Negoatiation Basics

Question 1

Negotiation:

Answer 1

Negotiation is a process in which two or more parties attempt to reach an agreement while balancing their interests in order to find a mutually beneficial or satisfactory outcome

Question 2

Presentation “strategy”

Answer 2

practical & applicable strategies & basic, foundational knowledge

Question 3

Distributive (type of negotiation)

Answer 3

division of resources (e.g. price bargain): often seen as a win-lose scenario

Question 4

integrative (type of negotiation)

Answer 4

emphasis on mutual gains (e.g. partnerships): desired to result in a win-win scenario

Question 5

multiple-party (type of negotiation)

Answer 5

often requires collaboration and coalition-building

Question 6

Preparation - The Foundation of success:

Answer 6

1.Research and knowledge gathering
-> know your needs, know the other party’s needs - information is power
-> consider leverage points, alternatives and limitations, or possible weak points
2.setting clear goals
-> pre-define “ideal”, “acceptable” and “walk-away” points or thresholds
-> helps with maintaining focus

Question 7

BATNA: best alternative to negotiated agreement

Answer 7

• benchmark & backbone of negotiation
• increases confidence
• avoids settling unfavorable terms

Question 8

Building Rapport (Aufbau einer Beziehung)- 3 key points:

Answer 8

1.establishment of trust
-> leaves a positive impression
-> openness to collaboration: conveying egocentrism will backfire
2. active listening
-> respect & understanding - find mutual points of agreement and consensus
3. psychological comfort
-> comfort is contagious, so is discomfort

Question 9

VC: Verbal communication

Answer 9

• clear, concise language
• avoid ambiguity (Mehrdeutigkeit), annoyance, jargon, overly technical language

Question 10

NVC: non-verbal communication

Answer 10

• mirror body language
• display confidence (not aggression)
• eye-contact (not staring), up straight position (not aggressive posture), openness

Question 11

information presentation is key (Framing&Anchoring)

Answer 11

• highlighting of benefits
• positive vs. negative framing, depending on the situation (communication psychology!)

Question 12

Anchoring techniques (Framing&Anchoring)

Answer 12

• the initial offer influences the negotiation range
• first anchor often dictates outcome!

Question 13

Understanding Interests vs. Positions (Ask yourself):

Answer 13

• What does each party say they want?
• Why do they have that position?
• Are there shared interests, opinions?

Question 14

Tactical Management of Conflict

Answer 14

Separation of persona from the problem
-> focus on the issue, not the personal differences
-> maintain a professional atmosphere
finding common ground
-> emphasis on shared goals
redirection of focus

Question 15

Persuasive Techniches

Answer 15

1. reciprocity
   -> humans are wired to return favors
2. commitment
   -> obtaining small agreements early builds momentum
3. credibility
   -> sense of integrity opens collaborative agreeableness

Question 16

Managing emotions (what’s important during negotiation)

Answer 16

1. Emotional awareness
   -> recognize and monitor your emotions - regulation to prevent emotional reactions
2. empathy
   -> understanding others` feelings improves negotiation outcomes (evidently)
3. recognizing tension
   -> offer and take breaks, practice calming exercises if needed (i.e. preparation)

Question 17

Decision-Making

Answer 17

1.summarize agreements
2. no rush
-> avoid premature decisions, if you have to reconsider
3.confirm commitment
-> both parties ready to proceed ?
4.recap final offers
-> clear communication of final terms - no ambiguity

Question 18

Pitfalls

Answer 18

1. Overconfidence
   ->unrealistic expectation can immediately and sustainably derail negotiation
2. not listening
   -> sole focus on own benefit - acknowledge that the counterpart is emitted to their own interest - acknowledge that the counterpart is entered to their own interest, just as you are ( Theory of Mind)
3. emotional reaction
   -> disbalance in emotions involves a layer of unprofessionalism
4. bad preparation
   -> other parties may not feel taken seriously
   -> gives you a huge disadvantage from the start
   -> can make your Goal BATNA obsolet (nicht mehr gebräuchlich)