NegotiationTactics

Part 1- Essential elementsPart 4- Evaluating the outcome

Part 2- Get readyPart 3- Tactics

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Definition

2Part 1- Essential elements

* Negotiation is a process whereby interested parties resolve disputes, reach an agreement, bargain for individual or collective advantage, and/or attempt to craft outcome which serve their mutual interest,

2 essential types of negotiation

3Part 1- Essential elements

Bargainingor distributive negotiation

* competitive* win-lose situation* one winner* negative correlation of goals

Integrative negotiation * win-win situations* mutually acceptable* beneficial solution for both parties* two winners

Negotiation myths

4Part 1- Essential elements

* Good negotiators are born, not made* Experience is a great teacher* Good negotiators are risk-takers* Good negotiators rely on intuition

Participants?Issues?

5Part 2- Get ready

Distributive/Integrative?Our goals?

Walk away?Measure “success”?

Tactics?

* Who are the participants?* What is their background?* How well do we know each others?

* What are their main issues, concerns?* What problems are they trying to solve with negotiation?

6Part 2- Get ready

Walk away?Measure “success”?

Tactics?

* What kind of negotiation are you facing (see part 1 for definition)?* Can you move to an integrative negotiation?

* What is your initial offer or asking price?* Target point (TP)?* Alternative?

Participants?Issues?

Distributive orIntegrative?Our goals?

7Part 2- Get ready

Negotiation starting point, target and walkaway?

8Part 2- Get ready

Tactics?

* What is your walkway point?

* What is your Best Alternative To A Negotiated Agreement (BATNA)b

* What are your alternative "outside the box"? Can you reframe the negotiation goal?

* Have you agreed to a common definition of success?

Participants?Issues?

Distributive/Integrative?Our goals?

Walk away?Measure “success”?

Tactics?

9Part 2- Get ready

Participants?Issues?

Distributive/Integrative?Our goals?

Walk away?Measure “success”?

* Prepare your mental model* Interest-based approach to negotiation* Reframing* Know when to say "no"

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Prepare your mental model

10Part 3- Tactics

* Show respect and build trust.* “They” are not trying to skin you.* The relationship is the most important thing.* Approach negotiation as an opportunity to discover the other side's bottom line and demonstrate the fairness or competitiveness of your position.

Interest-based approach to negotiation

11Part 3- Tactics

Fundamental principles:

* Integrative negotiation* Separate the people from the problem* Focus on interest, not positions* Invent options for mutual gain* Insist on objective criteria

Reframing

12Part 3- Tactics

* Go back to the goals* Redefine the problematic issue* Present it with a different angle* Facilitate the « creation of value » and consensus-building* Reframe to claim value and win the battle of the public opinion

Reframe price around a price, cost and value triangle

Know when to say "no"

13Part 3- Tactics

* “No” is the key to success* Practice your “no!”* Control your emotions, show respect* Anticipate their response to your “no.”* Find out if and how they are testing you

Fair

14Part 4- Evaluating the outcome

Although fairness is very subjective, but we can compare our deal with other similar ones that we know about. Also consider special circumstances.

EfficientAll deals have not been rammed through too fast.

Wise

15Part 4- Evaluating the outcome

Implications of the agreement for other negotiations have taken into account. Also the implications of this agreement for other people.

StableIt means the commitment should ensure stability. It will be honoured and it will hold up over time.

16Dealing With Difficult Tactics in Negotiation

Source: Wiliam Ury youtube.com

17Do's and Don'ts of negotiation tactics 1/2

* Never assume that your demands are too high.

* Never say yes to the first offer or counteroffer from the other * side. * Never give a concession without getting one in return. * Do not start without a shopping list. * Don’t bargain until you get your opponent’s demands.* Do not let the other side know you have the authority to * make a decision.

18Do's and Don'ts of negotiation tactics 2/2

* Do not fall into the trap of thinkingthat splitting the difference is the fair thing to do.* Do not negotiate hastily. * Do not fail to reflect on your opponent’s position.* Do not negotiate when you are surprised. * Never honour unreasonable demands.* Avoid confrontational negotiation. * Do not negotiate when you are surprised. * Never honour unreasonable demands.* Avoid confrontational negotiation.

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* wikipedia.com

* Ailes, R. You Are the Message. New York. Doubleday, 1988.* Cialdini, R. B. Influence: The Psychology of Persuasion, Harper Collins, 2007* Cohen, Herb. You Can Negotiate Anything. Secaucus, N.J.: Lyle Stuart, 1980* Fisher, R. and William Ury. Getting to Yes. New York: Viking Penguin, Inc., 1981* Forsyth, P. The Negotiator's Pocketbook. London: Alresford Press Ltd., 1993* Karrass, Chester L. Give and Take. New York: Harper Collins, 1993* Karrass, Chester L. The Negotiating Game. New York: Harper Collins, 1992* Kozicki, Stephen. The Creative Negotiator. Pyrmont, Australia: Gower, 1993* Lewicki, Roy J., et.al. Negotiation. 2nd Edition., Irwin, 1994* Nierenberg, G. 1. The Art of Negotiating. New York: Barnes & Noble, 1995

* faculty.clayton.edu* xa.yimg.com* yunus.hacettepe.edu.tr/* vi.unctad.org

Sources and References 19

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Slide Transcripts 20

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