business - negotiating skills for managers management mba

Welcome To GetPedia.com : The Online Information Resource.

Search GetPedia

Business

Advertising Branding Business Management Business Ethics Careers, Jobs & Employment Customer Service Marketing Networking Network Marketing Pay-Per-Click Advertising Presentation Public Relations Sales Sales Management Sales Telemarketing Sales Training Small Business Strategic Planning Entrepreneur Negotiation Tips Team Building Top Quick Tips

Internet & Businesses Online

Affiliate Revenue Blogging, RSS & FeedsDomain Name E-Book E-commerce Email Marketing Ezine Marketing Ezine Publishing Forums & Boards Internet Marketing Online Auction Search Engine Optimization (SEO) Spam Blocking Streaming Audio & Online Music Traffic Building Video Streaming Web Design Web Development Web Hosting Web Site Promotion

Finance

Credit Currency Trading Debt Consolidation Debt Relief Loan Insurance Investing Mortgage Refinance Personal Finance Real Estate TaxesStocks & Mutual Fund Structured Settlements Leases & Leasing Wealth Building

Communications

Broadband Internet Mobile & Cell Phone VOIP Video Conferencing Satellite TV

Reference & Education

Book Reviews College & University Psychology Science Articles

Food & Drinks

Coffee Cooking TipsRecipes & Food and Drink Wine & Spirits

Home & Family

Crafts & Hobbies Elder Care Holiday Home Improvement Home Security Interior Design & Decorating Landscaping & Gardening Babies & Toddler Pets Parenting Pregnancy

News & Society

Dating Divorce Marriage & Wedding PoliticalRelationships ReligionSexuality

Computers & Technology

Computer Hardware Data Recovery & Computer Backup Game Internet Security Personal Technology Software

Arts & Entertainment

Casino & Gambling Humanities Humor & Entertainment Language Music & MP3 Philosophy Photography Poetry

Shopping & Product Reviews

Book Reviews Fashion & Style

Health & Fitness

Acne Aerobics & Cardio Alternative Medicine Beauty TipsDepression Diabetes Exercise & Fitness Fitness Equipment Hair Loss Medicine Meditation Muscle Building & Bodybuilding Nutrition Nutritional SupplementsWeight LossYoga

Recreation and Sport

Fishing Golf Martial Arts Motorcycle

Self Improvement & Motivation

Attraction Coaching Creativity Dealing with Grief & LossFinding HappinessGet Organized - Organization Leadership Motivation Inspirational Positive Attitude Tips Goal Setting Innovation Spirituality Stress ManagementSuccess Time Management

Writing & Speaking

Article Writing Book Marketing Copywriting Public Speaking Writing

Travel & Leisure

Aviation & Flying Cruising & Sailing Outdoors Vacation Rental

Cancer

Breast Cancer Mesothelioma & Asbestos Cancer

Copyright 2006

GetPedia | Links

GetPedia : Get How Stuff Works!GetPedia : Get How Stuff

Works!

http://www.getpedia.com/showarticles.php?cat=101http://www.getpedia.com/showarticles.php?cat=114http://www.getpedia.com/showarticles.php?cat=176http://www.getpedia.com/showarticles.php?cat=144http://www.getpedia.com/showarticles.php?cat=118http://www.getpedia.com/showarticles.php?cat=130http://www.getpedia.com/showarticles.php?cat=177http://www.getpedia.com/showarticles.php?cat=189http://www.getpedia.com/showarticles.php?cat=188http://www.getpedia.com/showarticles.php?cat=202http://www.getpedia.com/showarticles.php?cat=205http://www.getpedia.com/showarticles.php?cat=203http://www.getpedia.com/showarticles.php?cat=212http://www.getpedia.com/showarticles.php?cat=213http://www.getpedia.com/showarticles.php?cat=214http://www.getpedia.com/showarticles.php?cat=215http://www.getpedia.com/showarticles.php?cat=222http://www.getpedia.com/showarticles.php?cat=227http://www.getpedia.com/showarticles.php?cat=143http://www.getpedia.com/showarticles.php?cat=187http://www.getpedia.com/showarticles.php?cat=233http://www.getpedia.com/showarticles.php?cat=235http://www.getpedia.com/showarticles.php?cat=103http://www.getpedia.com/showarticles.php?cat=112http://www.getpedia.com/showarticles.php?cat=138http://www.getpedia.com/showarticles.php?cat=139http://www.getpedia.com/showarticles.php?cat=140http://www.getpedia.com/showarticles.php?cat=142http://www.getpedia.com/showarticles.php?cat=146http://www.getpedia.com/showarticles.php?cat=147http://www.getpedia.com/showarticles.php?cat=151http://www.getpedia.com/showarticles.php?cat=168http://www.getpedia.com/showarticles.php?cat=106http://www.getpedia.com/showarticles.php?cat=219http://www.getpedia.com/showarticles.php?cat=219http://www.getpedia.com/showarticles.php?cat=224http://www.getpedia.com/showarticles.php?cat=107http://www.getpedia.com/showarticles.php?cat=107http://www.getpedia.com/showarticles.php?cat=236http://www.getpedia.com/showarticles.php?cat=239http://www.getpedia.com/showarticles.php?cat=242http://www.getpedia.com/showarticles.php?cat=243http://www.getpedia.com/showarticles.php?cat=244http://www.getpedia.com/showarticles.php?cat=221http://www.getpedia.com/showarticles.php?cat=127http://www.getpedia.com/showarticles.php?cat=129http://www.getpedia.com/showarticles.php?cat=133http://www.getpedia.com/showarticles.php?cat=134http://www.getpedia.com/showarticles.php?cat=174http://www.getpedia.com/showarticles.php?cat=166http://www.getpedia.com/showarticles.php?cat=169http://www.getpedia.com/showarticles.php?cat=183http://www.getpedia.com/showarticles.php?cat=194http://www.getpedia.com/showarticles.php?cat=208http://www.getpedia.com/showarticles.php?cat=232http://www.getpedia.com/showarticles.php?cat=226http://www.getpedia.com/showarticles.php?cat=229http://www.getpedia.com/showarticles.php?cat=173http://www.getpedia.com/showarticles.php?cat=241http://www.getpedia.com/showarticles.php?cat=116http://www.getpedia.com/showarticles.php?cat=182http://www.getpedia.com/showarticles.php?cat=240http://www.getpedia.com/showarticles.php?cat=238http://www.getpedia.com/showarticles.php?cat=216http://www.getpedia.com/showarticles.php?cat=110http://www.getpedia.com/showarticles.php?cat=122http://www.getpedia.com/showarticles.php?cat=206http://www.getpedia.com/showarticles.php?cat=217http://www.getpedia.com/showarticles.php?cat=121http://www.getpedia.com/showarticles.php?cat=123http://www.getpedia.com/showarticles.php?cat=209http://www.getpedia.com/showarticles.php?cat=246http://www.getpedia.com/showarticles.php?cat=125http://www.getpedia.com/showarticles.php?cat=141http://www.getpedia.com/showarticles.php?cat=159http://www.getpedia.com/showarticles.php?cat=160http://www.getpedia.com/showarticles.php?cat=161http://www.getpedia.com/showarticles.php?cat=167http://www.getpedia.com/showarticles.php?cat=170http://www.getpedia.com/showarticles.php?cat=109http://www.getpedia.com/showarticles.php?cat=196http://www.getpedia.com/showarticles.php?cat=193http://www.getpedia.com/showarticles.php?cat=204http://www.getpedia.com/showarticles.php?cat=132http://www.getpedia.com/showarticles.php?cat=137http://www.getpedia.com/showarticles.php?cat=178http://www.getpedia.com/showarticles.php?cat=200http://www.getpedia.com/showarticles.php?cat=210http://www.getpedia.com/showarticles.php?cat=211http://www.getpedia.com/showarticles.php?cat=220http://www.getpedia.com/showarticles.php?cat=158http://www.getpedia.com/showarticles.php?cat=131http://www.getpedia.com/showarticles.php?cat=131http://www.getpedia.com/showarticles.php?cat=152http://www.getpedia.com/showarticles.php?cat=218http://www.getpedia.com/showarticles.php?cat=195http://www.getpedia.com/showarticles.php?cat=223http://www.getpedia.com/showarticles.php?cat=119http://www.getpedia.com/showarticles.php?cat=162http://www.getpedia.com/showarticles.php?cat=163http://www.getpedia.com/showarticles.php?cat=171http://www.getpedia.com/showarticles.php?cat=186http://www.getpedia.com/showarticles.php?cat=197http://www.getpedia.com/showarticles.php?cat=198http://www.getpedia.com/showarticles.php?cat=199http://www.getpedia.com/showarticles.php?cat=110http://www.getpedia.com/showarticles.php?cat=148http://www.getpedia.com/showarticles.php?cat=100http://www.getpedia.com/showarticles.php?cat=102http://www.getpedia.com/showarticles.php?cat=104http://www.getpedia.com/showarticles.php?cat=111http://www.getpedia.com/showarticles.php?cat=135http://www.getpedia.com/showarticles.php?cat=136http://www.getpedia.com/showarticles.php?cat=145http://www.getpedia.com/showarticles.php?cat=150http://www.getpedia.com/showarticles.php?cat=156http://www.getpedia.com/showarticles.php?cat=180http://www.getpedia.com/showarticles.php?cat=181http://www.getpedia.com/showarticles.php?cat=117http://www.getpedia.com/showarticles.php?cat=190http://www.getpedia.com/showarticles.php?cat=231http://www.getpedia.com/showarticles.php?cat=245http://www.getpedia.com/showarticles.php?cat=249http://www.getpedia.com/showarticles.php?cat=149http://www.getpedia.com/showarticles.php?cat=154http://www.getpedia.com/showarticles.php?cat=179http://www.getpedia.com/showarticles.php?cat=185http://www.getpedia.com/showarticles.php?cat=105http://www.getpedia.com/showarticles.php?cat=120http://www.getpedia.com/showarticles.php?cat=126http://www.getpedia.com/showarticles.php?cat=155http://www.getpedia.com/showarticles.php?cat=157http://www.getpedia.com/showarticles.php?cat=191http://www.getpedia.com/showarticles.php?cat=172http://www.getpedia.com/showarticles.php?cat=184http://www.getpedia.com/showarticles.php?cat=165http://www.getpedia.com/showarticles.php?cat=201http://www.getpedia.com/showarticles.php?cat=153http://www.getpedia.com/showarticles.php?cat=164http://www.getpedia.com/showarticles.php?cat=225http://www.getpedia.com/showarticles.php?cat=228http://www.getpedia.com/showarticles.php?cat=230http://www.getpedia.com/showarticles.php?cat=234http://www.getpedia.com/showarticles.php?cat=248http://www.getpedia.com/showarticles.php?cat=113http://www.getpedia.com/showarticles.php?cat=124http://www.getpedia.com/showarticles.php?cat=207http://www.getpedia.com/showarticles.php?cat=247http://www.getpedia.com/showarticles.php?cat=108http://www.getpedia.com/showarticles.php?cat=128http://www.getpedia.com/showarticles.php?cat=192http://www.getpedia.com/showarticles.php?cat=237http://www.getpedia.com/showarticles.php?cat=115http://www.getpedia.com/showarticles.php?cat=175http://www.getpedia.com/showarticles.php?cat=175http://www.getpedia.com/links/index.php

