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Opening Stage of the Negotiation Process | Management Courses - Mike Clayton | YouTubeToText
YouTube Transcript: Opening Stage of the Negotiation Process
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Core Theme
The opening stage of a negotiation is crucial for establishing a foundation of trust, clarity, and mutual understanding, setting the stage for a successful bargaining process. This involves covering seven key elements in a strategic sequence.
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the second stage of the negotiation
process is opening and it's the opening
that creates the joint basis for the
negotiation it settles some of the key
things that both parties need to know
before they can confidently move into
the bargaining stage in this video we'll
look at the seven things you need to
cover in the opening stage of your negotiations
there are seven things you need to make
sure get covered during the opening
stage of your negotiations and I'm gonna
present them in the order that I think
is ideal that's not to say it's always
going to be the right order for your
circumstances nor that you're always
going to be able to cover these seven
things in that precise order but there
is a lot of sense here in the sequence I
give which I'll try to hint at as we go
through the seven things number one is
to make a strong and positive first
impression my father always said you
only get one chance to make a first impression
impression
and if you're negotiating with partners
or parties with whom you've not
negotiated before you need to get that
first impression right and that's about
how you carry yourself as you meet them
it's about how you enter the room it's
about how you look how you act it's your
body language it's about your
preparedness for negotiation if you sit
down and you pull out of an old rucksack
Oh scruffy bundle of papers and a cube
pyro and you dump them on the desk then
that will create an impression and it
will be a very different impression to
the one if you have a smart bag and you
pull out of it a neat folder and a smart
notebook and a nice pin it doesn't have
to be an expensive pen it just has to be
something that looks well looked after
if you're dressed appropriately for the
circumstances then that will make a very
different oppression
so the impression you'll make if you've
turned up without giving you thoughts to
your appearance this is also about
observing the proper cultural rituals
and traditions of a negotiation which
will be different for one person and for
another person depending on where you
work and the kind of organization you
work in and the prevailing cultural
background of the country you're in
but for many business circumstances this
includes looking someone in the eye
shaking their hand firmly if you are
able to do all of that then as a minimum
of the other party will think ah here is
someone who is well prepared and able to
negotiate effectively and that's all you
want you don't really want to make a
first impression that says anything
other than that because chances are that
will say that this is someone who is not
well prepared or who I'm not comfortable
doing business with the second thing to
cover is building rapport because
negotiation is an interaction between
human beings it may be a one-to-one
negotiation or it may be a many-to-many
negotiation but the people in the room
need to get to know one another and this
means taking some time for a little bit
of light relationship building if you
are in control in any way of the
negotiation process then allow time to
get refreshments to chat to introduce
yourselves that way it's much harder for
the parties to be rude disrespectful or
to try to take advantage of one another
when they know each other as people
building rapport will also give you a
sense of how the other people in the
room operate so that you will be better
able to read the signals from their body
language from the tone of voice when it
comes to the negotiation proper the
bargaining stage once you've started to
build a rapport the next thing to do is
to use that as the basis to check the
authority that the other party has to
enter into an agreement or to proceed
towards an agreement what you don't want
to do is to make an assumption so that
if you make an agreement with the person
sitting across the table to you that
that agreement will stick because there
are many examples I could cite where you
think you made an agreement and then the
other person turns around and says I'm
just going to have to check that with my
boss which of course is opening the door
for their boss to come back and say nope
don't like it I need another concession
and by that time you are becoming
desperate and are more likely to make
the concession if you know at the outset
the level of authority that the person
you're dealing with has then you can
calibrate the concessions and the things
you ask for from them accordingly if
they have absolute authority then you
can negotiate with confidence if they
don't have that authority then you
always have to be mindful that someone
is sitting behind them with an agenda
that you may not be aware of once you
know the authority the other person has
you can agree the basis for the meeting
is this meeting about forming a final
agreement or moving towards the
agreement are you working on the whole
scope of the negotiation or a narrow
component of it and what is the process
you're going to be using for coming to decision
decision
and that leads me to a discussion about
admin and ground rules how are you going
to operate within the meeting room are
some things allowed are some things not
allowed what are the timings what's the
process for requesting a timeout or
stepping away or taking a break how are
notes going to be recorded is one person
going to record notes for both parties
each party going to record their own
notes how are you going to compare the
notes you have with one another to make
sure that what you think you've agreed
and what they think they've agreed match
and an important part of this might be
an agenda what's the sequence of
conversations you're going to have and
the approximate timings that are going
to go with that sequence of discussions
now we're ready for items 6 & 7 and I'm
going to present these in the order that
you should usually try to cover them off
in so at number 6 you want to try to get
a sense of their outcome what is it
they're hoping to achieve what for them
marks a good deal ideally you want them
to put their position on the table and
you want them to do that before you put
your position your outcome on the table
because if their outcome is more
favorable to you than you had expected
in your planning process then you may
want to revise the outcome you present
them with to be more assertive so 6 is
to get their outcome and 7 is to offer
your outcome put your position on the
table however this is going to be tricky
because they will be thinking exactly
the same they will want to get your
outcome before they give you theirs so
there may be some jockeying for position
you may have pragmatically to accept
that you put your outcome on the table
first often there's an expectation that
it is the seller who will go first in
putting their position
it's in the meeting now there won't
always be a party that is notionally the
seller but if there is if then the
expectation is that they will have some
form of schedule of rates or price lists
even if it's not published so if you're
in that position you may have to
conceive that ground if the other party
is the seller then you have every right
to expect that they will state their
outcome their price their conditions
their terms at the outset why therefore
would you ever want to put your position
and before hearing the other party's
position well the answer is if your
position is likely to Surprise them it
is likely to be more extreme than
they're expecting either as a buyer you
want something for a price that is lower
than you know is their standard rate or
as a seller if you're going to be asking
for a price that is higher than the
buyer might expect and the reason for
this is because of the anchoring effect
if you start a negotiation based on the
expectation the statement of a standard
expected set of rates set of numbers set
of conditions and terms then the whole
negotiation is about how are we going to
move in one direction or another from
that point and that point is sometimes
known as the anchor if therefore you
need to cast an anchor the valleys going
to be surprising to the other party best
to do it as soon as possible because
then the discussions about how to move
away from that anchor the if that anchor
is a long way from their expectation
then you're better moving away from the
anchor that you are from their
expectation because every piece of
movement is going to be difficult and
therefore you are more likely to get a
result that is closer to the anchor also
it means that if the other party hears
your position and thinks there is no way
I can get anywhere near that you can
save yourself a lot of time negotiating
if an agree
isn't going to be possible so there you
have it seven things you need to cover
in the opening stage of a negotiation
make sure you cover them all and ideally
try to cover them in a sequence that is
as close as possible to the one I've set
out and you'll be ready to move to the
bargaining stage and with confidence
please give us a thumbs up if you like
this video there's loads more great
management courses content to come so
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look forward to seeing you in the next
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