Negotiation Preparation & Planning


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Negotiation Preparation & Planning

  1. 1. Negotiation Preparation & Planning Negotiation & Conflict Management Class 5 Part 1 John D. Blair, PhD Georgie G. & William B. Snyder Professor in Management
  2. 2. Why Plan? <ul><li>Critical to successful negotiations </li></ul><ul><li>Provides the ability to set the tone and direction of the negotiation </li></ul><ul><li>Individuals with higher levels of planning inclinations will have more successful negotiation outcomes than those who are less preparation-inclined. </li></ul>
  3. 3. Information Needs <ul><li>Negotiators should know: </li></ul><ul><ul><li>Other parties’ needs & interests </li></ul></ul><ul><ul><li>Available resources of the other party </li></ul></ul><ul><ul><li>Reputation and styles of the other parties </li></ul></ul><ul><ul><li>Ability and authority of other party to make agreements </li></ul></ul><ul><ul><li>Strategies & tactics the other party might utilize </li></ul></ul><ul><ul><li>Understanding of when the other party might walk away from the negotiations </li></ul></ul>
  4. 4. Negotiation Game Plan <ul><li>Important to be prepared for any situation – competitive or cooperative </li></ul>Organize Thoughts Identify Ideal Outcomes Develop Contingencies & BATNA Steps to Prepare for Negotiation
  5. 5. Negotiation Game Plan continued <ul><li>Identify communication elements </li></ul><ul><ul><li>Tone for negotiation (e.g. apologetic, determined, concerned) </li></ul></ul><ul><ul><li>Frames for describing positions (e.g. metaphors, analogies) </li></ul></ul><ul><ul><li>Body language to maximize effectiveness </li></ul></ul><ul><ul><li>Claims, data, objective criteria </li></ul></ul><ul><ul><li>Questions </li></ul></ul><ul><ul><li>Persuasion strategies </li></ul></ul><ul><ul><li>Methods to ensure commitments </li></ul></ul>
  6. 6. Intelligence Gathering <ul><li>Skilled negotiator gathers intelligence: </li></ul><ul><ul><li>Interests – mutual & divergent </li></ul></ul><ul><ul><li>Concerns – mutual & divergent </li></ul></ul><ul><ul><li>Emotional issues </li></ul></ul><ul><ul><li>Primary claims </li></ul></ul><ul><ul><li>Evidentiary support – strengths & weaknesses </li></ul></ul><ul><ul><li>Potential avenues around resistance </li></ul></ul><ul><ul><li>Style compatibility considerations </li></ul></ul>
  7. 7. ICE Model: Three Key Perspective-Shaping Factors <ul><li>Before beginning any negotiation, the three key perspective-shaping factors (interests, concerns & emotions) must be assessed – not assumed! </li></ul>Concerns Interests Emotions
  8. 8. Identifying Interests <ul><li>Skilled negotiators must elicit information regarding the others’ interests – both mutual and divergent </li></ul><ul><li>Utilize self-disclosure to encourage openness </li></ul><ul><li>Share a story of a previous negotiation </li></ul><ul><li>Place interests in continuum from mutual-to-divergent </li></ul><ul><ul><li>When interests are mutual, cooperative or integrative negotiation is likely </li></ul></ul><ul><ul><li>When interests are divergent, antagonistic, distributive forms of negotiation emerge </li></ul></ul>
  9. 9. Identifying Concerns <ul><li>All parties have concerns or worries </li></ul><ul><li>Failure to address or identify concerns may hinder successful negotiations </li></ul>
  10. 10. Identifying Emotions <ul><li>Individuals may become emotionally involved with issues or positions </li></ul><ul><li>Emotions may be as important as rational or cognitive arguments </li></ul><ul><li>If emotions are ignored, negotiations may fail </li></ul>
  11. 11. Identifying Primary Claims <ul><li>Defined: Statements about interests that each negotiator is likely to make </li></ul><ul><li>Argument development </li></ul><ul><ul><li>Claim – outcome or position for which you’re arguing </li></ul></ul><ul><ul><li>Data – evidence or reasoning supporting the claim </li></ul></ul><ul><ul><li>Warrant – general statement that indicates why the data are supportive of the claim </li></ul></ul><ul><li>Dissect reasoning to identify potential weaknesses and develop stronger arguments </li></ul><ul><li>Lead with the strongest claims and ones that the other party may care about or are likely to believe </li></ul>
