Foundational Overview Cross Cultural Component
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Foundational Overview Cross Cultural Component Importance of negotiation The Distributive Bargaining Situation Goals of one party are in fundamental , direct conflict to another party Win-Lose -- Slicing the Pie Resources are fixed and
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01
Foundational Overview Cross Cultural Component Importance of negotiation<br>
02
The Distributive Bargaining Situation Goals of one party are in fundamental , direct conflict to another party
“Win-Lose” -- “Slicing the Pie”
Resources are fixed and limited
“The more one gets, the less the other gets”
Maximizing one’s own share of resources is the goal<br>
“Win-Lose” -- “Slicing the Pie”
Resources are fixed and limited
“The more one gets, the less the other gets”
Maximizing one’s own share of resources is the goal<br>
03
Opinions on Distributive Bargaining Some people like it: -- they define “Negotiation” as distributive.
Others:
- Avoid it at all costs
Confrontational
Destructive Regardless, you need to know it because:
Some situations require it
Needed when we Claim Value in “Win-Win” negotiations
Some like to use it against you.<br>
Others:
- Avoid it at all costs
Confrontational
Destructive Regardless, you need to know it because:
Some situations require it
Needed when we Claim Value in “Win-Win” negotiations
Some like to use it against you.<br>
04
Summary of Use We use this strategy for:
One-Time Deals: Car Purchase, Condo
When:
Relationship is not important
Or:
When we reach the Claiming Value stage of other negotiation strategies<br>
One-Time Deals: Car Purchase, Condo
When:
Relationship is not important
Or:
When we reach the Claiming Value stage of other negotiation strategies<br>
05
The Distributive Bargaining Situation Need advance preparation to set a:
Target point, aspiration point
What we would like to get
Walk-away or resistance point
What price we will not go beyond
Asking price or initial offer
People expect a give and take
Need to consider this activity
Danger: too high or too low<br>
Target point, aspiration point
What we would like to get
Walk-away or resistance point
What price we will not go beyond
Asking price or initial offer
People expect a give and take
Need to consider this activity
Danger: too high or too low<br>
06
The Distributive Bargaining Situation Party B - Buyer Party A - Seller Walkaway Point Target Point Asking Price Initial Offer Target Point Walkaway<br>
07
The Role of Alternatives to a Negotiated Agreement Alternatives = power to walk away from the negotiation
If alternatives are attractive, negotiators can:
Set their goals higher
Make fewer concessions
If there are no attractive alternatives:
Negotiators have much less bargaining power<br>
If alternatives are attractive, negotiators can:
Set their goals higher
Make fewer concessions
If there are no attractive alternatives:
Negotiators have much less bargaining power<br>
08
The Distributive Bargaining Situation Party B - Buyer Party A - Seller Resistance Point Target Point Asking Price Initial Offer Target Point Resistance Alternative Alternative<br>
09
Fundamental Strategies Push for settlement near opponent’s resistance point
Get the other party to change their resistance point
Convince the other party that the settlement is the best possible<br>
Get the other party to change their resistance point
Convince the other party that the settlement is the best possible<br>
10
Keys to the Strategies The keys to implementing any of the four strategies are:
Discovering the other party’s resistance point
Influencing the other party’s resistance point
Information is valuable – target price, RP, motives, feelings, confidence…<br>
Discovering the other party’s resistance point
Influencing the other party’s resistance point
Information is valuable – target price, RP, motives, feelings, confidence…<br>
11
Tactical Tasks of Negotiators Assess outcome values and the costs of termination for the other party
Manage the other party’s impressions
What they think about your offer
Modify the other party’s perceptions
What they think about their situation
Manipulate the actual costs of delay or termination<br>
Manage the other party’s impressions
What they think about your offer
Modify the other party’s perceptions
What they think about their situation
Manipulate the actual costs of delay or termination<br>
12
Assess Outcome Values and the Costs of Termination for the Other Party Indirectly
Determine information the opponent used to set their:
Target point
Resistance points
Directly
