Entrepreneurial Education, CSC Academy
ISB-SRITNE & CSC e-Governance Services
April 2019
Negotiation is not persuasion
Negotiating vs. Persuading
● Persuading: The ability to convince others to take appropriate action
○ An example of persuade is when you make a strong argument for why your idea
is right and your argument convinces your boss to implement your idea.
●
Negotiating: The ability to discuss and reach a mutually satisfactory agreement
○ Example: You arrive at intersection with three other cars. How do you decide
who goes first? How do you decide the order of the other cars to go through the
intersection?
Types of negotiation
Two types- Distributive and Integrative.
Distributive negotiations can be thought of as disputes over a “fixed pie.”
Negotiating to divide some limited resource- you win, I lose, and vice versa.
Integrative negotiations, can be thought of as disputes where there is an “expanding
the pie.”
Negotiating to try to expand resources so that everyone wins from the outcome we
achieve -- Integrative negotiations are based on a win-win perspective.
Key Elements Of Entrepreneurial Negotiations
Create value, build trust, deal with emotions and perceptions, protect long-term
relationships.
▪ Distinguish between interests and positions.
▪ Participate in negotiation simulation to diagnose your strengths and weaknesses.
▪ Learn the steps involved in creating value.
Develop a personal theory-of-practice with regard to the elements of entrepreneurial
negotiations.
Diagnose personal strengths and weaknesses to improve negotiating skills
Use objective standards to build trust
• Build trust in entrepreneurial negotiations.
• Learn how contingent agreements can be used to reduce uncertainty.
Recognize the importance of emotions and perceptions
• Review the psychological dimensions of entrepreneurial negotiations.
• Know when to walk away from a deal.
• Learn to calculate the worth of competing offers.
Enhance Relationships
• While winning at win-win negotiation: Learn the essentials of win-win negotiation.
• Understand the dynamics of venture capital investing.
Process
Before
• Research the other side
• Understand your BATNA: “Best Alternative To A Negotiated Agreement” (walkaway
position)
• Assess true issues in negotiations
• Determine important issues
• Pre-think: solutions to dead-ends, exchanges,
• Prepare end-goal statement
In The Negotiations Room
• Build Rapport: Emotional, Posture, Tone &
• Key goal: understand their BATNA.
• Identify the needs of other party: Essential, Important, Desirable
• Compare the two to understand: Shared, Independent, Conflicting
Mechanics
In The Negotiations Room
•No “free” discounts
•Ask For More Than You Expect
•Never Accept The First Offer
•Be Predictable, Explicit, Never lie
•Before leaving: Clarify and make sure you agree
Skills
Purposeful
communication.
Email vs. Talking,
Needless
communications.
Disengaging from
personal & people.
Perception, Emotion,
Communication
issues
Active listening
( not agreeing!)
Negotiation Skills
Flexibility
Listening for interests
How you say it (tone
& body language)
Techniques
•Getting information: Silence, Ask Questions, Give info to get info.
•Anchoring
•Cognitive bias: Commitment escalation, Consistency
•Core human concerns: Autonomy, Appreciation, Affiliation, Role, Status, Identity.
References
• https://www.slideshare.net/thejunction32/negotiating-101
• https://www.edx.org/course/entrepreneurial-negotiations-3