3. What is a good agreement?
A good agreement is:
wise
satisfy both the parties' interests
are fair
are lasting.
efficient
Cost effective,
Time conserving
Improves Trust & Develops Relationship.
5. The “Principles” of Negotiation
1. Separate the People from the Problem
Identify key issues
Then on the strategies
6. The “Principles” of Negotiation
2. Attend to the communication issues
a. Acknowledge and manage emotions
b. Avoid the blame game
c. Listen
d. Use I-messages,
7. The “Principles” of Negotiation
3. Focus on Interests, not Positions
Positions: Simple statements about what you want.
No reasons, no subtlety, no justification. Just a
demand:
I want the orange!
Interests: The reasons underlying the position
—what you really want or need ?
—the answer to the question WHY.
I need to bake a cake.
I'm hungry I want to eat the orange.
8. The “Principles” of Negotiation
4. Generate many options & look for Options for Mutual
Gain
Brainstorm options by listing all possibilities first,
Evaluating options second.
Look for ways to meet everyone's interests at the
same time.
9. The “Principles” of Negotiation
5. Find Legitimate Criteria to Guide Decisions
What's been done before?
What's “fair”
10. The “Principles” of Negotiation
6. Analyse the Best Alternative to a Negotiated Agreement
(BATNA)
BATNA = Walk Away Point—when you tell the other person you are
not interested in their offer because you can do better in another
way.
11. Why do you care about BATNAs?
They tell you what you should agree to
What you should walk away from.
They also give you negotiating power.
12. The “Principles” of Negotiation
Work with Fair and Realistic Commitments
Is agreement
Reasonable?
Doable?
Face-saving?
Practical?
14. Are you a Motivated Negotiator?
Enthusiasm
Confidence
Engaged
Recognition
Accomplishment
Pat on the back
Integrity
No trickery
Trustworthiness
Social Skills
Enjoy people
Interest in others
Teamwork
Better as a team
Self-control
Creativity
Always looking for
ways to complete
the deal
15. A Good Negotiator Is..
Creative
Versatile
Motivated
Has the ability to
walk away
17. Strategy
Do not assume what the other party wants-explore and
test
Remember that initial offers are generally not accepted
Provide room to negotiate
Do not be modest in demands. Get all demands of the
opposite party on the table before you concede anything
Persuade the other side to make the first concession on
major issues; Making large concessions at an early
stage results in loss of position
Make the other party work for every concession.
18. Strategy
Grant concessions over a period of time
Get something for every concession
Do not be afraid to say NO.
Keep a record of concessions made by each side.
Put a time limit on important concessions
Classify concessions that you can give and those you
must not give.
Resist making concessions which are retroactive.