1. Chart of Interests
1
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Interests
1.
Risk (to redu ce)
2.
Precedent (avoid or set)
3.
Time (availability of)
4.
Respect (to be t reated with)
5.
Reputation/Image/self-esteem/impress
6.
Vindication
7.
Right (to be proven)
8.
Closure (desire for)
9.
Relationship
10. Win
11.
Punish
12. Success (how specifically measured)
13. Ego/Popularity
14. Legacy
15. Deterrence (to create a)
16.
Unjust reward/benefit.
17. Teach (covey a value)
18. Joy (to experience)
19.
Mission
20. Bargain (desire for a)
21.
Fairness (to self, to others)
22. Cut losses
23 . Goals (specific or general)
24. Access (increase or block)
25. Recognition
26.
Retaliation
27.
Protect (self or others)
28. Fear (of something or event) ·
29.
Uncertainty (to end)
30.
Block /Prevent
31.
Reward (a behavior)
32.
Evasion (of responsibility)
33 . Consistency
34.
Debt (to satisfy)
35 . Impress (others)
36. Quality
37.
Pri de (negative)
38.
Pride (positive)
39. Peace (of mind)
40. Accountability
41.
Loyalty
Copyright 2012 Timothy Dayonot
(In the context of a negotiatio n)
Wants. Needs. Concerns. Fears
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Reminder: Consider Non-Interests
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Description
To reduce the risk of a negative outcome from occurring.
A desire to prevent an unwanted precedent, or to set a desired precedent.
Where there is time scarcity, time sufficiency, time neutrality or reduce transaction costs .
To be treated with dignity or as expected .
Desire to be viewed in a positive light.
To be proven innocent of some allegation.
To be recognized when a prediction is made that comes true.
A desire to end a process or situation or resolve something.
Short term, long term, quality or nature of.
To g~t the best outcome and/or to be first or have a victory in a competitive situation.
To direct or cause pain/discomfort to a person/entity for a particular decision or behavior.
How a person/entity specifically measures or determines if they are doing well .
The desire to be viewed in a positive light.
Long term reputation.
To create a disincentive to engage in a particular behavior.
To prevent someone from benefiting from their bad behavior.
To cause an entity to learn something they do not have.
Where a particular activity results in positive emotions.
The broad goal or purpose of a group or person.
A situation where the cost of something is a very "good deal".
Desire to be treated as others are treated who are similarly situated .
Where transaction or opportunity costs are accumulating at an undesired pace.
The broad motivation that drives an entity or person.
To prevent/facilitate a wanted/unwanted thing from occurring.
Credit for contribution to a positive outcome.
To punish or harm an entity for something they caused .
To protect oneself or others from an unwanted situation .
Apprehension associated with a undesirable result or outcome.
Desire to decrease the chances of an unwanted outcome.
Desire to stop an unwanted outcome to occur
To convey value to another for their positive behavior.
To not be blamed for something that has or will occur.
Desire to have only small variations in quality or magnitude.
To satisfy an obligation to.another.
Desire to cause others to view oneself (or entit y) in a positive light.
A desire that a thing or service meets or exceeds expectations.
Where a person will not act because he/she does not want to be viewed in a negative light or admit th ey were wrong.
Where a person feels good about something they did or someone they have an association with .
The desi re to end a process/negotiation in order escape the mental st ress associated with it.
The desire t o make an entity responsible to another fo r the ir behavior.
To help anot her person(s) or entity because of thei r past or present positive re lationship ..
dayonot@ haas. berke ley.edu

2. l
6M
Element
What it is
1) The want, needs,
concerns and fears of
parties. 2) Interests
also include things that
don't matter, i.e., what
they don't need, don't
want, etc. 3) They
often are predictable
but sometimes hard to
anticipate.
1) What a negotiator
will do if s/he fails to
reach agreement. 2)
Typically the best of
one or more noagreement alternatives.
3) It is possible to have
no BATNA. 4) In a
conflict, your BATNA
may also be to do
nothing.
1) What triggers you to
take your BATNA. 2)
Can be a number/value
or set of
circumstances.
Interests
Focus on interests, not
positions.
BATNA
@est 81ternative !o a
Negotiated 8greement)
Identify and evaluate your
and their BA TNA
Reservation
Value (RV)
Determine initial RV
1) Ideas or agreements
(or elements of an
agreement) that both
parties agree upon . 2)
Most common option is
one that is low-cost to
one side, but high
benefit to the other.
1) Things that parties
use to help determine
the value of something
or what behavior or
action is appropriate.
Creative
Options
Look for creative ways to
create value, i.e., "expand
the pie"
Standards
Have some in mind
beforehand and anticipate
theirs
Relationships
Be "hard on problem, soft on
people" and think long-term.
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There are two areas:
1) Your relationship
during the negotiation ,
and 2) Your future
relationship (short-term
of long term, if any).
..Why El
Important
t
fE
,
Why Challenging
1) Parties negotiate in
order to satisfy their
interests. 2) Understanding a person's
interests will help you
fashion agreements that
satisfy interests. 3)
Parties rarely agree to
deals that don't satisfy
key interests.
