4.3 Developing a Negotiation Strategy

Negotiation strategy development is crucial for successful outcomes. It involves selecting the right approach, planning offers and concessions, anticipating counterparty tactics, and preparing for potential impasses. These elements work together to create a comprehensive plan for navigating complex negotiations.

Effective strategy development requires thorough analysis of the negotiation context, clear goal-setting, and strategic planning. By anticipating challenges and preparing contingencies, negotiators can adapt to changing dynamics and increase their chances of achieving favorable results. This approach sets the foundation for skillful negotiation execution.

Negotiation Strategy Development

Negotiation strategy selection

Top images from around the web for Negotiation strategy selection

• 

  Critical Project Management Skill: Negotiation – Technical Project Management in Living and ... View original

  Is this image relevant?

• 

  Stages of Negotiation | Organizational Behavior and Human Relations View original

  Is this image relevant?

• 

  Conflict Resolution at Work | Human Resources Management View original

  Is this image relevant?

• 

  Critical Project Management Skill: Negotiation – Technical Project Management in Living and ... View original

  Is this image relevant?

• 

  Stages of Negotiation | Organizational Behavior and Human Relations View original

  Is this image relevant?

1 of 3

Top images from around the web for Negotiation strategy selection

• 

  Critical Project Management Skill: Negotiation – Technical Project Management in Living and ... View original

  Is this image relevant?

• 

  Stages of Negotiation | Organizational Behavior and Human Relations View original

  Is this image relevant?

• 

  Conflict Resolution at Work | Human Resources Management View original

  Is this image relevant?

• 

  Critical Project Management Skill: Negotiation – Technical Project Management in Living and ... View original

  Is this image relevant?

• 

  Stages of Negotiation | Organizational Behavior and Human Relations View original

  Is this image relevant?

1 of 3

• Analyze negotiation context determining type (distributive, integrative, mixed-motive) assessing time constraints and evaluating relationship between parties (one-time vs. ongoing)
• Determine negotiation goals defining specific, measurable objectives prioritized based on importance
• Choose strategy aligning with context and goals:
  • Competitive strategy claims value in distributive negotiations (salary negotiations)
  • Collaborative strategy creates value in integrative negotiations (joint ventures)
  • Accommodating strategy emphasizes relationship-building (long-term partnerships)
  • Compromising strategy balances competing interests (labor disputes)
• Align strategy with ethical considerations evaluating long-term consequences of chosen approach

Opening offer and concession planning

• Develop opening offer researching market rates setting ambitious but justifiable anchor (10-15% above target)
• Plan concessions strategically identifying items of varying importance to both parties
• Determine concession order and magnitude preparing justifications for each (cost analysis, market comparisons)
• Anticipate potential counteroffers analyzing other party's likely priorities
• Prepare responses to expected counteroffers identifying walkaway point or BATNA
• Create concession strategy planning gradual concessions to show flexibility linking to reciprocal actions

Anticipation of counterparty tactics

• Research other party gathering information on past negotiation behavior identifying potential goals and priorities
• Predict negotiation style assessing likely approach (competitive, collaborative) considering cultural factors
• Anticipate potential tactics recognizing common strategies (good cop/bad cop, time pressure, lowball offers)
• Prepare countermeasures for each tactic (calling out manipulative behavior, setting clear deadlines)
• Analyze potential BATNA estimating alternatives to reaching agreement assessing influence on strategy
• Consider constraints and pressures identifying organizational or external factors shaping their position

Contingency planning for impasses

• Identify potential roadblocks listing possible areas of disagreement or conflict
• Prepare alternative proposals developing multiple options to address impasses (tiered pricing, performance bonuses)
• Plan for deadlocks establishing criteria for breaks or adjournments
• Consider involving third party identifying potential mediators or facilitators
• Develop communication strategy for challenges preparing de-escalation phrases
• Create fallback positions identifying minimum acceptable outcomes preparing exit strategies