This document provides an overview of strategic negotiation. It discusses analyzing stakeholders and the negotiation context, understanding relationships, choosing a negotiation style, considering emotions and fairness, understanding players and positions, deal structure, anchoring the deal, defining goals, sequencing the deal, negotiating techniques, assessing the negotiation, changing your approach, setting up future deals, and avoiding common pitfalls. The key aspects of strategic negotiation covered are understanding the strategic environment, relationships, choosing an appropriate negotiation style based on the importance of outcomes and relationships, and analyzing all factors to effectively structure and conduct the negotiation.

1. Lynda: Strategic Negotiation
Created by Taylor L. Cannon
Penn State Mont Alto Business Major

2. Bottomline
As a negotiator you need to analyze the
stakeholders and the negotiation itself.

3. Defining the Context
● Understand the Strategic Environment:
○ Who is the decision maker? Why are they doing this?
○ Define your goals
○ What are the outcomes that are in play?
○ Define the other options you are considering
○ What will it take to close a deal?

4. Understanding Relationships
● Relationships are critical to understand:
○ You have to understand the importance of the
relationship
○ Is the relationship long term or short term?
○ Realize who the players are
○ Adjust your negotiation approach

5. Choosing a Style
● Choosing a specific style of negotiating:
○ Strategic long-term
■ Understand the importance of the relationship
○ Splitting the Pie
■ Understand the importance of the outcome
○ Serving the Pie
■ The outcome is low in the terms of importance
○ Serve the Pie
■ Give your partner what they want in order to maintain the relationship
○ Take the Pie
■ The relationship is low in value and the outcome is high
○ Expand the Pie
■ The outcome and relationship is important

6. Consider Emotions and Fairness
● Think about your negotiation:
○ How would you feel on the other side of the other?
○ How do you position your offers to take advantage of
feelings or emotions?

7. Understanding Players and Positions
● Who is involved in the situation and makes the deal?
● What are the must-haves and nice to haves?
● What is your desired outcome from their perspective?
● Think about others goals
● What are the alternative to the deal?

8. Understanding the Deal Structure
● What objective criteria exist?
● What assumption are you making about the deal structure?
● Under the barriers to the deal
● When does the deal need to done?
● What makes this a better deal for all parties?

9. Anchoring the Deal
● Initial points from which you are going to negotiate
● Has to based in reality
● Be aware of anchors because it can change the negotiation

10. Defining your Goals
● Get an understanding of the stakeholders
● Find your must-haves, want to haves, nice to haves
● Find your alternatives
● Know when to stop negotiating

11. Sequencing the Deal
You never want to give your sequence away too
early in the negotiation.

12. Negotiating Techniques
Negotiating techniques are key to buying yourself
more time during the negotiation.

13. Assessing What Happened
Analyze what was a plus or minus during major
negotiating points over time.

14. Changing your Approach
During a negotiation you do not have to maintain
your initial approach or position.

15. Setting up Future Deals
Current negotiations can be the foundation for
setting up future deals.

16. Avoiding Common Pitfalls
The four most common pitfalls: not knowing the
players or the process. If you don't understand the
people across the table from you, as well as what
the overarching process is going to be for that
negotiation, you're going to probably give up more
value than you should.