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Negotiation strategies by bhawani nandan prasad gurgaon india

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Negotiation strategies by bhawani nandan prasad gurgaon india

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Negotiation strategies by bhawani nandan prasad gurgaon india

  1. 1. PRINCIPLES OFNegotiation StrategiesBHAWANI NANDAN PRASADMBA, IIM Calcutta & STRATFORDUNIVERSITY USA, M.TECH. IT
  2. 2. NegotiationCreative Negotiating, Stephen Kozicki, Adams Press, 1998“Negotiation is the art ofreaching an agreement byresolving differencesthrough creativity”
  3. 3. What is a good agreement?A good agreement is: wisesatisfy both the parties interestsare fairare lasting. efficientCost effective,Time conserving Improves Trust & Develops Relationship.
  4. 4. Why Negotiation Becomes a tough job?
  5. 5. The “Principles” of Negotiation1. Separate the People from the ProblemIdentify key issuesThen on the strategies
  6. 6. The “Principles” of Negotiation2. Attend to the communication issuesa. Acknowledge and manage emotionsb. Avoid the blame gamec. Listend. Use I-messages,
  7. 7. The “Principles” of Negotiation3. Focus on Interests, not Positions Positions: Simple statements about what you want.No reasons, no subtlety, no justification. Just ademand: I want the orange! Interests: The reasons underlying the position—what you really want or need ?—the answer to the question WHY. I need to bake a cake. Im hungry I want to eat the orange.
  8. 8. The “Principles” of Negotiation4. Generate many options & look for Options for MutualGain Brainstorm options by listing all possibilities first, Evaluating options second. Look for ways to meet everyones interests at thesame time.
  9. 9. The “Principles” of Negotiation5. Find Legitimate Criteria to Guide Decisions Whats been done before? Whats “fair”
  10. 10. The “Principles” of Negotiation6. Analyse the Best Alternative to a Negotiated Agreement(BATNA)BATNA = Walk Away Point—when you tell the other person you arenot interested in their offer because you can do better in anotherway.
  11. 11. Why do you care about BATNAs? They tell you what you should agree to What you should walk away from. They also give you negotiating power.
  12. 12. The “Principles” of NegotiationWork with Fair and Realistic CommitmentsIs agreementReasonable?Doable?Face-saving?Practical?
  13. 13. Handling EmotionsEmotionalChallengesAnger/exasperationInsultGuiltFalse flatteryRecommendedResponseAllow ventingDigest for the time beingFocus on key issuesRe-focusTips:•Try to defuse with acknowledgement, empathy, patience,impartiality.•Consider dealing with less emotional issues first•Don’t lose your cool (Act like a swan!).
  14. 14. Are you a Motivated Negotiator?Enthusiasm Confidence EngagedRecognition Accomplishment Pat on the backIntegrity No trickery TrustworthinessSocial Skills Enjoy people Interest in othersTeamwork Better as a team Self-controlCreativity Always looking forways to completethe deal
  15. 15. A Good Negotiator Is..CreativeVersatileMotivatedHas the ability towalk away
  16. 16. “Win-Win” Negotiation
  17. 17. Strategy Do not assume what the other party wants-explore andtest Remember that initial offers are generally not accepted Provide room to negotiate Do not be modest in demands. Get all demands of theopposite party on the table before you concede anything Persuade the other side to make the first concession onmajor issues; Making large concessions at an earlystage results in loss of position Make the other party work for every concession.
  18. 18. Strategy Grant concessions over a period of time Get something for every concession Do not be afraid to say NO. Keep a record of concessions made by each side. Put a time limit on important concessions Classify concessions that you can give and those youmust not give. Resist making concessions which are retroactive.
  19. 19. Difference betweensuccessful negotiationandunsuccessful negotiationIsHOME WORK.
  20. 20. 29 You cannot shake hands with a clenched fist.Indira Gandhi[ Clenched Fist - Woodblock by Frank Cieciorka, 1965 ]
  21. 21. THANKSFORYOURATTENTION30

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