2. Succesfull negotiation
1. Good outcome -- for all parties
• interests met
• Seen as fair
2. Efficiently reached
• time not wasted
• nothing left on table
3. Amicably ended
• relationship enhanced
• future dealings easier
3. Conventional wisdom
on negotiaton
• Bid high
• Trade concessions for
concessions-grudgingly
• Do not reveal anything – ‘pokerface’
• Show no empathy - undermine the
legitimacy of their claims
• Dirty tricks - undermine them
psychologically
4. Erodes trust:
• You make yourself a liar from the beginning;
what you say you need isn’t what you actually
need
Undermines accuracy of information (on both
sides):
• Hoard information instead of sharing it
• Attempt to devalue and undermine the other
side’s information
Problems with this
appraoch
5. Assumptions behind the
conventional wisdom
Win/Lose - Zero-sum situation:
Their gain is my loss
The size of the pie is fixed
Negotiation is a test of will -
this model applies (maybe) to:
Strangers
People you hope never to see again
6. BATNA
Five key principles
Know your BATNA (Best Alternative to a
Negotiated Agreement)
Focus on Interests, not Positions
Invent Options for Mutual Gains
Use Objective Criteria
Build Relationships Along with
Agreements
7. What’s a BATNA?
• BATNA: Best Alternative to a Negotiated Agreement
• Best alternative action you are able to pursue away from
the table
• When you know your BATNA, you know the minimum
you should accept at the table
8. Use Your BATNA
• Analyze your BATNA
• Improve your BATNA
• Don’t blab your BATNA
• Analyze their BATNA
• Help them reality-check their BATNA
9. Focus on Interests,
Not Positions
Position = What you want
Interest = Why you want it
• In preparation, analyze your interests, and theirs
• At the table, explain your interests
• Ask questions & listen to discover their interests
10. How to Explore Interests?
Ask and be ready to answer:
• “What are the key things you need from an
agreement?”
• “Why is that important to you?”
• “Is it really something else that concerns you?”
• “Would we be moving in the right direction if...?”
11. Invent Options For
Mutual Gains
Conventional Wisdom:
– Trade positions, not information
– Assume you’re only dividing the pie
Mutual Gains Approach:
– Explore interests on both sides
– Suspend criticism
– Invent without committing
– Generate options and packages that “make
the pie larger”
– Use a neutral party to exchange ideas
12. Use Objective Criteria
Problem: How to choose among options?
Risk: Revert to positional bargaining
Strategy: Find mutually acceptable criteria or
procedures:
• Cost effectiveness
• Reciprocity
• Equal treatment
• Implement ability
• Market value
• Precedent
• Risk
• Advice of respected or expert third party
13. Getting to Criteria
• Ask Questions:
• How did you arrive at that?
• What is the theory behind this?
• What makes that fair?
• How are others (people, organizations)
handling this problem?
• Maintain creative mode
• Behave to build trust
14. Build Relationships Along
with Agreement
• Be trustworthy: say what you mean and
mean what you say
• Recognize legitimacy of their interests
• Balance empathy and assertiveness
• Address difficult behavior, don’t escalate it
• Recognize that to “separate the people
from the problem” you may have to deal
with: history, perceptions, emotions,
communication
• Knowing your BATNA is your protection
15. Exercise:
Getting to know each others interests
instead of positions
Groups of three people
1. ask for interest
2. give answers
3. observe
Switch after 10 minutes
16. -What did you see and hear?
-How was it to do this?
-Dit you get to intrests?
Evaluation