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Negotiation Strategy and Planning [Sav Lecture]
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Negotiation Strategy and Planning [Sav Lecture]

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Lecture slides to accompany Negotiation Strategy and Planning class.

Lecture slides to accompany Negotiation Strategy and Planning class.

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  • Makes us sleep better at night.
  • 1 ContendingActors pursue own outcomes strongly, show little concern for other party obtaining their desired outcomes2 YieldingActors show little interest in whether they attain own outcomes, are quite interested in whether the other party attains their outcomes3 Inaction Actors show little interest in whether they attain own outcomes, little concern about whether the other party obtains their outcomes4 Problem solvingActors show high concern in obtaining own outcomes, as well as high concern for the other party obtaining their outcomes5 CompromisingActors show moderate concern in obtaining own outcomes, as well as moderate concern for the other party obtaining their outcomes
  • Per Dual Concerns Model, choice of strategy is reflected in the answers to two questions:How much concern do I have in achieving my desired outcomes at stake in the negotiation?How much concern do I have for the current and future quality of the relationship with the other party?Avoidance: Get what you want without having to (waste time) negotiate, maybe have far better BATNA.Competition – distributive, win-lose bargainingCollaboration – integrative, win-win negotiationAccommodation – involves an imbalance of outcomes (“I lose, you win”) Maybe compromise for the future.
  • Strategy: Provides stability, direction and continuity for our tactical behaviors. Quinn 1991.Example: Integrative strategy designed to build and maintain a productive relationship.l
  • Assignment II: Negotiation Planning Memo IIAnalyze the other partyWhy do they want what they want?How can I present my case clearly and refute the other party’s arguments?Present the issues to the other partyDefine the protocol to be followed in the negotiationWhere and when will the negotiation occur?Who will be there?What is the agenda?
  • It provides you the information to do the negotiation. Otherwise you have no arguments.
  • Transcript

    • 1. 4-1
      Negotiation Strategy
      and Planning
      Rights Reserved
    • 2. Systematic Planning
      Most negotiation outcomes are left to chance…why?
      Advance planning is overlooked:
      Time constraints
      Boring / Tedious
      Interested in Action / Doing
      The result is either no deal or suboptimal deals (winners curse, leave value on the table for one or both parties)
      Were not as quick, smart or clever as we think we may be.
      Results are failed or suboptimal negotiations:
      Lack of clear objectives
      Inability to evaluate offers accurately
      Inability to understand alternative proposal strengths & weakness
    • 3. Use of Planning
      Research suggests (Rackham, 1980) that “skilled negotiators” vs. “average negotiators”:
      Explored a wider range of options for action
      Worked harder to find “common ground” with the other party
      Spent more time considering long term implications
      Thus, the skilled negotiators were able to understand fully when to accept, reject or continue negotiating.
      Were significantly more likely to set:
      Upper limits, Lower limits
      Understand the negotiating range of acceptable settlements
    • 4. Key Steps to an Ideal Negotiation Process
      Negotiation proceeds through distinct phases or stages:
      Beginning phase (planning, initiation)
      Middle phase (negotiation, problem solving)
      Ending phase (resolution)
    • 5. Key Steps to anIdeal Negotiation Process
      4-5
      P1, P2 & P3
      Preparation
      What are the goals?
      How will I work with the other party?
      Relationship building
      Understanding differences and similarities
      Building commitment toward a mutually beneficial set of outcomes
      Information gathering
      Learn what you need to know about the issues (Eg.. Range [ZOPA] from Baker-Andersen)
    • 6. Key Steps to anIdeal Negotiation Process
      P4, P5, P6 & P7
      Information using
      Assemble your case/argument
      Bidding, Trading: The Dance.
      Each party states their “opening offer”
      Each party engages in “give and take”
      Closing the deal
      Build commitment, step-by-step.
      Implementing the agreement (who, what, when)
    • 7. Negotiation:
      Most refer to it is simply step’s 5 & 6:
      Skilled negotiators employ all 7 steps.
    • 8. Questions???
    • 9. Goals, Strategy and Planning
      A review of the whole negotiation process…
    • 10. Goals
    • 11. Goals
      Types of Goals
      Need to be Specific, Measurable, Easy to Communicate.
      May be Win-Win or Win Loose, depending on your situation.
      E.g.
      A Cheap Car? Vs.
      New car 5 below dealer cost
      Better sales results vs.
      Sales growth 5% better than the industry growth rate.
      Substantive Goals
      Money
      Specific Outcome
      Result or Behavior Change
      Intangible Goals
      Reputation (maintain or create)
      Winning Market Entry
      Selling your company(any price)
      Procedural goals
      Agenda, Location, Law, Input in outcome
    • 12. Goals – The Focus That Drives Negotiation Strategy
      Determining goals is the first step in the negotiation process
      Negotiators should specify goals and objectives clearly -prioritized
      The goals set have direct and indirect effects on the negotiator’s strategy.
      E.g. Money $$$ or a Specific Action/Outcome
      Process goals, dates, timing
      Reputation and Relationship.
    • 13. Strategy
    • 14. Strategic Options
      4-14
      Per Dual Concerns Model, choice of strategy is reflected in the answers to two questions:
      How much concern do I have in achieving my desired outcomes at stake in the negotiation?
      How much concern do I have for the current and future quality of the relationship with the other party?
      r
    • 15. Strategy: The Dual Concerns Model - Modified
      Integrative Strategy
      Compromising
      Distributive, Win –Loose Strategy
      No Deal, I Have a better BATNA
      Accommodation: I let you win, enhance relationship: Compromise for Future?
    • 16. Dual Concerns Model
    • 17. Strategy versus Tactics
      Strategy:The overall plan to achieve one’s goals in a negotiation based on situation and resources available
      Tactics:Short-term, actions designed to enact or pursue broad strategies
      Tactics are subordinate & driven by strategy
      Planning:The “mapping” component of the strategy process
      Example: Integrative strategy designed to build and maintain a productive relationship, & create the most value between the two.
      Example: Open –ended questions, active listening to understand others genuine interests, problem solving or hard ball actions
      Example: How will I implement the strategy?
    • 18. Planning
    • 19. Getting Ready to Implement the Strategy: The Planning Process
      Define the issues
      Assemble the issues and define the bargaining mix
      The bargaining mix is the combined list of issues
      Define your interests
      Why you want what you want
      Know your limits and alternatives
      Set your objectives (targets) and opening bids (where to start)
      Target is the outcome realistically expected
      Opening is the best that can be achieved
      Assess constituents and the social context of the negotiation
    • 20. Negotiating Planning Guide
      Lewecki Text Chapter 4, Figure 4.3
    • 21. 4-21
      The Social Context of Negotiation: “Field” Analysis
      ©2006 The McGraw-Hill Companies, Inc., All Rights Reserved
      McGraw-Hill/Irwin
    • 22. Getting Ready to Implement the Strategy: The Planning Process
      4-22
      Analyze the other party
      Why do they want what they want?
      How can I present my case clearly and refute the other party’s arguments?
      Present the issues to the other party
      ©2006 The McGraw-Hill Companies, Inc., All Rights Reserved
      McGraw-Hill/Irwin
    • 23. 4-23
      Getting Ready to Implement the Strategy: The Planning Process
      Define the protocol to be followed in the negotiation
      Where and when will the negotiation occur?
      Who will be there?
      What is the agenda?
      ©2006 The McGraw-Hill Companies, Inc., All Rights Reserved
      McGraw-Hill/Irwin
    • 24. Summary on the Planning Process
      “...planning is the most important activity in negotiation.”
      It provides you the information to do the negotiation. Otherwise you have no arguments.

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