Chapter 3: ‎ The Phases of a Negotiation

Contents:

The development of the subject matter takes place in four phases.

These phases are:

¨      Exploration

¨      Bidding

¨      Bargaining

¨      Settling

The distinction between these four phases is blurred in reality. Many negotiations proceed with the participants jumping back and forth between the phases.

However, if you can aim to take them as separate phases, you have a much higher chance of controlling the negotiation.

The start of each phase leads to a surge in energy amongst the participants. Each start of phase represents a critical moment in the negotiation. Figure 3.1 illustrates how the Time and Energy pattern relates to the four phases of a negotiation.

Figure 3.1: Phases of a negotiation

In this module we look at the two phases in the negotiation: Exploration and Bidding.

We will treat Exploration in four stages: Starting position, Creative possibilities, Principles and Skills.

3.1 Exploration – Starting Position

Exploration – Creative Possibilities

Exploration – Principles

Exploration – Skills

3.1 Exploration – Starting Position

Why do we explore? The answer to this is that we explore for the same reason that we assess any task before undertaking it. At the outset of a negotiation we know nothing about the other party's perspective and they know nothing about ours. Without exploration we could waste hours, for example, finding out that we actually agree totally on an issue.

When two parties meet to negotiate, they start with their own perspectives on the issue under negotiation and with certain wariness towards each other. If they follow the principles of this course, they will start to move together at once by establishing a good climate and then by agreeing on procedure. Their next step is to explore the issue facing them not in an antagonistic manner, but rather together.

The objective of both parties during the first part of exploration is to fully understand the position of the other party in order that they may both move on to look for ways of reaching agreement.

At the start of exploration, there will be a number of things which one party perceives about the issue under discussion. There will also be things which neither party perceives yet. This situation is illustrated in Figure 3.2. We both see the part where the lines overlap and neither of us see the area bounded by the lines.

Figure 3.2: Exploration – Starting Position

Exploration is a cooperative phase in which each party strives to show the other as much as possible of what he or she sees.

The approach is to listen carefully while the other party tells you his position as fully as he can. You avoid attacking any of his statements. You ask questions to clarify what he is saying but you do not demand justification. When you have listened and clarified your understanding, restate his position in your own words to verify that you do indeed fully understand his position.

Only when you have fully heard him out and clarified what you have heard and have got his agreement that your restatement of his view is correct do you respond. You respond by starting your own position. Not in response to his, but as if you had not yet met him. State your position as an INDEPENDENT fact. Do not correct his view. Help him to understand exactly what your position is. Of course, it may be that you start and he responds, but the approach is the same. At the end of this exchange, you each understand a lot more about the overall position. You are in a position to move on; however, it is important to AGREE on where you now stand. Do this by emphasising any points of AGREEMENT which have arisen during the exploration. Bring these out as positive points and celebrate the fact that you are on the way to overall agreement. Now state points of difference. Do not worry about them. Just define them and get them into the open. AGREE that these are the differences between you and AGREE to explore them further later.

You are now in a position to move on to discussing CREATIVE POSSIBILITIES. Unfortunately, most negotiators who have not been through a programme like this one adopt a very different approach to the first stage negotiation. We call it the "Chip-Away" approach.

The "Chip-Away" approach arises from the mistaken belief that if you allow the other party to say something and you do not challenge it, you will have to concede on that point. In the "Chip-Away" approach you chip away at the other party's statements. So, for example, when the other party says he wants 10,000 you say, "That is ridiculous! How do you justify asking 10?"

The moment you start to do this, DISAGREEMENT sets in. The other party digs in and you are at war.

The whole essence of Constructive Negotiation is that you do not DISAGREE. You proceed through a series of AGREEMENTS to a final AGREEMENT.

The problem with the "Chip-Away" approach is that it breaks the whole collaborative climate of the negotiation. It also leads to getting stuck on the first aspect of the subject to be discussed.

Do not Chip Away! Explore!

 3.1.1 Exploration – Creative Possibilities

If you have carried out the first stage of your exploration well, you and the other party now have an agreed view on where you are in agreement and where you have differences. You also know what those differences are in specific terms.

It is now time to explore the creative possibilities for working together. We are not talking about making concessions. We are talking about investigating new ways of looking at the subject matter which we both find satisfactory.

The first step is to find those issues which both parties would like to discuss. These issues should be identified in general terms. For example, one party might want to discuss methods of payment, delivery terms and special modifications. The other may want to discuss some of these plus some ideas of his or her own.

