Negotiating Power Prof Katia Tieleman Although people often think of boardrooms, suits, and million dollar deals when they hear the word “negotiation,” the truth is that we negotiate all the time. For example: ask your boss for a raise or a training, make important business decisions with your team… These are all situations that involve negotiating! This workshop will give you an understanding of the phases of negotiation, tools to use during a negotiation, and ways to build win-win solutions for all those involved.

1. © Vlerick Business School

2. NEGOTIATING POWER
PROF KATIA TIELEMAN
#EXPERIENCEVLERICK

3. 3 © Vlerick Business School Prof. dr. Katia Tieleman

4. 1.
NEGOTIATION PARAMETERS

5. PARKER GIBSON
HALF
LOT
WILLOW STREET
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6. ASPIRATION BASE (AB) – A HIGH ASPIRATION
BASE
 Consistently outperforms a
low aspiration base.
 Consistently outperforms a low aspiration base.
 Yet leaves enough room for
necessary concessions to  Yet leaves enough room for necessary
achieve a win more-win more
outcome. concessions to achieve a win more-win more
 Promotes positive
psychological energy.
outcome.
 Communicates confidence and
negates irrational negotiation
 Promotes positive psychological energy.
behaviour.
 Pressurises the other party to  Communicates confidence and negates
use more energy to lower
your aspirations, so they irrational negotiation behaviour.
concentrate less on promoting
their own aspirations.  Pressurises the other party to use more energy
 “Anchors" the negotiation.
 Beware, an AB could be seen
to lower your aspirations, so they concentrate
as a position - use a range
rather than a firm number.
less on promoting their own aspirations.
 Parties must aspire to a
shared AB that meets their  “Anchors" the negotiation.
shared interests best.
 Beware, an AB could be seen as a position - use
a range rather than a firm number.
 Parties must aspire to a shared AB that meets
their shared interests best.
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7. REAL BASE (RB) - MINIMUM REQUIREMENT FOR
AGREEMENT
 Point beyond which an agreement is no longer
meaningful.
 If you don’t understand or know your real base:
 It will most likely lead to a point where a
mutually beneficial outcome is not longer
possible.
 It makes it impossible to establish the
contracting zone because this rests between
the RB’s of the parties.
 You can be exploited because you don’t
know the point where you should withdraw
from a negotiation.
 Beware, RB can cause thought closure and a
positional stance.
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8. BEST ALTERNATIVE TO A NEGOTIATED AGREEMENT
(BATNA)
 Reduces dependency on the other party’s agreement.
 Ensures the other party does not over-inflate its position.
 The stronger the BATNA the greater the negotiating power.
 The more readily a negotiator can walk away from a
negotiation, if necessary, the greater the negotiator's ability
to influence the negotiation.
 Knowing the alternatives available to the other side is
essential to prepare for a negotiation.
 A BATNA protects a negotiator from
 accepting an agreement that is unfavourable
 accepting an agreement that is only in the
counterparty's best interests
 Knowing your BATNA is knowing what to do when the
negotiation fails.
 The decision to reveal or not reveal a BATNA must be based
on the strength of the BATNA and whether disclosing it is
likely to weaken the counterparty’s negotiation stance.
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9. CONTRACTING ZONE
Sellers
Best AB
SELLER Scenario
Buyers
BATNA Buyer RB Worst
Scenario
Contracting Zone /
Zone of Possible
Agreement (ZOPA)
Sellers
Worst RB BATNA Seller
Scenario
BUYER
Buyers
AB Best
Scenario
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10. TAKEAWAYS
Power
- Information is power.
- Time is power.
- First offers act as an anchor.
Relations
- Negotiation as an event is different from
the process of the negotiation.
- Victims become aggressors
- Walkaways are better when soft.
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11. 2.
FROM BARGAINING
TO VALUE CREATION

12. FROM BARGAINING TO VALUE CREATION
I versus
I
To achieve value creation one
Win-Lose must:
bargaining • Verify assumptions
• Change positions
• Explore interests
We
Value
creation
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Win - Win

13. TO WIN MORE- WIN MORE: FOCUS ON
COMPLEMENTARY INTERESTS
We
Interests can be:
OPPOSITE
COMPLEMENTARY
Joint SIMILAR
Problem
Solving
Value creation
Win - Win
Win more –
 Seemingly opposed positions are not always
Win more
opposed when it comes to the underlying
interests, they could be compatible.
Joint
 Don’t just split the pie in half. Make concessions Opportunity
Finding
on those issues that are not important to
you, but valued by the other party.
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14. FEEL LIKE SOME MORE?
 Negotiating to Create Value (24 April 2013)
 Executive MBA (September 2013)
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16. THANK YOU!