Negotiation Preparation & Planning
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Negotiation Preparation & Planning

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Negotiation Preparation & Planning Negotiation Preparation & Planning Presentation Transcript

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