1. The document discusses various tactics and strategies for effective negotiation, including knowing your BATNA and reservation price, finding the zone of possible agreement, and creating value through trades.
2. It emphasizes the importance of preparation, gathering information about the other parties, and considering integrative negotiation techniques to find mutually beneficial outcomes.
3. Key recommendations include focusing on interests rather than positions, looking for trade-offs where differences can create value, taking time to ensure all interests are addressed, and using positive framing to reach agreement.
Organizational Structure Running A Successful Business
Negotiation part 1
1. 1
“In the end, all business operations
can be reduced to three words;
people, product and profits.
Unless you've got a good team, you
can't do much with the other two“
4. 4
Negotiation
- The very adult, mature and
professional negotiation definition is:
“ Goal of
negotiation is not
to hurt, but to
help others at
little cost of
yourself and vice
versa.”
5. 5
Old soviet approach to “getting to yes” while negotiating
with the west during cold war:
“What is ours is ours, what is yours is negotiable.”
10. 10
I - Know your BATNA
“Best Alternative To a Negotiated
Agreement”
11. 11
I - Know your BATNA
• Definition:
“Preferred course of action in absence of a deal”
• Example
1. Consultant client one month assign how much.
(BATNA “spending month in research (15,000)”.
2. Court suit settlement vs. (80,000).
12. 12
Actions of BATNA
1. When you have a strong
BATNA, make sure
other side know it.
2. While if you don't have
one….Fake it.
3. Improve your BATNA.
4. Know other's BATNA.
5. Weaken other's BATNA.
13. 13
Is BATNA always simple?
• No.
• Could be complex.
• Could be fuzzy.
• Ex. Volvo.
14. 14
II - Reservation Price
• It is the point of walk away.
• It differ from BATNA.
• It includes BATNA + added value (package).
• Ex: Remote office Vs down town office.
15. 15
III - ZOPA
Zone of possible agreement.
“Area between 2 parties reservation price”
16. 16
Seller Res. Pr. Bayer Res. Pr.
• If No ZOPA ……………………No deal.
2500$ 3000$
ZOPA
17. 17
IV – Value creating through trades
• Philosophy: “high value – low cost”
• Satisfy others with something of low cost to you.
• Example:
1. Deal deliveries. / Extended maintenance.
18. 18
Intelligent ?
”A woman without her man is nothing”
- punctuate it correctly….
Male :
“A woman, without her man, is nothing.”
Female :
“ A woman : without her, man is nothing.”
Punctuation is powerful !!
20. 20
I - Consider what a good outcome for you and
others
• If you know …. Go for it.
• If you don't …. Probe for it (within discussion).
• Example:
1. Case of Laura and Phil.
priorities
outcomes
needs
priorities
outcomes
needs
You Your client
21. 21
II – Identify potential value creation opp.
• Know your own and other's interest, so you can
create values and opportunities for trades.
“Who create values can claim to share outcomes.”
22. 22
III – Identify your BATNA & R. Price
• Know for both of you and them.
• Strong position with high knowledge.
23. 23
IV – Shore up your BATNA
• Strengthen your BATNA Before and during negotiation.
• Role :
“Even if you need it badly, show up that you have no
urge need and push others to be in a needy
situation.”
• Example:
1. Tough successful negotiators.
24. 24
V – Anticipate the authority issue
• Crucial to negotiate with authority man.
• To avoid old trick “Car Dealer”.
• Ask to know “Decision Making Process”.
• Subordinate is useful to discover interests:
1. Negotiate with no commitment.
2. Share interest to create values.
3. Don't offer your bottom in 1st
, round.
25. 25
V – Anticipate the authority issue
• Better to know authority level of each negotiator.
• Know your level of authority:
1. Can you bring better deal.
2. Can you keep same values with different items.
3. Can you afford information about company interest.
4. Do you have authority in other values.
Trick:
“show little authority (ask for approval)”
26. 26
VI – Learn all about them
• The way they frame the issue.
• Every piece of information counts.
“There is no substitute for accurate knowledge. Know
yourself, know your business, know your costumers”
27. 27
VII – Prepare for flexibility
• Don't ever be flexible in your goals.
• Old trick:
“When it goes tough, change persons”
28. 28
IIX – Gather external standards (most fair)
• Clear standards create satisfaction in
finishing deals.
