Negotiation Preparation

1
NegotiationPreparation Planning

• MGT 5374 Negotiation Conflict Management
• Section 002
• September 29, 2005 (Part 1)
• John D. Blair, PhD
• Georgie G. William B. Snyder Professor in
  Management

2
Why Plan?

• Critical to successful negotiations
• Provides the ability to set the tone and
  direction of the negotiation
• Individuals with higher levels of planning
  inclinations will have more successful
  negotiation outcomes than those who are less
  preparation-inclined.

3
Information Needs

• Negotiators should know
• Other parties needs interests
• Available resources of the other party
• Reputation and styles of the other parties
• Ability and authority of other party to make
  agreements
• Strategies tactics the other party might
  utilize
• Understanding of when the other party might walk
  away from the negotiations

4
Negotiation Game Plan

• Important to be prepared for any situation
  competitive or cooperative

Steps to Prepare for Negotiation
Organize Thoughts
Identify Ideal Outcomes
Develop Contingencies BATNA
5
Negotiation Game Plan continued

• Identify communication elements
• Tone for negotiation (e.g. apologetic,
  determined, concerned)
• Frames for describing positions (e.g. metaphors,
  analogies)
• Body language to maximize effectiveness
• Claims, data, objective criteria
• Questions
• Persuasion strategies
• Methods to ensure commitments

6
Intelligence Gathering

• Skilled negotiator gathers intelligence
• Interests mutual divergent
• Concerns mutual divergent
• Emotional issues
• Primary claims
• Evidentiary support strengths weaknesses
• Potential avenues around resistance
• Style compatibility considerations

7
ICE Model Three Key Perspective-Shaping Factors

• Before beginning any negotiation, the three key
  perspective-shaping factors (interests, concerns
  emotions) must be assessed not assumed!

Concerns
Interests
Emotions
8
Identifying Interests

• Skilled negotiators must elicit information
  regarding the others interests both mutual and
  divergent
• Utilize self-disclosure to encourage openness
• Share a story of a previous negotiation
• Place interests in continuum from
  mutual-to-divergent
• When interests are mutual, cooperative or
  integrative negotiation is likely
• When interests are divergent, antagonistic,
  distributive forms of negotiation emerge

9
Identifying Concerns

• All parties have concerns or worries
• Failure to address or identify concerns may
  hinder successful negotiations

10
Identifying Emotions

• Individuals may become emotionally involved with
  issues or positions
• Emotions may be as important as rational or
  cognitive arguments
• If emotions are ignored, negotiations may fail

11
Identifying Primary Claims

• Defined Statements about interests that each
  negotiator is likely to make
• Argument development
• Claim outcome or position for which youre
  arguing
• Data evidence or reasoning supporting the claim
• Warrant general statement that indicates why
  the data are supportive of the claim
• Dissect reasoning to identify potential
  weaknesses and develop stronger arguments
• Lead with the strongest claims and ones that the
  other party may care about or are likely to
  believe

12
Argument Claim Development

• Toulmins Model
• Issue ___________

Therefore
Data
Claim
Since
Warrant
Because
Backing
13
Using a Logical Vocabulary

• Proposition True or false statement within an
  argument but not alone
• Premise Proposition used as evidence in an
  argument
• Conclusion Proposition used as a thesis in an
  argument
• Argument A group of propositions from which one
  follows from another
• Induction Process through which premises
  provide some basis for the conclusion
• Deduction Process through which premises
  provide conclusive proof for the conclusion

14
Listen for Indicators

• Argument indicators should, must, ought,
  necessarily
• Premise indicators since, because, for, as, in
  as much as, for the reason that, first
• Conclusion indicators therefore, hence, thus,
  so, consequently, it follows that, one may infer,
  one may conclude

15
Prepare Anticipate Counterclaims

• Anticipate the possible ways in which your
  counterpart might respond
• Seek to understand
• Acknowledge counterclaim
• Assess counterclaim to gain better understanding
  of their position
• Respond utilize other forms of substantive
  evidence or data
• Confirm agreement that youve addressed their
  counterclaim

16
Identify Fallacies

• Fallacies of relevance occur when premises are
  irrelevant to the conclusion
• Fallacies of ambiguity occur when ambiguous,
  changeable wording in propositions lead to more
  than one meaning in an argument

17
Utilize Mind Maps

• Brainstorm possible outcomes areas of
  disagreement
• Think beyond simplistic outcomes
• Visualize and rehearse the many possible outcomes
  at various negotiation choice points

18
Contriving Choice Points

• Skilled negotiators plan ways to increase the
  likelihood of obtaining the desired outcomes
• Manage assumptions
• Utilize persuasive communication to steer
  dialogue to achieve objectives

19
Negotiating Styles

• Every individual will have a negotiating or
  communication style
• Identify and understand your primary style
• Identify the style of your counterpart
• Utilize style flexing or stretching to be more
  similar to your counterpart
• Negotiations will be more successful when styles
  match rather than conflict

20
Whats Your Style?
Employ soft tactics
MOTIVATOR
MEDIATOR
ANALYZER
ACHIEVER
Employ hard tactics
21
Mediator

• Focuses on rapport
• Favors consensus
• Listens intently
• Seeks mutual gain
• More likely to utilize soft tactics

