Based on "Getting to Yes", published by Harvard Project on negotiation, this is a quick session prepared for

1. NEGOTIATION
HARVARD STYLE
Mahmoud Khater

2. Car Negotiation exercise

3. Car negotiation exercise (Analysis)
Final sale price: high, low or appropriate.
Why?

4. The Program on Negotiation
• University consortium,
• Established in 1983,
• Harvard University, MIT and Tufts University,
• Courses, Trainings, Books, Newsletters, Journals.

5. Negotiation Vs Bargaining
• A structured interaction
or dialogue, between
two or more parties,
aiming at resolving a
difference to reach an
agreement.
• The most common way
of negotiation, where
parties take a position
and argue for them
while making
concessions to reach a
compromise (positional
bargaining).

6. Negotiation:
A structured interaction or dialogue, between two or more
parties, aiming at resolving a difference to reach an
agreement.

7. Personal Reflections: Positional Bargaining
Party 1:
Party 2:
Initial Position of Party 1:
Initial Position of Party 2:
Final Position of Party 1:
Final Position of Party 2:

8. Positional Bargaining
DRAWBACKS???

9. The drawbacks of positional bargaining
1. It misses out an opportunity of better solutions;
Example: Why do you want the orange?
2. Its context encourages lying and deception;
3. Damages relationships;
4. It usually results in a Win-Lose and misses the Win-Win;

10. BUT: We still use it!
Why??
1. Requires very little planning;
2. Very Convenient;
3. It works, It delivers results;
4. It is a learned behavior;
5. It can be applied to any situation.

11. Fundamentals of Strategic Negotiations
-PIHPOC-
1. Principles
2. Interests
3. Humane
4. Possibilities
5. Objective Criteria

12. Zone of Possible Agreement (ZOPA)

13. BATNA (Best Alternative to a Negotiated Agreement)
Your best alternative to a negotiated agreement.
“The negotiating power of a party is partly determined
by how attractive is the option of not reaching an
agreement.”

14. Fundamentals of Strategic Negotiations(1)
1.Based on rinciples:
a) We shall not lie;
b) We shall not deceive;
c) We shall not take unfair advantage of someone’s
weakness;

15. Fundamentals of Strategic Negotiations(2)
2. Focus on nterests, not positions;
3. Be mindful of the uman angle;
4. Generate a variety of ossibilities before deciding
what to do;
5. Insist on an bjective riteria: negotiate on the
standards before negotiation on the substance.

16. Principles
• A fundamental truth or proposition that serves as the
foundation for a system of belief or behavior or for a
chain of reasoning.
• A rule or belief governing one's personal behavior
(regardless of the consequences).
• Principles for Negotiation:
a) We shall not lie;
b) We shall not deceive;
c) We shall not take unfair advantage of someone’s
weakness;

17. Interests
• Identify, ask why?
• Multiple interests (prioritize them)
• Multiple stakeholders (example: buying new mobile
for your son)

18. The four basics of the human angle:
(Perception, emotions, communication, and authority)
Perceptions
1. Understand that people may have different
perceptions of the same reality.
2. For people, their perceptions are their reality and
they will act accordingly.
3. The better you understand yours and the other
party’s perceptions, the better you can negotiate.

19. Steps to understand the other party’s perceptions
1. Put yourself in their shoes;
2. Identify possible perceptions and check if they
believe in one of them.
3. Listen very carefully.
4. Discuss each other’s perceptions.
5. In the event of negative perception about you, act
inconsistently with their perceptions.

20. The Importance Of First Impressions
7 Seconds
“You never have a second chance to make a
good first impression”

21. Steps to tackle emotions in negotiations
1. Be calm.
2. Recognize emotions; theirs and yours.
3. Make emotions explicit.
4. Let the other side let off steam.
5. Check Emotional Bank Account Balance

22. Body Language – 55%
Tone of Voice – 38 %
Use of Words – 7 %
Prof. Albert Mahrebian
Body Language- Tone of Voice- Use of
Words

23. Facts
1. Eight positions for our brows and forehead.
2. Seventeen positions for our eyes and eyelids.
3. Forty five positions for our lower jaw.
4. Forty three distinct and separate muscle movements in the
face giving us a combination of 10,000 identifiable facial
configurations.
5. Some facial expressions are fleeting, lasting for four
hundredth of a second.
Reference: Performance Management,
Baguley, Phil; Contemporary Books, 2003

24. Human Angle: Non-verbal Communication
1. Speech pace and pauses
2. Pitch and tone
3. Use of space and distance
4. Body motion and gestures
5. Body posture
6. Facial expressions
7. Gaze
8. Touch and body contact
9. Style of written text

25. The impact of a speaker's feelings and attitudes in a
conversation
7%
55%
38%
0%
10%
20%
30%
40%
50%
60%
Verbal (words) Visual (face) Vocal (voice)
Impact
Verbal (words)
Visual (face)
Vocal (voice)
Source: Making Presentations Happen by Michael Brown 2004

26. Your words versus how you present them
7%
93%
0%
20%
40%
60%
80%
100%
Your Words How you present
your words?
Impact
Your Words
How you present
your words?
Source: Making Presentations Happen by Michael Brown 2004

27. Possibilities
The four major obstacles towards a creative mutually beneficial solution
1. Premature judgment.
2. Searching for the single answer.
3. Assumption of the fixed pie.
4. Solving their problem is their problem.

28. Objective Criteria (standards)
1. Market value
2. Precedent
3. Scientific judgment
4. Professional standards
5. Law or Court Ruling
6. Moral standards
7. Shariah
8. Tradition

29. Four steps to PIHPOC
1. List out all the applicable standards.
2. Negotiate on the standards before negotiation on
the substance.
3. Don’t yield to pressure, only to principles.
4. Learn to say no.

30. Negotiation Techniques
• Deliberate deception
• Niccolo Machiavelli
– “The end justifies the means”
– “It is double pleasure to deceive the deceiver”
DO YOUR HOMEWORK;
DO NOT ALLOW TO GET DECIEVED

31. Negotiation Techniques
• GC-BC (video)
– Don’t always be the Good Cop
• Deferring to Higher Authority
– I will check with my boss/committee/wife…”
– Take a concession from counterparty, without
giving any.
– Combined with GC-BC (how)
 ASK in the beginning? (how)

32. Negotiation Techniques
Extreme demands

33. Negotiation Techniques
1. Stressful physical
conditions
2. Personal attacks
3. Threats
4. Refusal to negotiate
5. Escalating demands
6. Decoy technique
7. A calculated delay
8. The reluctant buyer

34. More Resources
Make sure you apply
your principles
Thank You