Download as pdf or txt
Download as pdf or txt
You are on page 1of 41

By Laetitia Corbiaux

EPHEC 2023
Our lives are filled with
negotiation
W I TH Y O U R FRIENDS AND RELATIVES

W I TH Y O U R WORKMATES AND TEACHERS

W I TH Y O U R PARTNER(S)
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)
it is a collection of behaviours th a t
involve communication, marketing,
psychological, assertiveness &
conflict resolution
N EG O T IATIO N FEATURES S

Min 2 people
Predetermined goals

Expected outcome

Resolution & consensus

Parties willing to modify their positions

Parties should understand the purpose of negotiation


To Buy or sell
products

Why
To reach an
do we
agreement
negotiate

To Solve a
problem
N E G O T I A T I O N SKILLS

N E G O T IAT IO N T Y P E S
Negotiation Types
individual gains Joint gains

sources are limited and sources are not limited, the


everyone wants to claim their ultimate goal to expand the pie,
share of the pie. so there is more for everyone.

view the other parties as view the other party as a


“the enemy” to be defeated. partner or a teammate.

Negotiation is seen as an
Negotiation’s aim is not to find
opportunity to be creative and
an alternative solution that
think outside of the box in
would benefit both parties,
order to make the pie bigger.
I think we all agree when I say
This type of resolution will help
that the integrative bargaining
building long-term relationships
is the right negotiation
and trust bet ween the parties.
behaviour to use
Negotiation strategy matrix

+ Outcome -
You Win You Lose
Relationship

They Win They Win

You Win You Lose


They Lose They Lose

-
Different Negociation strategies
based on Thomas Killman’s conflict matrix
Different Negociation strategies
How to create value? Case study
Collaboration versus compromise

+ Give higher value deals


- Takes more time

Necessary ingredients:
trust and good relationship à not always possible
N E G O T I A T I O N SKILLS

NEGOTIATION CYCLE
4 PRINCIPLES OF BEST PRACTICE NEGOTIATION
Understand the issues and the people and
Preparation: equipping the team for the process

Develop a strategy for maintaining the relationship


Relationship:
before, during and after negotiations

Build trust by applying an open communication


Communication:
style

Explore options and strategies for reaching an


Problem-solving:
agreement
T O P E F F E C T I V E N E G O T IATIO N S K I L L S
Problem analysis
Preparation

Active Listing
Emotional control

Verbal communication

Collaborative

Decision making
Interpersonall skills

Ethical Problem solving


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

N E G O T IAT IO N C O N C E P T S
3 Questions to prepare before entering to a negotiation
Why, How, whom
3 Questions to prepare before entering to a negotiation
Why, How, whom

Why are you asking?


3 Questions to prepare before entering to a negotiation
Why, How, Whom

Why are you asking?


How are you asking?
3 Questions to prepare before entering to a negotiation
Why, How, Whom

Why are you asking?


How are you asking? For whom are you
asking?
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

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.
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
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

You might also like