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Negotiation analysis: An introduction

Before negotiation, the parties should prepare some questions to make the better deal they can. For this, 7 basics questions can be answered to make the negotiation analysis. They concerned the BATNA, the parties, their interests, the value which can be created, the various obstacles that the agreement can face, the influential power of the parties in the negotiation process and the ethnic concerning the personal beliefs of the parties.

First of all, to make a negotiation successful, it is necessary to know what will happen if the respective parties don’t reach an agreement.  For this, the Best Alternative To a Negotiated Agreement (BATNA) is the best solution to take a decision: accept the deal or continue to negotiate to reach more convenient alternatives. Parties need to be creative to imagine new alternatives and also keep attention to the environment of negotiation. Both parties should considerate their BATNA to reach the zone of possible agreement (ZOPA), where they both can find a compromise. One of the most important task in negotiation is to understand better how each party view its alternatives. Knowing the BATNA and its various issues constitute the basis of the negotiation analysis, and this search need to be previous to the beginning of the negotiation.

Then, it is essential to identify clearly the parties in the negotiation to be sure to present your arguments to the right person and do not give too much information. Other person can interfere in the negotiation process; hence it is very important to identify them and define which impacts they can have on the agreement, just as well in a positive way to improve the opportunity to serve better the needs of one party or in a negative way, at the expense of the other party.

For this, the interests of the person in the negotiation need to be taken into account. If negotiators don’t define well at the beginning their interests, they have less chances to improve the potential value of their deals. Sometimes, the parties can lie on their interests to make a better profit but according to the article, it is very important to focus on interests and not on positions. The definition of the interests starts at the same moment as the definition of the BATNA, and the identification of the parties included in the negotiation. It’s important before but also during the negotiation and even more at the end when the agreement is redefining and ready to be implemented. As the interests, the strategy need to be adapted to the various changing goals.

Moreover, another question which can be relevant is concerning the creation of value in the negotiation. To develop it, the negotiators shouldcompare their own interests with the ones of the other parties. To be successful, they must not be completely revealed in the negotiation to make a better deal. The fact that people does not place the same value in the same agreement keep other opportunities of agreement available. In negotiation, this difference is the most important material to create value and this is not only concerning the price. The creation of value can be represented in a two dimensional ZOPA diagram which show on the vertical line the seller’s interests and on the horizontal line the buyer’s interests. It will be a mistake to considered a negotiation as a win-lose or win-win negotiation because it is possible to create agreements that create value for both parties. In a word, value is created by capitalizing on differences and not especially by finding a common ground.

The negotiation process can face various barriers and identify the different obstacles is a key fact in the negotiation analysis because even with a ZOPA, an agreement is not secure. The first obstacle set out by the article is the strategic behaviour. Well formulated strategies are an average between benefits and risks in a specific negotiation tactic. The second one is a psychological or interpersonal barrier because emotions play a huge role in negotiation. None of the party can completely control its own destiny. And the last one is an institutional obstacle. The legal constraints may avoid value creation and to overcome institutional barrier new policies need to be created.

Another question is concerning the power, asking how can parties influence the negotiation process. The bargaining power can be the strengths or weaknesses of the BATNA, that means to expand the power, the party can attack the other side of the BATNA by worsening the consequences of a proposal refusal. In a word, the bargaining power is a reflection of both party knowledge and skills, and for people who manage this well, it is a real advantage to negotiate favourable terms for the agreement.

To conclude, the last question is about the ethics. To act responsibly 5 categories of principles should be addressed to the negotiator:

1. The question of candor: level of honesty in the negotiation
2. The fairness of the agreement: importance of the distributional fairness
3. The potential use of force in negotiation: importance of the popular opinion
4. The impact of negotiation on bystanders: what are the impacts of the negotiation on outsiders
5. Moral issues when one party is negotiating on behalf of others.

As a conclusion, we can say that effective negotiation requires a strong framework including means and ends. In the framework of the BATNA it is essential to identify clearly the fundamental interests and the potential value creating of each party and accept the various obstacles which can interfere in the negotiation process and lead to moral and ethical issues. To be successful a negotiation need to be well analysed and implemented with a good strategy based on the skills and knowledge of the parties who have a constructive behaviour during the negotiation.