Negotiation: Strategy and Planning - PO NC4

CHAPTER FOUR

Negotiation:

Strategy and Planning

Goals – The Focus That Drives Negotiation Strategy

•          Determining goals is the first step in the negotiation process

•          Negotiators should specify goals and objectives clearly

•          The goals set have direct and indirect effects on the negotiator’s strategy

 

The Direct and Indirect Effects of Goals on Strategy

•           Direct effects

–      Wishes are not goals

–      Goals are often linked to the other party’s goals

–      There are limits to what goals can be

–      Effective goals must be concrete/specific

•           Indirect effects

–      Forging an ongoing relationship

 

Strategy versus Tactics

•           Strategy: The overall plan to achieve one’s goals in a negotiation

•           Tactics: Short-term, adaptive moves designed to enact or pursue broad strategies

–      Tactics are subordinate to strategy

–      Tactics are driven by strategy

•           Planning: The “action” component of the strategy process; i.e. how will I implement the strategy?

 

Approaches to Strategy

•           Unilateral: One that is made without active involvement of the other party

•           Bilateral: One that considers the impact of the other’s strategy on one’s own

The Dual Concerns Model

Strategic Options

•           Per the Dual Concerns Model, choice of strategy is reflected in the answers to two questions:

–      How much concern do I have in achieving my desired outcomes at stake in the  negotiation?

–      How much concern do I have for the current and future quality of the relationship with the other party?

The Nonengagement Strategy: Avoidance

•           If one is able to meet one’s needs without negotiating at all, it may make sense to use an avoidance strategy

•           It simply may not be worth the time and effort to negotiate

•           The decision to negotiate is closely related to the desirability of available alternatives

Active-Engagement Strategies

•           Competition – distributive, win-lose bargaining

•           Collaboration – integrative, win-win negotiation

•           Accommodation – involves an imbalance of outcomes (“I lose, you win”)

Key Steps to an
Ideal Negotiation Process

Key Steps to an
Ideal Negotiation Process

•            Preparation

–       What are the goals?

–       How will I work with the other party?

•            Relationship building

–       Understanding differences and similarities

–       Building commitment toward a mutually beneficial set of outcomes

•            Information gathering

–       Learn what you need to know about the issues

Key Steps to an
Ideal Negotiation Process

•            Information using

–       Assemble your case

•            Bidding

–       Each party states their “opening offer”

–       Each party engages in “give and take”

•            Closing the deal

–       Build commitment

•            Implementing the agreement

Getting Ready to Implement the Strategy:  The Planning Process

•           Define the issues

•           Assemble the issues and define the bargaining mix

–      The bargaining mix is the combined list of issues

•           Define your interests

–      Why you want what you want

 

Getting Ready to Implement the Strategy:  The Planning Process

•           Know your limits and alternatives

•           Set your objectives (targets) and opening bids (where to start)

–      Target is the outcome realistically expected

–      Opening is the best that can be achieved

•           Assess constituents and the social context of the negotiation

The Social Context of Negotiation: “Field” Analysis

Getting Ready to Implement the Strategy:  The Planning Process

•           Analyze the other party

–      Why do they want what they want?

–      How can I present my case clearly and refute the other party’s arguments?

•           Present the issues to the other party

 

Information Needed to Prepare Effectively for Engaging the Other Party

•           Resources, issues, and bargaining mix

•           Interests and needs

•           Walkaway point and alternative(s)

•           Targets and opening bids

•           Constituents, social structure, and authority to make an agreement

•           Reputation and negotiation style

•           Likely strategy and tactics

Getting Ready to Implement the Strategy:  The Planning Process

•            Define the protocol to be followed in the negotiation

–       What is the agenda?

–       Who will be there?

–       Where will the negotiation occur?

–       What is the time period?

–       What might be done if the negotiation fails?

–       How will we keep track of what is agreed to?

–       How do we know whether we have a good agreement?

Summary on the Planning Process

“...planning is the most critically important activity in negotiation.”