Transcript Negotiation Strategies

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Negotiation
Strategies
Critical Concepts

We negotiate everyday in all situations

Negotiation can be mastered – need to
understand the integral rules, strategies and
practices.

Power negotiating – ability to motivate the other
party in a manner that is favorable to the
negotiator’s objectives while making the other
party feel as though he/she won.
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The Process
3 Stages:

Beginning – clarify objectives
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Middle – gather, confirm, exchange info
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End – agreement through compromise
Important to take the negotiation through all 3
stages
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Four Variables
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Power
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Time
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Knowledge
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Leverage
How to use them to the negotiator’s best
advantage
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Power
The 2 most common sources are:
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Competition – increases value
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The Written Word – credibility and authenticity
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Another Source of Power
Investment
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Time – incentive to reach agreement
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Money – obvious resources
1.
Persuasive Capacity
2.
Strong Sense of Commitment
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Time
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Human Nature & Deadlines
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Timelines
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Hurried Negotiations – risk making concessions
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Knowledge
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Diligent Research
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Information Gathering
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Priorities
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Deadlines
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Real Needs
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Organizational Pressures
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Leverage
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Availability of other Resources
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Quality
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Power
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Financial Risk & Reward
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Marketability/Noteriority
Walmart the perfect example
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Beginning Power
Negotiating Strategies
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The reluctant buyer/seller
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The moon, stars and sun
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The flinch
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The feel, felt, found technique
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First offer
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The vice technique
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Middle-Stage Strategies
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The trade-off
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The set-aside technique
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Splitting the difference
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Referring to a higher authority
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Ending Strategies
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Nibbling
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Good guy/bad guy
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The hot potato
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Other Approaches
Win/Win or Integrative Approach:
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Prospects for both side’s gains
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Reconcile positions
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Stability of results
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Open, empathetic communication
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Tricks of the Trade
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Broadening the pie
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Nonspecific compensation
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Logrolling
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Cost-cutting
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Bridging
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Other Approaches
The Win/Lose or Distributive Approach
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Seek maximum gains
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Impose maximum loses
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Inherent instability
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Triangle balance on its apex
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Other Approaches
The Mixed Approach
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A mix between win/win and win/lose
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Long-term relationships need a more integrative
approach (win/win)
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Stability of the outcome
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Stability of the Outcome
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Focus on objectives (ancillary points destructive in
the beginning)
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Fairness
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Flexibility
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Listen and compromise
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Trade-offs and concessions
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Negotiation is not a
Competitive Sport
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Negotiation is a series of episodes
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Always need to find and reach agreements
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If lock into a position – narrow range of
acceptable outcomes
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Short-term thinking yields short-term gains and is
counter-productive
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Feeling like a loser – decreases likelihood of
commitment and fulfillment
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Negotiation is not a
Competitive Sport
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Treating a counter-part as an opponent and not
a partner negatively impacts the collaborative
process and decreases the chances for
commitment.
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Every negotiation is an episode in an ongoing
relationship
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Bargaining and trust are essential
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Mutual understandings
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Negotiation is not a
Competitive Sport
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Bluffing v. Lying
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Spying v. Information-Gathering
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Autonomy v. Coalition Building
1.
Are underlying interests common,
complementary or in conflict?
2.
Is the decision-making process combative,
competitive or collaborative?
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Interest-Based
Negotiations
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Concentrate on overall interests of both parties
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Building an agreement that is fair and durable –
meaningful commitment
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It is a process – requires confidence in authority
and performance
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Create an Interest Map
Compile a list of:
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Opposing stakeholders – who are
they?
Interests in the outcome – be creative,
list hot-buttons, do a reality check
Reasons – ask questions
This facilitates planning a strategy
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Conflict Negotiating
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Define the conflict
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Differentiate between views of conflict
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Understand the conflict process
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Annihilating, competing, avoiding, compromising,
collaborating, accommodating
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Conflict Negotiating
1.
Conflict can be constructive or destructive
2.
An optimal level of conflict:
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Prevents stagnation
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Stimulates creativity
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Releases tension
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Initiates change
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Autocratic Managers
1.
Inherent authority precludes the need to
negotiate
2.
Handing out orders is antagonistic, one-sided
negotiations
3.
Impinges commitment and stability
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Accommodating
Manager
1.
Concerned with what others want to the
detriment of their own needs
2.
Conflict avoidance leads to non-negotiation
and overriding of self-interests
3.
All negotiation inherently has some conflict
4.
Must take responsibility and look for
compromise to lead effectively
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5 Modes of Responding to
Conflict
1.
Collaborative (integrative) – win/win
2.
Competitive (distributive) – win/lose
3.
Yielding
4.
Avoiding
5.
Compromising
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2 Levels of Negotiations
1.
Rational decision-making (substantive)
2.
Psychological (emotional)
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Separate the person from the issue
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Use objective standards
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Pay attention to the flow of negotiations
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Pay attention to the intangibles
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Types of Negotiators
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Aggressive
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Long-pauser
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Mocking
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Interrogator
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Cloak of reasonableness
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Divide and conquer
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Act dumb
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Preparing for Negotiation
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Whose interests are at stake?
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What are the interests?
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What are the sources of power?
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What are the options?
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What strategies are best?
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Types of People
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Hostile aggressive
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Complainers
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Clams
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Super-agreeables
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Negativists
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Know-it-alls
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Indecisive stallers
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BATNA
Know your BATNA (best alternative to a
negotiated agreement):
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Identify alternatives and strategies
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Determine “deal points/walk-away points”
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How do you Know if you
are an Effective
Negotiator?
Who has the power?
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Who are the stakeholders?
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Is it about outcome, process or both?
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How do you determine effectiveness?
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Are ethical and legal considerations?
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Is collaborative, competitive or mixed most
effective?
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How wide is the impact?
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