1) The stronger your
BATNA, the more
negotiating power you
will have. 2) The
assessment of your
BATNA's strength is not
done in a vacuum, but
relative to the strength of
the other sides BATNA.
1) Interests are often not
apparent and hidden. 2)
Some parties are not fully
aware of their own interests. 3) Parties often
have multiple interests of
different levels of importance. 4) Parties are often
reluctant to share
interests.
1) Because BATNA is so
important, parties often
exaggerate the strength of
their BATNA. 2) Those
with weak BATNAs try to
hide that fact. 3) Caution :
Parties tend to
overestimate the strength
of their BATNA.
1) Crucial to know at
what point you should
walk away from a
negotiation .
Estimating the other side's
RV is critical to effective
negotiating . Lack of
available information
makes estimating the
others RV difficult.
1) It takes creativity and
time to fashion joint-gain
agreements. 2) It requires
negotiators to share
interests that parties are
sometimes reluctant to
divulge.
1) Fashioning creative
options make it possible
for parties to reach
deals. 2) Developing
creative options that
satisfy interests create
more satisfying and
durable agreements .
1) Using external
standards sometimes
make the parties feel the
agreement is more "fair" .
2) In some cases it can
save time and prevent
unnecessary haggling .
1) Both sides will
advocate standards that
advance their interest. 2)
This will often result in
dueling standards. 3)
Challenges to standards
often occur. 4) Can be
lfsed as a "sword or a
shield".
1) How you treat your
1) Parties are often not
opponent can impact the
aware of their behavior. 2)
Parties often focus only on
outcome of your
negotiation and; 2) Can
short-term gain, rather
impact your potential
than long term gain . 3)
future negotiation (as
Parties often
well as your reputation
. unnecessarily demonize
generally)
their opponents and treat
them with disrespect.
N
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tiaf
Examples
Common interests:
Reduce risk ,
precedent, saving
face, deterrence,
time, approval or
recognition, punish
or reward, joy (give,
win, fun) , teach a
lesson and closure.
How to Use
X puts an ad to sell
her boat for $4k. X
sets her RV at
$3.5k. If she cannot
get that amount, she
will keep the boat.
Both want same
orange. Upon learning one side needs
only the rind for
baking , and the
other the fruit for
eating, they divide
orange accordingly.
Market value,
scientific study,
professional standards, custom &
tradition, precedent,
equal treatment, law,
industry standards,
self-created , etc.
1) Ask: What is
important to you and
determine levels of
importance. 2)
Speculate as to your
opponents .likely
interests. 3) Dig for
underlying interests
(i.e. , non-obvious
needs or concerns)
). Evaluate alternalives if no deal.
Determine which is
the best of your
alternatives (i.e.
BATNA) 3) Determine
if BATNA is strong or
weak. Be diplomatic
when indicating your
willingness to take
your BATNA.
1) Determine your
initial RV in advance.
Be open to changing it
based on new
information. Do not
disclose RV.
Consider: 1) Low cost
high benefit trades; 2)
Contingency agreements; 3) Installment
and phase-in agreements; 4) Complimentary exchanges; 5)
Economies of scale.
1) Consider standards you can use
before hand. 2)
Speculate as to what
standards they may
use. 3) Think of ways
you can challenge
their standards.
1) Unaware they are
treating their
opponent rudely , the
negotiation goes
badly. 2) Anxious to
get a good deal for
the moment, they
lose opportunities for
future deals .
1) Be hard on the
problem , soft on the
people. 2) Be respectful and trustworthy. 3).
Consider your future
interactions. 4) Just
because you disagree, you don't have
to be disagreeable .
If job applicant does
not get hired for a
particular job, he has
two other offers, one
that is superior to
one s/he is currently
negotiating. This
superior no agreement alternative is
his/her BATNA.
Common Mistakes
1) Focusing only on your
interests. 2) Sharing interest
that might indicate you have
a weak BATNA. 3) Confusing
with the word "position",
which is a specific proposal
or demand. 4) Attempting to
argue the illegitimacy of your
opponent's interests.
1) Not considering what you
will do if there is no deal. 2)
Not creating or strengthening
your BATNA. 3) Exposing a
weak BATNA (OK to share a
strong BATNA) . 4) Exposing
your bottom line (reservation
value), i.e., what will trigger
you/them to take your/their
BATNA. 5) Confusing BATNA
with Reservation Value (RV)
1) Rigid adherence to RV
regardless of circumstances .
2) Setting RV unrealistically
or unnecessarily low. 3)
Disclosing RV. 4) Confusing
RV with BATNA.
1) Only thinking about your
own needs. 2) Failing to
probe for interests (surfacing
interests is necessary to
create value (expand the pie).
3) Rushing a negotiation. 4)
Belief in the mythology of a
"fixed pie".
1) Failure to adequately
research possible standards.
2) Failure to find ways to
challenge or undermine your
opponent's standards. 3)
Failure to understand that the
use of standards is value
claiming not value creating.
1) Failure to monitor your
own behavior. 2) Failure to
have impulse control. 3)
Failure to build rapport with
opponent. 4) Failure to look
long-term. 5) Tendency to
see the other side as your
enemy. NOTE: If impasse
occurs , consider mediation or
arbitration .