Teresa Bomba

NegotiatingSkills for

Managers

CohenFM.qxd 2/11/02 9:25 AM Page 1

http://dx.doi.org/10.1036/0071387579http://dx.doi.org/10.1036/0071387579

Other titles in the Briefcase Books series include:Customer Relationship Managementby Kristin Anderson and Carol Kerr

Communicating Effectively by Lani Arredondo

Performance Management by Robert Bacal

Recognizing and Rewarding Employees by R. Brayton Bowen

Six Sigma for Managers by Greg Brue

Motivating Employees by Anne Bruce and James S. Pepitone

Leadership Skills for Managers by Marlene Caroselli

Effective Coaching by Marshall J. Cook

Conflict Resolution by Daniel Dana

Project Management by Gary R. Heerkens

Managing Teams by Lawrence Holpp

Hiring Great People by Kevin C. Klinvex, Matthew S. OConnell, and Christopher P. Klinvex

Empowering Employees by Kenneth L. Murrell and MimiMeredith

Managing Multiple Projects by Michael Tobis and Irene P. Tobis

Presentation Skills for Managers, by Jennifer Rotondoand Mike Rotondo

The Managers Guide to Business Writingby Suzanne D. Sparks

Skills for New Managers by Morey Stettner

To learn more about titles in the Briefcase Books series go to

www.briefcasebooks.comYoull find the tables of contents, downloadable sample chap-ters, information on the authors, discussion guides for usingthese books in training programs, and more.


McGraw-HillNew York Chicago San Francisco Lisbon London Madrid Mexico City Milan New Delhi San Juan

Seoul Singapore Sydney Toronto


ManagersSteven P. Cohen

A

Briefcase

Book



Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Manufactured in the United

States of America. Except as permitted under the United States Copyright Act of 1976, no part of this

publication may be reproduced or distributed in any form or by any means, or stored in a database or

retrieval system, without the prior written permission of the publisher.

0-07-141545-9

The material in this eBook also appears in the print version of this title: 0-07-138757-9.

All trademarks are trademarks of their respective owners. Rather than put a trademark symbol after

every occurrence of a trademarked name, we use names in an editorial fashion only, and to the benefit

of the trademark owner, with no intention of infringement of the trademark. Where such designations

appear in this book, they have been printed with initial caps.

McGraw-Hill eBooks are available at special quantity discounts to use as premiums and sales promo-

tions, or for use in corporate training programs. For more information, please contact George Hoare,

Special Sales, at [email protected] or (212) 904-4069.

TERMS OF USEThis is a copyrighted work and The McGraw-Hill Companies, Inc. (McGraw-Hill) and its licensors

reserve all rights in and to the work. Use of this work is subject to these terms. Except as permitted

under the Copyright Act of 1976 and the right to store and retrieve one copy of the work, you may not

decompile, disassemble, reverse engineer, reproduce, modify, create derivative works based upon,

transmit, distribute, disseminate, sell, publish or sublicense the work or any part of it without McGraw-

Hills prior consent. You may use the work for your own noncommercial and personal use; any other

use of the work is strictly prohibited. Your right to use the work may be terminated if you fail to com-

ply with these terms.

THE WORK IS PROVIDED AS IS. McGRAW-HILL AND ITS LICENSORS MAKE NO GUAR-

ANTEES OR WARRANTIES AS TO THE ACCURACY, ADEQUACY OR COMPLETENESS OF

OR RESULTS TO BE OBTAINED FROM USING THE WORK, INCLUDING ANY INFORMA-

TION THAT CAN BE ACCESSED THROUGH THE WORK VIA HYPERLINK OR OTHERWISE,

AND EXPRESSLY DISCLAIM ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING BUT

NOT LIMITED TO IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A

PARTICULAR PURPOSE. McGraw-Hill and its licensors do not warrant or guarantee that the func-

tions contained in the work will meet your requirements or that its operation will be uninterrupted or

error free. Neither McGraw-Hill nor its licensors shall be liable to you or anyone else for any inaccu-

racy, error or omission, regardless of cause, in the work or for any damages resulting therefrom.

McGraw-Hill has no responsibility for the content of any information accessed through the work.

Under no circumstances shall McGraw-Hill and/or its licensors be liable for any indirect, incidental,

special, punitive, consequential or similar damages that result from the use of or inability to use the

work, even if any of them has been advised of the possibility of such damages. This limitation of lia-

bility shall apply to any claim or cause whatsoever whether such claim or cause arises in contract, tort

or otherwise.

DOI: 10.1036/0071387579

ebook_copyright 5x8.qxd 9/18/02 4:37 PM Page 1

http://dx.doi.org/10.1036/0071387579

DOI Page 5.5x8.35 9/18/02 1:54 PM Page 1

Want to learn more?We hope you enjoy this McGraw-Hill eBook! If

youd like more information about this book, its author, or related books and websites, please click here.


