This document discusses key components and principles of effective negotiation. It outlines Maslow's hierarchy of needs, the Golden Rule, and ethical considerations as the psychological foundations. It also references Sun Tzu's principles of understanding warfare and knowing your enemy. The document then focuses on W. Edwards Deming's contributions to quality management in manufacturing and his famous "14 Points". Finally, it emphasizes situational awareness, understanding both your and the other party's positions and desired outcomes, to negotiate a win-win scenario.

1. Dr. Greg Gardner
3/5/14
The ART of Negotiation

2. Components of Negotiation
• Understanding of Basic Psychology
o Maslow’s hierarchy of needs
o Golden rule: Treat others as you wish to be treated
o Ethical Considerations
• Understanding of Warfare: Sun Tzu
o The supreme art of war is to subdue the enemy without fighting
o If you know the enemy and know yourself you need not fear the
results of a hundred battles
o Victorious warriors win first and then go to war, while defeated
warriors go to war first and then seek to win
• Understanding of Business: W. Edwards Deming
o W Edwards Deming was an American engineer and statistician
who was credited with the rise of Japan as a manufacturing
nation, and with the invention of Total Quality Management
(TQM).
25-Mar-15

3. Deming’s 14 Points
Deming published his book “Out of the crisis” in 1982. In this
book, Deming set out 14 points which, if applied to US
manufacturing industry, would he believed, save the US
from industrial doom at the hands of the Japanese.
• 1.”Create constancy of purpose towards
improvement”
• 2.”Adopt the new philosophy”
• 3.”Cease dependence on inspection”
• 4.”Move towards a single supplier for any one item.”
• 5.”Improve constantly and forever”
• 6.”Institute training on the job”
• 7.”Institute leadership”
• 8.”Drive out fear”
• 9.”Break down barriers between departments”
• 10.”Eliminate slogans”
• 11.”Eliminate management by objectives”
• 12.”Remove barriers to pride of workmanship”
• 13.”Institute education and self-improvement”
• 14.”The transformation is everyone’s job”
25-Mar-15

4. Situational Awareness
“If you know the enemy and know yourself you need not fear the results
of a hundred battles”
• What do you want to accomplish?
• Whom are you negotiating with?
In order to create a win-win scenario, you have to know
what you want out of the negotiation. Then consider
what the other party might want out of the negotiation.
This is your starting point!
Basic psychology: The goal of ANY business transaction is
to get as much as you can while giving as little as
possible
Hence, you should understand that you want as much as
you can get for the least amount of investment…
So does the person you are negotiating with…
3/25/2015

5. Situational Awareness
“Victorious warriors win first and then go to war, while defeated
warriors go to war first and then seek to win”
BEFORE you ever enter the room to negotiate:
• Put yourself in the other person’s position: Define
their position and what would be a WIN for them.
• You need to have prepared 2 lines for yourself:
• If I get EVERYTHING I want, what does that look
like? (WRITE it out!)
• What is the least I will accept without being
resentful?
NOTE: Be willing to leave the negotiation if you do
not get what you want
3/25/2015

6. Questions?
3/25/2015