This document provides an overview of fundamentals of successful negotiations presented by Johan Irwan Kamarozaman. It discusses key concepts such as understanding the changing world and work environments, defining negotiation, common features in negotiations, why we negotiate, different negotiation styles, developing options through brainstorming, understanding BATNA and ZOPA, using objective criteria, and effective communication techniques like identifying interests and building rapport. The overall content emphasizes the importance of being well-prepared, focusing on interests over positions, developing creative options, and using principles of objective problem-solving to have successful negotiations.
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The world is changing
3Source: A Whole New Mind, Dan Pink
18th Century 19th Century 20th Century 21st Century
AGRICULTURE
AGE
Farmer
INDUSTRIAL
AGE
Factory Worker
INFORMATION
AGE
Knowledge Worker
CONCEPTUAL
AGE
Concept Worker
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The way we do work has changed
4
< 20th Century 21st Century >
Process based Concept based
Management skills
is crucial
Leadership skills
is crucial
Quality & Productivity Creativity & Innovation
Less Competition Stiff Competition
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What is negotiation?
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Negotiation is the process of two
or more parties working together
to arrive at a mutually acceptable
resolution of one or more issues.
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Negotiation is NOT
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When your boss gives you an order and your
ONLY choice is to do what he or she says.
If an outsider is brought in to make a decision
between parties using arbitration, the parties are
legally bound to follow the arbitrator’s decision
When parties are not working together to reach
an agreement
A contest with other parties. We are not
competing with the aim of making sure we crush
the opposition
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Negotiation is
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We aiming to do the best we can for ourselves
We are less interested in the sporting aim of
competing and more interested in looking out for
ourselves
You want to do well for yourself, but not
because you want to beat someone else
Effective negotiation is held in its proper context
as a mechanism for pursuing interest.
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Features in negotiation
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• Minimum two parties
• Predetermined goals
• Expecting Outcome
• Resolution and consensus
• Parties will modify their positions
• Parties should understand the purpose of negotiation
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Why do we negotiate?
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• To reach an agreement
• To beat opposition
• To settle an argument
• To make a point
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4 Key Points for Win-win
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• Separate PEOPLE from the PROBLEM
• Focus on INTEREST not POSITIONS
• Generate variety of OPTIONS for MUTUAL GAINS
• Insist on using OBJECTIVE CRITERIA
Principle Based Negotiation
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7 Elements of Effective Negotiations
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Interests
Standards
Options
Relationship Communication
Alternatives Commitment
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Interest based negotiation
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• Things you say you want
• Demands
• Terms and Conditions
POSITION
• The underlying motivations
• Needs and concerns
• Fear and inspirations
INTEREST
POSITION
INTEREST
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Ice Berg Perception
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• Look behind
positions for
underlying interests
• Ask “why?” and
“why not?”
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Developing Options
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4 major obstacles to developing mutual gain:
• Premature judgement
• Searching for a single answer
• Assumption of a fixed “pie”
• Thinking that “solving the problem is their problem.”
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DEVELOPING OPTIONS
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Instead of dividing the pie, why not enlarging the size of the pie?
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What is an options?
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• An option is a possible agreement or part of one
• An option is not a commitment
• Options are exploring what we could do.
• Explore options before making any decision will help on
satisfying mutual interest.
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Before Brainstorming
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• Define your purpose
• Choose a few participants
• Change the environment
• Design an informal atmosphere
• Choose a facilitator
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Brainstorming Rules
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• No criticism
• No commitment
• Just invent ideas
Record the ideas in full view
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After Brainstorming
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• Star the most promising ideas
• Invent improvements for promising ideas
• Set up a time to evaluate ideas and decide
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Inventing options enhances the
negotiators power
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Invent options that help meet
the interest of both sides
Do not evaluate during the
brainstorming - evaluate after the
brainstorming
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UNDERSTANDING BATNA
35
B
A
T
N
A
est
lternative
o a
egotiated
greement
*It is the best you can do WITHOUT THEM.
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Should I reveal my BATNA?
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If you have a strong one, it is worth revealing it to
your opponent.
If you have a weak one, however, it is better to keep
that detail hidden.
