NEGOTIATION SLIDES OUTLINE CHAPTER FOUR

NEGOTIATION SLIDES OUTLINE 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

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•          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 Non-engagement 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

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•          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

•          Walk-away 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.”