Negotiation

1
Negotiation

• Getting to Yes
• Fisher and Ury

2
When to Negotiate

• Sole source situation
• Sellers market
• Specification not complete
• Competitive bidding not appropriate
• New products

3
Preparation

• Know the item or service
• Know the sellers bargaining strength
• Know the buyers bargaining strength
• cost or price analysis
• Know the seller

4
Aspects to Negotiate

• Price
• Quality
• Support
• Supply
• Transportation
• Duration

5
Negotiation

• Negotiation is a back and forth communication
  designed to reach an agreement.
• Soft
• Hard
• Principled
• decide issues on their merits rather than through
  haggling

6
Criteria

• Produce a wise agreement
• Efficient
• Dont damage the relationship

7
Problems with Positions

• Ego
• Stalling
• Endanger relationship
• Hard game always dominates a soft one

8
New Focus

• People
• Interests
• Options
• Criteria

9
Three Stages of Negotiation

• Analysis
• Planning
• Discussion

10
People

• Separate the people from the problem
• Dont degenerate into blaming, anger etc.
• People problems are
• Perceptions
• Emotion
• Communication

11
Perception

• Put yourself in their shoes
• Dont blame them for your problem
• Face saving

12
Emotion

• People often feel threatened
• Allow the other side to let off steam
• Dont react to emotional outbursts

13
Communication

• Negotiators often not talking to each other
• Listen actively
• Build a working relationship
• You are on the same team
• face the problem - not the people

14
Focus on Interests

• Not positions
• There are usually several ways to satisfy an
  interest
• Behind opposing positions lie shared and
  compatible interests as well as conflicting ones.

15
Interest Identification

• Ask why?
• Ask why not?
• Multiple interests
• You must communicate your own interests
• Look forward, not back

16
Invent Options for Mutual Gain

• Watch out for
• premature judgement
• searching for a single answer
• The assumption of a fixed pie
• thinking that solving their problem is their
  problem

17
Prescription

• Brainstorming
• Broaden your options
• Look for mutual gain
• Make their decision easy
• Give them an answer, not a problem

18
Objective Criteria

• Horse trading may miss the point entirely
• Market value
• Precedent
• What a court would decide
• Reciprocity

19
Review Session

• 700 Sunday
• Room 118 Epply
• Bring your questions

20
Negotiator Behavior

• Willing to compromise
• View issues independently
• Explore twice as many options per issue
• Make comments about common ground
• Make less irritating comments
• Give fewer reasons for arguments advanced
• Congratulate counterpart on job well done

21
Tactics

• Low Ball
• Honesty/Openness
• Price Increase
• High Ball
• Best and Final Offer
• Silence
• Use of Power