ADVANCED NEGOTIATION

The Harvard Method

7 Elements of Negotiation

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 Introduction

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What is TO NEGOTIATE ?
"Negotiation is a basic means of getting what you
want from others.
It is back-and-forth communication designed to “Negotiation is a process of potentially opportunistic
reach agreement when you and the other side interaction by wich two or more parties, with some
have some interests that are shared and others apparent conflict, seek to do bettel through jointly
that are opposed." decided action than they could otherwise”
Roger Fisher David Lax & Jim Sebenius
Harvard Business School Harvard Business School

“Sex apart, negotiation is the most common and

“Negotiation is a process in problematic involvement of one person with another,
wich interested parties try to and the two activities are not unrelated”
reach a mutually satisfactory J.K Galbraith
agreement…” Harvard Business School

Howard Raiffa
Kennedy School of
Government
“Negotiatio is a basic means of getting what you want from others. It is
Harvard University
back-and-forth communication designed to reach agreement when you
and the other side have some interests that are shared and others that are
oppsed…”
William Ury
Harvard Law School

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Realities?
Uncertain (simple) Chaotic

Complicated Complex

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The negotiation round itself can be seen as a

complex or complicated problem.

COMPLICATED COMPLEX
Problem Problem

I have only one objective Expand my vision of the

my target objectives at stake

NEGOTIATION

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THE FACT TO NEGOTIATE

A
B C F

A L
H
B
A I
B E M
D

E
C

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Synthesis: Complicated versus Complex

COMPLICATED COMPLEX

Closed system Open system

Space limits / Set times Space limits / Indefinite time

Costs / Clear benefits Costs / Hidden benefits

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SPHERE OF INFLUENCE OF THE

NEGOTIATOR
Sphere of
involvement
(results zone)

Sphere of
influence

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REAGENT NEGOTIATOR
Sphere of
involvement

Sphere of
influence

Minimum impact on the results

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PROACTIVE NEGOTIATOR
Sphere of
involvement

Sphere of
influence

Maximum impact on the results

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Vision of the problem and

SPHERE OF
INVOLVEMENT the sphere of influence SPHERE OF
INVOLVEMENT

Simple
reading
Complex
reading

VISION
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Negotiation style?

• Is one whose target is victory at any cost. Doesn't mind the

Tough claims of the other party or the future consequences of their
actions. Braves negotiations from the perspective of short
Negotiator term.

• Belive that with a good relationship it is possible negotiations

Soft or relational in wich everyone benefits. Bases its negotiating strategy in
using a friendly communication as the main weapon.
Negotiator
• Faces the negotiation from a objective postulates, knows
Principled how to adapt his natural tendency depending on the
particular characteristics of the negotiation. It focuses on the
Negotiator interests separating people from the problem.

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Characteristics of a Good Negotiator

Easily and
Think Fast good
and Clear expressed Capacity
Analysis
and
Great
Synthesis
Empathy
Have Good
Humor

Focussed on Be Patient
objectives

Be
Know how Impersonal
to control
himself

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Strategy Types
Create value
Distributive
Claim value Winning at
strategies
Manage the Dilemma all costs

Método Cooperative
Harvard strategies

Win to Win

Anchored
to the Positional
strategies
starting
points

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Negotiation process Phases

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Negotiation: Two skills in wich we operate

Relationship Content

Communication skills Negotiation preparation

development techniques and bargaining process
analysis techniques

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 The Harvard Program 7 Elements of

Negotiation

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The 7 Elements of Harvard.

BATNA
Relationship
Short term
Medium term
Long term

Commons
Positions

Aims Interests

Commitment

Rules of Differences
legitimacy

Communication
Stakeholders
Sections
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1. BATNA. Best Alternative to a

Negotiation Agreement

BATNA (Best Alternative to a Negotiated Agreement)

They are the resources available to each part if no
agreement is reached. E.g. “We reserve the right to
take legal actions”

Aim.- Identify and develop the best alternatives that each

part has if ther is no agreement. My BATNA will tell me if
I should continue with the negotiation or not.

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Enumerate possible alternatives

WE + - THEY + -
1. 1.
2. 2.
3. 3.