  12. 12. Argument – Claim Development <ul><li>Toulmin’s Model </li></ul><ul><li>Issue: ___________ </li></ul>Therefore Data: Claim: Backing: Because Since Warrant:
  13. 13. Using a Logical Vocabulary <ul><li>Proposition – True or false statement within an argument but not alone </li></ul><ul><li>Premise – Proposition used as evidence in an argument </li></ul><ul><li>Conclusion – Proposition used as a thesis in an argument </li></ul><ul><li>Argument – A group of propositions from which one follows from another </li></ul><ul><li>Induction – Process through which premises provide some basis for the conclusion </li></ul><ul><li>Deduction – Process through which premises provide conclusive proof for the conclusion </li></ul>
  14. 14. Listen for Indicators <ul><li>Argument indicators: should, must, ought, necessarily </li></ul><ul><li>Premise indicators: since, because, for, as, in as much as, for the reason that, first </li></ul><ul><li>Conclusion indicators: therefore, hence, thus, so, consequently, it follows that, one may infer, one may conclude </li></ul>
  15. 15. Prepare & Anticipate Counterclaims <ul><li>Anticipate the possible ways in which your counterpart might respond </li></ul><ul><li>Seek to understand </li></ul><ul><ul><li>Acknowledge counterclaim </li></ul></ul><ul><ul><li>Assess counterclaim to gain better understanding of their position </li></ul></ul><ul><ul><li>Respond – utilize other forms of substantive evidence or data </li></ul></ul><ul><ul><li>Confirm agreement that you’ve addressed their counterclaim </li></ul></ul>
  16. 16. Identify Fallacies <ul><li>Fallacies of relevance – occur when premises are irrelevant to the conclusion </li></ul><ul><li>Fallacies of ambiguity – occur when ambiguous, changeable wording in propositions lead to more than one meaning in an argument </li></ul>
  17. 17. Utilize Mind Maps <ul><li>Brainstorm possible outcomes – areas of disagreement </li></ul><ul><li>Think beyond simplistic outcomes </li></ul><ul><li>Visualize and rehearse the many possible outcomes at various negotiation choice points </li></ul>
  18. 18. Goals – The Focus That Drives Negotiation Strategy <ul><li>Determining goals is the first step in the negotiation process </li></ul><ul><li>Negotiators should specify goals and objectives clearly </li></ul><ul><li>The goals set have direct and indirect effects on the negotiator’s strategy </li></ul>
  19. 19. The Direct and Indirect Effects of Goals on Strategy <ul><li>Direct effects </li></ul><ul><ul><li>Wishes are not goals </li></ul></ul><ul><ul><li>Goals are often linked to the other party’s goals </li></ul></ul><ul><ul><li>There are limits to what goals can be </li></ul></ul><ul><ul><li>Effective goals must be concrete/specific </li></ul></ul><ul><li>Indirect effects </li></ul><ul><ul><li>Forging an ongoing relationship </li></ul></ul>
  20. 20. Strategy versus Tactics <ul><li>Strategy: The overall plan to achieve one’s goals in a negotiation </li></ul><ul><li>Tactics : Short-term, adaptive moves designed to enact or pursue broad strategies </li></ul><ul><ul><li>Tactics are subordinate to strategy </li></ul></ul><ul><ul><li>Tactics are driven by strategy </li></ul></ul><ul><li>Planning : The “action” component of the strategy process; i.e. how will I implement the strategy? </li></ul>
  21. 21. Approaches to Strategy <ul><li>Unilateral: One that is made without active involvement of the other party </li></ul><ul><li>Bilateral: One that considers the impact of the other’s strategy on one’s own </li></ul>
  22. 22. Strategic Options <ul><li>Per Dual Concerns Model, choice of strategy is reflected in the answers to two questions: </li></ul><ul><ul><li>How much concern do I have in achieving my desired outcomes at stake in the negotiation? </li></ul></ul><ul><ul><li>How much concern do I have for the current and future quality of the relationship with the other party? </li></ul></ul>
