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Negotiation
Strategies
Critical Concepts

We negotiate everyday in all situations

Negotiation can be mastered – need to
understand the integral rules, strategies and
practices.

Power negotiating – ability to motivate the other
party in a manner that is favorable to the
negotiator’s objectives while making the other
party feel as though he/she won.
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The Process
3 Stages:

Beginning – clarify objectives

Middle – gather, confirm, exchange info

End – agreement through compromise
Important to take the negotiation through all 3
stages
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Four Variables

Power

Time

Knowledge

Leverage
How to use them to the negotiator’s best
advantage
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Power
The 2 most common sources are:

Competition – increases value

The Written Word – credibility and authenticity
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Another Source of Power
Investment

Time – incentive to reach agreement

Money – obvious resources
1.
Persuasive Capacity
2.
Strong Sense of Commitment
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Time

Human Nature & Deadlines

Timelines

Hurried Negotiations – risk making concessions
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Knowledge

Diligent Research

Information Gathering

Priorities

Deadlines

Real Needs

Organizational Pressures
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Leverage

Availability of other Resources

Quality

Power

Financial Risk & Reward

Marketability/Noteriority
Walmart the perfect example
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Beginning Power
Negotiating Strategies

The reluctant buyer/seller

The moon, stars and sun

The flinch

The feel, felt, found technique

First offer

The vice technique
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Middle-Stage Strategies

The trade-off

The set-aside technique

Splitting the difference

Referring to a higher authority
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Ending Strategies

Nibbling

Good guy/bad guy

The hot potato
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Other Approaches
Win/Win or Integrative Approach:

Prospects for both side’s gains

Reconcile positions

Stability of results

Open, empathetic communication
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Tricks of the Trade

Broadening the pie

Nonspecific compensation

Logrolling

Cost-cutting

Bridging
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Other Approaches
The Win/Lose or Distributive Approach

Seek maximum gains

Impose maximum loses

Inherent instability

Triangle balance on its apex
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Other Approaches
The Mixed Approach

A mix between win/win and win/lose

Long-term relationships need a more integrative
approach (win/win)

Stability of the outcome
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Stability of the Outcome

Focus on objectives (ancillary points destructive in
the beginning)

Fairness

Flexibility

Listen and compromise

Trade-offs and concessions
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Negotiation is not a
Competitive Sport

Negotiation is a series of episodes

Always need to find and reach agreements

If lock into a position – narrow range of
acceptable outcomes

Short-term thinking yields short-term gains and is
counter-productive

Feeling like a loser – decreases likelihood of
commitment and fulfillment
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Negotiation is not a
Competitive Sport

Treating a counter-part as an opponent and not
a partner negatively impacts the collaborative
process and decreases the chances for
commitment.

Every negotiation is an episode in an ongoing
relationship

Bargaining and trust are essential

Mutual understandings
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Negotiation is not a
Competitive Sport

Bluffing v. Lying

Spying v. Information-Gathering

Autonomy v. Coalition Building
1.
Are underlying interests common,
complementary or in conflict?
2.
Is the decision-making process combative,
competitive or collaborative?
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Interest-Based
Negotiations

Concentrate on overall interests of both parties

Building an agreement that is fair and durable –
meaningful commitment

It is a process – requires confidence in authority
and performance
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Create an Interest Map
Compile a list of:



Opposing stakeholders – who are
they?
Interests in the outcome – be creative,
list hot-buttons, do a reality check
Reasons – ask questions
This facilitates planning a strategy
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Conflict Negotiating

Define the conflict

Differentiate between views of conflict

Understand the conflict process

Annihilating, competing, avoiding, compromising,
collaborating, accommodating
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Conflict Negotiating
1.
Conflict can be constructive or destructive
2.
An optimal level of conflict:

Prevents stagnation

Stimulates creativity

Releases tension

Initiates change
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Autocratic Managers
1.
Inherent authority precludes the need to
negotiate
2.
Handing out orders is antagonistic, one-sided
negotiations
3.
Impinges commitment and stability
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Accommodating
Manager
1.
Concerned with what others want to the
detriment of their own needs
2.
Conflict avoidance leads to non-negotiation
and overriding of self-interests
3.
All negotiation inherently has some conflict
4.
Must take responsibility and look for
compromise to lead effectively
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5 Modes of Responding to
Conflict
1.
Collaborative (integrative) – win/win
2.
Competitive (distributive) – win/lose
3.
Yielding
4.
Avoiding
5.
Compromising
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2 Levels of Negotiations
1.
Rational decision-making (substantive)
2.
Psychological (emotional)

Separate the person from the issue

Use objective standards

Pay attention to the flow of negotiations

Pay attention to the intangibles
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Types of Negotiators

Aggressive

Long-pauser

Mocking

Interrogator

Cloak of reasonableness

Divide and conquer

Act dumb
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Preparing for Negotiation

Whose interests are at stake?

What are the interests?

What are the sources of power?

What are the options?

What strategies are best?
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Types of People

Hostile aggressive

Complainers

Clams

Super-agreeables

Negativists

Know-it-alls

Indecisive stallers
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BATNA
Know your BATNA (best alternative to a
negotiated agreement):

Identify alternatives and strategies

Determine “deal points/walk-away points”
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How do you Know if you
are an Effective
Negotiator?
Who has the power?


Who are the stakeholders?

Is it about outcome, process or both?

How do you determine effectiveness?

Are ethical and legal considerations?

Is collaborative, competitive or mixed most
effective?

How wide is the impact?
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