1. McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

2. CHAPTER TWENTY Best Practices in Negotiations

3. Born Negotiators? Not necessarily. People can learn how to negotiate through analyzing and communicating

4. Ten Best Practices for Negotiators Table 20.1 p. 555 (Summary) 1.Be prepared p. 555 — Understand and articulate your goals and interests — Set high but achievable aspirations for negotiation 2.Diagnose the fundamental structure of the negotiation p. 556 — Make conscious decisions about the nature of the negotiation: is it a distributive or integrative negotiation or blend of the two — Choose strategies and tactics accordingly 20-4

5. Ten Best Practices for Negotiators 3. Identify and work the BATNA p. 557 — Be vigilant about the BATNA — Be aware of the other negotiator’s BATNA 4. Be willing to walk away p. 558 — Strong negotiators are willing to walk away when no agreement is better than a poor agreement — Have a clear walkaway point in mind where you will halt the negotiation 20-5

6. Ten Best Practices for Negotiators 5. Master the key paradoxes of negotiation p. 558 — Claiming value versus creating value - integrative skills used in creating value - distributive skills are used in claiming value — Sticking by your principles versus being resilient to the flow 20-6

7. Ten Best Practices for Negotiators 5. Master the key paradoxes of negotiation (cont’d) Sticking with the strategy versus opportunistic pursuit of new options — Facing the dilemma of honesty: honest and open versus closed and opaque — Facing the dilemma of trust: trust versus distrust – Negotiators that do not believe anything the other party has to say will have a hard time coming to an agreement.

8. Ten Best Practices for Negotiators 6.Remember the intangibles p. 560 — “See what is not there” — Ask questions — Take an observer or listener with you to the negotiation - Get the other party to relinquish why they are sticking strongly to a point. 7.Actively manage coalitions p. 562 — Coalitions against you — Coalitions that support you — Undefined coalitions that may materialize for or against you 20-8

9. Ten Best Practices for Negotiators 8.Savor and protect your reputation p. 562 — Start negotiation with a positive reputation — Shape your reputation by acting in a consistent and fair manner 9.Remember that rationality and fairness are relative p. 563 — Question your perceptions of fairness and ground them in clear principles — Find external benchmarks of fair outcomes — Engage in dialogue to reach consensus on fairness 20-9

10. Ten Best Practices for Negotiators 10. Continue to learn from your experience p. 563 — Practice the art and science of negotiation — Analyze each negotiation – debrief after each negotiations Plan a personal reflection time after each negotiation Periodically take a lesson from a trainer or a coach Keep a personal diary on strengths and weaknesses and develop a plan to work on weaknesses 20-10