By Laetitia Corbiaux

EPHEC 2023
 What is negotiation

It’s the process of conferring toarrive at an Agreement between

different parties, each with their own Interest(s).

A give & take decision making process involving 2 or more persons

with different preference(s)
 To Buy or sell
products

Why
To reach an
do we
agreement
negotiate

To Solve a
problem
Different Negociation strategies
based on Thomas Killman’s conflict matrix
Core concepts that you must have in mind
Core concepts that you must have in mind

Main Variable(s) & Cookies

What is the most important for you in

your nego?

What are the secondaryelements–still

important but lessvital…
Core concepts that you must have in mind

Aspiration Point & Reservation Point

YourHigh Hypothesis,Yourbestcase
scenario

Your Low Hypothesis,

Your worst case scenario
Core concepts that you must have in mind

Aspiration Point
Best case scenario

Zone Of PossibleAgreement

Reservation Point
Worst case scenario
 Core concepts that you must have in mind

Zone O f Possible Agreement

SELLER BUYER
WA LKAW AY WA LKAW AY

BUYER S E T T L E ME NT RA NGE ZO PA SELLER S E T T L E ME NT RA NGE

0 700 0
4500 5000
Core concepts that you must have in mind

B est A lternative T o Negotiated Agreement

The value of knowing your BATNA is that:

1.It provides an alternative if negotiations fall through.

2.It provides negotiating power.

3.It determines your reservation point (the worst price you are
willing to accept).
Core concepts that you must have in mind

B est A lternative T o Negotiated Agreement

BATNAtells you when to accept and

when to reject an agreement

When a proposal is better than your

BATNA…….accept it

When a proposal is worse than your

BATNA…….reject it
2 Types of BATNAs

B est A lternative T o Negotiated Agreement

BATNAtells you when

Positive to accept and
and negative
BATNAs
when to reject an agreement

When
Use it toa proposal
relaunch is better
negotiation whenthan your
you’ve
reached a dead-end.
BATNA……. Useaccept
it like a it
last chance.

When
Use it toaput
proposal
pressure is worse
and thanwhat’s
emphasize yourat
stake. If youBA
use it, negoreject
TNA……. is ended.Use
it wisely.
 Example:
Colin needs a car and is negotiating with Tom to purchase his car. Tom offers to sell his car to
Colin for €10,000.
Colin looks on the internet and finds a similar car at the value of €7,500.
Colin’s BATNA is €7,500.
à if Tom does not offer a price lower than €7,500, Colin will consider his best alternative to a
negotiated agreement. Colin is willing to pay up to €7,500 for the car but would ideally want to
pay €5,000 only (Tom’s AP)
à if Tom demands a price higher than €7,500, Colin will buy the car elsewhere.
In the example, we are not provided with Tom’s BATNA.

à If we assume that Tom can sell his car to someone else for €8,000, then €8,000 is Tom’s
BATNA. In such a scenario, an agreement will not be made, as Tom is only willing to sell for a
minimum of €8,000, while Colin is only willing to purchase at a maximum of €7,500.
à If Tom’s best alternative to the deal is selling the car to a dealership, which would offer him
€6,000, then both parties can come to an agreement because Tom’s reservation point would be
€6,000.
 How to make a negociation strategy?
Follow this step-by-step approach:
1.Define your main variable.
2.Find as many cookies as possible.
3.Rank them by order of importance.
4.Identify your ‘sacred cows’
5.Place your variables in AP and RP, define and quantify your ZOPA. Think of
possible BATNA’s, at least a positive and a negative one.
6.Gather info on the other party and make a discovery strategy.
7.Engage into some preliminary discussions.
8.Finetune your strategy.
9.Start negotiating.
 Know yourself & who
you represent
Define your interest &
outcome set realistic
expectations
rese arch
Doyour

Decide your
walkway
Try to predict
the ZOPA
Know your &
their BATNA
N E G O T I A T I O N SKILLS

NEGOTIATION STYLES AND BEHAVIOURS

 N E G O T I A T I O N SKILLS

NEGOTIATION BEHAVIOURS
HARD: Hard bargaining is adversial.
(Controlling) Opponent = enemy => only way to win is ihe (she) loses.
Bargaining in a very aggressive, competitive way.

SOFT: Relationship with your opponent is so important =>

(Giving in) concede much more easily than you should.
You get taken advantage of in your effort to please =>
while agreement is reached easily, it is seldom a wise one.

Principled: P²O².
 N E G O T I A T I O N SKILLS

EFFECTIVE NEGOTIATIONS P²O²

PEOPLE: Separate the People from the Problem

POSITIONS: Focus on Interests not Positions

OPTIONS: Generate Options for Mutual Gain before Choosing

OBJECTIVE CRITERIA: Decide based on Objective Criteria

BATNA: Know Theirs. Know & Improve Yours.

Gavain kennedy describes 3 behaviours that we can display and
encounter in a negotiation

M A N I P U L AT I N G WIN WIN APPROACH GOOD INTENTIONS

AGGRESSION CO- OPER AT I O N 2 WAY E X C H A N G E

I N T I M I D AT I O N TRUSTI NG GIVE ME SOME (RED)

EXPLOI TAT I ON PA C I FYI N G I WI LLL GIVE YOU SOME (BLUE)

DEMEANING RELAT I O N A L TIT FOR TAT STRATEGIES

A LWAYS SEEKI NG THE BEST GIVING C O N C E N T R AT I N G O N PROFITS
FOR SELF

PURPLE BEH AVI OUR I NCI TES

N O C O N C E R N FOR PERSON
PURPLE BEH AVI OUR
N E G O T I AT I N G WI T H
N E G O T I A T I O N SKILLS

T H E F I V E N EG O TIATIO N S T Y L E S
N E G O T I A T I O N SKILLS

T H E F I V E N EG O TIATIO N S T Y L E S
A Nego Strategy is made of 2 elements

1. A discovery strategy
2. An actual strategy: AP, RP, ZOPA, BATNA’s
Discovery strategy

A. List open questions

B. Rank them in categories
C. Go from the most general to the most specific ones (funnel technique)

Purpose ? Be ready for the discovery phase

Discovery strategy
Actual strategy

Purpose -> to have a plan

The original plan can be finetuned, or even completely changed,

after the first conversation (discovery phase)
 Actual Strategy - Where do I start?

1) Determine your main variable

2) List all your cookies.
3) Establish both Reservation and Aspiration Points, on basis of the info you have
gathered for your main variable and your cookies.
4) Establish your BATNA’s - based on what you know so far.
5) Determine the other party’s ZOPA if you can.
6) If you have enough information, establish what your first move would be. -> What
first offer would you make?
FOR NEXT WEEK
- Start studying your vocabulary

- E-learnings « Establish your position » & « Setting conditions »

Evaluation

40% JOB SEARCH 60% NEGOTIATION

 Evaluation
General MES

20% permanent quotation No permanent quotation

every lesson is a little exam
80% exam
20% written exam 20% written exam
60% oral exam* 80% oral exam*

Each week: preparation for the next lesson

*Admission to the oral exam is conditional: *Admission to the oral exam

>50% permanent quotation (incl.presence) is conditional:
AND >50% written exam
>50% written exam
TP 1 – Nov 16th

1. The Silent Negociation Exercise

In pairs, in silence

You are given €1000 that you will get only if you agree on the way to split it
A has a pencil + paper -> writes the amount they are ready to accept IN SILENCE
ONLY ONE GO
If B says ‘yes’, you both get the money you agreed on
If B says ‘no’, no money for anybody

à Share the outcome

2. The football game

TP2 – Nov 24th