E+R=0
Event+ Response= Opportunity
Negotiation
A process that helps two or more people work together to achieve goals and solve problems.
How is negotiation learned?
Skill learned through practice
Why is negotiation important?
Executives now rely more on connections and negotiation than ever before.
Why do people hate negotiating?
A past experience when they did not recognize a negotiation situation until it was too late or a situation when they did not properly prepare to negotiate.
Zero-Sum Game
One person’s gains always come at the expense of another. Another reason people hate negotiating
Fixed Pie Assumption
beliefs that the counterparty’s interests and priorities are in direct opposition to the negotiator’s own interests and priorities.
Impacts of Fixed Pie Assumption
- Belief that what you want is in direct conflict with what they want
- Fixed resources
- Only way to gain value is to take many resources away from the other negotiator.
Common Traps in negotiation
- Leaving money on the table
- Settling for too little
- Walking away
- Settling for term that are worse than your BANTA
Rackham Study 1.
Spend over three times as much time as “average” negotiators anticipating “common ground” issues during the planning stage of negotiations.
Rackham Study 2
Establish settlement ranges, rather than a fixed settlement point.
Rackham Study 3
Avoid the use of “irritators”—words or phrases that fail to persuade but succeed in causing irritation.
Rackham Study 4
Tend to make fewer counterproposals during the early stages of “face to face” negotiations.
Rackham Study 5
Avoid escalating “defend/attack” behaviors at the bargaining table.
Rackham Study 6
Are concerned about avoiding misunderstandings during the negotiations.
Rackham Study 7
Ask nearly twice as many questions during negotiations compared to an “average” negotiator.
Rackham Study 8
Share “internal” information – feelings, perceptions, emotions, etc. – with the other side.
Traits of a successful Negotiator
- Genuine
- Curious
- Ethical
- Listen
Establishing Rapport
Rapport is a personal connection with another negotiator that allows both negotiators to feel comfortable sharing info and trusting that negotiated agreement will implement.
