Bargaining For Advantage B I Z

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Bargaining For Advantage B I Z

  1. 2. Bargaining For Advantage Negotiation Strategies for Reasonable People AUTHOR: G. Richard Shell PUBLISHER: Penguin Books DATE OF PUBLICATION: 2000 NUMBER OF PAGES: 286 pages Book pic
  2. 3. <ul><li>This is a guide to better negotiation practice, not a substitute for it. </li></ul><ul><li>The approach to negotiation this book uses is called Information-Based Bargaining. This approach focuses on three main aspects of negotiation: </li></ul><ul><ul><li>Solid planning and preparation. </li></ul></ul><ul><ul><li>Careful listening. </li></ul></ul><ul><ul><li>Attending to the “signals” the other party sends through his or her conduct. </li></ul></ul>THE BIG IDEA
  3. 4. The Six Foundations Of Effective Negotiation <ul><li>Five Basic Bargaining Styles: </li></ul><ul><ul><li>Competitors </li></ul></ul><ul><ul><li>Problem solvers </li></ul></ul><ul><ul><li>Compromisers </li></ul></ul><ul><ul><li>Accommodators </li></ul></ul><ul><ul><li>Conflict avoiders </li></ul></ul><ul><li>Your Bargaining Style: A Checklist </li></ul><ul><ul><li>Determine your basic style preferences </li></ul></ul><ul><ul><li>Acquire a willingness to prepare </li></ul></ul><ul><ul><li>Set high expectations </li></ul></ul><ul><ul><li>Have the patience to listen </li></ul></ul><ul><ul><li>Make a commitment to personal integrity </li></ul></ul>The First Foundation: Your Bargaining Style
  4. 5. The Six Foundations Of Effective Negotiation <ul><li>Setting your goals: </li></ul><ul><ul><li>Think carefully about what you really want. </li></ul></ul><ul><ul><li>Set an optimistic – but justifiable – target. </li></ul></ul><ul><ul><li>Be specific. </li></ul></ul><ul><ul><li>Get committed. </li></ul></ul><ul><ul><li>Carry your goal with you into the negotiation. </li></ul></ul>The Second Foundation: Your Goals And Expectations
  5. 6. The Six Foundations Of Effective Negotiation <ul><li>Gaining Normal Leverage: A Checklist </li></ul><ul><ul><li>Survey the applicable standards and norms. </li></ul></ul><ul><ul><li>Prepare supporting data and arguments. </li></ul></ul><ul><ul><li>Anticipate the arguments the other side will make. </li></ul></ul><ul><ul><li>Prepare a positioning theme and anticipate the other side’s. </li></ul></ul><ul><ul><li>If necessary, consider making your arguments before a sympathetic audience. </li></ul></ul>The Third Foundation: Authoritative Standards And Norms
  6. 7. The Six Foundations Of Effective Negotiation <ul><li>The Relationship Factor: A Checklist </li></ul><ul><ul><li>Gain access and credibility through relationship networks. </li></ul></ul><ul><ul><li>Build working relationships across the table with small steps such as gifts, favors, disclosures or concessions. </li></ul></ul><ul><ul><li>Avoid reciprocity and relationship traps like trusting too quickly, letting others make you feel guilty and mixing big business with personal friendships. </li></ul></ul><ul><ul><li>Always follow the “Rule of Reciprocity”: </li></ul></ul><ul><ul><ul><li>Be reliable and trustworthy. </li></ul></ul></ul><ul><ul><ul><li>Be fair to those who are fair to you. </li></ul></ul></ul><ul><ul><ul><li>When other parties treat you unfairly, let them know. </li></ul></ul></ul>The Fourth Foundation: Relationships
  7. 8. The Six Foundations Of Effective Negotiation <ul><li>Exploring the Other Party’s Interests: A Checklist </li></ul><ul><ul><li>Locate the decision maker </li></ul></ul><ul><ul><li>How might it serve the other party’s interests to help you achieve your goals? </li></ul></ul><ul><ul><li>Why might the other party say “no”? </li></ul></ul><ul><ul><li>What low-cost options might remove the other party’s objections? </li></ul></ul>The Fifth Foundation: The Other Party’s Interests
  8. 9. The Six Foundations Of Effective Negotiation <ul><li>You can improve your leverage using many different moves: </li></ul><ul><ul><li>Finding good alternatives to achieve your goals away from the table </li></ul></ul><ul><ul><li>Gaining control over assets the other side needs </li></ul></ul><ul><ul><li>Forming coalitions </li></ul></ul><ul><ul><li>Arranging the situation so the other party will lose face if there is no deal </li></ul></ul><ul><ul><li>Showing the other negotiator you have the power to make him worse off materially  </li></ul></ul>The Sixth Foundation: Leverage
  9. 10. The Negotiation Process <ul><li>Preparation: A Checklist: </li></ul><ul><ul><li>Determine the basic situation you face. </li></ul></ul><ul><ul><li>Combine your situational analysis with the knowledge you have about your own stylistic preferences. </li></ul></ul><ul><ul><li>Try to imagine how the other party views the situation. </li></ul></ul><ul><ul><li>Combine the information you have gathered on the situation with your insights into the Six Foundations to develop a specific bargaining plan </li></ul></ul>STEP 1: PREPARING YOUR STRATEGY
  10. 11. The Negotiation Process <ul><li>Information Exchange: A Checklist </li></ul><ul><ul><li>Establish rapport </li></ul></ul><ul><ul><li>Obtain information on interests, issues, and perceptions </li></ul></ul><ul><ul><li>Signal regarding your leverage </li></ul></ul>Step 2: Exchanging Information
  11. 12. The Negotiation Process <ul><li>Three main elements to determine strategy and tactics: </li></ul><ul><ul><li>The situation </li></ul></ul><ul><ul><li>Your leverage </li></ul></ul><ul><ul><li>Your own and your counterpart’s style. </li></ul></ul>Step 3: Opening And Making Concessions
  12. 13. The Negotiation Process <ul><li>In competitive situations a number of strong psychological levers, can cause one side to panic when it would be better off making calmer, more rational decision. </li></ul><ul><li>Firmness can also lead to impasse.   </li></ul><ul><li>Finally, negotiations are not over until the parties have secured commitments to performance. </li></ul>Step 4: Closing And Gaining Momentum
  13. 14. BusinessSummaries.com is a business book Summaries service. Every week, it sends out to subscribers a 9- to 12-page summary of a best-selling business book chosen from among the hundreds of books printed out in the United States every week. For more information, please go to http://www.bizsum.com. ABOUT BUSINESSSUMMARIES

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