Negotiation Mistakes to Avoid

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By avoiding these classic negotiation mistakes you will be able to strike the best deal possible in both complex and simple situations.

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Negotiation Mistakes to Avoid

  1. 1. Avoid Negotiation Mistakes
  2. 2. • 1912 – U.S. Presidential election • 3 million Roosevelt photographs have been printed and the permission has not been granted by the photographer • No time to reprint brochure and it is critical for the campaign • Copyright law: photogapher can demand $1 per copy
  3. 3. telegram to the copyright owner: Campaign manager sends
  4. 4. Photographer’s responds:
  5. 5. negotiation[ noun ] A process we used to satisfy our needs when someone else controls what we want
  6. 6. Strategy & methods are key to successful negotiation
  7. 7. Intelligent solve problems; genius prevent
  8. 8.  How can I avoid making classic mistakes?  What self-knowledge do I need?  What do I need to know about my client and the situation?  How do I prepare for success?  What moves do I need to make at the table?
  9. 9. Not being clear about the type of negotiation 1 Failing to set parameters prior to the negotiation2 Failing to identify interests3 Adopting a narrow and inflexible range of value or option4
  10. 10. 1. Not being clear about the type of negotiation
  11. 11. Relationship Based Results Based Balanced Concerns “Know the Type of Negotiation”
  12. 12. Results Based The items being negotiated are the main concern; the relationship is of little or no concern
  13. 13. The value available to each party is fixed.
  14. 14. Both parties claim as much as p The value available to each party is fixed.
  15. 15. Purchasing professionals use this style heavily
  16. 16. Relationship Based The relationship is the main concern; the items being negotiated are important but secondary
  17. 17. Balanced Concerns The results and the relationship are roughly equal concerns
  18. 18. The value available to each party is flexible.
  19. 19. 2. Failing to set parameters prior to the negotiation
  20. 20. “Set Negotiation Parameter” Desired Outcome1 Walk-Away2 BATNA: Best Alternative To a Negotiated Agreement 3
  21. 21. The "best case" for how the negotiation will turn out for you or your business
  22. 22. Your Walk-Away 5,00,000 Range of Acceptable Agreement Desired Outcome 7,00,000 Your walk-away is the least favorable deal you will accept
  23. 23. Your BATNA is your best course of action in the event you can’t reach an agreement 1 A weak BATNA2 A strong BATNA3
  24. 24. 3. Failing to identify interests
  25. 25. “Identify Interests” Positions: The concrete things you and the client each say you want (dollars and cents; terms and conditions Interests: The motivations that lead you and the client to take specific positions in a negotiation
  26. 26. 4. Adopting a narrow/ inflexible range of options
  27. 27. “Think Broadly About Value” Fixed Options Expand Options
  28. 28. “Common sources of Value” Terms Logistics Time Resource
  29. 29. Avoid mistakes for successful negotiation
  30. 30. 2016, GreenBooks Learning Solutions get started Shyam Sunder ss@greenbooks.co.in +91 – 7766 100 400 www.greenbookslearning.com

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