1. Negotiation
Chapter 12
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2. Negotiation is…
…two or more people or organisations who have conflicting interests but also interests in common, discussing ways and means of resolving the conflicts, issues or transactions.
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3. Negotiation is… not a matter of winning over another
a matter of reaching the best possible settlement for each party under the circumstances.
(Gerard Nierenberg, 1968)
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4. Negotiation styles Distributive Integrative Mixed motive Accommodation
Withdrawal
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5. Skills for good negotiation
Focus on interests, not positions.
Weigh up bargaining styles.
Expand the pie.
Use principles negotiations.
Separate people from the problem.
Invent options for mutual gain.
Use objective criteria.
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6. The four stages of negotiation
Stage 1. Preparation
Stage 2. Discussion
Stage 3. Proposals and bargaining
Stage 4. Closing the deal
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7. Preparation questions
What do you want/need?
What are you willing to give up?
What is your timetable?
What is your BATNA?
What are your sources of power?
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8. What is BATNA? To a Negotiated Agreement – not your bottom line
This is your Best Alternative
To a Negotiated Agreement – not your bottom line
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9. Sources of power Persistence Competition Expertise and information
Position or legitimacy
Sanctions
Referent
Relationships
Attitude
Time
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10. Discussion Open up discussion.
Find out what the other party wants/needs.
Be positive and assertive.
Use a range of questions.
Listen for point of leverage.
Identify points of conflict or difference.
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11. Proposals and bargaining
Make and receive offers.
Adjust offers.
Use if…then questions.
Never interrupt or instantly reject.
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12. Closing the deal Agree on what has been settled.
Make minor concessions.
Split the difference if close.
Get it in writing if possible.
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13. Negotiating strategies
Salami (slice by slice)
Fait accompli (in French, something that is already done)
Standard practice
Deadlines
Apparent withdrawal
‘Good guy’/‘bad guy’
Limited authority
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14. Communication Do not cast blame.
Always state the problem before refusal.
Listen as much as you talk.
Listen to gather information.
Work out the future – don’t dwell on the past.
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15. Dealing with emotions
‘Anyone can be angry. That is easy, but to become angry with the right person, to the right degree, at the right time, for the right reason, in the right way – that is not easy.’
Aristotle
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16. Dealing with anger Take a break. Get some distance.
Change the environment.
Think about what triggered their negative emotions and yours.
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17. Skills to restore positive feelings in the other party
Express appreciation.
Build affiliation.
Give them more control.
Acknowledge their status.
Enhance their role.
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18. Skills to restore positive feelings in yourself
Appreciation
Affiliation
Autonomy
Status
Role
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