Deliberately avoid delving into any idea. Keep the ideas flowing and get a list down of possible areas for discussion LATER.

The ideas will dry up fairly soon. When they do, AGREE with the other party which ideas you would like to discuss further. Then prioritise these ideas and put them down for discussion.

If all has gone well, you and the other party now have AGREED a number of ideas which you wish to develop in order to find an overall agreement. You are now ready to discuss these ideas in the phases of Bidding, Bargaining and Settling. Before we go on to look at these phases, we need to review the principles of Exploration and talk about the skills involved.

3.1.2 Exploration – Principles

There are four main principles to be observed during the exploration phases of a negotiation. They are:

¨      Be positive

¨      Take a helicopter view

¨      Establish Common Goals

¨      Be open

By being positive we mean emphasise the collaborative nature of the discussion and seek AGREEMENT. Do not be negative or aggressive. Comment on the goodwill existing between the parties. Look for positive points to make. Where the exploration reveals a difference, state it as a challenge you both have to overcome, not as an unreasonable demand by the other party. Taking a helicopter view means operating above the level of scraps and problems and the difficulties we are in now. Raise above all that and emphasise the long-term interests of both parties working together. Try to establish common goals. Look for areas which are in the common interest and try establishing them in such a way that all the difficulties will be confronted together and not antagonistically.

The last principle is openness. Be open and truthful in stating your position and exploring the other party's position. That is not to say you have to tell the other party all about your cost structure, or that you have been told to get a deal at any cost! It does mean being open and honest about what you do say. Do not lie or bluff. And, if you do not want to tell the other party something, tell them you don't – openly!

3.1.3 Exploration – Skills

There are three skills areas important in Exploration:

¨      Preparation

¨      Presentation

¨      Listening

In module 2 you were given some reading material on Preparation. This preparation and the preparation you did in terms of establishing the Climate and Procedure in module 1 have a vital impact on the success of the Exploration phase.

You will need your skill as a presenter. For the exploration phase to work to the advantage of both parties, it is essential that you can put your view across accurately and clearly. Perhaps the most important skill of all in this regard is the skill of listening. Listening is the only way to understand the other party's perspective and if you do not do it, you will not be able to discuss any creative possibilities for reaching agreement.

Exploration is very important. If it is done well, the chances of the parties seeing common ground are greatly increased. The important things to remember are that you must PREPARE in an appropriate way, you must LISTEN well, you must not challenge what the other party says and you must avoid getting involved with any one issue.

3.2

Bidding

What Bid?

How To Present The Bid

How to Respond to A Bid

3.2 Bidding

Bidding is the process by which each of the parties puts forward their offer on each of the issues in the deal. It is important to distinguish the communication that takes place in Bidding from that which takes place during Exploration. There are some similarities.

During Exploration, the parties are concerned with communicating their overall objectives, desires and constraints. In Bidding, on the other hand, the parties make specific proposals in the various areas which they have identified during Exploration.

We will be treating Bidding in three parts: What should you bid? How should you put your bid? And how should you respond to a bid made by the other party?

3.2.1 What Bid?

The party selling something will want the highest possible price for it. Similarly, the party buying will want the lowest possible price. We will talk in terms of the seller and let you turn the argument around for the buyer yourself.

The answer to the question "what bid?" is THE HIGHEST DEFENSIBLE BID.

The first mention of money is very important. It immediately communicates to the other party the sort of deal we are hoping for. Once made, it becomes the top price you will be able to get from a negotiation. Once you have mentioned a figure, you will not be able to go above it; even of it later becomes clear that money is no object to the other party.

There is also a tactical advantage in aiming high. It affects the other party's expectation of the likely settlement area. It has to be as high as you make it in the circumstances but it must be commercially defensible. The other party may ask you to justify it and you must have a credible justification in reserve, even though we counsel you not to volunteer that justification. In deciding how high you can go in the circumstances you must bear in mind where you are. Different cultures have different expectations about negotiations. In many Third World and some advanced countries people expect you to set your opening bid far above where you expect to settle. In Northern Europe, people bid where they expect to settle. Take account of the other party in deciding what is defensible. It is no good telling your auditors that your overheads make their fees unattainable if they know the inside story. Our advice is that if you are in doubt, be completely truthful. Put the bid at which you expect to settle and not depart from it.

3.2.2 How To Present The Bid

Having decided what constitutes the highest defensible bid, the question arises of how to put it.