Contents

Preface xi

1. Competitive Versus Collaborative Decision Making 1What Is Negotiation? 2What Negotiation Is Not 4Types of Negotiation 5Investigating Your Interests 7What Differences Does It Make to Distinguish

Between Interests and Positions? 8How Do You Deal with Positional Bargainers? 10Is Money Really the Interest? 12Primary (Fundamental) and Secondary

(Derivative) Interests 13Looking Beyond Our Personal Interests 15The Three Cs of Interests 17When Interests Conflict 19Managers Checklist for Chapter 1 20

2. BATNAChoosing Whether to Walk Away 23Making Choices 23Balance of Power 24Understanding Our BATNA Offers Choices 25What Is Our Walking-in BATNA? 27Does BATNA Ever Change? 27BATNA Is Not the Bottom Line 29Elements of BATNAs 30Strengthening and Weakening BATNAs 35Assumptions 36Managers Checklist for Chapter 2 37

v

CohenFM.qxd 2/11/02 9:25 AM Page v

For more information about this book, click here.For more information about this book, click here.

Copyright 2002 by The McGraw-Hill Companies, Inc. Click Here for Terms of Use.


3. Are We Ready? Inoculation Protects the Parties 39Substantive Inoculation: Knowing the Subject 40In Negotiation, the Past Has No Future 41Selling the Product to the Salesperson 42Goals of Inoculation 43Inoculation as a Tool for Improving Your BATNA 43What Information Do We Need About Ourselves? 44What Information Do We Need About Other Parties? 46Preparing for Negotiation on Your Own 46Active Listening 47Inoculation Includes Process as Well as Substance 50Internal and External Inoculation 52The Bottom Line 54When Inoculation Is Impossible 54Managers Checklist for Chapter 3 55

4. Preparation Part One: Stakeholders, Constituents, and Interests 57Shooting from the Hip 57Unplanned Negotiations 58Surprises 58What Does Preparation Mean? 59Looking Inside Yourself 60Understanding the Subject Matter 61Internal Negotiation 62Preparing Other Parties 63Juggling Conflicting Agendas 65Strengthening and Weakening BATNAs 66Reasons to Prepare for Negotiation 67Managers Checklist for Chapter 4 68

5. Preparation Part Two: Developing a Strategy Using Interest Mapping 70Making Assumptions 70Interested Parties 71Stakeholders 72Create Your Interest Map 72Record Your Assumptions About Stakeholders Interests 73Dont Go It Alone 75Low-Cost Solutions 76How to Use Interest Maps 78Using Your Interest Map in Negotiation 79

Contentsvi

CohenFM.qxd 2/11/02 9:25 AM Page vi

Be Prepared for Hot Buttons 79Donut Hole Interest Maps 80After the Negotiation 81Be Prepared! 82Managers Checklist for Chapter 5 82

6. Communication: Key to Effective Negotiating 84Preparation Put to Use 84Communicating to Influence 85Active Listening 87Communicating with Difficult People 92Reframing 93What Is Your Point? 94Communicating Information 94Managers Checklist for Chapter 6 95

7. Emotions: Dealing with Ourselves and Others 96Do Emotions Belong in Negotiation? 96Recognizing and Prioritizing Emotions 97Surprise 98Are You Negotiating to Solve a Problem

or Have a Fight? 99Confidence-Building Measures 100Only One Person Can Get Angry at a Time 101Reacting to Emotional Outbursts 102De-escalation 103Healing Relationships 104Dealing with Difficult People 105Bullies 105Expressing Emotions Is Not Bad Negotiating 106Managers Checklist for Chapter 7 106

8. Dealing with Annoyance and Levelingthe Playing Field 108Myths 108Psychological Games 113Giving or Taking Offense 114Controlling the Board 115Physical Set-Up 116Building Confidence in Your Counterpart 116I Understand You, But That Doesnt Mean

I Agree with You 118

Contents vii

CohenFM.qxd 2/11/02 9:25 AM Page vii

Expectations 119Early Wins Can Be Traded Away Later 122Level Playing Field 122Managers Checklist for Chapter 8 123

9. Globalism Starts at Home: Cross-Cultural Issues 125Nationality Is Not the Only Difference 125Internal Negotiation 126Bringing Tribes Together 128You Cant Tell a Book by Its Cover 129Negotiation Choreography 130When Yes Means No 131Offense as a Cultural Barrier 132Overcoming Cultural Obstacles 132Can I Depend on Them? 135Dont Get Hung Up on Style 136Managers Checklist for Chapter 9 137

10. Creativity and Bargaining Chips 138Single-Issue Negotiating 138Multi-Issue Negotiations 139The Value Creation Curve 140Value Versus Price 142Dont Dictate Value 143Separating People from the Problem 145Healing Relationships 145Check the Appeal of Creative ElementsOne by One 147Dont Hog the Credit 147Confirming Mutual Understanding 148Open Your Mind and Expand the Possibilities 149Managers Checklist for Chapter 10 149

11. The Negotiation Process 152Agenda Setting 153Building Confidence and Comfort 156Utilizing Your Interest Map 157Bargaining 158Building Long-Term Commitment 161Objective Criteria 162ZOPA 163Expectations and Concessions 164Compromise 165Collaboration 165

Contentsviii

CohenFM.qxd 2/11/02 9:25 AM Page viii

Multitasking 166Its Not Over Until Its Over 167Not Rocket Science 168Managers Checklist for Chapter 11 168

12. The Seven Pillars of Negotiational Wisdom 171Paying Attention to Priorities 171Relationship 172Interests 176BATNA 178Creativity 179Fairness 181Commitment 182Communication 184Foundation of the Seven Pillars 185Managers Checklist for Chapter 12 186

Index 189

Contents ix

CohenFM.qxd 2/11/02 9:25 AM Page ix

This page intentionally left blank.

Preface

When I told my father of my plans to develop a firm special-izing in training people how to negotiate, he was quite sur-prised. When I indicated that many people feel the need tobecome more confident, he was dumbfounded. Dont peopleknow negotiating is fun? he asked. But hes good at it and likesto make deals. The aim of this book is to help you get good at itas well and to increase your confidence and the resultingrewards that can come from concluding an effective negotiation.

The title of this book is Negotiating Skills for Managers, buta more descriptive title would include the subtitle andEveryone Else. Negotiation is a universal human activityweall engage in bargaining at one level or another on a pretty reg-ular basis. And while we all need good negotiation skills in busi-ness, these skills are valuable in our personal lives as well.

Several years ago, in a response to a follow-up form askingfor a long-term evaluation of our flagship negotiation course, aparticipant responded that he had not used negotiation in hisprofessional lifebut he had used it to save his marriage. I hopethis book will enhance your professional skills as a negotiator;and then you can view any personal impact simply as an addi-tional benefit.

Plan of the BookNegotiating Skills For Managers has 12 chapters. In the first 10we discuss negotiation paradigms, philosophical underpinnings,and specific tools and techniques. Youll find a detailed review ofthe idea of interests and BATNA (Best Alternative To aNegotiated Agreement)two things all negotiators need to

xi

CohenFM.qxd 2/11/02 9:25 AM Page xi


Prefacexii

understand. Theres also a discussion of the Interest Map, acrucial preparation tool introduced in Chapter 5 and used insubsequent chapters. The two final chapters bring it all together,with Chapter 11 focusing on the negotiation process andChapter 12 summarizing what I call the Seven Pillars OfNegotiational Wisdom.

Youll find that Negotiating Skills for Managers does not pro-mulgate a series of hard-and-fast rights and wrongs. Effectivenegotiators know that each negotiation has unique characteris-tics and being flexible can make the difference between effec-tiveness and wasted time. This book emphasizes that youshould not view negotiation as a competitive exercise, and thatthe best way to conduct a successful negotiation is for all par-ties to be satisfied when you conclude the agreement.

Special FeaturesThe idea behind the books in the Briefcase Books series is togive you practical information written in a friendly person-to-person style. The chapters are short, deal with tactical issues,and include lots of examples. They also feature numerousboxed sidebars designed to give you different types of specificinformation. Heres a description of these sidebars and howtheyre used in this book.

These boxes are designed to give you tips and tacticsthat will help you more effectively implement themethods described in this book.

These boxes provide warnings for where things couldgo wrong when youre trying to prepare for and under-take a negotiation.

