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CHAPTER TWELVE Best Practices in Negotiations McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

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Page 1: CHAPTER TWELVE Best Practices in Negotiations McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved

CHAPTER TWELVE

Best Practices in Negotiations

McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

Page 2: CHAPTER TWELVE Best Practices in Negotiations McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved

12-2

10 Best Practices for Negotiators

1. Be prepared— Understand and articulate your goals and interests

— Set high but achievable aspirations for negotiation

2. Diagnose the fundamental structure of the negotiation

— Make conscious decisions about the nature of the

negotiation: is it a distributive or integrative

negotiation or blend of the two

— Choose strategies and tactics accordingly

Page 3: CHAPTER TWELVE Best Practices in Negotiations McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved

12-3

10 Best Practices for Negotiators

3. Identify and work the BATNA

— Be vigilant about the BATNA

— Be aware of the other negotiator’s BATNA

4. Be willing to walk away

— Strong negotiators are willing to walk away when no

agreement is better than a poor agreement

— Have a clear walkaway point in mind where you will

halt the negotiation

Page 4: CHAPTER TWELVE Best Practices in Negotiations McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved

12-4

10 Best Practices for Negotiators

5. Master the key paradoxes of negotiation— Claiming value versus creating value

— Sticking by your principles versus being resilient to

the flow

— Sticking with the strategy versus opportunistic pursuit

of new options

— Facing the dilemma of honesty: honest and open

versus closed and opaque

— Facing the dilemma of trust: trust versus distrust

Page 5: CHAPTER TWELVE Best Practices in Negotiations McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved

12-5

10 Best Practices for Negotiators

6. Remember the intangibles— “See what is not there”— Ask questions— Take an observer or listener with you to the negotiation

7. Actively manage coalitions— Coalitions against you— Coalitions that support you— Undefined coalitions that may materialize for or against you

Page 6: CHAPTER TWELVE Best Practices in Negotiations McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved

12-6

10 Best Practices for Negotiators

8. Savor and protect your reputation— Start negotiation with a positive reputation

— Shape your reputation by acting in a consistent and

fair manner

9. Remember that rationality and fairness are relative— Question your perceptions of fairness and ground

them in clear principles

— Find external benchmarks of fair outcomes

— Engage in dialogue to reach consensus on fairness

Page 7: CHAPTER TWELVE Best Practices in Negotiations McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved

12-7

10 Best Practices for Negotiators

10. Continue to learn from your experience

— Practice the art and science of negotiation

— Analyze each negotiation• Plan a personal reflection time after each negotiation

• Periodically take a lesson from a trainer or a coach

• Keep a personal diary on strengths and weaknesses and develop a plan to work on weaknesses


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