Ch4 Flashcards
what are the flow of the key steps in the planning process
GOALS > STRATEGY > PLANNING
what is better for skilled negotiators?
- explored a wider range of options for action;
- worked harder to find common ground with the other party;
- spent more time considering the long-term implications of their agreement; and
- were significantly more likely to set upper and lower limits, or the boundaries of a range of acceptable settlements.
What are the 4 ways that goals affect a negotiation
a. specific and focused target! not a wish
b. goals are often linked to other parties goals
c. limiations to realistic goals
d. effective goals must be specific, conrete, measurable
what are the destructive cons of having goals?
- being too focused can make us overlook other issues
- if goals are too ambitious they can obstruct an agreement
- can promote unethical behaviours
- being too focused on goals may revent people from LISTENING AND CREATING VALUE
what are intangible or procedural goals?
maintaining a reputation
procedural: ensuring the other party concenes more than I do
how can the goals of a party influence the strategy of choice
if the goals are short term we focus less on relationship builidng and are distributive
if the goals are long term we are okay to be mroe integrative
strategy vs tactics
Tactics are short-term, adaptive moves designed to enact or pursue broad (or higher-level) strategies, which in turn provide stability, continuity, and direction for tactical behaviors.
Tactics are subordinate to strategy; they are structured, directed, and driven by strategic considerations.
3 types of strategies
Competitive (I win you lose)
Integrative (I win you Win)
Accomodation (I lose you Win)
What is an accomodative strategy?
used when one considers relationship> outcome
cons to using distributive strategy
focused too much on self and not listening enough, creates conflict
cons to using Integrative strategy
mamy be taken avantage of
cons to using Accomodative strategy
If you are always giving up to win then it is very bad for longterm satisfaction
10 steps in creating a strategy
- Defining the negotiating goal.
- Defining the major issues related to achieving the goal.
- Assembling the issues, ranking their importance, and defining the bargaining mix. (what issues can we trade off for a n aeasy win)
- Defining the interests.
- Knowing your alternatives (BATNAs).
- Knowing your limits, including a resistance point.
- Analyzing and understanding the other party’s goals, issues, and resistance points.
- Setting one’s own targets and opening bids.
- Assessing the social context of negotiation (for example, who is at the table, who is not at the table but has a strong interest in the negotiation outcomes, and who is observing and critiquing the negotiation).
- Presenting the issues to the other party: substance and process.
- defining the negotion goal
tangible, intaginble, procedural goals; can have direct and indirect effect on strategy
- Defining the Major Issue Related to Achieving the Goal
single issues: typically distributive
multi issues: typically integrative
but can be swapped!
- Assembling the Issues, Ranking Their Importance, and Defining the Bargaining Mix
make a ccomprehensive list!!
large bargaining mixes increase the different “packages” that parties would be happy with AS LONG AS ALL ISSUES ARE REAL!
-> assign issues most to least important
-> address intangible goals as well
-> determine which issues are connected/separated
- Defining the Interests
WHAT ARE THE UNDERLYING NEEDS?
interests may be:
1/ susbtatinve
2/ provess based
3/ relationship based
interests can offer incentives! sometimes you do extra for the other party cuz you meet an UNDERLYING interest of yours
- Analyzing and Understanding the Other Party’s Goals, Issues, and Resistance Points
- WHAT ARE THEIR BROAD GOALS
- what is their bargaining mix
- Assessing the Social Context of Negotiation/PROTOCOL
“Field analysis” of negotiation
- Presenting the Issues to the Other Party: Substance and Process
how you will present and frame the issues and interests: WHAT ARE THE FACTS YOU WILL USE TO SUPPORT UR ARGUMENT?
how you should structure the process by which this information is presented.
What agenda should we follow?
-Scope: What issue should be considered?
-Sequence: In what order should those issues be addressed?
-Framing: How should the issues be presented
-Packaging: Should the issues be taken one at a time or in various groupings/packages?
-Formula: Should we strive to first get an agreement on general principles, or should we immediately begin to discuss each of the issues?
before the deal breaks down:
Build a relationship with the other side that can be used in case the deal falters.
Take the time to build the relationship.
Provide for mechanisms to renegotiate if the deal breaks down.
Consider how to involve a third party if the deal breaks down
After the deal breaks down:
Avoid negativity and anger.
Decide whether what you want to renegotiate could ruin the relationship—and whether it is worth it.
Create new value through the renegotiation.
Fully evaluate the costs of failure.
Involve all the critical parties.
Design the right environment and process to do the renegotiation.
7 phases of a negotitiaon
prep
relationship building
info gather
info using
bidding
closing the deal
implementation
PARETO FRONTIER
OPTIMAL RESULT IN NEOGITION
An agreement is defined as pareto efficient when there is no
other agreement that would make any party better off without
decreasing the outcomes to any other party.”
“With any pareto inefficient agreement, there exists an
alternative that would benefit at least one party without
injuring any party
in suboptimal pareto fronteir outome
value that could have been created is lost
What opportunity does the
presence of pareto optimal
outcomes represent
Value that is created can be
claimed
how does the pareto frontier work?
Issues that can be traded off (logrolling) due to differences in:
* Priorities
* The Assessments of the Probability of Future Events
* Risk Preferences
* Time Preferences