These boxes highlight insider tips for taking advantageof the practices youll learn about in this book.

CohenFM.qxd 2/11/02 9:25 AM Page xii

Preface xiii

AcknowledgmentsWhile any mistakes in Negotiating Skills for Managers are myresponsibility, I have been lucky enough to have received helpand support from my wife, Andra F. F. MacLeod, and my col-league Marsha M. Vaughan. John Woods, of CWL PublishingEnterprises, made the whole project possible, from his innova-tive formatting of the Briefcase Books series to his pointed edi-torial commentsand his effective prodding. Joan Patersonserved as editor and had a lot to do with finalizing the manu-script that has become this book. In addition, Nancy Woods andBob Magnan, also of CWL, had a hand in creating the finalproduct you have before you.

This book also owes a considerable debt to ideas from col-leagues within The Negotiation Skills Company, Inc.: AnthonyAdamopoulos, Esq., Mary Ellen Shea, Ron Scruggs, DeniseDelaney, Curtis Johnson, and Paul Cohen, Esq. Of the manyothers who have contributed to my understanding, MarshallDerby, Felicity Barber, Ricardo Altimera-Vega, and the late

Every subject has its special jargon and terms.Theseboxes provide definitions of these concepts.

Its always important to have examples of what othershave done, either well or not so well. Find such storiesin these boxes.

This identifies boxes where youll find specific proce-dures you can follow to take advantage of the booksadvice.

How can you make sure you wont make a mistakewhen negotiating? You cant, but these boxes will giveyou practical advice on how to minimize the possibility.

CohenFM.qxd 2/11/02 9:25 AM Page xiii

Prefacexiv

Anthony Hyde stand out. My daughters Julia and Abigail havekept me on my negotiating toes all their life.

Fundamentally, however, my most significant negotiationlearning took place at the knee of my father, Martin E. Cohen. Iowe it all to him.

For further information and advice about negotiation, youare invited to visit the Web site of The Negotiation SkillsCompany, Inc.: www.negotiationskills.com.

CohenFM.qxd 2/11/02 9:25 AM Page xiv

About the AuthorSteven P. Cohen is the founder and head of The NegotiationSkills Company, Inc., a consulting and training organization thathas presented negotiation skills training to people from morethan 40 countries. His clients come from business sectors asdiverse as healthcare and the manufacture of nuclear weapons.The Negotiation Skills Companys mission statement is simple:to advance the cause of civility in negotiation to the benefit ofall participants.

The breadth of Steve Cohens experience, negotiating in thepublic and private sectors and working with people from all overthe world, has given him a unique perspective on the dos anddonts of negotiation. In Negotiating Skills for Managers, Steveoffers his negotiation experience, communication skills, andteaching techniques to a broader audience.

His companys award-winning Web site, www.negotiation-skills.com, has subscribers from over 70 countries, on everycontinent except Antarctica. You can contact Steve [email protected].

About the Author xv

CohenFM.qxd 2/11/02 9:25 AM Page xv



Managers

CohenFM.qxd 2/11/02 9:25 AM Page xvii

http://dx.doi.org/10.1036/0071387579

Negotiating is not a competitive sport.

Paul Murphy is on an extended business trip and getting prettysick of staying in hotel rooms that all look alike even thoughtheyre in different cities. His company has a relationship withthe hotel chain where hes been staying, but the business deal isfor the least expensive room. How can he improve the accom-modations when he checks into the next hotel?

Sally Marks manages a team in the design department of anautomobile manufacturing company. A directive has arrivedfrom the marketing department indicating the top priority forthe next design cycle is to develop a vehicle that weighs nomore than a ton, has space for five passengers, can cruise at 75miles per hour for extended periods, complies with increasinglystrict exhaust emission standards, and can fit into small urbanparking spaces. The marketing department also wants manu-facturing costs held substantially below any previous cars hergroup has designedyet use high-tech materials.

1

Competitive VersusCollaborativeDecision Making

1

Cohen01a.qxd 1/11/02 10:06 AM Page 1


Sally and her teams delivery on this combination of specifica-tions will require the cooperation of members of teams frommanufacturing, purchasing, and testing segments of the compa-ny. In addition, Sally has to cope with regulatory issues as wellas external suppliers in order to accomplish her task.

When Fred and Jane Yancey and their two kids moved into theirnew home, it needed a lot of fixing up as well as an addition.Some of their neighbors have been very friendlyas well asunderstanding about the noise of construction machinerybutothers have complained to the local building inspectors withouttalking first to Fred or Jane. The Yanceys are the first African-American family to move into the neighborhood. They wonderwhether the complaints to the building inspector relate to theconstruction itself or whether other factors are involved.

As chief of her firms team selling processors to a public sectorutility company in China, Angela MacKenzie has to contendwith competitors from the U.S. and other countries. But she iseven more challenged by the process of figuring out how muchprogress she and her colleagues are making convincing the rep-resentatives of the Chinese utility company of the value of theprocessors they are selling.

Every day, all over the world, people find themselves in sim-ilar situations. They want to accomplish a particular task, clarifya relationship, or simply find resources to achieve more thanthey might by making a deal with someone else. They need tonegotiate to get from their starting point to their objective.

Negotiating Skills for Managers is designed to help its read-ers understand and utilize a process that is fundamental to busi-nessand the rest of life.

What Is Negotiation?When people want to do something togetherbuy or sell anitem, make a business deal, decide where to go for dinnerthey need to use some sort of mechanism for reaching an

Negotiating Skills for Managers2


agreement. Unless they agree instantly on every element of thechoices to be made, they need to use a mutually acceptableprocess for decision making. Negotiation is one name for a vari-ety of joint decision-making processes, although people alsouse such terms as making a deal, trading, bargaining, dickering,or (in the case of price negotiation) haggling.

A successful negotiation has taken place when the partiesend up mutually committed to fulfilling the agreement they havereached. Fairness is a crucial element to make a negotiationprocess succeed. Some people negotiate as if their most signifi-cant objective is to take advantage of other parties; this is self-defeating. If any party feels unfairly treated, he or she may walkaway from the negotiation with a negative feeling and a disincli-nation to live up to the agreement.

One way to think of negotiation is to compare knit-ting and weaving. Whenyou knit something, yougenerally use a singlestrand of yarn. Andalthough knitted fabricsmay contain a variety ofcolors and textures, youcan easily stretch them outof shape. In weaving, thefabric is created by using atleast two strands comingfrom different directions.

Competitive Versus Collaborative Decision Making 3

Waging PeaceIn the old days, when wealthy landowners had a dispute theywould hire mercenariesknightsto wage war to deter-mine who was right.The winner of the battle was acclaimed the winnerof the dispute.Then somebody invented lawyers. For the past thousandyears or so, weve been waging law to decide who wins.Today, as peo-ple rely increasingly on negotiation to resolve disputes or reach agree-ments, they are waging peace to reach the resolution that is mostacceptable to all parties.

Negotiation The processof two or more partiesworking together to arriveat a mutually acceptable resolution ofone or more issues, such as a com-mercial transaction, a contract, or adeal of any sort.

Negotiation is a give-and-take bar-gaining process that, when conductedwell, leaves all parties feeling goodabout the result and committed toachieving it.


Woven fabrics tend to have greater tensile strength and durabilitythan knitted fabrics. Negotiation is more like weavingtheprocess takes contributions from various parties. While weavingand knitting may involve a single persons skills, negotiationcalls for contributions from two or more parties. By drawingupon the knowledge, skills, and other input of the multiple par-ties, a good negotiation process weaves together a durableagreement whose strength derives from the fact that the partiesreached agreement by working together.

What Negotiation Is NotWhen your boss gives you an order and your only choice is todo what he or she says, that is not negotiation. If an outsider isbrought in to make a decision between parties using arbitration,the parties are legally bound to follow the arbitrators decision.That is not negotiation. When parties are not working togetherto reach an agreement, negotiation does not take place.

Its important to keep in mind that negotiation is not a com-petitive sport. This doesnt mean, however, that were never in acontest with other parties. But we are not competing with theaim of making sure we crush the opposition. Rather, we areaiming to do the best we can for ourselves. Using this philoso-phy, we are less interested in the sporting aim of competing andmore interested in looking out for ourselves. In negotiation, youwant to do well for yourself, but not because you want to beatsomeone else. Effective negotiation is held in its proper contextas a mechanism for pursuing interests.