Opponent reveals the information How?<br>
Determine information the opponent used to set their:
Target point
Resistance points
Directly
Opponent reveals the information How?<br>
13
Manage the Other Party’s Impressions Screen your behavior:
Say and do as little as possible
Selective presentation:
Use a representative (realtors, car dealers, one way information)
Snow Job/ Kitchen Sink (unrelated information, used to hide important info)
Direct action to alter impressions:
Present facts that enhance one’s position
“If I accept / implement your offer, these are my costs/risks”
Use emotion or time to show/hide importance<br>
Say and do as little as possible
Selective presentation:
Use a representative (realtors, car dealers, one way information)
Snow Job/ Kitchen Sink (unrelated information, used to hide important info)
Direct action to alter impressions:
Present facts that enhance one’s position
“If I accept / implement your offer, these are my costs/risks”
Use emotion or time to show/hide importance<br>
14
Modify the Other Party’s Perceptions Make outcomes appear less attractive
Add the extra activities, risks
Make the cost of obtaining goals appear higher
Make demands and positions appear more or less attractive to the other party –whichever suits your needs<br>
Add the extra activities, risks
Make the cost of obtaining goals appear higher
Make demands and positions appear more or less attractive to the other party –whichever suits your needs<br>
15
Manipulate the Actual Costs of Delay or Termination Plan disruptive action
Raise the costs of delay to the other party
Form an alliance with outsiders
Involve (or threaten to involve) other parties who can influence the outcome in your favor (Government Regulator)
Schedule manipulations
One party is usually more vulnerable to delay than the other
Place items where you have an advantage (beginning or end) As everyone has deadlines…<br>
Raise the costs of delay to the other party
Form an alliance with outsiders
Involve (or threaten to involve) other parties who can influence the outcome in your favor (Government Regulator)
Schedule manipulations
One party is usually more vulnerable to delay than the other
Place items where you have an advantage (beginning or end) As everyone has deadlines…<br>
16
Positions Taken During Negotiations Opening offer – Who?
First offer generally has advantage…sets anchor.
Opening stance -- what is your attitude? (competitive, moderate)
Belligerent - powerful
Matching stance - equal
”Lets be reasonable people who can solve the problem” Where will you start? (modest or exaggerated)
Exaggerated:
Room to negotiate
Signal a lot of work to progress/ signal need for concessions
Error in planning by other side (they estimated wrong)
Foolish, rejected, may damage relationship
Moderate (expected)<br>
First offer generally has advantage…sets anchor.
Opening stance -- what is your attitude? (competitive, moderate)
Belligerent - powerful
Matching stance - equal
”Lets be reasonable people who can solve the problem” Where will you start? (modest or exaggerated)
Exaggerated:
Room to negotiate
Signal a lot of work to progress/ signal need for concessions
Error in planning by other side (they estimated wrong)
Foolish, rejected, may damage relationship
Moderate (expected)<br>
17
Positions Taken During Negotiations The role of concessions:
Without them, there is either capitulation or deadlock
Patterns of concession making:
The pattern contains valuable information
People expect a progression, shows willingness to cooperate Packaged offers (a&b for c&d)
Final offer (making a commitment)
“This is all I can do”
Pre-prepared final offers- Mgmt calculates offer & dictates:
Lack of two way communication
No listening, respect or legitimacy for other side.<br>
Without them, there is either capitulation or deadlock
Patterns of concession making:
The pattern contains valuable information
People expect a progression, shows willingness to cooperate Packaged offers (a&b for c&d)
Final offer (making a commitment)
“This is all I can do”
Pre-prepared final offers- Mgmt calculates offer & dictates:
Lack of two way communication
No listening, respect or legitimacy for other side.<br>
18
Guidelines for Making Concessions<br>
19
Commitments: Tactical Considerations Establishing a commitment
Three properties:
Finality, Specificity, Consequences
Preventing the other party from committing prematurely, why?
Their commitment reduces your flexibility
Sometimes viewed as a threat
Both parties may become stuck, deadlocked.<br>
Three properties:
Finality, Specificity, Consequences
Preventing the other party from committing prematurely, why?