The rules here are:

            Clearly

            Firmly

            Without justification

            Without apology

The bid must be clear and firm to convey confidence. It must be stated completely and not built up to. Do not explain how you arrived at the figure. That is your affair. If you rehearse your thinking (real, or contrived), you invite the other party to challenge you item by item. Of course, the other party may well ask you justify your bid in any case, but by explaining how you got there voluntarily you are inviting a challenge.

You may well clarify your bid in response to questions or of own volition. There is an important distinction between clarification and justification. Make sure the other party understands exactly what you are bidding. You do not have to tell him or her why you are bidding at that level.

3.2.3 How to Respond to A Bid

When the other party makes a bid, it is vital that you understand exactly what they have bid. Does the figure mentioned include VAT? What period until delivery are we talking about? And so on.

To make sure you fully understand the bid, ask questions to clarify what you have heard. Do not ask for justification. Avoid any aggression or disagreement. Avoid asking questions starting with "why".

When you believe you understand the other party's bid, restate it in your own words to verify your understanding and then AGREE your understanding with the other party.

When you have understood the bid, make a counter offer. As in Exploration, your counter offer is independent of the other party's offer. Clarify any parts of the offer the other party may not have understood.

When you have made your counter offer, you and the other party can look at the two bids and identify the areas of agreement and the areas of difference. How to bridge any gap there may be is discussed in the next module.

If all has gone well, at the end of the Bidding stage, each party has made a firm offer which is understood by the other party. You are now ready to move on to the bringing together of the parties by bargaining and Settling. As in Exploration, many people respond to a bid by the technique known as "Chipping Away". The party using this approach simply attacks the bid made by the first party without making his or her own position clear. Chipping Away involves challenging the Bidder to justify the bid and attacking each stage of the justification.

This approach puts pressure on the bidder and leads to conflict. The bidder is pulled towards the other party without any clear idea of where he is going. If you do find yourself up against someone trying to chip away at your bid, try not to play that game. Say something like, "Rather than explain how arrived at my figure, could I ask what your figure is. We may not be that far apart". The object of the Bidding phase is to arrive at a stage where each party has made an offer at which he or she is prepared to settle. There will be differences in these positions and the parties must now seek constructively to find some end point which is to their mutual satisfaction.

3.3

Bargaining – The Outset

Bargaining – The Principles

Bargaining – The Skills

3.3 Bargaining – The Outset

It is essential to review where, exactly; we are at the outset of the Bargaining phase. We have established a good working climate and we have agreed a Procedure for the Negotiation.

We have stated our respective positions, clarified our understanding of them and have agreed on areas for discussion (Exploration).

We have now made our first Bids. If these have been done well, they will have been presented laterally, i.e., they will cover several issues.

It is very likely that we will want to take a RECESS around this point. A recess would be helpful before putting our first bids and/or after doing so. This is, of course, a matter for your judgment, but we would be surprised if you could undertake any but the simplest of negotiations without a recess to take stock.

Assuming that you are now ready to Bargain, the first step is to make sure you fully understand the Bid facing you. Until now we have advised a totally neutral approach to the other party's statements, concentrating on understanding them only.

Now we advise a more searching response. Check each item of the other party's bid. Ask why they require that particular outcome and ask how important it is to the other party. Ask how flexible the other party is on the issue.

Once again, it is important to be collaborative and not aggressive. You are not challenging his requirements. You are clarifying them and getting a sense of his priorities. Note his answers without comment. If he says that having it Electric Blue is very important to him, accept that and do not tell him that he could surely manage with Pink!

At the end of this phase, you should be able to state to the other party what his bid is and what parts of it are vital to him, without in any way threatening him. You should be able to AGREE on a statement like, "So you are offering a maximum of 6.50 per unit, they must be Electric Blue, you must have at least 50 by next week, but you are not unduly concerned about when the other 500 are delivered, within reason, and you are able to pay straight away so extended credit is not important to you?".

That statement may be miles away from what you would like to hear, but you are in a position to agree on the statement rather than argue about issues.

When the other party examines your bid in the same way, limit your answers to the essentials he asks for.

If he asks if you are able to deliver in less than four weeks, tell him "no" if that is your answer and do not start telling him about your other priorities at the plant.

At this stage, ASSESS THE POSITION. If necessary, take a recess to do so. Then agree with the other party what the areas of difference between you are and what the points of overlap are.

This is where you need endless patience! You need to form a judgment based on what you have heard as to whether they have enough flexibility and you have enough flexibility to meet in an area where it will still be to your benefit to do business.

If so, you are ready to start Bargaining.

