2. Intro
“ Negotiation involves two or more parties with competing or
conflicting interests or needs, working towards an agreement on
how they will cooperate.”
•The basis of negotiations is some form of conflict.
•Negotiation is complex, dynamic process.
•Many people are afraid of conflict and negotiations.
•It requires behavioral and analytical skills.
•Everybody can learn how to become an effective negotiator.
3. Strategies for negotiations
The first steps in selecting a strategy involve in:
• Gathering information
• Considering corporate goals and constraints
• Analyzing each party’s strengths and weaknesses
And should be determined, to a large extent based on an:
• Analysis of the Strengths
• Analysis of the Weaknesses
4. Strategies for negotiations
•Strengths
- Preparation.
- Clear and plain speaking, good communicator.
- Recognition of other party’s perspective, friendliness.
- Focus on win – win : fairness and honesty.
•Weaknesses
- Impatience.
- Jumping right into business without a period of socializing.
- Poor listening skills.
- Failing to have the authority to make decision on the spot.
5. Balancing the outcome & relationship
The distributive view of negotiation is the traditional fixed-pie
approach in which negotiators see the situation as a pie that they
have to divide between them:
•A negotiation in which the parties compete over the distribution
of a fixed sum of value.
•Key question here is “Who will claim the most value?”
•A gain by one party is at the expense of the other.
•Win-lose situation
Distributive negotiation
6. Balancing the outcome & relationship
A newer, more creative approach to negotiation is called the
integrative approach. In this approach, both parties look for ways to
integrate their goals under a larger umbrella.
Integrative negotiation
•A negotiation in which the parties cooperate to achieve the
maximum benefits by integrating their interests into an
agreement.
•These deals are about creating value and claiming it.
•Win-win situation.
7. Characteristics of a good negotiator
• Assertive
• Patient
• Open-Minded
• Careful Listener
• Self-Disciplined
• Creative
• Flexible
• Highly Ethical
• Persuasive
• Decisive
• Confident
• Considerate
• Prudent
• Respect for Others
• Ability to Handle Pressure
9. Negotiating Roles
Factual
Negotiator
Features
Knows all facts related to the issues
Asks factual questions
Ensures that no fact is left out
Provides information
Problem
Tendency to leave emotional issues aside while focusing on details
and make the other party hostile
10. Negotiating Roles
Logical
Negotiator
Features
Sets rules of negotiation
Develops an agenda
Argues logically
Adapts position to meet changing situation
Problem
Likely to see the process as being more important that content or
outcome
11. Negotiating Roles
Relational
Negotiator
Features
Establishes relationships with the other party
Builds trust
Is sensitive to the other party’s emotional issues
Perceives the position of the other party
Problem
Propensity to concentrate on building relationships and lose sight of
the reason for negotiation
12. Negotiating Roles
Intuitive
Negotiator
Features
Able to proffer unexpected solution
Able to separate key issues from others
Visualizes implications of proposal
Accurately guesses the progress of negotiation
Sees the picture
Problem
This may be dangerous because of wildness and lack of discipline
14. 7 elements of a good negotiation
•Interests: What do the parties want?
•Options: What are likely areas of agreement?
•Alternatives: What if we don’t agree? (BATNA)
•Legitimacy: How persuasive is each party?
•Communication: Are both parties willing to discuss and listen?
•Relationship: Are both parties ready to establish operational
relationship?
•Commitment: What’s the structure of commitment from both
parties?
15. What is BATNA ?
B est
A lternative
T o a
N egotiated
A greement
•How do the proposals match your realistic alternative if
you cannot come to a deal?
•The more attractive your BATNA is compared with the
proposals you receive, the more POWER you have; the less
attractive your BATNA is compared to the deal on offer, the
less power you have.
16. What is BATNA ?
Developing BATNA
•List what you would do if you fail to reach an agreement.
•Convert the most promising options into practical choices.
•Select the single best option; that is your BATNA.
•Compare your BATNA to all proposals.
•If an offer is better than your BATNA, consider improving or
accepting it.
•If an offer is worse than your BATNA, consider rejecting it.
•If they will not improve their offer, consider exercising your
BATNA.
17. Tips to help negotiating successfully
•Don't be afraid to ask for what you want.
•Shut up and listen.
•Do your homework.
•Always be willing to walk away.
•Don't be in a hurry.
•Aim high and expect the best outcome.
•Focus on the other side's pressure, not yours.
•Show the other person how their needs will be met.
•Don't give anything away without getting something in return.
•Don't take the issues or the other person's behavior personally.
18. The DO’s in negotiating
• Prioritizing arguments
• Listening and learning
• Controlling emotions
•Identifying Tenant strategies and tactics
•Maintaining the dialogue
19. The DON’Ts in negotiating
• Go in negotiation unprepared
• Strictly rely on creativity, improvisation and intuition
• Not know when to walk away
•Ignore legitimacy
•Make a commitment before listening