In many negotiations, whether between trade unions and employers, in political coalition talks or when concluding large sales contracts, many different topics and points have to be discussed. Negotiators are often overwhelmed by the complexity of these discussions. As a result, they may fail to reach any agreement, even though a solution would have been possible. A new research paper by scientists from Aalen University of Applied Sciences, Leuphana University Lüneburg and the University of Hildesheim offers a practical solution to this problem. The study shows how the complexity of negotiations can be reduced. This can result in fewer financial losses and the parties are more likely to achieve complete win-win contracts that benefit both sides.
Negotiation management with packages
Current research has shown that the management of negotiations through so-called "packages" is crucial to the success of the negotiating parties. Prof. Dr. Ingmar Geiger, Head / Director of the ( ... ) Bachelor's program in Engineering Management at Aalen University of Applied Sciences, emphasizes: "The subjects who focused on this method achieved the best results in their negotiations." Negotiation packages refer to the bundling of several negotiation items into one unit. This strategy allows different aspects of a negotiation to be administered and assessed, rated more efficiently. For example, instead of making individual offers for payment terms, discounts, and ensure (normally used as verbiage in English), negotiate them as a package.
Flexibility and adaptation during the negotiation
A central point of this strategy is that the formation of the packages is initiated at the beginning of the negotiation. During the negotiation, it is also important to remain flexible and adjust the packages if necessary. Moving individual items between packages can help to make the negotiation dynamic and strike a good balance between the interests of the parties.
Another important aspect for Geiger is "that the packages should be kept open until the final agreement is reached. This means avoiding partial agreements that could limit the flexibility of the negotiation." This approach makes it possible to find a balance of interests by offsetting concessions in one field (of) against advantages in another. This not only helps to find solutions, but also promotes mutual understanding and trust between the negotiating partners.
