out how you would like the negotiation process to go. Gathering as much research as possible is a good way to assist you in understanding the negotiation. You may gather research through conversations with both sides of a negotiation or try to determine how each party may have acted in previous negotiations, asking about needs and wants.

Once you have gathered some information about the negotiation, you may better determine possible outcomes. Thinking through the process and how it could end, or what you will do in response to certain moves, will be useful when reviewing potential outcomes. If one side has more leverage than the other in a negotiation, it is possible to also foresee a win-lose situation, and then you might also think about possible responses to see what needs might be met.

To review, see Gather Information, Clarify Needs, and Bargain.

 

Unit 3 Vocabulary

This vocabulary list includes terms you will need to know to successfully complete the final exam.

• Best Alternative to a Negotiated Agreement (BATNA)
• creating value
• possible outcomes
• primary stakeholders
• secondary stakeholders