Negotiation Strategies
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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
Middle – gather, confirm, exchange info
End – agreement through compromise
Important to take the negotiation through all 3
stages
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Four Variables
Power
Time
Knowledge
Leverage
How to use them to the negotiator’s best
advantage
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Power
The 2 most common sources are:
Competition – increases value
The Written Word – credibility and authenticity
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Another Source of Power
Investment
Time – incentive to reach agreement
Money – obvious resources
1.
Persuasive Capacity
2.
Strong Sense of Commitment
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Time
Human Nature & Deadlines
Timelines
Hurried Negotiations – risk making concessions
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Knowledge
Diligent Research
Information Gathering
Priorities
Deadlines
Real Needs
Organizational Pressures
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Leverage
Availability of other Resources
Quality
Power
Financial Risk & Reward
Marketability/Noteriority
Walmart the perfect example
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Beginning Power
Negotiating Strategies
The reluctant buyer/seller
The moon, stars and sun
The flinch
The feel, felt, found technique
First offer
The vice technique
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Middle-Stage Strategies
The trade-off
The set-aside technique
Splitting the difference
Referring to a higher authority
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Ending Strategies
Nibbling
Good guy/bad guy
The hot potato
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Other Approaches
Win/Win or Integrative Approach:
Prospects for both side’s gains
Reconcile positions
Stability of results
Open, empathetic communication
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Tricks of the Trade
Broadening the pie
Nonspecific compensation
Logrolling
Cost-cutting
Bridging
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Other Approaches
The Win/Lose or Distributive Approach
Seek maximum gains
Impose maximum loses
Inherent instability
Triangle balance on its apex
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Other Approaches
The Mixed Approach
A mix between win/win and win/lose
Long-term relationships need a more integrative
approach (win/win)
Stability of the outcome
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Stability of the Outcome
Focus on objectives (ancillary points destructive in
the beginning)
Fairness
Flexibility
Listen and compromise
Trade-offs and concessions
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Negotiation is not a
Competitive Sport
Negotiation is a series of episodes
Always need to find and reach agreements
If lock into a position – narrow range of
acceptable outcomes
Short-term thinking yields short-term gains and is
counter-productive
Feeling like a loser – decreases likelihood of
commitment and fulfillment
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Negotiation is not a
Competitive Sport
Treating a counter-part as an opponent and not
a partner negatively impacts the collaborative
process and decreases the chances for
commitment.
Every negotiation is an episode in an ongoing
relationship
Bargaining and trust are essential
Mutual understandings
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Negotiation is not a
Competitive Sport
Bluffing v. Lying
Spying v. Information-Gathering
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
Concentrate on overall interests of both parties
Building an agreement that is fair and durable –
meaningful commitment
It is a process – requires confidence in authority
and performance
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Create an Interest Map
Compile a list of:
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
Define the conflict
Differentiate between views of conflict
Understand the conflict process
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:
Prevents stagnation
Stimulates creativity
Releases tension
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)
Separate the person from the issue
Use objective standards
Pay attention to the flow of negotiations
Pay attention to the intangibles
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Types of Negotiators
Aggressive
Long-pauser
Mocking
Interrogator
Cloak of reasonableness
Divide and conquer
Act dumb
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Preparing for Negotiation
Whose interests are at stake?
What are the interests?
What are the sources of power?
What are the options?
What strategies are best?
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Types of People
Hostile aggressive
Complainers
Clams
Super-agreeables
Negativists
Know-it-alls
Indecisive stallers
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BATNA
Know your BATNA (best alternative to a
negotiated agreement):
Identify alternatives and strategies
Determine “deal points/walk-away points”
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How do you Know if you
are an Effective
Negotiator?
Who has the power?
Who are the stakeholders?
Is it about outcome, process or both?
How do you determine effectiveness?
Are ethical and legal considerations?
Is collaborative, competitive or mixed most
effective?
How wide is the impact?
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