In a world that is imperfect, negotiations are always almost necessary. Negotiations always happen because of conflicting interests of different parties. As a consequence, the importance of planning goals and strategies during the negotiation process cannot be overemphasized. When going to the negotiation table, the management of a company ought to have clear goals (what they want to achieve) and the methods they will use to ensure they achieve those goals (strategies). To examine the difference between a goal and a strategy, a goal is an extensive primary outcome (what is set to be achieved) while a strategy is a means to attaining that goal. The primary objective of this essay is to create a negotiation planning guide for an organization to implement using the ten-step planning process (Lewicki, Saunders, & Barry, 2015).
Define the Negotiating Goal
An organization needs to be clear on what it wants to achieve prior to engaging in negotiations. It is necessary for members of the management team to have discussions of their goals before all or some of them go for negotiations. For example, in the case of a communication company that wants to negotiate with its competitor, the primary goal of the firm should be gaining a favorable share of the market and consequently make a reasonable share of revenue.
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List the Major Issues in the Negotiation Related To Achieving the Goal
The components or stakes of the negotiation can either make it easy or hard to achieve the goals that are set. Two competing communication companies may be engaged in price wars. Firm X (new entrant) may be having lower call tariffs in an attempt to attract more subscribers while firm Y (existing) may be having high call tariffs as a result of enjoying some form of monopoly. Some of the major issues in the negotiation between the two companies would be arriving at one formula for calculating call tariffs, advertising strategies, and implementation.
Define the Relative Importance of Each Issue, and Define the Bargaining Mix
It is likely that the major issues in the negotiation can affect a company negatively if representatives of a company participating in negotiation talks do not think critically. For company X, which needs to lower its call rates to attract more subscribers, it would be improper for it to settle on a formula that hikes its call rates considerably. For new entrants such as company X, marketing is usually aggressive, and often implicates company Y indirectly. The bargaining point is likely to be on the advertising strategies. Also, the bargain may be on how the firm implements its strategies without affecting the other negatively.
Define the Interests
In this case, the interests are the targets of both parties. Specifically, these are the issues that result into conflict. The interests of company X are to gain a favorable share of the market and to build a strong brand. On the other hand, the interests of company Y are to hold on its clients and maintain its presence. Company X wants to gain more revenue while company Y wants to maintain its flow of revenue.
Define the Alternatives (BATNAs)
An organization needs to have an alternative plan in case the negotiations fail. The negotiations may fail because each side may not be prepared to compromise. The best alternative to company X would be to continue with its pricing strategy but to hire legal experts to advise the company and to ensure that it does not violate existing rules. The legal experts are necessary, especially when company Y contemplates placing a legal suit against company X.
Define Your Limits, Including a Resistance Point
When an organization sets goals, it means it has strategies to ensure that those goals are achieved. As a consequence, there ought to be a point where negotiations should not go beyond as doing so would jeopardize the operations of the firm. For example, company X should not be forced to embrace a pricing strategy it does not like, especially when it is a factor that makes it stay relevant in the market.
Describe Your Understanding of the Other Party’s Goals, Issues, and Resistance Points
Knowing what the other party exactly wants helps a firm know where to compromise and where not to. The other party’s resistance points reveal about the competitor’s true intentions. Company Y may feel threatened in relation to its market share. The resistance points of Company Y may be the pricing strategy. It may refuse to lower its call rates.
Set Your Targets and Opening Bids
Targets are the things an organization wants to achieve in the negotiation process. Company X can target to retain its pricing strategy and express the intention to negotiate on its advertising and implementation strategies. The other party will understand the limits and know how to proceed with the negotiations.
Assess the Social Context of the Negotiation
Social context, in this regard, refers to mainly how several stakeholders would respond to the outcomes of the negotiation. The primary stakeholders are the customers. If company X decides to review its pricing strategy and raises it, it is likely to lose its customers, considering that it is a new entrant. Therefore, the social implications may hinder company X from reviewing its call tariffs upwards.
Outline How You Will Present the Issues to the Other Party: What to Say and How to Say It
It implies that there ought to be a plan of how issues need to be presented for maximum and favorable impact. Company X needs to present to the negotiation table the best team. The members need to be organized regarding who needs to address particulars points and the language that needs to be used. Persuasion also needs to be a key component in the negotiation process.
References
Lewicki, R. J., Saunders, D. M., & Barry, B. (2015). Negotiation (7th Ed.). New York, NY: McGraw-Hill Education.
