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Negotiation Planning and Preparation
Negotiation Planning and Preparation
Some
• Peterkey points
Drucker to remember
wrote while planning
– “ errant assumptions lie at the root of
(source:
Tracy)
every failure”
• In correct assumptions are one of the main reasons for
1. Options means freedom
disagreement and misunderstandings in a nego.
• Before
2. you begindevelop
Continually nego askmore
– “What are my assumptions”. “What
options
are the obvious assumptions”
3. Learn
• Also try toeverything
guess whatyou
theycan
are assuming about you
4. Make a few phone calls
5. Question Assumptions
6. Test Assumptions
7. Identify the main issues
Why Bother “Preparation” contd…
Options
•1. Think means
and plan how freedom
you want to clarify your assumptions.
•2.Clarify from yourdevelop
Continually side too more options
• Asking for evidences often work – but be strategic
3. Learn everything you can
4. Make a few phone calls
5. Question Assumptions
6. Test Assumptions
7. Identify the main issues
Why Bother “Preparation” contd…
Shocking fact is -
people enter into negotiation without a very
well articulated & clear idea of what they
want out of the negotiation
They make up their goals, get influenced,
often get manipulated by the other party as
they go along
So the first step in developing & executing a
negotiation strategy is to determine one’s goal.
Goals……………….
Negotiators must
anticipate what goals they want to achieve in a negotiation
Yes No
▪ Avoidance
Dual Concern Model ………….
Drawbacks will arise if these strategies are used blindly, thoughtlessly &
inflexibly. So the problems that may arise are:
Distributive N. tend to arise ‘we-they’ or ‘superiority-inferiority’ patterns
– this may lead to wrong or distorted judgment about other party’s
contribution, values, needs.
Blind integrative process can lead negotiators to be exploited or
manipulated.
Accommodation strategies may generate a pattern constantly giving in to
keep the other happy or to avoid a fight.
Again, accommodation may lead the other party to a wrong sense of
well-being
When to take Avoidance
Strategy?
When to use avoidance startegy
Phase 1:
Preparation
Deciding what is important
Defining goals
Thinking ahead to work together with other party.
Phase 2:
Relationship
Building
Getting to know about other party.
Understanding the similarities & differences with the other party.
Building commitment towards achieving a mutually beneficial outcome.
But this step is critical to move forward satisfactorily.
Phases of Negotiation cont……………
Phase 3:
Info
Gathering
Learning what you want to know about the issue, other party.
Also learning about the consequences of failure
Phase 4: Here negotiators assemble the case they want to make for their preferred
Info Using outcomes & settlements.
They want the case that will maximize the negotiator’s own needs.
This presentation is often used to sell the negotiator’s preferred outcome to
the other.
Phases of Negotiation cont……………
Phase 5:
Bidding
The process of making moves from one’s initial.
It is the ideal position to the actual outcome.
With bidding each party states their “opening offer” & then moves toward a
middle ground.
Phase 6:
Closing the
Deal The objective of this stage is to build commitment to the agreement
achieved in the previous phase.
Both the negotiator & the other party have to assure themselves that they
reached a deal they can be happy with or at least accept.
Phases of Negotiation cont……………
Phase 7:
Implementi
ng the
Agreement Determining who needs to do what once the agreement is reached.
Very often parties discover that the agreement is flawed, key points were
missed or the situation has changed.
Flaws in moving through the earlier phase arise here & the deal may have to
be reopened or the issues settled by mediators, courts etc.
Preparation – Nine
Steps to a Deal
Preparation for Negotiation
Preparation means –
Understanding one’s own position & interest
Understanding the position & interest of the other party
Understanding the issues at stake
Learning alternative solutions.
Learning as much as possible about BATNA
Understanding the people one will deal with.
▪ Then decide on the share of the value that has been created by you.
Preparation for Negotiation
▪ When relationship is the aim, it is happen directly with the targeted party.
▪ Also try to identify how the other side will make its decisions.
▪ Don’t be shy in asking, “What types of decision making process you use in
this situation?”.
▪ As a practical matter one rarely has the opportunity to negotiate with the
individual who retains final authority.
▪ However, dealing with negotiator with less authority also has some
advantage:
Preparation for Negotiation
▪ Sometimes
▪ relationships sour.
▪ unanticipated developments occur & may cause one side to withdraw or freeze talks.
▪ These development means – the parties must be prepared to move forward without a
rigid roadmap.
▪ They must also exercise patience, listening ability, & respecting others.
▪ Start with assumption that the process will not unfold in a predictable manner.
▪ But flexibility must be limited within the context – no compromise with the target.
▪ Remember:
▪ Be patient, Be flexible but never allow these bumps in the road to make you lose
sight of your goal.
Preparation for Negotiation
▪ Neither party should feel that – ‘they have been forces to make a bad deal’.
▪ Being prepared to show who those more favorable to you are more relevant
▪ Being prepared to show why those less favorable to you are less relevant
▪ So if you can convince the other side that a certain criterion is fair & reasonable, they
will find it harder to reject a proposal incorporating that standard.
▪ Most importantly they will be more likely to feel satisfied with the deal.
Preparation for Negotiation
▪ Sometime you may find that “yours is a lone voice in the wilderness & out of steps
with others.”
▪ These may shut you out & steer results in a direction favored by someone else.
▪ Do not address the substantive issues in a negotiation – instead hear (The is called
“Process Moves”).
Preparation for Negotiation
So in Summing UP
1. Know what a good outcome would be for both side.
2. Look for opportunities to create value in the deal.
3. Know your BATNA & RESERVATION PRICE.
5. Find out if the person or team you’re dealing with has the authority to make a
deal.
6. Know those with whom you are dealing.
7. If the future relationship matter – try to find criterion to be fair & reasonable.
8. Don’t expect things to follow a linear path – be prepared for bumps – be flexible.