Your dealings with customersor suppliers, neighbors, or rel-ativesshould not be viewed as competitions. We negotiate withpeople to reach an agreement that meets as many of the partiesinterests as possible. Our fundamental obligation is to pursue ourown interests, assuming that the other parties are doing theirbest to get their interests met. We need to remember, however,that if the negotiating parties arent satisfied with the process aswell as with the result, odds are that the promises constituting



the agreement wont be fulfilled. Negotiation based on individualinterests requires that we open our minds and our strategizing toother parties interests as well as our own. The definition ofnegotiation can now be expanded to describe how parties tradethings of value in a civilized manner.

Types of NegotiationPeople usually view negotiation as either confrontational orcooperative. People who view negotiation as a confrontation seethe process as a zero-sum game in which a limited number ofbargaining chips are to be wonand they want to be the win-ners. The confrontational winner-take-all approach reflects amisunderstanding of what negotiation is all about and is short-sighted. Once a confrontational negotiator wins, the other partyis not likely to want to deal with that person again.

Cooperative-approach negotiators see a wide range of inter-ests to be addressed and served. They understand that negotia-tion is not a zero-sum game but a way to create value for all theparties involved. The cooperative negotiator understands theimportance of all stakeholders winning somethingthis is howyou build long-term mutually beneficial relationships.

The cooperative approach is known as interest-based negoti-ation. Interest-based negotiation is particularly effective in amarketplace characterized by diversity. We often need to reachagreement with people who are different from usculturally,ethnically, or economically.If we cannot get beyondthe differences, they cancreate obstacles to agree-ment. To do this, we needto focus on the interests ofthe parties instead of onthe parties differences.Those interests can formthe building blocks upon which agreement is based.


Interest-based negotia-tion An approach to nego-tiation where the partiesfocus on their individual interests andthe interests of the other parties tofind a common ground for building amutually acceptable agreement.


My Way or the HighwaySome people approach negotiation with an attitude that can becharacterized as my way or the highway. This occurs in a situ-ation where one person believes that he or she holds all thecards in a negotiation. If you want something from that person,you may have to give him something he really values.

Think of your experiences in renting cars. Automobile rentalcompanies have thought of all the answers; they ask you tosign and initial the front of the contract in several places. Theactual contract is on the back of the paper you sign, generallyprinted in very small letters in extremely light ink. If you want arental car, you cant negotiate the contract. The rental companyhas adopted a position from which they will not budge. There isno clearer example of the my way or the highway approach.

Hazards of Adopting aPositionIn negotiations betweenparties who each havesome power to influencethe results (the usual typeof negotiation), the crucialthing to remember is thattaking a position limitsyour capacity to bargain. A


Im Good, Youre GoodWhen you brush your teeth in the morning, do you see agood or bad person in the mirror? Unless theres some-

thing extraordinary about you, you probably see a good person. It isimportant to remember that the other parties with whom you will benegotiating likely see good people in their mirrors as well. If all par-ties undertaking negotiation see themselves as good people, it makessense for them to treat one another with that understanding. If youapproach a deal-making process as an opportunity to crush the oppo-sition, you are choosing to beat up on someone who views himself asa good person.

Position This is the finalanswer to the question

What do you want? It canbe okay to start with a position in anegotiation, but unless you under-stand the interests behind your posi-tion and are open to alternativeapproaches, you are likely to findyourself stuck in a corner you cannotescape without losing face.


position is a partys answer to the question What do you want?If you adopt a position from which you will not budge, you runthe risk of losing face if you have to back down from theapproach you are using.

Investigating Your InterestsThe more effective route to achieving an acceptable conclusionto a negotiation is to look at the interests of the parties. Yourinterest is the answer to the question, Why do you want (a par-ticular result)? A problem arises when you ask the why ques-tion: Your response may be a justification of a partys positionrather than an explanation of the interest that needs to be met.If the response to Why do you want it? is Because it is in thecompanys best interest,your answer justifies aposition but does not reallyexplain the interests thatunderlie it. To move pastjustification to learn whichinterests are at the core ofwhy someone wants some-thing, you need to ask:How will that approachaccomplish what you arelooking for? or If we agreeto do that, what goal ofyours will it satisfy?

Understanding Our Own InterestsOne of the most difficult things to do is to understand our owninterests. Since you and I tend to think that we are each agood person, it is easy tofall into the trap of thinking,If I want it, it must be thebest answer. However, youneed to ask yourselfand


Positions and interestsOur positions can bethought of as what we want;our interests reflect what we need.

Working withDeadlines

Lets say you are told that ajob has to be accomplished by a cer-tain time. If you think the deadlinethreatens whether the job can bedone as well as it should to yield thebest results for your division, youneed to go beyond the justification ofthe deadline of the person withwhom youre negotiating and look atthe interests the deadline is intendedto serve.


this can be toughwhether the way you want to do something isreally the best approach, or whether taking another partys viewsinto account might lead to even better resultsor results that arebetter given that there are other people involved, not just yourself.

If we are making a retail purchase and have done a thor-ough job of research, we know which model of refrigerator ortelevision we want to buy. That becomes our position. If onestore doesnt have what we want, we look for a store that does,although this may be time consuming. If what youre looking forisnt readily available, the cost of the search may outweigh thebenefits of sticking to your position.

In most negotiations, focusing on interests will make an enor-mous difference in the outcome. In buying the refrigerator, forexample, your interests may include a certain size, color, andshelving flexibility. Through your research, you find one modelthat meets your criteria, but there may be others that meet yourcriteria equally well or even better. By looking at your intereststhe benefits you expect to derive from achieving your negotiatinggoalrather than at one specific outcome, and then keeping anopen mind with regard to how you might take care of your inter-ests, youre likely to discover there is more than one way to skinthe proverbial cat. Lets explore this point further.

What Difference Does It Make to DistinguishBetween Interests and Positions?Distinguishing between interests and positions is a critical firststep in understanding the negotiation process. If we can deter-mine whether we and the other parties are undertaking interest-based negotiation or positional bargaining, we have a cleareridea of what is happening among us. When we use interests asthe points from which we and the other parties are attemptingto reach an agreement, everyone has greater flexibility in thedecision-making process. This additional freedom provides theopportunity to think out of the box, to bring creativity to theprocess, and, as a consequence, to reach an agreement thatwill really work.



Using the interest-basedapproach rather than posi-tional bargaining puts thenegotiation process on adifferent footing. The fact isthat most of the time weare negotiating with peopleweve negotiated with onprevious occasions.Knowing that, the smartthing is to treat each nego-tiation as an episode in anongoing relationship. Usingthe interest-based approach is the best way to make sure thathappens. And if youre dealing with someone for the first time,the interest-based approach is the approach that will most likelyhelp assure further deals in the future.

Besides exploring your interests, you need to prioritize them.For example, if you want to buy a car to commute to work,focusing on finding a model that will get good gas mileage andthat will be easy to park may be a lot more important as aninterest than whether the radio has four or six speakers. Peoplewho take the positional approach and make every element ontheir list of wants equally important will find it more difficult tofind what theyre looking for or to figure out on which thingsthey might be able to compromise.

Focusing on interestsalso helps us overcomepotential obstacles toagreement that arise fromdifferences between people.Whether it is an English-man negotiating with some-one from Italy, a womantrying to sell an idea to aman, or a parent dealing


Positions LimitChoices

A position reduces thenumber of choices a party can make.If Charlie is unwilling to bargain orconsider possible alternatives to theposition Jackie has adopted, it reducesthe choices available to Jackie.Takinga positional approach means you cantchange your mind without risking los-ing credibility in the negotiation.Thatswhy taking a position is usually not agood way to negotiate.

Analyze the ProcessUnderstanding the negotia-tion process provides youwith a critical tool. By giving you ascientific or analytical way of figuringout whats going on, it helps you avoidthe pitfall of letting your emotions getin the way of your good sense as youengage in the negotiation.


with a child, cultural and experiential differences (along with indi-vidual preferences) can be challenging. Recognizing our owninterests and, as much as we can, those of our negotiation coun-terpart, helps us navigate past potential obstacles to agreement.

