Phases of Negotiation & Qualities of a Negotiator

Mnemonic for 6 Phases: P-O-C-B-C-I → “Please Offer Creative Bargains, Conclude, Implement”

The Six Phases of Negotiation

Phase 1 — Preparation & Planning

• Research the other party and the subject matter.
• Identify your BATNA (Best Alternative to a Negotiated Agreement).
• Set your target point and walk-away point.
• List your real interests (not just positions).
• Prepare a list of possible options.

Phase 2 — Opening / Setting the Stage

• Establish rapport and trust.
• Agree on agenda, location, and ground rules (confidentiality, breaks).
• Make the first offer strategically — the “anchor” effect.

Phase 3 — Clarification & Information Exchange

• Each party explains its needs clearly.
• Ask open-ended questions.
• Listen actively; identify common ground.
• Clarify ambiguities.

Phase 4 — Bargaining & Problem-Solving

• Make offers and counter-offers.
• Apply principled negotiation (Fisher & Ury — focus on interests).
• Use objective criteria (market rates, expert opinions, precedents).
• Brainstorm creative solutions.

Phase 5 — Closure & Agreement

• Summarise all points of agreement.
• Reduce to writing.
• Address contingencies.
• Sign or confirm the agreement.

Phase 6 — Implementation

• Execute the agreement.
• Monitor compliance.
• Build a framework for future dealings.

Essentials of Negotiation

• Two or more parties with a real or perceived conflict.
• Voluntary engagement — no compulsion.
• Direct communication — no third-party intervention.
• Some common interest — without overlap, no deal is possible.
• Some opposing interest — otherwise, there is no dispute.
• Good faith — honest, sincere effort.
• Trust and communication.

Qualities of a Good Negotiator

Personal Qualities

• Integrity and honesty.
• Patience.
• Self-confidence.
• Empathy — ability to understand the other side.
• Emotional control — calm under pressure.
• Adaptability — pivot when needed.
• Cultural awareness.
• Resilience.

Skills

• Active listening — hear what is actually being said.
• Effective communication — verbal and non-verbal.
• Persuasion & influence.
• Analytical thinking.
• Creativity — invent options.
• Time management.
• Drafting skills — record the agreement precisely.

Powers (Sources of Negotiating Power)

Functions of a Negotiator

• Represent the client/party.
• Communicate demands and offers.
• Negotiate terms.
• Advise on options and risks.
• Document the agreement.
• Implement and monitor compliance.

Power to Negotiate

“Power to negotiate” = the authority to enter into a binding negotiation + the practical leverage to make it work.

Sources of Legal Authority

• Express authority — written contract or power of attorney.
• Implied authority — flowing from the role (manager, partner).
• Apparent / Ostensible authority — created by the conduct of the principal.
• Statutory authority — e.g., a partner under Section 19, Indian Partnership Act, 1932.