• Objective measures is the most fair.
• Example:
1. Internal system categories of benefits.
2. Other products with same criteria.
29. 29
IX – Alter the process in your favor
• When you be ignored or they refuse your ideas
make step of:
“ Process Move”
• Negotiate away from table.
• Re-frame the process.
• Example:
1. International Negotiations Schedules.
31. 31
How to play the game well?
• Concerns of negotiators:Concerns of negotiators:
1. To be tough or collaborative ?
2. To be firm or ready to concessions ?
3. To fight hard for the most or fair
outcomes ?
4. To make 1st
, offer or wait for it ?
32. 32
I – Getting other side to the table
(customer satisfied with status quo)
• Offer incentives “need”.
• Put a price on status quo.
• Enlist support.
33. 33
II – Making a good start
(Smooth ground with customer)
• Express respect for others.
• Frame task positively .
• Emphasize on other interest and benefits.
34. 34
II – Making a good start
(Smooth ground with customer)
• Special tips:Special tips:
• Breaking Bread.
• Small talk before business.
• Learn from small talks.
• If they're formal, be formal
and vice versa.
36. 36
2)2) Counter - Anchoring:Counter - Anchoring:
• Ignoring 1st
, offer and set
your own logic one (do
home work, gather info).
• Example:
1. Carla's response to Jack's
summer house.
III – Tactics for Win - Lose
(Distributive Negotiation)
37. 37
3)3) Concessionary moves:Concessionary moves:
• Be ready to make calculated concessions.
• Don't give too much concessions (graded).
• Don't give concessions to make friends.
• Old trick : “Ticking clock”
• Example:
1. Carla's final time framed offer.
III – Tactics for Win - Lose
(Distributive Negotiation)
38. 38
4)4) Package options for a favorable deal:Package options for a favorable deal:
• Make different options with variables.
• Example:
1. 3 offers for SFH.
III – Tactics for Win - Lose
(Distributive Negotiation)
39. 39
5)5) Closing the deal:Closing the deal:
• If you're fairly satisfied, check others situation:
1. Signal end of road before you get there.
(show flexibility, then announce bottom line politely without threat –
courtesy)
2. Allow flexibility for “beyond final round”
(If you anticipate final authority decision, keep some concessions)
III – Tactics for Win - Lose
(Distributive Negotiation)
40. 40
5)5) Closing the deal:Closing the deal:
3. Discourage others to seek more concessions.
(accepting package without changes / “open issue = open deal”)
4. Write down all terms of deal.
(Formal or notes, keep some references)
III – Tactics for Win - Lose
(Distributive Negotiation)
41. 41
Tips
•First offer is crucial.
•Information (satisfy level) is mandatory.
•Don’t ever claim aggressively.
42. 42
IV – Tactics for Win - Win
(Integrative Negotiation)
1)1) Getting started:Getting started:
• Don't start with numbers, talk & listen.
• Don't make quick proposal, take time.
• Enhance building relation during Neg.
• Create 2 way info exchange (smart Q&A).
• Balance between empathy & assertiveness.
43. 43
IV – Tactics for Win - Win
(Integrative Negotiation)
2)2) Look for options to use differences:Look for options to use differences:
• Difference in interest create trade values.
• Tactics:
1. Access to resources (décor of restaurant).
2. Future expectations (5 years growth).
3. Time preference (vice president).
4. Risk aversion (guarantee letter).
44. 44
IV – Tactics for Win - Win
(Integrative Negotiation)
3)3) Take your time:Take your time:
• Don't rush to take 1st
,offer (even it worth).
• Tactics:
1. Discuss values and consider 1st
,offer.
2. Specific, then general then specific again.
3. Brainstorming techniques to create values.
45. 45
V – General Tactics
(All Negotiations)
1)1) Framing:Framing:
• Glass of water (+ve / -ve / descriptive).
“way of framing options in neg. strongly affect willingness to reach agreement”
Bazerman
• Tactics:
1. +ve framing is better than -ve.
2. Bird on hand better than 2 in a bush.
46. 46
V – General Tactics
(All Negotiations)
2)2) Continual evaluationContinual evaluation
and preparation:and preparation:
• Complex negotiation is a circle.
• Continuous evaluation by you &
mentor.
Preparation
Outcome
Information
Evaluation
Negotiation