Negotiating

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Negotiating

• Information is Power So Get It!
• Set Appropriate Goals in any negotiation, first
  find sufficient information to determine your
  goal(s). Then design a strategy to accomplish it.
  
• How do you define success?
• Goal-setting tips
• a. set aggressive but realistic goals
• - how much is enough?
• b. create positive expectation of achievement
• - passionate, positive attitude makes a
  difference
• c. set concrete, specific goals

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Negotiating

• Which is more effective
• Do the best you can.
• vs.
• Get me 425,000 and a corner office
• d. Evaluate importance of relationship
• e. Commit yourself by writing down goals
• 2) Evaluate other sides goal(s)

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Negotiating

• Get Critical Information The more you learn
  about what both sides have and will agree to, the
  better youll do.
• What information for both sides do you want?
• Substantive Information
• Related facts, issues opinions
• Fundamental interests underlying positions
• Options that might satisfy interests
• Strategic Information
• Willingness to agree/disagree
• Negotiation styles/strategies Know thyself and
  thy counterpart(s).

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Negotiating

• Information - How to get it?
• Write down information needs
• Psychological Tendency The Liking Principle
• Research Were more likely to say yes and share
  info with those we like!
• Ask lost of questions
• Research effective negotiators ask at least 2.5x
  questions than others.
• 1) Use Funnel Approach use open-ended
  questions (leading) tell me about..
• 2) Ask WHY! focus on interests, not positions
• 3) Use the Power of Silence

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Negotiating

• Information - How to get it? Contd
• Answering
• Decide information to disclose
• Decide information NOT to disclose
• Do this before you begin discussions! And revisit
  before every meeting!

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Negotiating

• Maximize Your Leverage
• Determine Level of Needs (both sides) How much
  do you and they- want it?
• Do the BATNA (both/all sides)
• Best Alternative To a Negotiated Agreement
• Why?
• Tells you when to walk prevents you from making
  an agreement you should reject.
• Tells you when to sign accept agreement only if
  its better than your best likely alternative

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Negotiating

• Maximize.contd
• How?
• Invent.alternatives to take if you dont/cant
  reach agreement.
• Convertbetter alternatives into practical
  possibilities
• Select..the best and measure other offers
  against it.

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Negotiating

• Employ Fair Objective Criteria
• Issue What is a fair and reasonable basis for
  resolving the issues?
• Find objective criteria and standards based on
  principle, not pressure
• Fair independent standards
• Market value
• Precedent
• Scientific judgment expertise
• Professional
• Efficiency
• Costs
• Tradition

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Negotiating

• Employ Fair Objective Criteria
• Issue What is a fair and reasonable basis for
  resolving the issues?
• Find objective criteria and standards based on
  principle, not pressure
• Fair independent procedures
• One cut, other choose
• Take turns/draw lots/flip a coin
• Use a third party arbitration/mediation
  (nonbinding)

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Negotiating

• Prepare to negotiate over fair objective
  criteria
• Psychological Tendency The Consistency
  Principal
• Research People have a nearly obsessive desire
  to be and appear to be- consistent (tip - use
  the expert the other side has previously used!)

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Negotiating

• Design an Offer/Concession Strategy
• Issue What to do regarding timing, speed and
  size of offers/concessions?
• Recognize concession dynamics
• General concession patterns
• Start big and far apart
• End small and quick -
• Center movers go 2nd, let other side go first
• Center Moving Dynamic - be careful not to fall
  into the trap set by efficiency goal.

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Negotiating

• HRESSC - High Realistic Expectation and
• Small Systematic Concessions
• Analyze First Offer Issues
• Advantages to making first offer
• Sets the focal point
• Elicit genuine reaction from the other party
• Set mandate/range for concessions

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Negotiating

• Analyze First Offer Issues
• Disadvantages to making first offer
• Lack information to opportunity set it
• Other side gains important info from your
  reaction
• You are more likely to make first concession and
  thus do worse
• Make Convincing offers and concessions
• Be specific and promote air of finality
• Justify with standards
• Sometimes point out consequences no ranges

