The document outlines the negotiation process, starting with preparation and planning, where parties must understand their goals and alternatives. It details the importance of establishing ground rules, exchanging proposals, and clarifying positions before engaging in bargaining and problem-solving. The final step involves formalizing the agreement and implementing necessary procedures, which may vary in complexity based on the negotiation context.

1. The Negotiation
Process

3. The Negotiation Process
Preparation and Planning
• Before you start negotiating, do your homework. What’s the nature of the conflict? What do you want from the
negotiation? What are your goals? You should also assess what you think are the other party’s goals.
• Once you’ve gathered your information, develop a strategy. You should determine your and the other side’s best
alternative to a negotiated agreement (BATNA). Your BATNA determines the lowest value acceptable to you for a
negotiated agreement. Any offer you receive that is higher than your BATNA is better than an impasse.
Definition of Ground Rules
• Once you’ve done your planning and developed a strategy, you’re ready to define with the other party the ground
rules and procedures of the negotiation itself. Who will do the negotiating? Where will it take place? What time
constraints, if any, will apply? During this phase, the parties will exchange their initial proposals or demands.

4. The Negotiation Process
Clarificationand Justification
• Whenyou have exchangedinitial positions,you and the other party will explain,amplify, clarify, bolster,and
justify youroriginaldemands.Providethe other party with any documentationthat supportsyourposition.
Bargainingand Problem Solving
• The essence of the negotiation processis the actual give-and-take in trying to hashout an agreement.This is
wherebothparties need to make concessions.
Closure and Implementation
• The final step in the negotiationprocessis formalizingyouragreementand developingproceduresnecessary
forimplementingand monitoringit. Formajor negotiations—fromlabor–managementnegotiationsto
bargainingoverlease terms—this requiresa formalcontract. Forothercases, closureof the negotiation
processis nothingmoreformalthana handshake.