From Harvard & Lewicki

1. Why bother about “Preparation”
2. Determining goals
3. Strategy to achieve goals
4. Dual Concern model – tool to decide
strategies
5. Phases of Negotiation
6. Rules for Negotiation

Why Bother about
Preparation

 “Preparation is the key”
 Preparation is the true mark of the professional.
 80% of all negotiating success if not more, is based
on thorough preparation on your part before the first
conversation takes place.
 It is because – with effective planning & target
setting most negotiator can achieve their objectives.
 It is also because unplanned negotiation is difficult to
win.

 Some key points to remember while planning (source:
Tracy)
1. Options means freedom
2. Continually develop more options
3. Learn everything you can
4. Make a few phone calls
5. Question Assumptions
6. Test Assumptions
7. Identify the main issues

 Some key points to remember while planning (source:
Tracy)
1. Options means freedom
2. Continually develop more options
3. Learn everything you can
4. Make a few phone calls
5. Question Assumptions
6. Test Assumptions
7. Identify the main issues
•Having Options (series of BATNA) works as a
BEST FRIEND during negotiation.
•More option – more freer u r to take the best
decision
•Option – source of confidence, bargaining
power, strength
•Think about the options carefully before going
to negotiation.

 Some key points to remember while planning (source:
Tracy)
1. Options means freedom
2. Continually develop more options
3. Learn everything you can
4. Make a few phone calls
5. Question Assumptions
6. Test Assumptions
7. Identify the main issues
• Do your home work, and continue your research to find
other sources for BATNA.
• Find what you should pay for it, times, delivery date and
other critical options.
• Make sure you have multiple options before you go for
first one
.

 Some key points to remember while planning (source:
Tracy)
1. Options means freedom
2. Continually develop more options
3. Learn everything you can
4. Make a few phone calls
5. Question Assumptions
6. Test Assumptions
7. Identify the main issues
• Research on the PEOPLE you are going to negotiate
with
•Source: Internet, social media, banks, allumni, google,
person who have the experience of negotiation with
him/her

 Some key points to remember while planning (source:
Tracy)
1. Options means freedom
2. Continually develop more options
3. Learn everything you can
4. Make a few phone calls
5. Question Assumptions
6. Test Assumptions
7. Identify the main issues
• To inquiry about sensitive details – credit record,
defaulter issue

 Some key points to remember while planning (source:
Tracy)
1. Options means freedom
2. Continually develop more options
3. Learn everything you can
4. Make a few phone calls
5. Question Assumptions
6. Test Assumptions
7. Identify the main issues
• Peter Drucker wrote – “ errant assumptions lie at the root of
every failure”
•In correct assumptions are one of the main reasons for
disagreement and misunderstandings in a nego.
•Before you begin nego ask – “What are my assumptions”. “What
are the obvious assumptions”
•Also try to guess what they are assuming about you

 Some key points to remember while planning (source:
Tracy)
1. Options means freedom
2. Continually develop more options
3. Learn everything you can
4. Make a few phone calls
5. Question Assumptions
6. Test Assumptions
7. Identify the main issues
• Think and plan how you want to clarify your assumptions.
•Clarify from your side too
•Asking for evidences often work – but be strategic

 Some key points to remember while planning (source:
Tracy)
1. Options means freedom
2. Continually develop more options
3. Learn everything you can
4. Make a few phone calls
5. Question Assumptions
6. Test Assumptions
7. Identify the main issues
• Finally, during preparation ask:
•What are the main issues
•Where do we differ in wants or needs
•What are the areas of conflict of
interest or disagreement
•What details need to be discussed and
resolved
•Then more carefully prepare in advance of
a nego, the greater sstrength you wil have
and the better the deal that you will get

 Some key points to remember while planning (source:
Tracy)
1. Options means freedom
2. Continually develop more options
3. Learn everything you can
4. Make a few phone calls
5. Question Assumptions
6. Test Assumptions
7. Identify the main issues
TheTruth is:
“GET THE FACTS, GET THE
REAL FACTS, NOT THE
ASSUMED FACT, KNOWLEDGE
IS POWER”

Determining Goals –
The Focus that Drives a
Negotiation Strategy

 Shocking fact is -
 people enter into negotiation without a very
well articulated & clear idea of what they
want out of the negotiation
 They make up their goals, get influenced,
often get manipulated by the other party as
they go along
 So the first step in developing & executing a
negotiation strategy is to determine one’s goal.