Best BATNA
WE THEY

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• Our best BATNA

– 1. ► If my BATNA is BETTER than the
expected result than I can obtain with
– 2. the negotiation, the most appropiate is
– 3. to break the negotiation and execute
– 4. my BATNA.
– 5
• Get worse their BATNA
– 1.
► If the BATNA of the other party is
– 2. WORSE than the results that may be
– 3. expected in the negotiation, they will
– 4. make every effort to reach an
agreement .
– 5

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2. INTERESTS - POSITIONS

• Interests vs. Positions

• Positions:
– Starting poit, first motivations
– They must be become in interests
• Interests:
Pragmatic
– Real motivations
Internal

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Negotiation is a conflict of interests

Sometimes we sacrify an important interest

because we are not willing to give in another
with less importance

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“Interests are the raw material of the negotiation. The game of the
negotiation is based on their exchange”.
Roger Fisher.
Harvard Business School

Prioritization
• Different • Give in one
• Common • For me interest in
• For the other exchange of
part another

List Exchange

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All interests are not opposed

EMPATHY. Opposite role

Get away from the points of conflict

Worst and best result in each case before I offer as exchange

Subtle Interests: reputation, justice, strategy, precedents

Focus on INTERESTS forgetting the positions makes easier VALUE

CREATION and achieving AGREEMENTS

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Different interests
We They
1. 1.
2. 2.
3. 3.

Shared interests
We They
1. 1.
2. 2.
3. 3.

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3. OPTIONS

a) Definition
► Points on which agreement might be possible.
► Different ways to satisfy the interests of both parties
► They are the physical translation of the interests

b) Premises to generate options

► It is always possible to enlarge the pie
► The pursued values are in the differences
► Separate the process of generating ideas from the making of decisions.
► Adapt the appeared ideas to the chosen strategy.

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CAMP DAVID AGREEMENTS

Egypt interests Possible options Israel interests
1.Maximum interest: 1. Differences 1. Maximum interest:
interchangeable:
SOVEREIGNTY - Egypt desmilitarize the SECURITY
area
- Israel transfer the
sovereignty.

2. Medium interest: 2. Differences 2. Medium interest:

- Obtein Peace interchangeable: -- Obtein Peace

- Prestige of the leaders - Prestige of the leaders



3. Minimum interest: 3. Differences 3. Minimum interest:

Having armed forces in interchangeable: Sovereignty in Sinai
Sinai

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4. RULES OF LEGITIMACY

Each part shall have the

It is necessary to
FEELING of having The agreement must be
pursue the LEGITIMACY
achieved their FAIR
of the agreement.
expectations

External and IMPARTIAL

models: law,
Write the Victory
precedents, Treaty of Versailles
Speech
international treaties,
habits.

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5. RELATIONSHIP

The State borns when

political organization
ceases to be based on An agreement last in
personal relationships time when it is based
and based on on the object and not
territorial and on the subjects.
institutional
relationships.

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Elements of a good relationship

Reason
Converse
Convince
Confidence
Influence
Acceptance

Emotion
Preach
Impose
Mistrust
Pressure
Negation

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6. COMMUNICATION

• The efficient negotiation requires effective bilateral

communication
• Define a communication system dominated by both
parts.
• Consider cultural differences
• No hurry. Deliberate and clear messages.
• Form and substance.

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 METHODOLOGY

What could
My suppositions New approach
understand them

1. 1. 1.
2. 2. 2.
3. 3. 3.
4. 4. 4.
5. 5. 5.

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7. COMMITMENT

Verbal or written approaches which specify what is going

to do or not each part.

APPROACH

COMMITMENT STRUCTURE

EXECUTION

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METHODOLOGY
1. Last commitment draft
2. Last commitment
A. Previous steps: ¿Authority?, ¿Who and
what will do everyone?, ¿Incentives for
compliance?
B. Documentary and reliable composition of
the responsabilities of each part.

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NEGOTIATION STRATEGY
• 1. OBJECTIVES OF THE PARTS
– SHORT, MEDIUM AND LONG TERM
– VISIBLE AND HIDDEN
– STAKEHOLDERS
• 2. THE PROCESS. THE SEVEN ELEMENTS

RELATIONSHIP AND COMMUNICATION

INTEREST
OPTIONS
COMMITMENT BATNA
GUIDELINE

• 3. TO MANAGE THE DILEMMA OF THE NEGOTIATOR

– THE SECTIONS

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“The good negotiator is one

who knows CREATE
VALUE without becoming
vulnerable to those who
CLAIM and identify the right
time TO CLAIM”

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Executive Education Plan

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