How Do You Deal with Positional Bargainers?Lets say youre dealing with a positional bargainer. What doyou do? Its all well and good to approach joint decision-makingefforts from an interest-based perspective. However, many peo-ple do not understand or do not accept the idea that while one-sided negotiations may yield short-term gains, they create therisk of long-term losses.

There are a variety of ways of dealing effectively with posi-tional bargainers. Just as many Asian martial arts teach us tolet others defeat themselves by allowing us to use their ownstrength to our advantage, in negotiation it is possible torespond effectively to heavy-handedness with a light touch.When people let off steam by shouting or using strong lan-guage, it is critical not to answer with the same sort of outburst.You can compare it to two waves heading toward each other: Ifthey meet, the water becomes even more turbulent. If you thinkof yourself as able to control one of the waves by making itduck under the onrush of the other wave, the water smooths

down after the wave haspassed.

If you are negotiatingwith someone who comesup with an outrageous orunacceptable proposal,rather than trying to con-vince him by yelling evenlouder, it can be extremelyeffective to respond withsilence. Sit there with apoker face and dontbetray any emotion.


Let Them Vent!When people get highlyemotionalfor example,

when a young child throws atantrumthe wisest thing to do is letthe youngster ventilate his emotionswithout trying to control him. Once aperson has spouted off, heart rateand breathing rate tend to slowdown.The individual becomes calmerphysically and generally more openpsychologically to alternative ideas.


People tend to reflect a bit more when theyre met with silence.Theyre likely to ask themselves, What did I say? What did I dothat offended him?

Employees are often confronted with demands made bytheir boss. If you feel that the bosss idea is inappropriate inyour situation, ask, How do you think dealing with this situationin this way will impact our long-term relations with the client?

Dont ask questions that allow for a yes or no answeraskfor explanations. If youve been told to sell a deal that you dontfeel right about to a client or supplier, its perfectly appropriateto tell your boss, I want to do this job right. If you were me,how would you sell this approach to the other side?

Fundamentally, when youre up against a positional bargain-er who cant accept any alternatives to his or her ideas, ratherthan attacking the ideaswhich may be taken as a personalattacktry to learn what interests underlie their position. Byfinding out what folks are really trying to achieve, you develop abetter sense of how to present alternatives that will respond totheir most important interests.

If you are in a salary negotiation, for example, learn howsignificant the various elements of a compensation packagemay be to an employer oran employee. If you askquestions about suchissues as tax considera-tions, shares of equityownership in the company,vacation time, flexiblehours, indications of howimportant a particular out-come may be to a partysego, or whether there arenon-financial elementseither party finds important, you may find one or more ways tobreak an apparent deadlock.


Dealing with BulliesIf you are negotiating withsomeone who is acting like a bully,keep in mind that bullies are afraid offailure. If you say,I am afraid we mayfail to reach agreement, there is agood chance that the threat of jointfailure will act as a wake-up call tothe bully, who may immediatelychange his or her behavior.


Is Money Really the Interest?Often it seems that everything boils down to money. We placeprices on things and on factors such as timely delivery or pay-ment up front. It is important to recognize that just becausemoney may appear to be the main interest of most or all of thestakeholders in a negotiation, dont assume that money meansthe same thing to each of them. As far as I know, there is onlyone person in the world to whom money has an intrinsicvaluethe Walt Disney character Uncle Scrooge. For most ofus, money represents a means to fulfilling interests; for exam-ple, buying a new car, paying for your kids college education,or as a measure of how much your employer values you.Money itself is not an interest; rather it is a means to an end, amechanism for helping us achieve interests and measure value.

Theres an old saying in negotiation: The first person tomention a dollar figureloses. If that were true,you and I could spendmonths going back andforth: How much are youcharging? I dont have afigure; whats in yourbudget? That dependson how much we have tospend. Well, I need toknow your price range sothat I can offer you theright product.

In reality, we need todecide for ourselves aheadof time what price makesthe most sense to us. IfIm negotiating my salaryand my research of themarket and my own needsindicate that I dont want


How Can WeRecognize Interests?

Recognizing interests is oneof the hardest parts of negotiation.Recognizing our own interests is notonly challenging but also key to ourcapacity to negotiate intelligently.Askyourself, How many ways are thereto achieve my objective and whatdesirable results do these alternativeshave in common? Finding commonthreads among desired results shouldhelp you understand more about yourinterests. Another approach is to ask,What would be the negative conse-quences to me if my goal is notachieved? When you find those nega-tives, turn them around into the miss-ing positive consequences to get aclearer picture of the interests yourepursuing.


less than $50,000, a wise response to the query, How muchare you looking for? is Im thinking in the range of the low50s. This tells the boss that Im looking for something between$50 and $55 thousand dollars. My boss may feel good offering$51,000, figuring shes saved $4,000 on the payroll budget. Orshe may respond by saying, Im thinking more of a figure inthe low 40s. Either way, it gives us a range within which tonegotiate a figure we hope will lead to a mutually agreeableresult.

Primary (Fundamental) and Secondary (Derivative)InterestsLets say I want a new car. There are lots of reasons for choos-ing cars: getting more reliable transportation than my old car,impressing my peers (or members of the opposite sex), copingwith the commute to a new job location, or celebrating a majoraccomplishment. Some of those reasons relate to solving prac-tical problemsreliable transportation or commuting. Othersrelate to my egomaking an impression or celebrating anaccomplishment.

If my most significant interests relate to transportation, mycar search may lead in the direction of safety, gas mileage, orother practical considerations. If my ego interests are at theforefront, then perhaps Ill be more concerned with the brandname, model, or how well equipped the car is.


Fundamental or primary interests For any personengaged in a negotiation, these are results that go to theheart of your needs.Where the results that serve your inter-ests come from is not important; it is the centrality of their impor-tance to you that makes interests primary.

Derivative or secondary interests These interests need to bemet before it is possible to address and satisfy your primary interests.If your primary interest is to live a comfortable old age, a derivativeinterest could be to make enough money to provide for that comfort.Another derivative interest that could precede comfort in your oldage is preserving your health as best you can.


Rarely does a negotiation decision revolve around a singleinterest. Generally, there are fundamental or primary interestsand derivative or secondary interests. Sometimes, in order tosatisfy a fundamental interest, the first thing we need to do isdeal with another derivative interest without which we cannotsatisfy the big one. If I am buying a car for ego purposes, I mayhave an interest in amassing sufficient funds and paying offexisting debts in order to be able to increase my capacity to buya fancier car. Yet the same holds true if safe reliable transporta-tion is the underlying interest. The more money I have available,the greater the likelihood I can afford a car with more safetyfeatures or a better warranty.

It is interesting, in the example of a car purchase, to see thatwhile the fundamental intereststransportation or egomay bedifferent from each other, the derivative interest may be thesame. Improving your financial situation in order to afford a carthat serves your transportation or ego interests is important ineither situation. Your interest in pursuing strategies relating tomoney may well lead you to undertake negotiations that havenothing to do with buying a car; but unless you exert yourefforts in the direction of improving your financial status, youare less able to undertake the negotiations with car dealers topursue your underlying primary interest.

This relatively simple situation gives us a sense of howimportant it can be to prioritize interests to develop a reason-ably clear sense of what must be done to take us to the nextstep. Lets say that impressing your colleagues with a fancy carwill meet the fundamental interest of boosting your self-image.In that case, buying the right car is a derivative interestdesigned to help fulfill the fundamental interest. However, to ful-fill the derivative interest of getting the right car, you have toimprove your financial pictureyet another derivative interest.And if one of the ways to get into better financial shape is to geta raise at work, theres yet another interest on your list. In orderto get a raise, do you have interests in getting a promotion,being rewarded with a bonus for a particular achievement, or



gaining recognition from your longevity on the job? It is impor-tant to recognize that we often have to negotiate different thingswith different parties to satisfy secondary interests before we arein a situation where we can undertake negotiations focusedmore directly on our primary interests.