Their commitment reduces your flexibility
Sometimes viewed as a threat
Both parties may become stuck, deadlocked.<br>
20
Commitments: Tactical Considerations Ways to abandon a committed position:
Plan a way out
“Given this new information, I may need to re-think my earlier position”
Let it die silently
Restate the commitment in more general terms
Minimize the damage to the relationship if the other backs off
Use technicalities: financing clause, quality discrepancy<br>
Plan a way out
“Given this new information, I may need to re-think my earlier position”
Let it die silently
Restate the commitment in more general terms
Minimize the damage to the relationship if the other backs off
Use technicalities: financing clause, quality discrepancy<br>
21
Closing the Deal Provide alternatives (2 or 3 equal value options)
Assume the close (Start the paperwork)
Split the difference (Assumes both sides started with fair initial offers)
Exploding offers (expires in 24 hours, preventing party from developing other alternatives)
Deal sweeteners (bonuses, furnishings for a condo, upgrades for a car)<br>
Assume the close (Start the paperwork)
Split the difference (Assumes both sides started with fair initial offers)
Exploding offers (expires in 24 hours, preventing party from developing other alternatives)
Deal sweeteners (bonuses, furnishings for a condo, upgrades for a car)<br>
22
Dealing with Typical Hardball Tactics Four main options:
Ignore them
Discuss them
Respond in kind
Co-opt the other party (befriend them)<br>
Ignore them
Discuss them
Respond in kind
Co-opt the other party (befriend them)<br>
23
Typical Hardball Tactics Good Cop/Bad Cop
Lowball/Highball
Bogey (playing up an issue of little importance)
Chicken
Intimidation Aggressive Behavior
Snow Job (overwhelm the other party with information)<br>
Lowball/Highball
Bogey (playing up an issue of little importance)
Chicken
Intimidation Aggressive Behavior
Snow Job (overwhelm the other party with information)<br>
24
Good Cop / Bad Cop Police interrogation technique
One rough, intimidating
One helpful, kind; tries to reach a quick agreement before the other returns.
Bad cop goes to cool off (make a phone call) and good cop negotiates a confession. Easy to identify
Easy to call-out – simply state that you know what they are up to.
Difficult for negotiators to act out. Takes a lot of energy that might be used to capture information.<br>
One rough, intimidating
One helpful, kind; tries to reach a quick agreement before the other returns.
Bad cop goes to cool off (make a phone call) and good cop negotiates a confession. Easy to identify
Easy to call-out – simply state that you know what they are up to.
Difficult for negotiators to act out. Takes a lot of energy that might be used to capture information.<br>
25
Low Ball / High Ball Start with a ridiculously low (high) opening offer.
Idea is that the extreme offer will cause negotiator to re-evaluate their opening offer Risk is that opponent will quit negotiating.
Must be communication savvy in order to return to the negotiating table after a failed extreme offer.
Don’t counter offer, ask opponent to make a more reasonable offer. Based on fair values (ch 4)<br>
Idea is that the extreme offer will cause negotiator to re-evaluate their opening offer Risk is that opponent will quit negotiating.
Must be communication savvy in order to return to the negotiating table after a failed extreme offer.
Don’t counter offer, ask opponent to make a more reasonable offer. Based on fair values (ch 4)<br>
26
Bogey Focus on an issue that is not important to you. Pretend that it is critical.
Get agreement…
then later use it to trade off for something you really want. Very deceptive, may be difficult to act out.
Both sides are arguing for something that they do not really want.
Ask probing questions to avoid getting caught: “Why do they value that issue?” List all issues. Watch out for sudden reversals in positions.<br>
Get agreement…
then later use it to trade off for something you really want. Very deceptive, may be difficult to act out.
Both sides are arguing for something that they do not really want.
Ask probing questions to avoid getting caught: “Why do they value that issue?” List all issues. Watch out for sudden reversals in positions.<br>
27
Chicken: Two cars driving towards each other, who turns? A large bluff & threat
If the union does not concede the factory will shut down.
High stakes gamble. Becomes a dangerous game instead of a calculated negotiation.
May be more attractive when circumstances are dire.<br>
If the union does not concede the factory will shut down.
High stakes gamble. Becomes a dangerous game instead of a calculated negotiation.
May be more attractive when circumstances are dire.<br>
28
Intimidation / Aggressive Behavior Forced agreement through fear, emotional ploy, anger.
Increasing the appearance of legitimacy: written corporate forms, company policy
Guilt: push negotiator to defend their honesty, integrity diverting attention away from real negotiating issues. When it occurs:
Explain that your policy is to bargain fairly, in a respectful manner. You expect the same in return.
Authority carries no value in negotiations, you are equals.
It does not deserve the emotional liability. 2-29<br>
Increasing the appearance of legitimacy: written corporate forms, company policy
Guilt: push negotiator to defend their honesty, integrity diverting attention away from real negotiating issues. When it occurs:
Explain that your policy is to bargain fairly, in a respectful manner. You expect the same in return.
Authority carries no value in negotiations, you are equals.
It does not deserve the emotional liability. 2-29<br>
29
Snow Job Overwhelm the other party with too much information.
Used as distractions
Often used by governments, in 1,000 page press releases
On Friday afternoons To Counter:
Ask questions until satisfied.
Assign technical experts as necessary (separate meetings)
Listen carefully to all statements and look for inconsistencies.<br>
Used as distractions
Often used by governments, in 1,000 page press releases
On Friday afternoons To Counter:
Ask questions until satisfied.
Assign technical experts as necessary (separate meetings)
Listen carefully to all statements and look for inconsistencies.<br>
30
Classic Bargaining Tactics Acting Crazy
Big Pot
Get a Prestigious Ally
The Well is Dry
Limited Authority
Whipsaw / Auction
Divide and Conquer
Get Lost / Stall for Time
We Noodle
Be Patient
Let’s Split the Difference
Trial Balloon
Surprises<br>
Big Pot
Get a Prestigious Ally
The Well is Dry
Limited Authority
Whipsaw / Auction
Divide and Conquer
Get Lost / Stall for Time
We Noodle
Be Patient
Let’s Split the Difference
Trial Balloon
Surprises<br>
31
Classic Bargaining Tactics Acting Crazy
Put on good show
Visibly demonstrating your emotional commitment to your position
Increase credibility
Give opponent a justification to settle on your terms
Big Pot
Leave your self a lot of room to negotiate
Make high demand at the beginning
After making concessions, you’ll still end up with a larger payoff
Get a Prestigious Ally
Try to get opponent to accept less<br>
Put on good show
Visibly demonstrating your emotional commitment to your position
Increase credibility
Give opponent a justification to settle on your terms
Big Pot
Leave your self a lot of room to negotiate
Make high demand at the beginning
After making concessions, you’ll still end up with a larger payoff
Get a Prestigious Ally
Try to get opponent to accept less<br>
32
Classic Bargaining Tactics The Well is Dry
Take a stand and tell the opponent you have no more concessions to make
Limited Authority
Negotiate in good faith
If you ready to sign the deal, say I have to check with my boss
Whipsaw / Auction
Several competitors know you are negotiating in the same time
Schedule competitors with you for the same time and keep them all waiting to see you<br>
Take a stand and tell the opponent you have no more concessions to make
Limited Authority
Negotiate in good faith
If you ready to sign the deal, say I have to check with my boss
Whipsaw / Auction
Several competitors know you are negotiating in the same time
Schedule competitors with you for the same time and keep them all waiting to see you<br>
33
Classic Bargaining Tactics Divide and Conquer
Negotiation with opponent team
Sell one member to help you sell the other members of the team
Get Lost / Stall for Time
Leave the negotiation completely for a while
Come back when things are getting better and try to renegotiate
Time period can be long or short
We Noodle
Give no emotional or verbal response
Don’t response to his or her force or pressure
Be Patient
If you can afford to outwait
You will probably win big<br>
Negotiation with opponent team
Sell one member to help you sell the other members of the team
Get Lost / Stall for Time
Leave the negotiation completely for a while
Come back when things are getting better and try to renegotiate
Time period can be long or short
We Noodle
Give no emotional or verbal response
Don’t response to his or her force or pressure
Be Patient
If you can afford to outwait
You will probably win big<br>
34
Classic Bargaining Tactics Let’s Split the Difference
The person who first suggest this has the least to lose
Trial Balloon
Release your possible / contemplated decision through a so-called reliable source before the decision is actually made
To test reactions to your decisions
Surprises
Keep the opponent off balance by
Drastic
Dramatic
Sudden shift
Never be predictable
Keep the opponent from anticipating your move<br>
The person who first suggest this has the least to lose
Trial Balloon
Release your possible / contemplated decision through a so-called reliable source before the decision is actually made
To test reactions to your decisions
Surprises
Keep the opponent off balance by
Drastic
Dramatic
Sudden shift
Never be predictable
Keep the opponent from anticipating your move<br>
35
1. Preparation and planning skill
2. Knowledge of the subject
3. Ability to think clearly and rapidly under pressure and uncertainty
4. Ability to express thoughts verbally
5. Listening skill
6. Judgement and general intelligence
7. Integrity
8. Ability to persuade others Art & Science of Negotiation - RAIFFA 34 Characteristics of an Effective Negotiator<br>
2. Knowledge of the subject
3. Ability to think clearly and rapidly under pressure and uncertainty
4. Ability to express thoughts verbally
5. Listening skill
6. Judgement and general intelligence
7. Integrity
8. Ability to persuade others Art & Science of Negotiation - RAIFFA 34 Characteristics of an Effective Negotiator<br>
36
9. Patience
10. Decisiveness
11. Ability to win respect and confidence of opponent
12. General problem-solving and analytical skills
13. Self-control, especially of emotions and their visibility
14. Insight into others’ feelings
15. Persistence and determination
16. Ability to perceive and exploit available power to achieve objective Art & Science of Negotiation - RAIFFA 34 Characteristics of an Effective Negotiator<br>
10. Decisiveness
11. Ability to win respect and confidence of opponent
12. General problem-solving and analytical skills
13. Self-control, especially of emotions and their visibility
14. Insight into others’ feelings
15. Persistence and determination
16. Ability to perceive and exploit available power to achieve objective Art & Science of Negotiation - RAIFFA 34 Characteristics of an Effective Negotiator<br>
37
17. Insight into hidden needs and reactions of own and opponent’s organization
18. Ability to lead and control members of own team or group
19. Previous negotiating experience
20. Personal sense of security
21. Open-mindedness (tolerance of other viewpoints)
22. Competitiveness (desire to compete and win)
23. Skill in communicating and co-ordinating various objectives within own organisation Art & Science of Negotiation - RAIFFA 34 Characteristics of an Effective Negotiator<br>
18. Ability to lead and control members of own team or group
19. Previous negotiating experience
20. Personal sense of security
21. Open-mindedness (tolerance of other viewpoints)
22. Competitiveness (desire to compete and win)
23. Skill in communicating and co-ordinating various objectives within own organisation Art & Science of Negotiation - RAIFFA 34 Characteristics of an Effective Negotiator<br>
38
24. Debating ability (skill in parrying questions and answers across the table)
25. Willingness to risk being disliked
26. Ability to act out skilfully a variety of negotiating roles or postures
27. Status or rank in organisation
28. Tolerance to ambiguity and uncertainty
Skill in communicating by signs, gestures and silence (non-verbal language) Art & Science of Negotiation - RAIFFA 34 Characteristics of an Effective Negotiator<br>
25. Willingness to risk being disliked
26. Ability to act out skilfully a variety of negotiating roles or postures
27. Status or rank in organisation
28. Tolerance to ambiguity and uncertainty
Skill in communicating by signs, gestures and silence (non-verbal language) Art & Science of Negotiation - RAIFFA 34 Characteristics of an Effective Negotiator<br>
39
30. Compromising temperament
31. Attractive personality and sense of humour (degree to which people enjoy being with the person)
32. Trusting temperament
33. Willingness to take somewhat above-average business or career risks
34. Willingness to employ force, threat or bluff Art & Science of Negotiation - RAIFFA 34 Characteristics of an Effective Negotiator<br>
31. Attractive personality and sense of humour (degree to which people enjoy being with the person)
32. Trusting temperament
33. Willingness to take somewhat above-average business or career risks
34. Willingness to employ force, threat or bluff Art & Science of Negotiation - RAIFFA 34 Characteristics of an Effective Negotiator<br>
40
Negotiating Behaviour Gavin Kennedy (The New Negotiating Edge) describes 3 types of behaviour that we can display and encounter when in a negotiating situation
RED BLUE PURPLE 7<br>
RED BLUE PURPLE 7<br>
41
RED Behaviour Manipulation
Aggressive
Intimidation
Exploitation
Always seeking the best for you
No concern for person you are negotiating with
Taking People behave in this manner when they fear exploitation by the other party, but by behaving this way to protect themselves, they provoke the behaviour they are trying to avoid. 8<br>
Aggressive
Intimidation
Exploitation
Always seeking the best for you
No concern for person you are negotiating with
Taking People behave in this manner when they fear exploitation by the other party, but by behaving this way to protect themselves, they provoke the behaviour they are trying to avoid. 8<br>
42
BLUE Behaviour Win win approach
Cooperation
Trusting
Pacifying
Relational
Giving Kennedy talks of a ‘behavioural dilemma’, do you cooperate (blue) or defect (red)?
Can you trust the other person? And to what extent? Trusting someone involves risk, on the one hand being too trusting is naïve and on the other, not trusting at all can create deceitful behaviour.
The answer is to merge blue and red behaviour into purple. 9<br>
Cooperation
Trusting
Pacifying
Relational
Giving Kennedy talks of a ‘behavioural dilemma’, do you cooperate (blue) or defect (red)?
Can you trust the other person? And to what extent? Trusting someone involves risk, on the one hand being too trusting is naïve and on the other, not trusting at all can create deceitful behaviour.
The answer is to merge blue and red behaviour into purple. 9<br>
43
PURPLE Behaviour Give me some of what I want (red)
I’ll give you some of what you want (blue)
Deal with people as they are not how you think they are
Good intentions
Two way exchange
Purple behaviour incites purple behaviour
Tit for tat strategies
Open
People know where they stand
Determination to solve problems by both sets of criteria of the merits of the case and/or the terms of a negotiated exchange To the red behaviourist the message is loud and clear, ‘You will get nothing from me unless and until I get something from you’. 10<br>
I’ll give you some of what you want (blue)
Deal with people as they are not how you think they are
Good intentions
Two way exchange
Purple behaviour incites purple behaviour
Tit for tat strategies
Open
People know where they stand
Determination to solve problems by both sets of criteria of the merits of the case and/or the terms of a negotiated exchange To the red behaviourist the message is loud and clear, ‘You will get nothing from me unless and until I get something from you’. 10<br>
44
Formulating a Negotiation Strategy Strategic plan
Commitment to an overall approach that has a good chance of achieving the negotiator’s objectives
Soft : avoid conflict, make concessions; often end up exploited and feeling bitter
Hard : sees any situation as a contest of wills. Exhausts people and resources and harms relationships
Other strategies are between hard and soft, but each involves a trade off
Making good tactical decisions<br>
Commitment to an overall approach that has a good chance of achieving the negotiator’s objectives
Soft : avoid conflict, make concessions; often end up exploited and feeling bitter
Hard : sees any situation as a contest of wills. Exhausts people and resources and harms relationships
Other strategies are between hard and soft, but each involves a trade off
Making good tactical decisions<br>
45
Starting Point A successful negotiation must have a basic framework
The alternative to negotiation
The minimum threshold for a negotiated deal
How flexible a party is willing to be, and what tradeoffs it is willing to make<br>
The alternative to negotiation
The minimum threshold for a negotiated deal
How flexible a party is willing to be, and what tradeoffs it is willing to make<br>
46
Principled Negotiation :The Method Separate the people From the problem
Focus on interests, Not positions
Invent options For mutual gain
Use objective criteria Modified from material obtained from the Harvard Negotiation Project<br>
Focus on interests, Not positions
Invent options For mutual gain
Use objective criteria Modified from material obtained from the Harvard Negotiation Project<br>
47
Separate the people from the problem Relationship Issues:
Emotion/reason
Understanding
Communication
Reliability
Coercion/persuasion
Acceptance/respect Substantive Issues:
Money
Terms
Conditions
Concessions
Promises
Dates/numbers Modified from material obtained from the Harvard Negotiation Project<br>
Emotion/reason
Understanding
Communication
Reliability
Coercion/persuasion
Acceptance/respect Substantive Issues:
Money
Terms
Conditions
Concessions
Promises
Dates/numbers Modified from material obtained from the Harvard Negotiation Project<br>
48
Problem Participants are friends
The goal is agreement
Make concessions to cultivate the relationship
Be soft on the people and the problem
Trust others
Change your position easily
Make offers
Disclose your bottom line
Accept one-sided losses to reach agreement
Search for the single answer: the one they will accept
Insist on agreement
Try to avoid a contest of wills
Yield to pressure Participants are adversaries
The goal is victory
Demand concessions as a condition of the relationship
Be hard on the problem and the people
Distrust others
