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PowerPoint Summary of:
Key Negotiation Concepts
Negotiation
PowerPoint Summary of:
Key Negotiation Concepts
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PowerPoint Summary of:
Key Negotiation Concepts
Negotiation
How often do you do it?
Do you like doing it? A=Yes, B= No
Are you good at it? A= Yes, B=No
Discuss.
PowerPoint Summary of:
Key Negotiation Concepts
Negotiation – My Definition
A discussion between two or more disputants
who are trying to work out a solution to their
problem.
It is done when neither side can get what
he/she wants on its own.
The purpose is …?
PowerPoint Summary of:
Key Negotiation Concepts
Purpose of Negotiation
To win. (Competitive)
To reach a good agreement. (Cooperative)
How would you define a GOOD agreement?
PowerPoint Summary of:
Key Negotiation Concepts
What is a good agreement?
Fisher and Ury argue that a good agreement is:
wise
satisfy the parties' interests
is fair
is lasting.
efficient
Cost effective,
Time conserving
improves parties' relationship.
PowerPoint Summary of:
Key Negotiation Concepts
Negotiation…
Can be cooperative (win-win/positive
sum/integrative/principled) or competitive (win-lose/zero
sum/distributive/positional).
PowerPoint Summary of:
Key Negotiation Concepts
Think back…
List the last 3 – 4 times that you have used
negotiation.
Then label each as competitive or cooperative.
What makes you say that?
PowerPoint Summary of:
Key Negotiation Concepts
Think back…
What are the characteristics of competitive
negotiation?
What are the benefits?
What are the costs?
PowerPoint Summary of:
Key Negotiation Concepts
Competitive Negotiation…
Starts with the solution.
Parties propose solutions to one another and
Make offers and counter-offers until
They find a solution that is acceptable to both (it
falls within their ZOPA or “bargaining range.”
PowerPoint Summary of:
Key Negotiation Concepts
Competitive Negotiation…
Based on your knowledge of conflict styles
…when do you think competitive
negotiation is best used?
PowerPoint Summary of:
Key Negotiation Concepts
Competitive Negotiation is best
used when…
Situation is short term and not repeating.
The agenda is more important than the
relationship, or
The other party is expecting you to be
competitive.
The primary issues are tangible and/or
splittable—money, time, dates, etc.
PowerPoint Summary of:
Key Negotiation Concepts
Buying a car
Who has recently bought a car?
Describe the negotiation…how did it go?
Who started the negotiation? Did they get what
they asked for initially?
PowerPoint Summary of:
Key Negotiation Concepts
ZOPAs
= Zone of Possible Agreement
Otherwise known as “bargaining range”
Tells you whether or not an agreement is
possible.
B below = buyer; S below = seller
OO below = opening offer WAP = walkaway pt
B - OO S- WAP B-WAP S - OO
$10,000 $12,000 $12,500 $15,000
PowerPoint Summary of:
Key Negotiation Concepts
Positional negotiation
Typical strategy:
Extreme opening position
Argue for its “fairness” or why it is “right”
Intend to give in a little, but try to give in as little
as possible.
PowerPoint Summary of:
Key Negotiation Concepts
Positional negotiation—typical
attitudes
The “pie” is limited—my goal is to get the
biggest piece.
A win for me = a loss for the other
Negotiators are opponents or enemies
There is one right solution—mine!
I should stay on the offensive
Concessions are a sign of weakness.
Avoid compromise if at all possible, if not, give
in as little as possible.
PowerPoint Summary of:
Key Negotiation Concepts
Buying a car
Typical tactics of positional negotiation:
Bluffing
Wearing down the other side
Devaluing other sides’ offers
Threatening
Softening them up, then squeezing them
PowerPoint Summary of:
Key Negotiation Concepts
The “Principles” of Principled
Negotiation
1. Separate the People from the Problem
a. Focus first on the relationship and identity
issues
b. Then on the topic issue issues
(RIT)
PowerPoint Summary of:
Key Negotiation Concepts
The “Principles” of Principled
Negotiation
2. Attend to the communication issues
a. Acknowledge and manage emotions
b. Avoid the blame game
c. Listen
d. Use I-messages, XYZ messages, 3,
etc.
The “Principles” of Principled
Negotiation
3. Focus on Interests, not Positions
Positions: Simple statements about what you want. No reasons, no
subtlety, no justification. Just a demand:
I want the orange!
Interests: The reasons underlying the position
—what you really want or need
—the answer to the question WHY.
