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
• feels cheated
• Results in the winner’s ego
• Is reluctant to risk it again
• Wants revenge.
 Lose 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 Personal
-Motivation Power Sources:
- Benefits to them  Titles and -Characteristics
- Rewards/ punishments status -Approach
 Situation
- 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
High Negotiation Strategy Model
9
Yield Collaborate
R
(1,9) (9,9)
e
l
a
t Accommodate Compromise Hard bargain
i (1,5) (5,5) (9,5)
o
n
s
h
i
p Withdraw Take it or leave it
(1,1)
(9,1) 9
Low Substance of what you are negotiating
0 High