Negotiating collaborative ventures and partnerships

Negotiating the terms of a collaborative agreement

Negotiating the terms of an agreement is the third stage of a four-stage systematic planning and implementation process for establishing collaborative ventures and partnerships.

The stages involve:

1. assessment of the venture's benefits, impact and risks and the attributes and suitability of potential partner/s
2. alignment of goals and values, reaching agreement about the purpose, mutual expectations and the principles under which the partners will operate
3. negotiation of details, making decisions about the practical issues and partners' specific roles and responsibilities
4. documenting the negotiated agreement, either in a Memorandum of Understanding (MOU) or, where there are resource or legal implications, in a formal agreement or contract.

Like the collaborative venture itself, the negotiation processes and stages to develop a collaborative agreement need to be carefully planned and sequenced to involve the relevant stakeholders at each stage and build a robust, documented agreement that meets the shared needs of all parties.

When agreement is reached and the organisations involved are satisfied that the agreement meets their shared interests, the agreement is ready to be formalised in writing. Formal collaborative agreements such as partnerships and collaborative ventures should be formally documented and regularly reviewed. To document your collaborative agreement, use the tool Memorandum of Understanding for a collaborative venture or consortium from the Management Support Online site.

There are points at all stages of the development and implementation of a collaborative venture at which negotiations must occur, between partner agencies and within individual organisations.

Internal discussions and negotiations

Discussions within an organisation that identify the need for collaboration with external parties need to be completed (or an 'in-principle' agreement reached) before discussions proceed with external parties.

The phases of internal negotiation and agreement can often be overlooked in the process of planning collaboration. Internal negotiation and agreement making Pamela Spall & Associates for Strengthening Non Government Organisations should not be overlooked as it can sometimes be the most difficult part of planning, negotiating and sustaining a collaborative venture. It is important that all of the internal stakeholders, including the board or management committee, staff and clients, are given the opportunity to consider their support for the collaborative venture, the collaboration partners and the benefits the collaboration will deliver for client services and client outcomes.

Internal stakeholders may have a range of views about the balance of the costs and benefits of collaboration in general and of a particular collaboration proposal. While not all internal stakeholders will be decision makers in the collaboration planning process, understanding and accommodating, where possible, the range of views and issues will be important to ensuring successful implementation and the collaborative venture's long-term sustainability.

Internal stakeholders may not all agree on all aspects of the collaboration agreement reached. However, they will provide valuable informed and diverse input to an assessment of the alignment of the proposal with the organisation's vision, values, culture, management and staff roles, client needs and desired client benefits.

External negotiation

Planning for negotiating a collaborative agreement needs to clearly map out the interests, options and processes that will assist the parties to achieve an agreement that meets their shared interests.

Negotiating a collaborative agreement should be in the style of a well-planned, joint problem-solving exercise, led by principled negotiators and guided by a well-formed plan with clear outcomes and time frames. Negotiation to reach a formal, written agreement will involve planning, proposing, bargaining, compromising and agreeing.

Negotiating a collaborative agreement should model the values and principles of the collaborative relationship and the collaborative behaviours that the partners expect will sustain their venture. Principled negotiation processes that will help build a robust, win-win agreement between the negotiating parties will involve:

• identifying and focusing on meeting the mutual interests of both parties, rather than becoming tied to a particular position
• identifying the outcomes to be achieved from collaborating.
• being inventive and flexible about a range of options to achieve the desired outcome and meet the interests of the partners
• anticipating other's points of view and emphasising common ground
• clarifying the best alternative to the negotiated agreement so that you keep sight of your organisation's 'bottom line'
• planning the phases, results and timing of negotiations
• choosing the process and style of negotiation, engagement and decision making. For example:
  • participatory: aiming for stakeholder consensus
  • outcome focused: led by decision makers' meeting agreed timeframes
• identifying the stakeholders to be involved, their level of involvement and the phases when they will be involved, and
• clarifying agreements at all stages of the negotiation process.

Core negotiation skills

In addition to careful planning and clear documentation, a principle-based negotiation process requires negotiators to employ core communication skills to successfully negotiate a collaborative agreement. The two most important core communication skills are assertiveness and active listening skills.

Assertiveness is essential to effective negotiations as it helps the other parties understand your needs and enables you to effectively pursue problem solving and solutions that meet your needs. Characteristics of assertive negotiations are:

• respect for all parties
• clear communication of your needs
• a considered, interest-based, position
• being focused and staying assertive

Active listening helps you to understand the needs of the other party, explore ideas, identify possible options for agreement, test your understanding and avoid confusion, identify common ground and achieve a genuine and workable agreement.

Characteristics of active listening are:

• ensuring the other party feels heard
• asking open questions, e.g. how can we do this? why is this important? are there other options? how can that be implemented?
• exploring and extending ideas
• seeking clarification
• summarising and repeating statements to test understanding, and
• clarifying agreements reached.

A plan for negotiating and sustaining a collaborative agreement

A typical plan for negotiating and sustaining a collaborative agreement involves several phases and elements¹, and these are shown in the following table: