1. Seven Strategies for Better Negotiation & Better Results
Michael T. Colatrella, J.D., LL.M
Director
Center for Dispute Resolution & Conflict Management at Southern Methodist University
©2008

2. Common Negotiating Mistakes
Leaving value on the table: Failing to recognize value creating trade-offs
Settling for too little: Making unnecessary or inappropriately large concessions
Walking away from the table: Rejecting an offer better than their alternative
Settling for terms worse than their alternative: Accepting terms less favorable than alternative

3. The 7 Foundations of Effective Negotiating
Preparation
The Parties’ Interests
Identifying Your Goals
Leverage
Alternatives
Reciprocity
Manage the Pattern of Concessions

4. 1. PREPARATION
Preparation is the most important part of the negotiation process.
More than anything else it will determine your success as a negotiator.
Prepare! Prepare! Prepare!

5. Preparation: Your preparation should be:
Simple—so you can remember it
Specific—because it’s more likely to be attained
Flexible—to adapt to new information

6. Preparation Process
You prepare for a negotiation by considering each of the other foundations of effective negotiation.
You should view the first part of a negotiation meeting as a continuation of the preparation process.

7. 2. IDENTIFYING THE PARTIES’ INTERESTS
Interests define the negotiation:
Positions are what you want.
Interests are why you want it.
What are your interests?
What are the other party’s interests?

8. Identifying Interests: Qualities of Effective Negotiators:
They develop an ability to see the world from the other side’s perspective.
They ask twice as many questions as an average negotiator.

9. 3. IDENTIFYING YOUR GOALS
Set an optimistic, but justifiable, goals.
Be specific.
Carry a summary of your goals and expectations into the negotiation.

10. 4. LEVERAGE
“You can get much further with a kind word and a gun than you can with a kind word alone.”
--Attributed to American gangster Al Capone

11. Leverage Defined
Leverage is your power to reach an agreement on your terms.
Donald Trump says, “Leverage is having something the other guy wants. Or better yet needs. Or best of all, simply cannot do without.”

12. Types of Leverage
Positive Leverage: Having something the other side wants or needs.
Normative Leverage: Objective sources that legitimize your position. (precedent, market value, professional standards, expert opinion, etc.)
Negative Leverage: Having the power to take something away from the other side that they already posses.

13. 5. ALTERNATIVES IF NO DEAL IS REACHED
“Best Alternative to a Negotiated Agreement (BATNA)”
BATNA refers to how you will satisfy your needs if no deal is reached with this party.
“The better your BATNA, the greater your power.”
(*From the book “Getting To Yes” by Roger Fisher, William Ury and Bruce Patton)

14. Alternatives: Improve Them
Explore and invent as many alternatives as possible.
Improve them, if possible.
Consider what the other side’s BATNA may be.

15. 6. RULE OF RECIPROCITY
“I am obligated to give back to you the form of behavior you give to me.”

16. RECIPROCITY: You Can’t Beat Mother Nature
Reciprocity is found in every human society because those early human cultures that followed the “norm of reciprocity” obtained an enormous advantage.

17. Reciprocity: The Secret of its Success
When you operate under a system of reciprocity, you feel free to provide others with time, energy and resources because you don’t give it away.
Instead, you get it as credit.

18. Reciprocity: The Power of Obligation
You create an obligation
The obligated party will not just want to help, but will be waiting to help
The obligation lasts until fulfilled

19. 7. Managing the Pattern of Concessions
The “pattern of concessions” refers to the incremental, and often alternating, concessions parties make in some mediations to reach agreement
Parties often fail to reach agreement because they mismanage the concession-making process

20. Concessions are Communication
The nature of concessions says something about a party’s future ability and willingness to concede:
Magnitude of concessions
Timing of concessions

21. Three Rules to Remember in Managing Pattern of Concessions
Make opening offers that leave room for concessions.
Explain the reasons for concessions.
Reciprocate concessions.

22. Capitalizing on “No’s”
“If someone says “no” to you and you retreat from the situation you lose, but if you retreat in the situation you win.”
~Robert Cialdini, Ph.D
Influence