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Session 1 negotiation skills course

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  • 1. NegotiationSkillsIntensive CourseJune 2013ricard.muste@alumni.esade.eduSession 1
  • 2. “process of allocating scare resources between two ormore parties via a human behavioural process (or not)”Heng Xu
  • 3. • “Negotiating is the proper strategy in a case involving different, sometime even competinginterests, but where at the same time the two parties are interdependent to the degreethat an agreement would yield advantages for both of Them.” Negotiate by WilliamMastenbroek 1989• “Negotiation is a basic means of getting what you want from others. It is the back-and-forth communication designed to reach an agreement when you and the other side havesome interests that are shared and others that are opposed” Getting to Yes by RogerFisher, W Ury 1981• “Negotiation is a process of interpersonal communication, usually between two people ortwo groups who often have a vested interest in the issue under negotiation” NegotiatingAssertively by C. Richardson 1990• “Negotiating is about searching for a single solution mutually acceptable to bothnegotiators” Pocket Negotiator by G Kennedy 1987• “Negotiation is a process through which parties move from their initially divergentpositions to a point where agreement may be reached”. It’s a deal by Steele, Murphy andRusill, 19893Other definitions…
  • 4. Key Concepts• BATNA• Opening price• Target Price• Walk Away Point or Reserve4
  • 5. BATNA(Best Alternative To Negotiated Agreement)“Your BATNA is the standard against which any proposedagreement should be measured. It is the only standardwhich can protect you both from accepting terms that aretoo unfavorable and from rejecting terms it would be inyour best interest to accept.”5
  • 6. Target PointThe Target Point is the best option for you. It is the resultyou want to finish with. Nevertheless, it is not that easy,you will have to work hard to achieve it.Advice: It should be closely defined6
  • 7. Opening PointThe Opening Point is the point with which you start thenegotiation. It should be higher than your target point asthe other party is going to pull it down.Advice: Aim high, but be realistic otherwise it could resultoffensive7
  • 8. Walk Away PointThe Walk Away Point is the worst still acceptable resultyou can achieve. If the point goes lower than this point youare just going to quit the negotiation.Advice: It should be kept in the back of your mind8
  • 9.  Buyer’s WAP Buyer’s TP Buyer’s OP Seller’s OP Seller’s TP Seller’s WAPZone ofpotentialagreementZone ofpotentialagreement9The Bargaining ZoneThe Bargaining Zone or ZOPA is the set of possible solutionscomprised between the Buyer and the Seller’s Walk AwayPoint
  • 10. Is an agreement possible ? Seller (€): Opening: 8m Target: 6m WAP 4,5m Buyer (€) Opening: 4m Target 5m WAP 7m10
  • 11. Is an agreement possible? Seller (€): Opening: 90m Target: 80m WAP 75m Buyer (€) Opening: 50m Target 60m WAP 70m11