As you can see, while we have certain fundamental intereststhat underlie our negotiation activities, we may have to strate-gize as if were playing a game of billiardsthinking severalmoves ahead and not just the immediate need to hit the 3-ballinto the side pocket. When we comprehend the relative priorityof our interests, it helps us develop longer-term strategies thatincrease the likelihood that our fundamental interests will beaddressed. We need to understand what steps to takeand inwhat orderto reach our interests. Look behind each of yourinterests and figure out whether it is a fundamental/primaryinterest or a derivative/secondary interest that needs to be metbefore you can pursue the primary one.

Looking Beyond Our Personal InterestsWhen we negotiate, we need to consider our own interests first.Focusing on our own interests helps protect us from developinga competitive mentality where we might sacrifice importantinterests in order to beat the opposition. If we allow ourselvesto get carried away with beating the other guy, we may losesight of our interests and make decisions that go against thoseinterests. However, our interests are not the only ones at play in


Constituents Parties whose interests are affected by ouractions, particularly those who are depending on us to deliv-er. For example, these can include the boss, other colleaguesat work, or end-user customers.

Approach Another term for a substantive element of a negotiation.My approach may be to sell the real estate to raise funds for the com-pany.Your approach may be to sell off a division to raise those funds.In each case, we need to look at which approach offers more promisein light of the interests involved.


negotiation. We must give thought to the interests of our con-stituents: the company, our family, or members of our team atwork. Which interests of those constituencies are primary andwhich are secondary? How do those interests influence theapproach we take in a given negotiation?

If we make a promise that creates a hardship for our col-leaguesfor example, promising delivery far faster than is realis-ticwe can get into trouble. While this does not mean we shouldbe paranoid negotiators looking over our shoulder all the time,knowing that other groups have a stake in the outcome of ournegotiation helps put things in context, gives us a broader per-spective, and increases the likelihood that well reach an agree-ment that comports well with the interests of our constituents.

In addition to looking at our constituents interests, we needto pay careful attention to the interests of parties with whom weare negotiating. Learning what their interests are can help uscraft a solution that makes for a successful negotiation. Letslook at the automobile purchase example. If we know we areselling to someone to whom ego issues are more significantthan transportation, that helps us understand what perspectivewill help them make their decision. The knowledge will help usdo a better job and, more than likely, make a better deal. Oursales pitch in those circumstances should focus on things like

power, appearance, or the characteristics of people


Listen to Their Answers to Your QuestionsUnderstanding our own interests may well be something we

can do by ourselves. Getting a handle on the interests of ourconstituents, our negotiating partner, and our partners constituenciesrequires serious information gathering.We must ask questions to learnabout other parties interests. More important, when we ask questionswe have to listen to the answers.To use an analogy, when someonehands you their business card, it is considered good manners to readeach line of it before you slip it into your pocket. It shows that youare paying attention and taking the person seriously.The same is truein asking questions in negotiation; if your mind appears to wander asfolks give you answers, you send a negative signal.


buying the fancy cars we offer. If transportation is the issue, weare more likely to bring about a sale by focusing on fuel econo-my, our service department, and safety features.

Similarly, we must do our best to learn about the interests ofour negotiating partners constituencies. Those interests maydrive his decision, and the more we comprehend his con-stituents interests in our strategy and tactics, the greater thelikelihood that the agreement we reach will provide our negotia-tion partner something to bring back to whomever he considersthe powers that be.

The Three Cs of Interests*

People often fool themselves into thinking that the objective ofinterest-based negotiation is to reach agreement on commoninterests. Common interests can be described as interests inwhich each party has thesame reasons for wantingthe same results. While it iscertainly possible to findcommon interests throughthe negotiation process,more often than not we andour negotiation partnersreach agreement becausethe interests met by thesolution that is achieved arecomplementary.

Complementary inter-ests can work in tandem.You have your interests, Ihave mine, but we can pursue each partys interests by under-taking a single action or a group of related actions.

Compromise: Where Does It Fit?Notice that compromise is not listed among the Three Cs of inter-ests. Compromise is a mechanism for meeting in the middle,


*Copyright 2001 Steven P. Cohen. All rights reserved.

Common interests Thoseinterests shared by thenegotiating parties who wantthe same things for the same reasons.

Complementary interests Thoseinterests that exist when the negoti-ating parties want the same result,but because it will serve differentinterests.

Conflicting interests Those inter-ests that exist when one or morenegotiators interests are in opposi-tion to interests of other negotiators.


requiring each party to give up an equivalent portion of theirobjectives in order to arrive at an agreement. Compromise tendsto be most effective when the currency of the bargaining is limit-ed. The currency of the bargaining is the range of assets that maybe traded among the negotiating parties. Thus, when moneyalone is the issue that divides the partiessay I am asking you

for $20 and you are offer-ing to pay $10 for anitemsplitting the differ-ence and settling on aprice of $15 requires eachof us to give up the sameamount ($5).


Common

Complementary

Conflicting

Figure 1-1. The three Cs of interests illustrated

Confidence-buildingmeasures Activities

undertaken by negotiatingparties to increase their confidence intheir ability to depend on or trustone another.


Sometimes we discover the parties interests are in conflict.They have nothing in common, and there do not appear to becomplementary interests that will make it easy to reach anagreement.

When it appears that interests are in conflict, negotiatorshave to weigh their options and determine whether its in theirinterest to undertake or continue negotiations with a specificother party or whether it is better to look for another solution.Often there is no realistic alternative; the problem needs to beaddressed by parties who, on the surface and perhaps evendeeper, have conflicting interests as they relate to the problem athand. Utilizing confidence-building measures (defined in detaillater), reducing the issues under consideration to small buildingblocks, or using questioning and listening techniques to build arelationship can help reduce the challenges conflicts create.

When Interests ConflictIf you have no choice but to try to reach agreement with a partywhose interests conflict with yours, build the possibility of agree-ment from the ground up. Look for small things about which youcan agreethe time and place youll meet, what items belongon the agenda and the order in which they should be discussed,the interests you and the others may share in an irrelevant topic


Complementary InterestsOne of the classic examples used in negotiation books andtraining courses to illustrate how finding complementaryinterests can lead to a mutually agreeable solution is often referred toas the Orange Story.Two folks are dickering over which of them getsone or more orangesdepending on the story. In each version, one ofthe people wants the orange juice and the other wants the orangerind. Sometimes the juice and rind are both to be used in eating orcooking; sometimes the two parts of the orange are needed to pro-duce chemical or biological products that are highly valuable.The bot-tom line of each version of the Orange Story is that the parties havecomplementary interests: If I get the juice and you get the rind, we canshare the orange rather than fight over who wins.


such as sports, politics, or food. For example, perhaps a firstorearlymeeting should take place at an ethnic restaurant where itis normal for diners to order and share entrees.

Make a serious effort to examine the issues that need to beresolved and look for small elements about which you and yournegotiation partner dont disagree. It can be helpful to spendtime agreeing on language that describes the problem, on possi-ble resolutions that you both agree make no sense, or on short-term fixes to minor elements of the problem that each partyfinds acceptable. In international diplomacy, these approachesare often called confidence-building measures. The parties to aconflict need to develop confidence in each other before theycan work together in a collaborative, cooperative way to reachan agreement. The parties confidence in one another can beincreased as they reach agreements on logistical matters suchas the date and time of the negotiation, elements to be includedin the agenda, or the shape of the bargaining table.

Reducing the substance of the problem to small units or uti-lizing confidence-building measures may fail to bring about aquick resolution, particularly to a long-standing conflict.However, such efforts can lay the groundwork for a reduction inthe emotional level of the conflict and help the negotiating par-ties develop a civilized way for communicating with each other.The problem most likely will not simply go away without furthereffort. In the Tao Te Ching, Lao Tzu tells us, The journey of1000 miles begins with the first step. This is a useful observa-tion and can help us on the route to reducing the barrier of con-flicting interests that may make reaching agreement appearimpossible. For unless we start, we cannot finish.

Managers Checklist for Chapter 1 A negotiation is only successful when it yields true buy-in

from the parties. Successful negotiations yield mutualagreement in which each party is committed to fulfillinghis or her promises.



Negotiation is like weaving. By drawing upon contributionsfrom more than one source of ideas or assets, it yields afabric that has greater durability than an agreement thathas only drawn its ideas from one side.