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Negotiating

• Pre-Plan concession/flexibility strategy
• Evaluate flexibility and agency issues
• Agents concede less per unit time
• Psychological Tendency
• The Reciprocity Rule
• Research we try to repay in kind what
  others provide to us.
• Justify with standards
• Sometimes point out consequences no ranges

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Negotiating

• Control the Agenda Substantive
  Timing/Deadlines
• Issues If and when and how subject matters get
  addressed affects your results
• Techniques to Set the Agenda prioritize which
  issues to address and when
• Use the Power of the Pen
• Prepare a written agenda and hand out
• Use whiteboard/blackboard/flip chart
• Use questioning techniques to keep on track
• If necessary negotiate over agenda

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Negotiating

• Recognize Deadlines Dynamics
• Competitive/tense and increasingly fast
  concessions as near end
• Apply the 3 Ps Principle
• Perception of Patience Pays
• Apply The DEF Principle
• Deadlines Evaluate Flexibility

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Negotiating

• Use a situation specific approach (generally,
  two different negotiation strategies)
• a) Competitive Negotiations strategies and
  tactics to undermine the other negotiators
  confidence in his/her bargaining position and
  strength his/her perception of your position
• Examples of Competitive Strategies
• 1. highly reluctant to share information and
  directly challenges other sides positions.
• 2. relatively open conflict on leverage issues
• 3. minimal reliance on independent standards
  and procedures
• 4. extreme initial offer/demand and highly
  reluctant moves
• 5. overt and biased agenda control tactics

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Negotiating

• Ten Common competitive negotiation games
• 1. power in numbers
• 2. First/Firm/Fair/Final Take it/Leave it
• 3. limited authority
• 4. overt anger
• 5. seemingly irrational
• 6. context manipulation (time/location/setting
  home court)
• 7. threats and warnings
• 8. flattery
• 9. good/bad cop
• 10. the nibbler

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Negotiating

• b) Problem-Solving (PS) Strategies strategies
  focused on building trust, relationships and
  relatively open communications that enable
  parties to jointly work to find mutual solutions
  to problems
• 1. Examples of PS strategies
• - actions and atmosphere confirm trust and
  valued relationship, and relatively openly
  share information
• - leveraged downplayed but still there
• - overt reliance on objective criteria
• - reasonable offered and principled
  concessions
• - mutually agreeable agenda and agenda control
  tactics

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Negotiating

• c) Factors Affecting Negotiation Strategy -
  Value of future relationship
• The more you see potential interests satisfied
  with a future relationship, the more likely you
  should use a PS approach.
• - Number of interests and issues
• As the number of interests and issues
  increases, so does the likely success of a PS
  approach
• - Creative option-generation/non-zero-sum
  potential
• - Will they problem solve?

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Negotiating

• 2. It Takes Two to Tango
• Issue What if you want to problem solve, but
  the other side engages in competitive tactics?
• - cant problem solve alone youll
  potentially get taken
• How to get Past No
• Dont React go to the balcony
• Prevent action/reaction emotional escalation
• Refocus on your fundamental interests
• Separate people and problem

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Negotiating

• Dont Argue Step to their side
• Defuse their negative emotions (defensiveness,
  fear, suspicion, hostility)
• How?
• Listen respectfully
• Acknowledge legitimacy of points and feelings
  without agreeing
• Dont Reject Reframe
• Reframe their position as an attempt t problem
  solve. Ask why?
• Dont Push Build a golden bridge
• Bridge the gap between their interests and a
  mutually beneficial solution
• Show how its in their interests to agree to.

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Negotiating

• Dont Escalate Use power to educate
• Dont use threats and coercion educate them to
  consequences of their approach
• Focus on process and objective criteria
• Top Ten Impasse-Breaking Strategies
• 1. get more info data gathering and sharing
• 2. switch objective criteria
• 3. brainstorm options
• 4. set deadlines
• 5. temporarily switch issues
• 6. take a break
• 7. prioritize needs and interests
• 8. move up the chain speak with their
  decision-makers
• 9. list potential gains/losses
• 10. bring in third party (mediator,
  arbitrator..)
• If Nothing works, engage in competitive
  strategies