3.3.1 Bargaining – The Principles

What is bargaining? Bargaining is the process of offering to change your bid in return for a change in the other party's bid. Obviously, the hope is that one or other party will eventually make a revised bid which is acceptable to the other party. At this stage they can SETTLE. It is quite possible to bargain without Settling and it is also possible to settle directly without Bargaining. Your initial Bids may be quite acceptable to each other!

Let us assume that Bargaining is required!

The most important principle is to move laterally and not vertically. If you are discussing price, all you can do is argue about it. If you are discussing price, delivery and payment terms, you can trade one against the other to get movement.

The next five principles concern changing your bid.

1)     Do not offer to change your bid unilaterally. Make sure the other party makes a corresponding offer to change his or her bid.

2)     Make sure that the pace of change is similar as between the parties. For example, if you concede a little ensure that the other party concedes a corresponding amount before moving. Exchange something of minor importance to you for something of major importance to you. Incidentally, this is not the same as adopting a "winning approach". If you can trade something of minor importance to you for something of major importance to you but which is of minor importance to the other party, he has not "lost".

3)     Help the other party to see each of your concessions as being significant.

4)     Aim high.

5)     Move at a measured pace towards the likely settlement point.

This measured pace is very important to avoid losing ground, as shown in Figure 3.2. It may become apparent to you that you are likely to reach agreement midway between your current bid and the other party's current bid.

Figure 3.2: Measured pace

If you simply assume that this will happen and offer to settle there the other party may well see the difference between you to have narrowed and try to settle midway between the new offer and his current bid. Hence, even if you think you can see the way things are going, still proceed in careful stages at a measured pace towards where you expect to end up.

3.3.2 Bargaining – The Skills

The skills required in the Bargaining phase are similar to those emphasized in earlier parts of the programme. They are: be positive; take a helicopter view; avoid aggression; ask, don't tell; confront issues, not people; prepare; establish common goals; be open; and so on. A few need special emphasis during the Bargaining Phase.

The first is to avoid any loss of face by the party. Be able to defuse any clash. You need this skill to break any impasses which arise. The secret is to keep things fluid. Avoid getting stuck on an issue so that one party has to win and one loses. You do this by knowing when to introduce another issue. For example, you may offer to leave the issue of price for a while and look at something else. When you do return to price, you may both be prepared to move in exchange for movement elsewhere.

The second is to avoid any conflict. You do this by focusing on issues rather than people. If conflict arises on an issue, change the issue, or take a break. A break can be very effective and you can use it to re-establish the collaborative climate. You can go for a walk with the other party and get back on the same side by talking about issues totally unconnected with the negotiation. Your holiday plans, for instance.

Thirdly, be objective and reasonable throughout. Never react to a bid or concession in a hostile or incredulous fashion. Keep using your skills to verify what you are hearing and AGREE your interpretation with the other party. If the other party really annoys you, take a break until you are able to be cool and reasonable again. Deflect challenges to your bids and concessions by asking for a counter move.

Fourthly, do not tell the other party what is good for him. Any advantage which a party perceives for himself is a plus. Any advantage he is told about is a minus. If you think you can see an advantage to the other party in some aspect of your bid, ask him if it is of benefit to him. Do not tell him.

Finally, do not bluff. Above all, do not lie or bully. In fact do not say anything you do not mean. It is much better to be open and honest throughout.

3.4

Settling

The Essence of SETTLEMENT Is TIMING

3.4 Settling

As the Bargaining phase develops, the positions of the parties will move steadily closer. There will come a time when overall agreement is in sight. The parties are now approaching SETTLEMENT, that vital and short phase when they hammer out a final agreement.

3.4.1 The Essence of SETTLEMENT Is TIMING

When agreement is in sight, the energy levels of the parties will rise. This burst of energy will be short lived. If agreement is reached quickly, all will be well. However, if the parties try to do too much in this phase, energy will collapse again and the negotiation will be in ruins.

1)    DO NOT RUSH INTO IT

2)    DO NOT ATTEMPT TO CRAM TOO MUCH IN

If you have been negotiating hard on price, delivery and quality and all that now separates you is that your customer wants delivery in 8 months and you want to deliver in 9 months, it is very tempting to cave in to secure agreement. So you say, "All right, 8 months". Don't!

If you have not reached a position with which you are happy, continue to bargain. Certainly do not agree to anything you cannot live with. If you CAN deliver in 8 months, try and settle at 8¹/₂ months. Give the other party the satisfaction of forcing a hard bargain!