Positional bargaining, the my way or the highwayapproach, locks a negotiator into a situation in which hewill risk losing face if he backs down from what he hasstated he wants.

Interest-based negotiation focuses on the underlying rea-sons behind each negotiators objectives. Opening yourselfto considering how other parties ideas may serve yourinterests as well asor better thanyour initial ideaincreases the likelihood you will gain from the process.

Focusing on interests can help negotiators overcome orget around obstacles presented by cultural differences.

Understanding and focusing on your own interests canhelp you overcome the instinct to treat negotiation as acompetition between the parties.

In analyzing your interests, as well as the interests of oth-ers, figure out which interests are primary and which takea secondary role. Sometimes you have to address second-ary interests before it is possible to deal effectively withprimary interests. Understanding this helps develop aneffective negotiation strategy.

Negotiation can include multiple stakeholders, not just theface-to-face negotiators.

While money often seems to be the most common interestamong the negotiators, remember that it means differentthings to different people. It can help achieve very differentinterestsand sometimes those interests are even betterserved when something other than money is the solutionabout which the parties agree.

Remember the Three Cs of interests: Common,Complementary, and interests that are in Conflict. Most



successful negotiations end up with solutions that serveComplementary interests.

When conflict exists, it often takes confidence-buildingmeasures to increase the capacity of the parties to negoti-ate with one another.



CopyrightContentsPrefacePlan of the BookSpecial FeaturesAcknowledgments

About the Author1: Competitive Versus Collaborative Decision Making What Is Negotiation?What Negotiation Is NotTypes of NegotiationMy Way or the HighwayHazards of Adopting a Position

Investigating Your InterestsUnderstanding Our Own Interests

What Difference Does It Make to Distinguish Between Interests and Positions?How Do You Deal with Positional Bargainers?Is Money Really the Interest?Primary (Fundamental)and Secondary (Derivative) InterestsLooking Beyond Our Personal InterestsThe Three C s of InterestsCompromise:Where Does It Fit?

When Interests ConflictManager s Checklist for Chapter 1

2: BATNA Choosing Whether to Walk AwayMaking ChoicesBalance of PowerUnderstanding Our BATNA Offers ChoicesWhat Is Our Walking-in BATNA?Does BATNA Ever Change?The Dynamic BATNA

BATNA Is Not the Bottom LineElements of BATNAsDeadlinesAlternativesYour Own ResourcesOther Parties ResourcesInformationExperienceInterestsKnowledge

Strengthening and Weakening BATNAsAssumptionsManager s Checklist for Chapter 2

3: Are We Ready? Inoculation Protects the PartiesSubstantive Inoculation:Knowing the SubjectIn Negotiation,the Past Has No FutureSelling the Product to the SalespersonGoals of InoculationInoculation as a Tool for Improving Your BATNAWhat Information Do We Need About Ourselves?What Information Do We Need About Other Parties?Preparing for Negotiation on Your OwnActive ListeningResponding to What We LearnThe Power of Silence

Inoculation Includes Process as Well as SubstanceAgendas

Internal and External InoculationInternal InoculationExternal Inoculation

The Bottom LineWhen Inoculation Is ImpossibleManager s Checklist for Chapter 3

4: Preparation Part One:Stakeholders, Constituents,and InterestsShooting from the HipUnplanned NegotiationsSurprisesWhat Does Preparation Mean?Looking Inside YourselfUnderstanding the Subject MatterInternal NegotiationsPreparing Other PartiesPreparing for the ProcessPreparing on the Substance:Subject Matter of the Negotiation

Juggling Conflicting AgendasStrengthening and Weakening BATNAsReasons to Prepare for NegotiationManager s Checklist for Chapter 4

5: Preparation Part Two:Developing a Strategy Using Interest MappingMaking AssumptionsInterested PartiesStakeholdersCreate Your Interest MapRecord Your Assumptions About Stakeholders InterestsDon t Go It AloneLow-Cost SolutionsA Timeline for Interest Mapping

How to Use Interest MapsUsing Your Interest Map in NegotiationBe Prepared for Hot ButtonsDonut Hole Interest MapsAfter the NegotiationBe PreparedManager s Checklist for Chapter 5

6: Communication: Key to Effective NegotiatingPreparation Put to UseCommunicating to InfluenceActive ListeningPay AttentionControl Yourself and Learn from OthersAsk QuestionsThe Power of SilenceDo I Understand You Correctly?The Obligation of ReciprocityGet on the Same PageFriendly SilenceWhen Another Party Over-Communicates

Communicating with Difficult PeopleReframingWhat Is Your Point?Communicating InformationManager s Checklist for Chapter 6

7: Emotions:Dealing with Ourselves and OthersDo Emotions Belong in Negotiation?Recognizing and Prioritizing EmotionsSurpriseAre You Negotiating to Solve a Problem or Have a Fight?Confidence-Building MeasuresOnly One Person Can Get Angry at a TimeReacting to Emotional OutburstsDe-escalationHealing RelationshipsDealing with Difficult PeopleBulliesExpressing Emotions Is Not Bad NegotiatingManager s Checklist for Chapter 7

8: Dealing with Annoyance and Leveling the Playing FieldMythsThe First Person to Name a Price LosesOnly Tough Negotiators WinPutting the Other Party on the Defensive Through InterrogationResponding to Macho Negotiation Tactics

Psychological GamesGiving or Taking OffenseControlling the BoardPhysical Set-UpBuilding Confidence in Your CounterpartI Understand You,But That Doesn t Mean I Agree with YouExpectationsHigh-Ball/Low-Ball

Early Wins Can Be Traded Away LaterLevel Playing FieldManager s Checklist for Chapter 8

9: Globalism Starts at Home:Cross- Cultural IssuesNationality Is Not the Only DifferenceInternal NegotiationBringing Tribes TogetherYou Can t Tell a Book by Its CoverPigeonholing

Negotiation ChoreographyWhen Yes Means NoOffense as a Cultural BarrierOvercoming Cultural ObstaclesDeriving Information to Overcome Cultural BarriersHow Not to Handle Cultural Dissonance

Can I Depend on Them?Don t Get Hung Up on StyleManager s Checklist for Chapter 9

10: Creativity and Bargaining ChipsSingle-Issue NegotiatingMulti-Issue NegotiationsThe Value Creation CurveValue Versus PriceDon t Dictate ValueSeparating People from the ProblemHealing RelationshipsCheck the Appeal of Creative Elements One by OneDon t Hog the CreditConfirming Mutual UnderstandingOpen Your Mind and Expand the PossibilitiesManager s Checklist for Chapter 10

11: The Negotiation ProcessAgenda SettingSharing the Agenda-Building ProcessYou Can t Tell the Players Without a ScorecardThe Agenda:First Draft of the AgreementUsing the Agenda as a Process for Benchmarking

Building Confidence and ComfortUtilizing Your Interest MapBargainingIs Everything Open to Bargaining?If ...Then ...

Building Long-Term CommitmentObjective CriteriaZOPAExpectations and ConcessionsCompromiseCollaborationMultitaskingIt s Not Over Until It s OverNot Rocket ScienceManager s Checklist for Chapter 11

12: The Seven Pillars of Negotiational WisdomPaying Attention to PrioritiesRelationshipBusiness to BusinessSales and PurchasingPersonal and Close ColleaguesInternal Negotiation

InterestsQuestions to Ask YourselfUnderstanding Others Interests

BATNACreativityMore for All:The Value Creation Curve

FairnessMarket and Cultural Standards

CommitmentMonitoring Fulfillment

CommunicationTransparency

Foundation of the Seven PillarsManager s Checklist for Chapter 12

Indeximportant.pdfLocal Diskarticlopedia.gigcities.com

1.pdfLocal DiskAll the helpful information you will need is here!

1.pdfgetpedia.comHow everything works - GetPedia

DLHABHLBPLFFBAAOOMFMDAFEPJDEMMAJMM: form1: x: f1: f2: yscpbf4: 0

f3:

form3: x: f1: http://www.getpedia.comf2:

f3: Google Searchf4:

form2: x: f1:

f2:

business - negotiating skills for managers management mba

Documents