Negotiation 101 Part 1


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Negotiation 101 Part 1

  1. 1. Get what you want.Help everyone win.Navigate to victory.
  2. 2. Opening My intention is to present you with:  A framework for effective negotiation  A way to integrate your experience within it  A way to generate tools to drive your success in the future.
  3. 3. Our 3 classes together Class 1:  Anatomy of Negotiation  BATNAs, anchors and reservation price  The negotiation Process Class 2:  Interest-based negotiation  Negotiating in the workplace  How to overcome negotiating “walls” Class 3:  Debrief, review, reflect, and workshop!
  4. 4. Objectives  Learn the basic anatomy of any negotiation.  PICO (People, Interests, Criteria and Options)  Understand what a BATNA is.  Best alternative to a negotiated agreement.  Understand what an anchor point and reservation price is.  Boundaries of any negotiation.
  5. 5. What’s in this for me? Clarify the elements and process  You probably already do these things. Negotiating is a mental muscle. Spot elements sooner  She who defines, wins. Assist on contract negotiation  Jobs, home, auto or other major decisions or purchases. Negotiating conflict in your personal life  Put the oxygen mask on yourself first.
  6. 6. Anatomy of a Negotiation Separate people P eople from problems. Identify issues at I nterests stake, including emotions. C riteria Decisions should be based on objective Options standards. Generate possibilities before deciding what to do.
  7. 7. Criteria, in more detail  Objective criteria include:  Fair market value  Customs  Expert opinions  Laws  Previous valuation  Anchor Point  Reservation Price  Value attached by one  Maximum amount making the offer other party can  A beginning point spend, accept, etc.  “Floor”  Outer limit available  “Ceiling”
  8. 8. Options, in more detail  Best Alternative to a Negotiated Agreement  “Walk away” or Contingency plan  List alternative ideas to negotiation  Translate ideas into practical alternatives  Select the best option(s).  Don’t forget the opportunity cost of agreeing to a negotiation. The better your BATNA, the stronger your position.
  9. 9. The Negotiation Process Analysis and Research Planning Decision Discussion
  10. 10. Scenario #1- eat in or go out?  Tanya wants to make  Mykle wants to go to a dinner at home. restaurant. How could they negotiate an agreement?
  11. 11. Scenario #2 – Velvet Elvis You make an amazing find at the local flea market. The vendor wants $45 for it. It’s a one-of-a-kind. You have $25 in cash in your pocket. You really want this painting. How could you negotiate an agreement?
  12. 12. Skill Check  Can we diagram a negotiation?  Can we spot and generate BATNAs?  Can we spot and generate anchor points and reservation prices?  Do we know what the negotiation process is?
  13. 13. What we learned today  We learned in Negotiation 101:  When to hold ‘em  When to fold ‘em  When to walk away  When to run  Anatomy of Negotiation  BATNA  Anchor points and reservation prices
  14. 14. Closing and Homework Looking forward to working together again next week! TUESDAY, JULY 3rd! (not Wednesday!) Tanya will email pairs with the homework assignment and worksheets. Practice with low risk situations in your life right now!We are limited only by our imagination!