424 / CONDUCTING NEGOTIATIONS
Closing the deal
Preparing to close
Before you close the deal, both you and
your counterpart need to understand
that the purpose of making the deal is
not to sign the contract, but rather to
accomplish what the contract specifies.
What goals is each party pursuing
through the deal and what will it take
to accomplish them? As you depend on
each other to accomplish your goals,
it is important to make sure that
both parties are signing the contract
wholeheartedly. Review both parties’ key
interests and ensure that nothing has
been neglected. It is quite possible for
the other party to decide to overturn the
entire deal if he or she feels pushed into
an agreement without having their own
needs taken care of.
Considering implementation
Most negotiators underestimate the
importance of implementation. If not
considered, the intense process of
negotiation can undermine your ability
to achieve your goals after the deal has
been signed. For example, if you have
used hard negotiation tactics to push the
other party to agree to the deal, the other
party may feel, upon signing the contract,
that they have been unfairly treated and
sabotage the deal, or fail to deliver.
Before you put pen to paper, discuss
the implementation of the deal with the
other party. What you agree must fulfill
the needs of both parties if you are to
ensure successful implementation
Unless both parties have confidence
that the deal can be successfully
implemented, there is no point in
continuing the discussion.
Closing the deal after reaching an agreement is the last but most critical
part of any negotiation process. It is certainly not simple, and is not just
about outcomes. It also has to do with building relationships and making
sure that the negotiated agreements can be carried out smoothly.
Closing the deal properly is especially important when negotiated
agreements are complex and multidimensional.
When closing the deal,
make sure that neither
party overcommits.
Treat closing as the start of a
collaborative process between
you and the other party.
How to ensure
effective
implementation
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CLOSING THE DEAL / 425
Reaching agreement
A written agreement usually marks the
closure of a negotiation. The agreement,
which includes solutions for both parties,
may be summarized and you may ask the
other party to sign this document. This is
the most simple and natural way to
conclude a negotiation. Changes should
be allowed after the agreement has been
signed. In other words, if circumstances
change, both parties should feel quite
comfortable contacting the other party to
discuss these changes. Upon mutual
agreement, such necessary changes can
be incorporated into the new agreement.
Make sure you include this last point in
the agreement, as a deal is not done until
it is done—it is better to allow for some
flexibility than to force the other party to
overthrow the entire deal, should the
circumstances change.
CHECKLIST...
YES NO
Closing a deal
1 Have you considered all possible stakeholders? ...........................
2 Have you clarified the purpose of the deal? ...................................
3 Have you made sure that both parties understand
what it takes to implement the agreement? ...................................
4 Have you built a relationship with the other party,
to pave the way for future collaboration? ......................................
5 Have you made enough arrangements for another team to
implement the agreement, if another team is taking over? ...........
Include all stakeholders in
the implementation process.
Share any concerns you have
as the process progresses.
Continue to work with
the other party until
implementation is completed.
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