22
Motivator

• Focuses on creativity
• Uses analogies
• Fosters collaboration
• Encourages imagination
• More likely to utilize soft tactics

23
Analyzer

• Focuses on logic
• Makes rational arguments
• Relies on data
• Prioritizes outcomes
• More likely to utilize hard tactics

24
Achiever

• Focuses on outcomes
• Desires control
• Adheres to plans
• Seeks compliance
• More likely to utilize hard tactics

25
Soft Hard Tactics

• Soft Tactics
• Emphasize friendliness
• Create personal liking
• Build sense of obligation reciprocity
• Involve indirect approaches to persuasion

• Hard Tactics
• Engage in threats
• Make demands
• Impose sanctions

26
Style Flexing or Stretching
MEDIATOR
MOTIVATOR

• Focuses on joint, overarching goals
• Seeks mutual understanding
• Persuades with vision not dry data
• Uses agendas as guidelines rather than
  restrictions

• Cares about mutual gain
• What others might derive
• Encourages listening sharing opinions
• Doesnt hurry

ANALYZER
ACHIEVER

• Presents data or information
• Willing to use time to develop understanding
• Persuades rather than demands or insists
• Likely to propose and reason through an agenda

• Utilize words that suggest urgency
• More direct
• Uncomfortable with chit-chat
• Assertive in identifying key issues
• Exact in the proposal of an agenda

27
Goals The Focus That Drives Negotiation Strategy

• Determining goals is the first step in the
  negotiation process
• Negotiators should specify goals and objectives
  clearly
• The goals set have direct and indirect effects on
  the negotiators strategy

28
The Direct and Indirect Effects of Goals on
Strategy

• Direct effects
• Wishes are not goals
• Goals are often linked to the other partys goals
• There are limits to what goals can be
• Effective goals must be concrete/specific
• Indirect effects
• Forging an ongoing relationship

29
Strategy versus Tactics

• Strategy The overall plan to achieve ones goals
  in a negotiation
• Tactics Short-term, adaptive moves designed to
  enact or pursue broad strategies
• Tactics are subordinate to strategy
• Tactics are driven by strategy
• Planning The action component of the strategy
  process i.e. how will I implement the strategy?

30
Approaches to Strategy

• Unilateral One that is made without active
  involvement of the other party
• Bilateral One that considers the impact of the
  others strategy on ones own

31
Strategic Options

• Per Dual Concerns Model, choice of strategy is
  reflected in the answers to two questions
• How much concern do I have in achieving my
  desired outcomes at stake in the negotiation?
• How much concern do I have for the current and
  future quality of the relationship with the other
  party?

32
The Dual Concerns Model
Subordination
Avoidance Dont negotiate Competition I gain,
ignore relationship Collaboration I gain, you
gain, enhance relationship Accommodation I let
you win, enhance relationship
Subordination
33
The Nonengagement Strategy Avoidance

• If one is able to meet ones needs without
  negotiating at all, it may make sense to use an
  avoidance strategy
• It simply may not be worth the time and effort to
  negotiate
• The decision to negotiate is closely related to
  the desirability of available alternatives

34
Active-Engagement Strategies

• Competition distributive, win-lose bargaining
• Collaboration integrative, win-win negotiation
• Subordination involves an imbalance of outcomes
  (I lose, you win)

35
Understanding the Flow of Negotiations Stages
and Phases

• How does the interaction between parties change
  over time?
• How do the interaction structures relate to
  inputs and outcomes over time?
• How do the tactics affect the development of the
  negotiation?

36
Understanding the Flow of Negotiations Stages
and Phases

• Negotiation proceeds through distinct phases or
  stages
• Beginning phase (initiation)
• Middle phase (problem solving)
• Ending phase (resolution)

37
Key Steps to anIdeal Negotiation Process

• Preparation
• What are the goals?
• How will I work with the other party?
• Relationship building
• Understanding differences and similarities
• Building commitment toward a mutually beneficial
  set of outcomes
• Information gathering
• Learn what you need to know about the issues

38
Key Steps to an Ideal Negotiation Process
39
Key Steps to anIdeal Negotiation Process

• Information using
• Assemble your case
• Bidding
• Each party states their opening offer
• Each party engages in give and take
• Closing the deal
• Build commitment
• Implementing the agreement

40
Getting Ready to Implement the Strategy The
Planning Process

• Define the issues
• Assemble the issues and define the bargaining mix
• The bargaining mix is the combined list of issues
• Define your interests
• Why you want what you want

41
Getting Ready to Implement the Strategy The
Planning Process

• Know your limits and alternatives
• Set your objectives (targets) and opening bids
  (where to start)
• Target is the outcome realistically expected
• Opening is the best that can be achieved
• Assess constituents and the social context of the
  negotiation

42
The Social Context of Negotiation Field
Analysis
43
Getting Ready to Implement the Strategy The
Planning Process

• Analyze the other party
• Why do they want what they want?
• How can I present my case clearly and refute the
  other partys arguments?
• Present the issues to the other party

44
Getting Ready to Implement the Strategy The
Planning Process

• Define the protocol to be followed in the
  negotiation
• Where and when will the negotiation occur?
• Who will be there?
• What is the agenda?

45
Summary on the Planning Process

• ...planning is the most important activity in
  negotiation.