1. CHAPTER 4 Negotiation : Strategy and Planning

2. Overview of Chapter 4
Figure 4.1 Relationship between key steps in the planning process
Goals
Strategy
Planning

3. The Titles Goals—The Focus That Drives a Negotiation Strategy
Strategy—The Overall Plan to Achieve One’s Goals
Understanding the Flow of Negotiation：Stages and Phases
Getting Ready to Implement the Strategy: The Planning Process
Chapter Summary

4. 1. Goals: The Focus That Drives a Negotiation Strategy
Direct Effects of Goals on Choice of Strategy.
Four aspects of how goals affect negotiation are important to understand:
(1) Wishes are not goals, especially in negotiation.
(2) Goals are often linked to the other party’s goals.
(3) There are boundaries or limits to what goals can be.
(4) Effective goals must be concrete, specific, and measurable.

5. 2. Strategy—The Overall Plan to Achieve One’s Goals
Strategy versus Tactics
Unilateral versus Bilateral to Strategy
The Dual Concern Model as a Vehicle for Describing Negotiation Strategies.
Alternative Situation Strategies
The Nonengagement Strategy: Avoidance
Active-Engagement Strategies: Competition, Collaboration, and Accommodation

6. The Dual Concern Model Figure 4.2 Substantial outcome important? YesNo
Accommodation
Relational
Outcome
Important?
Yes
Collaboration No
Competition
Avoidance

7. 3. Understanding the Flow of Negotiation：Stages and Phases
Figure Phases of Negotiation
However, people frequently deviate from this model and that one can track differences in their practice according to his or her national culture.
Phase 1
Phase 2
Phase 3
Phase 4
Phase 5
Phase 6
Phase 7
Relationship
building
Information
gathering
Information
using
Closing
the deal
Implementating
The agreement
Preparation
Bidding

8. 杠杆原理

9. 4. Getting Ready to Implement the Strategy: The Planning Process -1
(1)Defining the Issues
(2)Assembling the Issues and Defining the Bargaining Mix
(3)Defining Interests
(4)Knowing Limits and Alternatives
(5)Setting Targets and Openings
(6)Assessing Constituents and the Social Context of the Negotiation
(7)Analyzing the Other Party
(8)Presenting Issues to the Other Party
(9)What protocol needs to Be Followed in The Negotiation.

10. 4. Getting Ready to Implement the Strategy: The Planning Process -2
Before we commencing this discussion, we want to note four things:
We assume that a single planning process can be followed for both an distributive and an integrative process.
There are several “structural ” factors surrounding a negotiation that may also affect the strategizing and planning process.
We assume that negotiations will be conducted primarily one to one.
Complete and up-to-date planning will require a certain degree of shuttling back and forth between steps.

11. 4.1 Defining the Issues -1
Figure 4.4 How Issues Affect the Choice between Distributive and Integrative Strategy
Increasing
Value to
Buyer A
Claiming Value C
Increasing
Value to
Seller
Creating Value B

12. 4.1 Defining the Issues -2
While the number of issues impact strategy, it does not preclude the possibility that single-issue negotiations can be made integrative, or that multiple-issue negotiations will remain distributive.
Single-issue negotiations can often be made integrative by increase the number of issues.
Similarly, in multiple-issue negotiations, the opportunity to create value may be lost in competitive dynamics.

13. 4.2 Assembling the Issues and Defining the Bargaining Mix
Large bargaining mixes allow many possible components and arrangements for settlement, thus increasing the likelihood that a particular package will meet both sides’ needs.
After assembling issues, the negotiator next must prioritize them. Prioritization includes two steps:
Determine which issues are most important and which are less important.
Determine whether the issues are linked together or separate.

14. 4.3 Define Interests
Although defining interests is more important to integrative negotiation than to distributive bargaining, even distributive discussions can benefit from one or both parties identifying the key interests.
Asking “why” questions usually bring critical values, needs, or principles that we want to achieve in the negotiation to the surface.
Interests may be Substantive, Process-based, or Relationship-based.

15. 4.4 Knowing Limits and Alternatives
Good preparation requires that you establish two clear points: your resistance point and your alternatives.
A resistance point is the place where you decide that you should absolutely stop the negotiation rather than continue because any solution beyond this point is minimally acceptable.
Alternatives define whether the current outcome is better than another possibility.

16. 4.5 Setting Targets and Openings
Target Setting Requires Positive Thinking about One’s Own Objectives.
Target Setting often Requires Considering How to Package Several Issues and Objectives .
Target Setting Requires an Understanding of Trade-offs and Throwaways.

17. 4.6 Assessing Constituents and the Social Context of the Negotiation
When people negotiate in a professional context, there maybe more than two parties.
When one has a constituent or observers, other issues arise, such as who conduct the negotiation, who can participate in the negotiation, and who has the ultimate power to ratify negotiated agreements.
One way to assess all the key parties in a negotiation is to completed a “field analysis”.

18. 4.7 Analyzing the Other Party
The Other party’s Resource, Issues, and Bargaining Mix
The Other party’s Interests and Needs
The Other party’s Targets and Openings
The Other party’s Constituents, Authority, and Social Structure
The Other party’s Reputation and Style
The Other party’s Strategy and Tactics

19. 4.8 Presenting Issues to the Other Party
One important aspect of negotiations is to present a case clearly and to provide ample supporting facts ad arguments; another is to refute the other party’s arguments with counterarguments.
Because of the breadth and diversity of issues that can be included in negotiations, it is not possible to specify all the procedures that can be used to assemble information. There are, however, some good general guides that can be used.

20. 4.9 What protocol needs to Be Followed in The Negotiation?
A negotiator should consider a number elements of protocol or process:
What agenda should we follow?
Where should we negotiate?
What is the time period of negotiation?
What might be done if negotiation fails?
How will we keep track of what is agreed to ?
How do we know whether we have a good agreement?

21. 5. Chapter Summary
Planning is critically important actively in negotiation. As we noted the outset, however, negotiators frequently fail to plan for a variety of reasons. Effective planning allows negotiators to design a road map that will guide them to agreement.
While this map may frequently need to be modified and updated as discussions with the other side proceed, working from the map is far more effective than attempting to work without it.

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