Dig in to your position
Make threats
Mislead as to your bottom line
Demand one-sided gains as the price of agreement
Search for the single answer: the one you will accept
Insist on your position
Try to win a contest of wills
Apply pressure SOFT HARD Positionnal Which game should you play “Getting to Yes” - Professor R. Fisher & W. Ury<br>
The goal is agreement
Make concessions to cultivate the relationship
Be soft on the people and the problem
Trust others
Change your position easily
Make offers
Disclose your bottom line
Accept one-sided losses to reach agreement
Search for the single answer: the one they will accept
Insist on agreement
Try to avoid a contest of wills
Yield to pressure Participants are adversaries
The goal is victory
Demand concessions as a condition of the relationship
Be hard on the problem and the people
Distrust others
Dig in to your position
Make threats
Mislead as to your bottom line
Demand one-sided gains as the price of agreement
Search for the single answer: the one you will accept
Insist on your position
Try to win a contest of wills
Apply pressure SOFT HARD Positionnal Which game should you play “Getting to Yes” - Professor R. Fisher & W. Ury<br>
49
Focus on Interests not Positions Interests = desires and concerns that underlie positions
Prepare for negotiation:
Clarify interests
Understand the interests of the other side
Focus the negotiation discussion on:
Interests – not positions Modified from material obtained from the Harvard Negotiation Project<br>
Prepare for negotiation:
Clarify interests
Understand the interests of the other side
Focus the negotiation discussion on:
Interests – not positions Modified from material obtained from the Harvard Negotiation Project<br>
50
Invent Options for Mutual Gain To invent creative options:
Separate inventing from judging.
Broaden the options on the table, rather than look for a single answer.
Search for mutual gains.
Invent ways to make their decision easy. Modified from material obtained from the Harvard Negotiation Project<br>
Separate inventing from judging.
Broaden the options on the table, rather than look for a single answer.
Search for mutual gains.
Invent ways to make their decision easy. Modified from material obtained from the Harvard Negotiation Project<br>
51
Insist on using Objective Criteria Frame each issue as a joint search for objective criteria
Reason and be open to reason as to which standards are most appropriate and how they should be applied
Never yield to pressure, only to principle. Modified from material obtained from the Harvard Negotiation Project<br>
Reason and be open to reason as to which standards are most appropriate and how they should be applied
Never yield to pressure, only to principle. Modified from material obtained from the Harvard Negotiation Project<br>
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Negotiation Styles Source: Rollin & Christine Glaser<br>
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The Four Phases of Negotiation PLAN DEBATE PROPOSE BARGAIN 11<br>
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Step One - Prepare Research
LIST your objectives and their objectives
Those you INTEND to get
Those you MUST get<br>
LIST your objectives and their objectives
Those you INTEND to get
Those you MUST get<br>
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Step Two - Debate Listen carefully
Ask questions
Clarify
Summarise
Don’t argue, interrupt or assume ...BUT<br>
Ask questions
Clarify
Summarise
Don’t argue, interrupt or assume ...BUT<br>
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Step Three - Propose Make proposals
State conditions
Express concerns
Search for common interests
And
Use positive body language<br>
State conditions
Express concerns
Search for common interests
And
Use positive body language<br>
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Step Four - Bargain Key words are IF and THEN
Start making concession:
Every concession should have a condition (IF you … THEN I will … )
Conserve your concessions - don’t give everything away too soon
You don’t have to share every piece of information with the opposing side!
Don’t be afraid to say no<br>
Start making concession:
Every concession should have a condition (IF you … THEN I will … )
Conserve your concessions - don’t give everything away too soon
You don’t have to share every piece of information with the opposing side!