  23. 23. The Dual Concerns Model Avoidance: Don’t negotiate Competition: I gain, ignore relationship Collaboration: I gain, you gain, enhance relationship Accommodation: I let you win, enhance relationship Subordination Subordination very very
  24. 24. The Nonengagement Strategy: Avoidance <ul><li>If one is able to meet one’s needs without negotiating at all, it may make sense to use an avoidance strategy </li></ul><ul><li>It simply may not be worth the time and effort to negotiate </li></ul><ul><li>The decision to negotiate is closely related to the desirability of available alternatives </li></ul>
  25. 25. Active-Engagement Strategies <ul><li>Competition – distributive, win-lose bargaining </li></ul><ul><li>Collaboration – integrative, win-win negotiation </li></ul><ul><li>Subordination – involves an imbalance of outcomes (“I lose, you win”) </li></ul>
  26. 26. Understanding the Flow of Negotiations: Stages and Phases <ul><li>How does the interaction between parties change over time? </li></ul><ul><li>How do the interaction structures relate to inputs and outcomes over time? </li></ul><ul><li>How do the tactics affect the development of the negotiation? </li></ul>
  27. 27. Understanding the Flow of Negotiations: Stages and Phases <ul><li>Negotiation proceeds through distinct phases or stages </li></ul><ul><li>Beginning phase (initiation) </li></ul><ul><li>Middle phase (problem solving) </li></ul><ul><li>Ending phase (resolution) </li></ul>
  28. 28. Key Steps to an Ideal Negotiation Process <ul><li>Preparation </li></ul><ul><ul><li>What are the goals? </li></ul></ul><ul><ul><li>How will I work with the other party? </li></ul></ul><ul><li>Relationship building </li></ul><ul><ul><li>Understanding differences and similarities </li></ul></ul><ul><ul><li>Building commitment toward a mutually beneficial set of outcomes </li></ul></ul><ul><li>Information gathering </li></ul><ul><ul><li>Learn what you need to know about the issues </li></ul></ul>
  29. 29. Key Steps to an Ideal Negotiation Process
  30. 30. Key Steps to an Ideal Negotiation Process <ul><li>Information using </li></ul><ul><ul><li>Assemble your case </li></ul></ul><ul><li>Bidding </li></ul><ul><ul><li>Each party states their “opening offer” </li></ul></ul><ul><ul><li>Each party engages in “give and take” </li></ul></ul><ul><li>Closing the deal </li></ul><ul><ul><li>Build commitment </li></ul></ul><ul><li>Implementing the agreement </li></ul>
  31. 31. Getting Ready to Implement the Strategy: The Planning Process <ul><li>Define the issues </li></ul><ul><li>Assemble the issues and define the bargaining mix </li></ul><ul><ul><li>The bargaining mix is the combined list of issues </li></ul></ul><ul><li>Define your interests </li></ul><ul><ul><li>Why you want what you want </li></ul></ul>
  32. 32. Getting Ready to Implement the Strategy: The Planning Process <ul><li>Know your limits and alternatives </li></ul><ul><li>Set your objectives (targets) and opening bids (where to start) </li></ul><ul><ul><li>Target is the outcome realistically expected </li></ul></ul><ul><ul><li>Opening is the best that can be achieved </li></ul></ul><ul><li>Assess constituents and the social context of the negotiation </li></ul>
  33. 33. The Social Context of Negotiation: “Field” Analysis
  34. 34. Getting Ready to Implement the Strategy: The Planning Process <ul><li>Analyze the other party </li></ul><ul><ul><li>Why do they want what they want? </li></ul></ul><ul><ul><li>How can I present my case clearly and refute the other party’s arguments ? </li></ul></ul><ul><li>Present the issues to the other party </li></ul>
  35. 35. Getting Ready to Implement the Strategy: The Planning Process <ul><li>Define the protocol to be followed in the negotiation </li></ul><ul><ul><li>Where and when will the negotiation occur? </li></ul></ul><ul><ul><li>Who will be there? </li></ul></ul><ul><ul><li>What is the agenda? </li></ul></ul>
  36. 36. Summary on the Planning Process <ul><li>“ ...planning is the most important activity in negotiation.” </li></ul>
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