Negotiation is the process by which two or more parties reach an agreement and a popular approach for parties to resolve disputes.

The negotiation process is divided into five stages:
Investigation
The inquiry or information gathering stage is the first step in every negotiation. This is an important stage that is frequently overlooked. Surprisingly, starting with oneself is the best place to start:

• What are your negotiation objectives?
• What are your aims?
• What would you be willing to give up?
• What are you absolutely unwilling to give up?

Going into the negotiation with your emotions and thoughts under control will almost certainly result in a more effective outcome.

During the negotiation, you will unavoidably be forced to make decisions. It's best to know what you want ahead of time so you can make the best decision possible in the heat of the moment. So, You must have a clear picture of your objectives. Also, you must be completely honest with yourself about your priorities.

Decide on your BATNA (Best Alternative to a Negotiated Agreement)
The determination of your BATNA is a crucial aspect of the investigation and planning phase. It is critical to consider your BATNA while deciding whether to accept an offer made during the negotiation.

You must be aware of your alternatives. If you have other options, you can evaluate the offered deal more critically. Could you get a better deal than the one proposed?

Your BATNA will assist you in rejecting a poor deal. On the other hand, if the bargain is better than any other possible outcome (i.e., better than your BATNA), you should accept it. Consider this in layman's terms: You can demand considerably more when you know your opponent is desperate for a bargain. You'll be more willing to make concessions if it appears like they have a lot of other options outside of the negotiation.

The side with the best BATNA has the best negotiation position, so aim to improve your BATNA whenever possible by investigating different options. After you've established your personal objectives, you can investigate the individual with whom you'll be negotiating by considering their BATNA. What is that person's (or company's) goal? Put oneself in the shoes of the other party. What other options do they have?

Presentation
Presentation is the third stage of negotiation. In this phase, you put the material you've collected in a way that supports your point of view.

Bargaining
During the negotiation phase, each party explains its objectives and attempts to reach an agreement. Making concessions, or giving up one thing in exchange for something else, is a normal element of the negotiation stage.

Asking questions is an important part of the bargaining phase. Don't accept a statement like "we can't do that". Rather, investigate why the party has that constraint.

Making a compromise does not imply weakness; parties intend to give up some of their objectives. On the other hand, it reflects cooperation and helps move the negotiation along. Compromises are frequently made in exchange for money, time, resources, responsibilities, or autonomy.

Closure
At the end of a negotiation, you as well as the other party either have reached an agreement on the conditions, or one party has determined that the final offer is undesirable and must be rejected.

Most negotiators believe that if their best offer is rejected, there is nothing they can do. The most astute negotiators, on the other hand, perceive rejection as an opportunity to learn. How long would it have taken for us to come to some agreement?

It is not always evident why a deal was not reached at the end of the talks. However, if you are unsure why a deal did not go through, consider making follow-up contact. Even if you do not get the transaction back, you may discover something that will help you in forthcoming negotiations.

Written By: Adv. Vishal Kumar - Arbitration Lawyer, Delhi
Ph no +91 8826-466-744