 Negotiators must
 anticipate what goals they want to achieve in a negotiation
 focus on how to achieve those goals.
 Negotiators must consider
 substantive goals (e.g money or specific outcome)
 intangible goals (e.g. winning, beating the other party) &
 procedural goals (e.g shaping the agenda or simply having
the voice at the table)

 Effective preparation requires a thorough &
thoughtful approach to these goals.
 Negotiators should lists all goals they wish to
achieve – then prioritizing those – evaluating
possible tradeoff among multiple goals.
 Goals should be specified objectively & clearly.
 Because less concrete goal is harder to
communicate.
 It should be attainable & measurable too.

Strategy – The Overall
Plan to Achieve One’s
Goals

 After articulating goals it is time to formulate
strategy.
 What is a strategy?
 It is the pattern or plan that integrates an
organization’s major targets, policies & actions.
 So, in case of negotiation, strategy is the overall plan
to accomplish one’s goal in a negotiation & the action
sequence that will lead to the accomplishment of
those goals.

Strategy
Goal Planning

Dual Concerns Model as a
Vehicle for Describing
Negotiation

 This model is developed by Sorenson in 1989.
 This is a model for the choice of a negotiation strategy.
 According to this model, a negotiator’s unilateral choice of
strategy is reflected in the answers to two simple
questions:
 How much concern does the actor has for substantive goal?
 How much concern does the negotiator have for the relationship goal?

Substantive Outcome Important?
Relationshi
p Outcome
Important?
Yes Collaboration
Competition
No
Yes
Accommodation
Avoidance
No

 The answer to these two questions results in the mix of alternative/different
strategies.
 Alternative/Different Strategies:
 Answer to these two questions suggest at least 4 types of initial strategies
for negotiators:
▪ Competition These 3 are called
▪ Collaboration
▪ Accommodation
▪ Avoidance

 When a negotiator want to win the N with little or no regard for
relationship, that tends to support a competitive (distributive)
negotiation.
 A strong interest in achieving only the relationship goals – building,
preserving or enhancing a good relationship – tends to move towards
accommodation strategy.
 If both goals are important the negotiator should pursue a
collaborative (integrative) strategy.
 Finally, if achieving none of the goal is important the party should
prefer avoidance strategy.

Accommodation Strategy

 This strategy is almost like ‘win-lose’ negotiation with a slight difference.
 Because it involves an imbalance in outcome.
 Incase of distributive negotiation the outcome is ‘I win- you lose’, but here it
is ‘I lose – you win’.
 It is because the negotiators wants to let the other party win, keep them
happy
 This strategy is appropriate when the negotiators consider the relation is
more important than substantive outcome.
 That means it is used when the goal is to strengthen the relationship.
 It is also used when the negotiator wants to win the next episode at the cost
of losing this one & by having a good relationship.

How do these Active-
Engagement Strategies
Differ?

 Look at Negotiation Book – Roy & David pg 109

Drawbacks of Active-
Engagement Strategies

 Drawbacks will arise if these strategies are used blindly, thoughtlessly &
inflexibly. So the problems that may arise are:
 Distributive N. tend to arise ‘we-they’ or ‘superiority-inferiority’ patterns
– this may lead to wrong or distorted judgment about other party’s
contribution, values, needs.
 Blind integrative process can lead negotiators to be exploited or
manipulated.
 Accommodation strategies may generate a pattern constantly giving in to
keep the other happy or to avoid a fight.
 Again, accommodation may lead the other party to a wrong sense of well-
being

When to take Avoidance
Strategy?

 If one is able to meet one’s need without
negotiating at all.
 It simply may not be worth the time & effort to
negotiate.
 The outcomes that can be achieved if negotiations
don’t work out.

