Negotiation

NEGOTIATION

 “Negotiation

is a fact of life. Every one negotiates something or other every day”.

  

Negotiating is to make sure that you do not win the battle and lose the war. Negotiation can be intimidating , frustrating and overwhelming. A dictionary definition is simple  A process of give and take  To bargain  To settle

Any good negotiation should result in  Win

Lose –The loser • • • •

 Lose

feels cheated Results in the winner’s ego Is reluctant to risk it again Wants revenge.

Lose : both parties • Feel let down/frustrated • Lose goodwill for one another • Are reluctant to repeat the experience.

 Win-win: • • • •

both parties Have gained something Feel the result is fair Feel mutual respect and confidence Are willing to deal again.

Negotiate to win win

Four forces of negotiation Leverage Information Timing Approach

Leverage Things other want: Formal -Motivation Power  Titles and - Benefits to them status - Rewards/ punishments  Situation

Personal Sources: -Characteristics -Approach - Expertise -Choice

Information Your own position The other party Common interests Conflict Influencing factors Processes Getting Information

Timing Pressure 80 : 20 Timing for impact Readjustment

Approach Set high, positive goals - the self-fulfilling prophecy Visible objective - avoid tangents 

Open attitude -Confident of mutual success - Listen



Vocabulary and pharaseology - positive - authoritative

Stages of negotiating Preparation Scene setting Stating goals Exchanging information : - facts

- needs

- responses

- desires

- feelings

Stages of negotiating 

Exploring conflict and compromises 

Establishing Alternatives



Offers and compromises



Agreements



Administration

Establish BATNA-(Best Alternative to a negotiated Agreement)  Invent

a list of action possible if no agreement  Essential to know whether to accept alternative arrived at through negotiation versus ending negotiation.  Must consider other side’s BATNA as well as your own.  Improve some of the ideas from the list of negotiation - create practical alternatives.  Select the alternatives that seem best.

Planning for negotiation  Negotiating

is a process not just a single

meeting.  Do your homework. Start by writing down your objective in three categories – Need to – Want to – Nice to

 If

your homework is complete, follow five steps.

–Get to know the other side before getting down to

business.

–Share your objective with the other side and listen

carefully.

–Once the issues are on the table, express areas of

disagreement of conflict. Conflict should not be avoided, but resolved with “need to” being the first. –Expect and adapt to change during the meeting. –Upon agreement, place the agreed upon terms in writing.

 If

your homework is complete, follow five steps.

–Get to know the other side before getting down to

business.

–Share your objective with the other side and listen

carefully.

–Once the issues are on the table, express areas of

disagreement of conflict. Conflict should not be avoided, but resolved with “need to” being the first. –Expect and adapt to change during the meeting. –Upon agreement, place the agreed upon terms in writing.

Strategies  Fait

accompli strategy:

One side does whatever it wants and expects the other sides to accept the terms and the outcome.  Standard

practice strategy:

What is being suggested is acceptable because it is “standard practice”. 

Deadline strategy: Time can be a powerful weapon

 Decoy

strategy:

Often used by politicians. Inflate the importance of a minor issue to mask the larger issue or a hidden agenda.  Faking

withdrawal strategy:

More of a bluff – give in to a competitor  Good

guy/bad guy strategy:

One of the negotiator is hard core - throws “tantrums”

 Limited

authority strategy:

Claim don’t have the authority to make concessions.  Salami

strategy:

Technique is used to gain concession piece by piece. Thin slices over time.

Five 'don'ts' Don't accept the first offer – at least not immediately Don't be the first - to name a price - to offer to split the difference Don't get seduced so you can't walk away Don't admit you're under time pressure Don't leave a single issue outstanding It leaves you with confrontation and yes/no decision

Negotiation Strategy Model

High 9

Yield

Collaborate

(1,9)

R e l a t i o n s h i p

(9,9)

Accommodate Compromise Hard bargain (1,5)

(5,5)

(9,5)

Take it or leave it

Withdraw (1,1)

Low

0

(9,1) Substance of what you are negotiating

9

High