When you have agreement available, seize the moment. Grasp the agreement and do not over elaborate.

It is sometimes tempting to use the burst of energy and good will that occurs when agreement is reached to try and add in agreement on some details which have not been properly agreed. This can destroy the agreement and sour the climate. Rather, agree on the overall deal. If there are details to be worked out, agree to resolve them at a later date.

Once you have agreement, SUMMARISE it. Make sure you both understand exactly what you have agreed. Agree any action that must follow from the negotiation. And then part in a friendly way.

3.5

Preparation for Negotiation

3.5 Preparation for Negotiation

This note is to make more specific suggestions about preparation for constructive negotiations, and briefly to comment on preparation for major negotiations involving a long series of meetings. Let us again emphasise the need for effective preparation. The negotiator who wants to control the negotiating process must know how he or she intends to conduct the negotiation. He or she should have clearly defined targets but must also be flexible.

The skills of constructive negotiation include a high ability to listen and to work constructively to forge a business relationship and business friendship with a commercial partner. Being determined to stick to a fixed position destroys that form of negotiation. It blinkers the negotiator's thinking and deadens his awareness of constructive possibilities; it leads quickly to controversial issues and reduces the probability of agreement.

3.6

Preparation for Constructive Negotiations

In the notes on preparation in module 2, we suggested the use of the A4/A5/A6 technique.

Now we recommend not 1 x A6 but 3 x A6:

A procedural A6

An opening statement A6

A question A6

 The procedural A6 is to the same pattern as described in module 2, but with the addition of a third element. A third P. The Pace or time available.

The procedural A6 thus contains 3 Ps:

P - 1 key word for purpose

P – 4 key words for Plan

P – Time or Pace

The second A6 is for the opening statement which your side will aim to put. This should be positive, containing your view of past and prospective relationships with the other party, some sense of a range of possibilities, points which establish the level of your interest in matters of mutual interest.

Do not at this stage go into specific figures and other controversial issues. These have to be worked out gradually. Make a note elsewhere (see below) of any particular figures which you anticipate needing to propose later on.

The Questions A6:

This should contain 4 key words on matters which you hope the other party will touch on in their opening statement. Questions which can be diplomatically raised by you, if they are not covered in the opening periods.

The combination of your opening statement and that of the other party will form the basis on which you can both build to reach a mutually satisfactory agreement. Premature bidding prevents parties reaching that constructive phase.

Never try short cut the need for 3 separate A6s. Always have them, specially prepared for each meeting, even if they are only kept tucked away in an inside pocket.

For the moment, we are recommending an elaborate process. Try it.

3.7

Major Negotiations

The preparation methods described in this programme so far have been in terms of relatively short negotiations. Further methods are needed if, for example, we are going to be involved in negotiation lasting several months, involving repeated meetings.

In principle, the method we suggest now is first an A4/A5 process, covering the main objectives, strategies, tactics and team selection for the negotiation. Subsequently, successive uses of the A4/A5/A6 approach in advance of each stage.

Delegates with special interest in such major negotiations should consider chapter 17 in Bill Scott's book "The Skills of Negotiating". That chapter deals with "conducting extensive negotiations" under the headings:

1.       The preliminaries

2.       Conduct of the negotiation

3.       After the negotiation

3.8

Lateral versus Vertical Negotiating

Throughout this program we have emphasized the need to advance on a broad front rather than get stuck on individual issues too early.

For example, during the early phases of the negotiation we advised agreeing on overall time constraints and procedures, rather than getting straight down to specific issues.

When exploring, we advised that you do not challenge the individual statements made by the other party, but rather you hear them out and then make a complete statement about all aspects of your position before proceeding.

Whilst generating Creative Possibilities, we advised moving rapidly forward to list the greatest number of areas for possible discussion, rather than exploring each one in detail as soon as it arose.

There are many other examples of this approach which we call "LATERAL NEGOTIATING". Lateral Negotiating is one of the cardinal principles of this programme.

In Lateral Negotiation, we proceed across a board font, starting with a policy agreement, for example.

We then go into more detail across the board until we reach overall agreement. It is a Grand Strategy and enables us to see the overall picture at all times.

Vertical Negotiation, on the other hand, involves seizing on an issue and batting away until a final agreement on that one issue is reached. Only then do you move on to the next issue. This makes trading one issue against another almost impossible. The negotiation turns into a series of confrontations as each issue is raised.

Adopting a Lateral approach is important at all stages of a negotiation. It is particularly important in both the Bidding and bargaining stages. Bidding and Bargaining are deistic processes but they tend to cycle and recycle round each other.

A Bid is followed by Bargaining and this leads to new Bids. It is vital that the lateral approach is followed all the time during this process to ensure that all the variable factors in a negotiation can be brought into play.

3.8.1 Procedural Control

Procedural Control governs in the EFFICENCY of a negotiation. It is possible for the parties to blunder about, neither of them sure of how the other wants to tackle the discussion. It is possible to dodge haphazardly amongst the phases which we have identified during this programme. It is even possible still to come to an agreement.

It is possible but it is not efficient. It reduces the chance of finding a constructive agreement. The human mind can tolerate and work with a limited amount of uncertainty.

It becomes ineffective when there is too much uncertainty and there is no need to complicate the inevitable haze about the subject matter with further haziness about procedure.

The best approach is to follow the advice given in module 1 and establish your Purpose, Plan and Pace at the outset.

Then you must ensure that you follow your plan or. At least, revise it by mutual agreement and follow the new plan.

The key steps to exercising control in subsequent steps of the negotiation are:

·      Check Progress

·      Summarise Agreement

·      Check the time

·      Agree what next

The effect of doing this will be:

1)        To raise energy levels

2)        To keep things moving forward

3)        To help participants see where they are

When you summarise agreement, you are emphasising the positive. If you are stuck on one issue and the whole thing looks like collapsing, remind yourself and the other party that you are 80% of the way home gives a great boost to everyone's determination to resolve the problem issue. When you check progress, if it is apparent that you have not moved on from last time, you may decide to move to another issue, or take a break. In other words, realising that you are stuck may be sufficient to make you take action to get unstuck. Alternatively, if you have moved on, even a little, all participants will realise that progress is being made and that it is worth putting more effort into going forward.

Checking time has the effect of boosting energy levels slightly and encouraging participants to step back and take the helicopter view, rather than risk losing everything because of being bogged down on a comparatively minor point. In the light of your check on the process, you can agree what to do next. This may be to continue as you are, but it may be to move on to a new area. Keeping control of the process of the negotiation is so important that it is worth appointing one of your team to monitor it. If you are negotiating alone, you must still be very aware of the process and prepared to exercise control. Such control needs to be exercised every fifteen minutes or so.

3.8.2 Climate Control

Settlement is reached by steering the negotiation steadily towards it. However, settlement is only likely to be reached when there is goodwill between the parties. The most skilful procedural control will avail you naught if the other party has decided you are nasty piece of work to be beaten into the ground or disagreed with. As we said in module 1, the first few moments are more important in establishing the climate of a negotiation than anything you do in the middle.

Nonetheless, people get tired during the negotiation and can feel under considerable stress, it is very important that the friendly and collaborative atmosphere is not allowed to deteriorate. The atmosphere is maintained by using the skills in this programme. Make counter statements rather than challenge. Be polite. Question rather than tell. Confront issues not people. There are steps you can take to improve a climate which is deteriorating despite all these factors. Humour, a little light relief, or leaving the subject entirely for a short time can restore a flagging climate. A bit of refreshment can make a difference. Coffee or water can help a lot. By all means break if problems are arising. This is not quite the same as a recess, in which you consider your positions separately. In a break, you may well stay together, but talk about something quite unconnected with the subject under negotiation. If the weather permits, a walk together may help considerably. In a long negotiation, a swim, game of golf or dinner together can restore the climate. It is a good idea to schedule in breaks during a negotiation when you are at the planning stage. People look forward to them and their energy therefore remains high. However you do it, it is as important to maintain a constructive climate as it to control the procedure.

3.9

Summary

Use the A4/A5/A6 approach. Adapt this for more constructive negotiation to 3 X A6: i.e., Procedural; Opening Statement; Questions.

Practice and develop your expertise in using this approach before trying any short cuts. More elaborate preparation is needed for longer negotiations.

Concentrate on developing your approach for constructive negotiations.

3.10

Review of Module3

In the third module, we looked at the processes of BARGAINING and SETTLING.

In previous modules, we reached the stage at which the parties agreed the issues for discussion and knew much more about each other's position than they did at the outset.

Now they have to move to an agreement.

We looked at two different approaches to negotiation: lateral and vertical.

We looked at BARGAINNG in terms of WHEN to bargain, the PRINCIPLES of bargaining and the SKILLS you need to apply during bargaining.

We looked at SETTLING, the point at which agreement is reached.

Here we were concerned with the timing of a settlement and what to do and not to do during this bargaining.