A process view of negotiation:

Negotiation is not just one conversation — it is a step-by-step process.
This process helps two sides move from differences to agreement.
Let’s break the process into simple stages:
🔵 Step A: Assessment of Self, Others, and the Situation
This is the thinking stage before negotiation begins.
You ask yourself:
- What do I want?
- What does the other party want?
- What is the situation we are dealing with?
- What is my best alternative if this deal does not happen?
This step builds clarity.
Without this assessment, negotiation becomes confusing.
🔵 Step B: Creating Strategy, Options, and Trade-offs
Once you understand the situation, you prepare your plan.
Here you decide:
- What strategy should I use?
- What options can I propose?
- What trade-offs can I offer? (Give something small to gain something big)
- What will be my approach to achieve a win-win?
This is your preparation phase — the more you prepare, the better you negotiate.
🟦 Step C: Negotiating (The Actual Conversation)
This is where you sit with the other party and talk.
It has three parts:
1. Information Exchange
You share your needs and understand their needs.
Both sides clarify expectations.
This builds transparency and trust.
2. Bargaining
This is the give-and-take phase.
You propose terms, discuss options, and explore solutions.
3. Decision
Both sides decide which option works best.
You try to reach common ground.
🔷 Step D: Reaching the Best Terms
After negotiation, you reach the best possible terms for both sides.
There are two possibilities:
1. Best Terms NOT Acceptable
- If you feel the offer is not good enough (optimistic view), you go back to Creating Strategy (Step B) and improve your plan.
- If the offer is too poor or both sides disagree (bleak view), the negotiation can reach an Impasse (no agreement).
2. Best Terms are Acceptable
- Both sides feel happy or at least satisfied.
- You move forward.
🟩 Step E: Implementing the Agreement
Once both sides agree on the terms, you:
- Document the agreement
- Execute the plan
- Deliver commitments
- Monitor progress
This completes the negotiation process.
In Summary
- Assess → Understand yourself, others, and the situation
- Prepare → Plan strategy, options, and trade-offs
- Negotiate → Exchange information, bargain, and decide
- Agree → Choose the best terms
- Implement → Put the agreement into action
