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2. NEGOTIATING POWER
PROF KATIA TIELEMAN
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4. 1.NEGOTIATION PARAMETERS

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PARKER GIBSON
HALF
LOT
WILLOW STREET
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 Consistently outperforms a
low aspiration base.
 Yet leaves enough room for
necessary concessions to
achieve a win more-win more
outcome.
 Promotes positive
psychological energy.
 Communicates confidence and
negates irrational negotiation
behaviour.
 Pressurises the other party to
use more energy to lower
your aspirations, so they
concentrate less on promoting
their own aspirations.
 “Anchors" the negotiation.
 Beware, an AB could be seen
as a position - use a range
rather than a firm number.
 Parties must aspire to a
shared AB that meets their
shared interests best.
 Consistently outperforms a low aspiration base.
 Yet leaves enough room for necessary
concessions to achieve a win more-win more
outcome.
 Promotes positive psychological energy.
 Communicates confidence and negates
irrational negotiation behaviour.
 Pressurises the other party to use more energy
to lower your aspirations, so they concentrate
less on promoting their own aspirations.
 “Anchors" the negotiation.
 Beware, an AB could be seen as a position - use
a range rather than a firm number.
 Parties must aspire to a shared AB that meets
their shared interests best.
ASPIRATION BASE (AB) – A HIGH ASPIRATION
BASE
Negotiaton to create value6

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 Point beyond which an agreement is no longer
meaningful.
 If you don’t understand or know your real base:
 It will most likely lead to a point where a
mutually beneficial outcome is not longer
possible.
 It makes it impossible to establish the
contracting zone because this rests between
the RB’s of the parties.
 You can be exploited because you don’t
know the point where you should withdraw
from a negotiation.
 Beware, RB can cause thought closure and a
positional stance.
REAL BASE (RB) - MINIMUM REQUIREMENT FOR
AGREEMENT
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 Reduces dependency on the other party’s agreement.
 Ensures the other party does not over-inflate its position.
 The stronger the BATNA the greater the negotiating power.
 The more readily a negotiator can walk away from a
negotiation, if necessary, the greater the negotiator's ability
to influence the negotiation.
 Knowing the alternatives available to the other side is
essential to prepare for a negotiation.
 A BATNA protects a negotiator from
 accepting an agreement that is unfavourable
 accepting an agreement that is only in the
counterparty's best interests
 Knowing your BATNA is knowing what to do when the
negotiation fails.
 The decision to reveal or not reveal a BATNA must be based
on the strength of the BATNA and whether disclosing it is
likely to weaken the counterparty’s negotiation stance.
BEST ALTERNATIVE TO A NEGOTIATED AGREEMENT
(BATNA)
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CONTRACTING ZONE
SELLER
BUYER
Contracting Zone /
Zone of Possible
Agreement (ZOPA)
AB
Sellers
Best
Scenario
Sellers
Worst
Scenario
RB
Buyers
Best
Scenario
AB
Buyers
Worst
Scenario
RB
BATNA Seller
BATNA Buyer
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TAKEAWAYS
Power
- Information is power.
- Time is power.
- First offers act as an anchor.
Relations
- Negotiation as an event is different from
the process of the negotiation.
- Victims become aggressors
- Walkaways are better when soft.
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11. 2.FROM BARGAINING
TO VALUE CREATION

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FROM BARGAINING TO VALUE CREATION
I versus
I
Win-Lose
bargaining
We
Value
creation
Win - Win
To achieve value creation one
must:
• Verify assumptions
• Change positions
• Explore interests
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 Seemingly opposed positions are not always
opposed when it comes to the underlying
interests, they could be compatible.
 Don’t just split the pie in half. Make concessions
on those issues that are not important to you,
but valued by the other party.
Joint
Problem
Solving
Joint
Opportunity
Finding
Interests can be:
OPPOSITE
COMPLEMENTARY
SIMILAR
Win more –
Win more
We
Value creation
Win - Win
TO WIN MORE- WIN MORE: FOCUS ON
COMPLEMENTARY INTERESTS
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FEEL LIKE SOME MORE?
 Negotiating to Create Value (November 2013)
 Executive MBA (September 2013)
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16. THANK YOU!