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Experience Vlerick Day - Katia Tieleman

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  • 1. © Vlerick Business School
  • 2. NEGOTIATING POWERPROF KATIA TIELEMAN#EXPERIENCEVLERICK
  • 3. © Vlerick Business School #experiencevlerick3
  • 4. 1.NEGOTIATION PARAMETERS
  • 5. © Vlerick Business SchoolPARKER GIBSONHALFLOTWILLOW STREET#experiencevlerick5
  • 6. © Vlerick Business School Consistently outperforms alow aspiration base. Yet leaves enough room fornecessary concessions toachieve a win more-win moreoutcome. Promotes positivepsychological energy. Communicates confidence andnegates irrational negotiationbehaviour. Pressurises the other party touse more energy to loweryour aspirations, so theyconcentrate less on promotingtheir own aspirations. “Anchors" the negotiation. Beware, an AB could be seenas a position - use a rangerather than a firm number. Parties must aspire to ashared AB that meets theirshared interests best. Consistently outperforms a low aspiration base. Yet leaves enough room for necessaryconcessions to achieve a win more-win moreoutcome. Promotes positive psychological energy. Communicates confidence and negatesirrational negotiation behaviour. Pressurises the other party to use more energyto lower your aspirations, so they concentrateless on promoting their own aspirations. “Anchors" the negotiation. Beware, an AB could be seen as a position - usea range rather than a firm number. Parties must aspire to a shared AB that meetstheir shared interests best.ASPIRATION BASE (AB) – A HIGH ASPIRATIONBASENegotiaton to create value6
  • 7. © Vlerick Business School Point beyond which an agreement is no longermeaningful. If you don’t understand or know your real base: It will most likely lead to a point where amutually beneficial outcome is not longerpossible. It makes it impossible to establish thecontracting zone because this rests betweenthe RB’s of the parties. You can be exploited because you don’tknow the point where you should withdrawfrom a negotiation. Beware, RB can cause thought closure and apositional stance.REAL BASE (RB) - MINIMUM REQUIREMENT FORAGREEMENT#experiencevlerick7
  • 8. © Vlerick Business School Reduces dependency on the other party’s agreement. Ensures the other party does not over-inflate its position. The stronger the BATNA the greater the negotiating power. The more readily a negotiator can walk away from anegotiation, if necessary, the greater the negotiators abilityto influence the negotiation. Knowing the alternatives available to the other side isessential to prepare for a negotiation. A BATNA protects a negotiator from accepting an agreement that is unfavourable accepting an agreement that is only in thecounterpartys best interests Knowing your BATNA is knowing what to do when thenegotiation fails. The decision to reveal or not reveal a BATNA must be basedon the strength of the BATNA and whether disclosing it islikely to weaken the counterparty’s negotiation stance.BEST ALTERNATIVE TO A NEGOTIATED AGREEMENT(BATNA)#experiencevlerick8
  • 9. © Vlerick Business SchoolCONTRACTING ZONESELLERBUYERContracting Zone /Zone of PossibleAgreement (ZOPA)ABSellersBestScenarioSellersWorstScenarioRBBuyersBestScenarioABBuyersWorstScenarioRBBATNA SellerBATNA Buyer#experiencevlerick9
  • 10. © Vlerick Business SchoolTAKEAWAYSPower- Information is power.- Time is power.- First offers act as an anchor.Relations- Negotiation as an event is different fromthe process of the negotiation.- Victims become aggressors- Walkaways are better when soft.#experiencevlerick10
  • 11. 2.FROM BARGAININGTO VALUE CREATION
  • 12. © Vlerick Business SchoolFROM BARGAINING TO VALUE CREATIONI versusIWin-LosebargainingWeValuecreationWin - WinTo achieve value creation onemust:• Verify assumptions• Change positions• Explore interests#experiencevlerick12
  • 13. © Vlerick Business School Seemingly opposed positions are not alwaysopposed when it comes to the underlyinginterests, they could be compatible. Don’t just split the pie in half. Make concessionson those issues that are not important to you,but valued by the other party.JointProblemSolvingJointOpportunityFindingInterests can be:OPPOSITECOMPLEMENTARYSIMILARWin more –Win moreWeValue creationWin - WinTO WIN MORE- WIN MORE: FOCUS ONCOMPLEMENTARY INTERESTS#experiencevlerick13
  • 14. © Vlerick Business SchoolFEEL LIKE SOME MORE? Negotiating to Create Value (November 2013) Executive MBA (September 2013)14#experiencevlerick
  • 15. Negotiaton to create value15
  • 16. THANK YOU!