Phases of
Negotiation

 Before establishing the planning process it is important to understand the
typical steps in negotiation.
 Because this knowledge will help to understand how N is likely to evolve &
thus helps the negotiator to develop appropriate planning & strategy.
 Greenhalgh (2001) has developed a stage model of N (Most Recent).
 This model is relevant for integrative negotiation.
 The Model states:
Phase 1:
Preparation
Phase 2:
Relationship
Building
Phase 3:
Info
Gathering
Phase 4:
Info
Using
Phase 5:
Bidding
Phase 6:
Closing
The Deal
Phase 7:
Implementing
the
Agreement

 Deciding what is important
 Defining goals
 Thinking ahead to work together with other party.
 Getting to know about other party.
 Understanding the similarities & differences with the other party.
 Building commitment towards achieving a mutually beneficial outcome.
 But this step is critical to move forward satisfactorily.
Phase 1:
Preparation
Phase 2:
Relationship
Building

 Learning what you want to know about the issue, other party.
 Also learning about the consequences of failure
 Here negotiators assemble the case they want to make for their preferred
outcomes & settlements.
 They want the case that will maximize the negotiator’s own needs.
 This presentation is often used to sell the negotiator’s preferred outcome to
the other.
Phase 3:
Info
Gathering
Phase 4:
Info Using

 The process of making moves from one’s initial.
 It is the ideal position to the actual outcome.
 With bidding each party states their “opening offer” & then moves toward a
middle ground.
 The objective of this stage is to build commitment to the agreement
achieved in the previous phase.
 Both the negotiator & the other party have to assure themselves that they
reached a deal they can be happy with or at least accept.
Phase 5:
Bidding
Phase 6:
Closing the
Deal

 Determining who needs to do what once the agreement is reached.
 Very often parties discover that the agreement is flawed, key points were
missed or the situation has changed.
 Flaws in moving through the earlier phase arise here & the deal may have to
be reopened or the issues settled by mediators, courts etc.
Phase 7:
Implementi
ng the
Agreement

Preparation – Nine
Steps to a Deal

 Preparation means –
 Understanding one’s own position & interest
 Understanding the position & interest of the other party
 Understanding the issues at stake
 Learning alternative solutions.
 Learning as much as possible about BATNA
 Understanding the people one will deal with.
 Typical preparation covers nine steps. These are:

 Typical preparation covers nine steps. These are:
 Step 1:Consider What a Good
Outcome for you & the other side
▪ Never enter into contract without asking yourself “what would be a good
outcome for me? What are my needs? How do I prioritize them?”.
▪ Then ask the same questions from the perspective of the other side.
▪ Identifying the interest of other party is sometime difficult.
▪ It can be strategically revealed in the negotiating table.

 Step 2:Identify Potential Value
Creation Opportunities
▪ Once u understand the good outcome for u & the other side u can then
identify the areas of
▪ common ground,
▪ compromise &
▪ opportunities for favorable trades.
▪ This is called the value creation process.
▪ Then decide on the share of the value that has been created by you.

 Step 3: Identify Yours & Other
Side’s BATNA
▪ It is time to identify the BATNA.
▪ Identify yours & other die’s BATNA to avoid failure.
 Step 4: Shore Up Your BATNA
▪ Once the BATNA has been identified now improve your BATNA.
▪ Because improvement to BATNA strengthens the negotiation position.
▪ But improving BATNA is not only a pre-negotiation task, one should
continue to improve it during & after negotiation also.

 Step 5:Anticipate the Authority
Issues
▪ It is really important to ensure that the negotiator on the other side has full
authority.
▪ There are real advantages to negotiating with the person who has the power
to sign?:
▪ All of your reasoning is heard by the decision maker.
▪ The are few chances of disputes or misinterpretation.
▪ When relationship is the aim, it is happen directly with the targeted party.
▪ So whatever u can do to identify the real decision maker just do it.
▪ Don’t be afraid to ask, “Who will make the decision?”