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"The reason you negotiate is to produce
something better than the results you
can obtain without negotiating.”
— Roger Fisher & William Ury
When a proposal is better than your BATNA: ACCEPT IT!
When a proposal is worse than your BATNA: REJECT IT!
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Understanding ZOPA -
Zone of Potential Agreement
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Seller Walks Away Seller Desired Price
Buyer’s Desired Price Buyer Walks Away
Zone of Potential Agreement
(ZOPA)
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Standards: The Power of
Objective Criteria
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Objective criteria are factual pieces of
information, independent of the parties in the
negotiation, that are relevant to what should or
should not be agreed to in that negotiation
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Three basic points when
discussing objective criteria
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• Frame each issue as a joint search for objective criteria
• Reason and be open to reason as to which standards are
most appropriate and how they should be applied
• Never yield to pressure, only principle
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Example of Objective Criteria
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• Market value
• Precedent
• Scientific judgement
• Professional standards
• Efficiency
• Costs
• Moral standards
• Equal treatment
• Tradition
• Reciprocity
43.
44. 4 I N S A N I T I E S
B A R R I E R S T O
C O M M U N I C AT I O N
49. We don’t see the world as it is,
we see it as who we are.
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Title Text
50
INTERNAL
REPRESENTATION
STATE
PHYSIOLOGY
BEHAVIOUR
CONSCIOUS
UNCONSCIOUS • Meta-Programs
• Values
• Beliefs
• Decisions
• Memories
EXTERNAL
EVENTS
THE FILTERS
D E L E T I O N1
D I S T O RT I O N2
G E N E R A L I Z AT I O N3
NLP COMMUNICATION MODEL
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D E L E T I O N1
D I S T O RT I O N2
G E N E R A L I Z AT I O N3
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D E L E T I O N1
R E T I C U L A R A C T I VAT I N G S Y S T E M
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D I S T O RT I O N2
Assumptions created from:
1. Past experience
2. What we have been told
3. Meaning we give to an event
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G E N E R A L I Z AT I O N3
We draw global conclusions
based on one or two experiences.
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} Create
PERCEPTION
D E L E T I O N1
D I S T O RT I O N2
G E N E R A L I Z AT I O N3
67. ▪ Detailed oriented
▪ Highly organized
▪ Create system
▪ Make things practical.
▪ Slow in action / decision
▪ Over focus in details at the
expense of big picture.
▪ Friendly
▪ Considerate
▪ Concern for people
▪ Team player.
▪ Emotional
▪ Overly concern for people
▪ Misunderstood for mixing up
work & personal.
▪ Objective driven
▪ Think through before acting
▪ Analytical
▪ Focus.
▪ Insensitive,
▪ inflexible,
▪ non-expressive.
COLORED COMPARISON
Processor Strengths Gaps
▪ Action driven
▪ Fluid
▪ Mobile and Adaptable
▪ Communicate well.
▪ Make rash decision
▪ Disorganize
▪ Chaotic
▪ Impatient.
GREENREDBLUEPURPLE
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Identifying Need
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The key to successful negotiation is to ask
intelligent questions and listen closely to
the answer.
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Asking intelligent questions
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O P E N Q U E S T I O N C L O S E D Q U E S T I O N
HOW?
Who, what, when, how, where
WHY?
Do you, have you, is it,
can you, etc.
To provide information
WHEN TO
USE?
Gain clarity/confirmation
on choice/decision
Lengthy answerWHAT? Yes or no answer
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When dealing with
people, let us
remember we are not
dealing with creatures
of logic. We are dealing
with creatures of
emotion
— Dale Carnegie
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Mac Lean’s Model
I think rationally here
I feel here
I re-act here
It enter here
85. Conscious mind
Avoid Pain or
Gain Pleasure
Apparent
Reasoning
Why?
Subconscious
mind
Underlying
Reason
Underlying
Reason
Underlying
Reason
Underlying
Reason
Underlying
Reason
T H E I C E B E R G P E R C E P T I O N
W H AT W E S E E I S
A R E S U LT O F
W H AT W E C A N N O T S E E
85
86. W H AT W I L L Y O U
D O W I T H
R M 2 0 M I L L I O N ?
86