the fundamentals of negotiation
TRANSCRIPT
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International Negotiation Techniques
Session 1: The fundamentals of negotiation
Pat Brans: [email protected]
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Agenda
• Sources of power• The situation• Preparation• The negotation process• Negotiation outcomes• Negotiation ploys
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Sources of power• Reward/punishment• Age• Hierarchy• Credentials• Expertise• Indifference• Having few needs• Popularity• Morality• Resolve
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The situation
• Public versus private• Their place versus your place• Time and schedules• Physical discomfort• Animosity or goodwill• Long term relationship, or one-time negotiation• The number of people involved in the
negotiation.
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Preparation
Always prepare for a negotiation !
What to prepare:• Evaluate your needs• List your priorities• Inventory your alternatives• Research the other party’s needs• List their priorities (as you understand them)• Estimate their alternatives (as you understand them)• Look for objective measures of results
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Preparation
Identify:• Your target• Your minimum• Your initial offer
Think of « currency »:• Things you can easily give, and that are valuable to the
other side.• Things the other side can easily give, and that are
valuable to you.
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The negotiation process
Should you make the first offer?x If you haven’t studied the market, no.
You have no idea if it’s reasonable; and it’s hard to ask for more later.
If you have studied the market, yes.By making the first offer, you anchor the reference point for the negotiation.
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The negotiation process
Think about time and silence.
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Time and expectations
If you have bad news, give the other side time to accept it. They will.
Remember that over time, peoples’ expectations change, including your own.
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Time and expectations
Slow down the discussion when you want to lower the other side’s expectations.
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Time and expectations
Speed up the discussion when you don’t want to give the other side time to change their mind.
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Time and silence
Always hesitate a little before accepting an offer.
If you accept too fast, the other side will think they could have gotten a better deal.
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Time and silence
Use silence to make the other side talk.
Use silence to lower the other side’s expectations and make them question the strength of the relationship.
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The negotiation process
Think about deadlines and
other time pressures.
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Deadlines
If they have a deadline and you don’t, use their time pressure to your advantage.
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Deadlines
If you’re the one with the deadline, look for:• Flexibility in your
deadline.• Intermediate solutions.
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The negotiation process
Think about objective criteria.
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Objective criteria
• Is there an independent standard you can use to measure results?
• Can you compare your deal with other deals as a benchmark?
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The negotiation process
Think about differences in
beliefs, values, and priorities.
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Beliefs, values, and priorities
Their values are probably different from yours. Try to understand their values and see where you can find win/win.
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The negotiation process
Think about procedures.
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Procedures
If you get stuck on some of the substantive issues, think about the flexibility you might in other areas – for example, in procedures.
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Procedures
• Sometimes procedures are the most important part of the agreement.
• For example, in the Iran Nuclear agreement, how to check for compliance is a major issue in the agreement.
• Procedures may also be negotiable.
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The negotiation process
Think about negotiation
ploys.
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Negotiation ploys
• Good cop / bad cop• Emotional outbursts• The higher authority• Sign now or you’ll never get the same deal• Nibbling• Splitting the difference• It’s beyond my control
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Negotiation outcomes
Lose / lose
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Negotiation outcomes
Win / lose
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Negotiation outcomes
Win / Win
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Getting to win-win
Win/win can usually be achieved if you can establish a trusting relationship where the two sides freely exchange ideas.
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International Negotiation Techniques
Session 1: The fundamentals of negotiation