Don’t be afraid to say no<br>
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Salary Negotiation: Best Practices Know what want-prioritize and logroll
Conduct research to understand your worth
how it compares
what you will do if don’t get what you want
Know with whom to negotiate and what can
be negotiated
Find the minimum, midpoint and maximum salary grades for the position
Think total compensation
Consider enlarging the shadow of the future<br>
Conduct research to understand your worth
how it compares
what you will do if don’t get what you want
Know with whom to negotiate and what can
be negotiated
Find the minimum, midpoint and maximum salary grades for the position
Think total compensation
Consider enlarging the shadow of the future<br>
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Salary Best Results What until you have an offer to negotiate
allow employer to initiate discussion
be prepared to discuss salary at any time
Preserve the relationship
no ultimatums; appear accommodating; be concerned with their interests
ask questions when encountering resistance
Consider long term effects of your plan
Practice
Watch for signals
Get offer in writing<br>
allow employer to initiate discussion
be prepared to discuss salary at any time
Preserve the relationship
no ultimatums; appear accommodating; be concerned with their interests
ask questions when encountering resistance
Consider long term effects of your plan
Practice
Watch for signals
Get offer in writing<br>
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Salary: Things to Avoid Personal needs or self-serving perks
Gamesmanship: one more thing or hard squeeze
Multi-company leveraging
Appearance of desperation
Lying, exaggeration or misleading
Quick decisions or countering too soon $$$<br>
Gamesmanship: one more thing or hard squeeze
Multi-company leveraging
Appearance of desperation
Lying, exaggeration or misleading
Quick decisions or countering too soon $$$<br>
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Tip #1 Negotiating is not Compromising It is joint problem solving
Our goal is to efficiently reach a satisfying agreement for both parties, and to conclude on a positive note.
Fisher and Ury define negotiations as “Back and forth communication to reach agreement where some interests are shared and some interests are opposed.
“Getting to Yes”<br>
Our goal is to efficiently reach a satisfying agreement for both parties, and to conclude on a positive note.
Fisher and Ury define negotiations as “Back and forth communication to reach agreement where some interests are shared and some interests are opposed.
“Getting to Yes”<br>
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Tip #2 People Skills Make the Difference What is your “preferred style” of communicating?
What is the “style” of the other person with whom you will be negotiating?
Are these styles compatible, or are they opposites?<br>
What is the “style” of the other person with whom you will be negotiating?
Are these styles compatible, or are they opposites?<br>
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Tip #2A: Listening is the most powerful negotiating skill It begins with effective communication…understanding your preferred method and learning the method of the other party.
Communicate with them in a way that will be most effective with their style
This helps to eliminate the possibility of misunderstanding, as we communicate in many ways<br>
Communicate with them in a way that will be most effective with their style
This helps to eliminate the possibility of misunderstanding, as we communicate in many ways<br>
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Listening is your most powerful negotiating tool But before you can listen, you have to be skilled at asking questions:
Three critical questioning skills
Know where your questions are going
Ask for permission to ask questions
State why you want to ask questions
Purpose-Process-Payoff<br>
Three critical questioning skills
Know where your questions are going
Ask for permission to ask questions
State why you want to ask questions
Purpose-Process-Payoff<br>
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Listening is your most powerful negotiating tool If that is the case, why are we such bad listeners?
We listen to reply, argue, rebut, make our point, or win.
We do not typically listen to understand.
As Covey said, “Seek first to understand, then be understood<br>
We listen to reply, argue, rebut, make our point, or win.
We do not typically listen to understand.
As Covey said, “Seek first to understand, then be understood<br>
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Tip #3: Have a game plan before beginning to negotiate Few people plan before beginning to negotiate
If you cannot walk away from the negotiation at any time, you will lose.
Knowing your options outside of the negotiation is a direct function of preparation.
Without a plan you risk agreeing to something worse than what you may have done on your own.<br>
If you cannot walk away from the negotiation at any time, you will lose.
Knowing your options outside of the negotiation is a direct function of preparation.
Without a plan you risk agreeing to something worse than what you may have done on your own.<br>
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Negotiation Check List 42<br>
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Summary Negotiators need to:
Set a clear target and resistance points
Understand and work to improve their BATNA
Start with good opening offer
Make appropriate concessions
Manage the commitment process<br>
Set a clear target and resistance points
Understand and work to improve their BATNA
Start with good opening offer
Make appropriate concessions
Manage the commitment process<br>