Negotiation Systems and Strategies

Woman white boarding negotiation tactics for colleagues.

This chapter lays out the basic analytic elements of negotiation strategies, uses them to analyze common measures of negotiation success and to develop a normative framework for defining negotiation objectives, and explores the critical role of preparation in negotiation effectiveness, along with advice for effective preparation. It then examines some of the most common negotiation styles and tactics, including their strengths and weaknesses, challenges to effective implementation, and guidelines for use. It takes a particularly close look at the “collaboration” approach to negotiation that has been proposed to deal with the complexities of shared, differing, and conflicting interests, including the critiques of that approach that have emerged since the publication of the seminal work Getting to YES in 1981.

Here's a snippet of "Contract Negotiations—Systems and Strategies" (the full article can be downloaded below):

Negotiation is one of the most basic forms of interaction, intrinsic to any kind of joint action, as well as to problem-solving and dispute resolution. It can be verbal or nonverbal; explicit or implicit; direct or conducted through intermediaries; oral or written; face-to-face; or conducted by phone, letter, e-mail, or more recently, through software such as e-sourcing or e-auction platforms.

Negotiation is the process by which contracts are developed and agreed to, and hence of critical importance to contracting and contract management executives and professionals. It should also be noted that negotiation, as defined above, is often an intra-organizational as well as cross-organizational activity. Contract management professionals typically negotiate, albeit informally, on a daily basis with colleagues in Sales, Procurement, Finance, and Legal, and with their superiors and subordinates. In fact, these internal negotiations (say, with Sales, over whether to compromise on indemnification language in order to close a large deal with a new customer) have a critical impact on what happens in external negotiations with customers, suppliers, licensees, distributors, and other business partners.