▪ If the decision maker is not in the team suggest to include him/her.
▪ Also try to identify how the other side will make its decisions.
▪ Don’t be shy in asking, “What types of decision making process you use in
this situation?”.
▪ As a practical matter one rarely has the opportunity to negotiate with the
individual who retains final authority.
▪ However, dealing with negotiator with less authority also has some
advantage:

 Step 6:Learn All You Can About the
Other Side
▪ Seasoned negotiator’s understand that – “the more I can learn about them the
more it will create strength & opportunity for me to win the game.”
▪ Specially address these questions:
▪ Who are those individuals?
▪ Are they experienced negotiators or novices?
▪ Are they aggressive or are they conflict-avoiding accommodators?
▪ Is the culture of their is bureaucratic or entrepreneurial?
▪ What are they trying to achieve?
▪ It is a part of pre-negotiation & should continue at the table itself.

 Step 7: Prepare for Flexibility & Don’t be Rigid
▪ Keep in mind that – N don’t always follow a linear path in a predictable manner.
▪ Sometimes
▪ relationships sour.
▪ unanticipated developments occur & may cause one side to withdraw or freeze talks.
▪ newly developed opportunity encourages the parties to drive a harder bargain
▪ One negotiator is replaced by another.
▪ These development means – the parties must be prepared to move forward without a
rigid roadmap.
▪ They must also exercise patience, listening ability, & respecting others.
▪ These all mean – you must be flexible.

▪ Do these following to be more flexible:
▪ Start with assumption that the process will not unfold in a predictable manner.
▪ Be prepared for change on the both side
▪ Be prepared for any unpredictable developments]Treat every change as an
opportunity for learning.
▪ Be patient when anticipated delays occur.
▪ But flexibility must be limited within the context – no compromise with the target.
▪ Remember:
▪ Be patient, Be flexible but never allow these bumps in the road to make you lose
sight of your goal.

 Step 8:Gather External Standards &
Criteria Relevant to Fairness
▪ Both side want the N to be fair & reasonable.
▪ Fairness & Reasonableness is crucial – if you want to have ‘Continued Relationship’.
▪ Neither party should feel that – ‘they have been forces to make a bad deal’.
▪ The criteria of being fair & reasonable can be set.
▪ But problem is there are many criteria to be fair & reasonable.
▪ So an important part of negotiation is:
▪ Researching which criteria might be applied

▪ Being prepared to show who those more favorable to you are more relevant
▪ Being prepared to show why those less favorable to you are less relevant
▪ So if you can convince the other side that a certain criterion is fair & reasonable, they
will find it harder to reject a proposal incorporating that standard.
▪ Most importantly they will be more likely to feel satisfied with the deal.

 Step 9:Alter the Process in Your Favor
▪ Sometimes – one party in a negotiation are ignored; their ideas are bumped .
▪ Sometime you may find that “yours is a lone voice in the wilderness & out of steps
with others.”
▪ These may shut you out & steer results in a direction favored by someone else.
▪ The antidote is that –
▪ you leave that type of table.
▪ Do not address the substantive issues in a negotiation – instead hear (The is called
“Process Moves”).

So in Summing UP
1. Know what a good outcome would be for both side.
2. Look for opportunities to create value in the deal.
3. Know your BATNA & RESERVATION PRICE.
4. If your BATNA is not strong, find ways to improve it.
5. Find out if the person or team you’re dealing with has the authority to make a
deal.
6. Know those with whom you are dealing.
7. If the future relationship matter – try to find criterion to be fair & reasonable.
8. Don’t expect things to follow a linear path – be prepared for bumps – be flexible.
9. Alter the agenda & process moves in your favor.

Patrick J Cleary

 N r full of ups and downs
 Patience is the passive side of persistence – u need both.
 Remember creating relationship is very important
 Impatience may lead u try to force a solution before ur
counterpart is ready.
 U must bide ur time n wait for your counterpart to be ready
to compromise.

 This is one of the imp rule
 Nothing is immutable – Keep in mind
 Rule is – look @ everything in the eye of a negotiator
- stop accepting thins as a it is given – start asking
‘why’, ‘can I do any better’

 As u move through the N , setting down dozens of issues
that seemed impossible at one time – u begin to build
relationship & confidence, but difficult issues always
remains……so u r in a pressure to deal with it.
 This last issue is known as “Deal-Breaker”.
 It has the power to bring down the whole deal – as the
parties may not agree to compromise on it. – they may be
ready to sacrifice all for it.
 So in this case wise thing is to ask the counterpart to strike
on it – make sure which one sd be ur deal breaker – be firm
on it