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The Art of Negotiation
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Purpose
To provide participant with an overview of what good practice negotiations looks like.
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Copyright © 2005 Shearman & Sterling LLP. As used herein “Shearman & Sterling” refers to Shearman & Sterling LLP, a limited liability partnership organized under the laws of the State of Delaware.
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The Art of Negotiation
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Outputs
By the end of this short presentation participants will:
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 be introduced to the different styles of negotiation understand the types of approaches a negotiator can take be aware of the skills required to be an effective negotiator pick up some tools, tips and techniques which they can apply in the negotiation game.
4/16/2020
Copyright © 2005 Shearman & Sterling LLP. As used herein “Shearman & Sterling” refers to Shearman & Sterling LLP, a limited liability partnership organized under the laws of the State of Delaware.
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The Art of Negotiation
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Negotiation – a definition:
“A discussion in order to reach an agreement.”
Oxford English Dictionary
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The Art of Negotiation
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The Competitive Style
The Cooperative Style
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Negotiation – the Competitive style
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Characteristics:
Open with high demands
Take strong/specific position
Reveal little information
No empathy
Argumentative rather than conciliatory
Narrow issues for negotiation
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Negotiation – the Competitive style
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Purpose of Competitive negotiator:
To obtain concessions while make few concessions
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Negotiation – the Competitive style
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Advantages
Useful against a weak opponent
Strengths derived from clear and limited objectives
Technique respected by clients
A ‘good result’ can be achieved early
Enables negotiator to be clear and consistent
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Disadvantages
Produces tension
Generates mistrust and irritation
May lengthen process
Exacerbates differences
May focus on trivial issues
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Negotiation – the Cooperative style
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Characteristics
The Cooperative negotiator aims to:
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Put the client first
Be fair
Maintain good relations
Look for common ground between parties
Make reasonable offers to settlement
Create an open and trusting environment
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Negotiation – the Cooperative style
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Advantages
High probability of reaching settlement
Fairness is normally achieved
It encourages concessions from other side
Has potential to offer greatest benefits to both parties
Easier to enforce
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Disadvantages
Cooperative approach can be mistaken for weakness
Opponent may take advantage of cooperation
Concession may be made too readily
Pressure easily applied by opponents
Hard to control – not tightly focussed
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Negotiation Approaches
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The Positional approach
The Problem Solving approach
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Negotiation Approaches
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The Positional approach
The favoured approach for the competitive negotiator
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Three step approach:
First step: determine bottom line
Second step: ascertain your opening position
Third step: negotiate
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Negotiation Approaches
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The Problem Solving approach
Centres on all angles of the case
All factors considered
Primary objective is to maximise gains all round
Most effective in the hands of experienced negotiators
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The Skills of an Effective Negotiator
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Questioning and listening skills
Trustworthy
Personable
Perceptive
Self controlled
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Prepared
Legally astute
Realism
Convincing
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The Art of Negotiation
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Tips
Try to separate the people from the problem
Focus on interests not on positions
Invent options for mutual gain
Insist on objective criteria
Always develop a best alternative to a negotiated settlement (BATNA)
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The Art of Negotiation
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Any Questions?
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