I need the rind to bake a cake.
I'm hungry. I want to eat the orange.
PowerPoint Summary of:
Key Negotiation Concepts
The “Principles” of Principled
Negotiation
4. Generate many options & look
for Options for Mutual Gain
Brainstorm options by listing all
possibilities first,
Evaluating options second.
Look for ways to meet everyone's
interests at the same time.
PowerPoint Summary of:
Key Negotiation Concepts
The “Principles” of Principled
Negotiation
5. Find Legitimate Criteria to Guide Decisions
What's been done before?
What's “fair”
PowerPoint Summary of:
Key Negotiation Concepts
The “Principles” of Principled
Negotiation
6. Analyze the Best Alternative to a Negotiated
Agreement (BATNA)
BATNA = Walk Away Point—when you tell the
other person you are not interested in their offer
because you can do better in another way.
PowerPoint Summary of:
Key Negotiation Concepts
Why do you care about BATNAs?
They tell you what you should agree to and
what you should walk away from.
They also give you negotiating power.
PowerPoint Summary of:
Key Negotiation Concepts
The “Principles” of Principled
Negotiation
7. Work with Fair and Realistic Commitements
Is agreement
Reasonable?
Doable?
Face-saving?
Practical?
PowerPoint Summary of:
Key Negotiation Concepts
Negotiation – Exercise I
1. Break into groups and do the following:
2. Pick a political issue that you care about AND KNOW
SOMETHING ABOUT—for example: the economy, or education,
or health care or gay marriage. you must) about what is a
position and what is an interest.
Negotiation – Exercise I
3. What is your position on that issue? (For example, I think that
x should do y.)
4. Who opposes that position? What is their position? (If you
differ w/in your groups fine; if you do not, figure out who else
opposes all of you.)
5. What are your interests on the same issue?
6. What are the other side’s interests?
7. Note: Don't argue about who is right or wrong. Argue (if you
must) about what is a position and what is an interest.
8. Is there a ZOPA in this conflict?
9. What is each sides’ BATNA? Which is better? The BATNA or
the ZOPA? So what should each side do?
10. What form of negotiation should be used here? Why?
PowerPoint Summary of:
Key Negotiation Concepts
Exercise
Do Best Books/Paige Turner Negotiation & Debrief.
PowerPoint Summary of:
Key Negotiation Concepts
When to use what?
Integrative bargaining is best when:
There is a possibility of “expanding the pie.”
When the agenda and the relationship are
important.
When this is a recurring relationship or event.
When you don’t have a good “BATNA.”
But keep in mind….
PowerPoint Summary of:
Key Negotiation Concepts
When to use what?
Distributive bargaining is best when:
There is no possibility of “expanding the pie.”
When you need to get your way/as much as
possible.
When the agenda is much more important than the
relationship.
When this is a one-time event.
When you have a good “BATNA.”
PowerPoint Summary of:
Distributive Bargaining
Slide 3:
Distributive and Integrative
Bargaining
Are not mutually exclusive!
• Eventually even expanded pies
have to be divided
• A form of distributive
bargaining is the last step of an
integrative approach
Hard, Soft, Principled Negotiation
Problem I Solution
Positional Bargaining: Change the Game-
which Game Should You Play? Negotiate on the Merits
Soft Hard Principled
Participants are friends Participants are Participants are problem-
adversaries solvers
The goal is agreement The goal is victory The goal is a wise
outcome reached
efficiently and amicably
Make concessions to Demand concessions as Separate the people from
cultivate the relationship a condition of the the problem
relationship
Be soft on the people and Be hard on the people Be soft on the people,
the problem and the problem hard on the problem
Hard, Soft, Principled Negotiation
II
Soft Hard Principled
Trust others Distrust others Proceed independent of
others
Change your position Dig into your position Focus on interests, not
easily positions
Make offers Make threats Explore interests
Disclose your bottom line Mislead as your bottom Avoid having a bottom
line line
Accept one-sided losses Demand one-sided gains Invest options for mutual
to reach agreement as the price of agreement gain
Search for the single Search for the single Develop multiple options
answer: the one they will answer: the one you will to choose from; decide
accept accept later
Insist on agreement Insist on your position Insist on using objective
criteria
Hard, Soft, Principled Negotiation
III
Soft Hard Principled
Try to avoid a contest of Try to win a contest of Try to reach a result
will will based on standards of
independent will
Yield to pressure Apply pressure Reason and be open to
reasons; yield to principle,
not pressure
Source: Getting to Yes
