Negotiating Flashcards
Getting to yes with yourself:
1. Put yourself in your shoes
Understand yourself. Listen empathetically for underlying needs
Getting to yes with yourself:
Six Challenging Steps
- Put yourself in your shoes
- Develop your inner BATNA
- Reframe your Picture
- Stay in the Zone
- Respect them even if
- Give and Receive
Getting to Yes with yourself
2. Develop your Inner BATNA
Take responsibility for your life and relationships. Best Alternative To A negotiated Agreement (BATNA). Take care of your needs independent of what other does or does not do
Getting to Yes with yourself:
- Reframe your Picture
Change how you see your life, Creating your own independent and sufficient source of contentment. See your life as being on your side even when it seems unfriendly
Getting to yes with yourself:
- Stay in the Zone
Don’t get lost in resentment about the past or in anxieties about the future. Do the opposite and stay in the present moment, the only place where you have the power to experience true satisfaction as well as to change the situation for the better
Getting to yes with yourself:
- Respect Them Even if
It is easy to meet rejection with rejection, personal attack with personal attack, the challenge is to surprise others with respect and inclusion even if they are difficult
Getting to yes with yourself:
- Give and Receive
don’t fall into the win-lose trap and focus on only meeting your needs. The final challenge is to change the game to a win-win approach by giving first instead of taking.
If you wish to understand yourself
Listen with empathy, instead of talking negatively to yourself, try to listen to yourself with respect and positive attention.
Sympathy & Empathy
To observe is to see from the outside, where to listen is to feel from the inside. Observing offers you a detached view, whereas listening gives you an intimate understanding.
“A generation ago, the term ‘negotiation’ also had an adversarial conotation. In contemplating a negotiation, the common question in people’s minds was ‘Who is going to win and who is going to lose?’ To reach an agreement someone had to ‘give in.’ It was not a pleasant prospect. The idea that both sides could benefit, that both could ‘win,’ was foreign to many of us. Now it is increasingly recognized that there are cooperative ways of negotiating over differences and that even if a ‘win-win’ solution cannot be found, a wise agreement can still often be reached that is better for both sides than the alternative.
Getting to yes
Listening
is not just an intellectual exercise but an emotional and physical one.
“If you want someone to listen and understand your reasoning, give your interests and reasoning first and your conclusions or proposals later.” (p. 54)
Getting to yes
“In short, the approach is commit yourself to reaching a solution based on principle, not pressure. Concentrate on the merits of the problem, not the mettle of the parties. Be open to reason, but closed to threats.” (p. 84)
Getting to yes
“Some of the most effective negotiating you will ever do is when you are not talking.” (p. 114)
Getting to yes
Before you even begin to negotiate, it makes sense to envision what a successful agreement might look like.” (p. 175)
Getting to yes
Consistency principal
To commit other parties to standards and then hold them to their prior statements or positions.
-bargaining for advantage
Attributes of a good negotiator
Alert and prudent. Ask a lot of questions, and listen carefully and uncover the other parties interest. learn to recognize the hidden psychological strategies that play such important roles in the process. A good negotiator uses what psychologist call consistency principle that is to commit other parties to standards and then hold them to their prior statement or position. People need to feel they have earned concessions even when you are willing to give them away for free.
Information based bargaining.focuses on three aspects of negotiation:
- Solid planning and preparation
- Careful listening
- Attending to the “signals”
5 Generic negotiating strategies
- Avoidance avoidance is a good strategy when you’re happy with the status quo.
- Compromise
- Accommodation
- Competitive
- Collaborative or problem-solving. This is the win-win approach. This is the hardest of all strategies at six to discover the underlying problem through good analysis and candid disclosure of interest find the most elegant solution by brainstorming many options and resolve tough issues using fair standards and criteria.
obstacles of collaborative strategies
- Lack of trust between parties
- Greed
3 personality
4 cultural differences - lack of imagination
My negotiating style
Based on appendix A
- my strongest bargaining style which score is above the 70th percentile is competing and collaboration
- My weakest bargaining style which score is below the 30th percentile is compromising avoiding and accommodating
bargaining tactics
The bargaining stage is dominated by tactics as you might expect good tactics depend on the situation the right tactic for one situation may not be right for another. And of course the person style control any situational analysis.
Should I be the first to open?
There is a risk to be the first to open. You could lowball it for highball it. Keep your mouth shut and let the other negotiator name his price. You can always correct him if he is outside the fair and reasonable range. The never open option is easy to remember but like most simplistic approach is to negotiation it is not always good advice. How can you do better? They answer lies in how much information you have.
You need to prepare and know enough about the standards and valuation system used in the business to open with confidence.
Should I be the first to open
a. If you are a newcomer to the market you should sit tight and let the other side do the talking.
b If you are well-informed about the bargaining range thank you gain an important advantage from opening.
Pros for opening
- you can fix the range.You have a chance to set the zone of realistic expectations for the deal.
- The “anchor and adjustment affect” Your opening forces the other side to rethink its goals. The term refers to a human tendency to be affected by first impressions.
Pros of opening ….continued
In negotiations research suggests that people who hear high or low numbers as initial starting points are often affected by these numbers and I’m consciously adjust their expectations in the direction of the opening number. But before you open remember do enormous amount of research before you make a bid to set the range.
Should I open …..continued
- Avoid concentrating too much on your bottom line spend extra time preparing your goals and developing high expectations.
- Develop a specific alternative as a fallback if the negotiation fails.
- Get an agent and delicate the negotiation task.
- Bargain on behalf of someone or something else not yourself
Say, you’ll have to do better than that because… Give reason. cooperative people are programmed to say yes to almost any possible proposal someone else makes to improve you’ll need to practice pushing back a little when others make a bargaining move - Insist in commitments , not just agreements.
5.
Six Foundations of Effective Negotiations
- Bargaining for Advantage
- Your Bargaining Style
- Your Goals and Expectations
- Authoritative Standards & Norms
- Relationships
- The other Parties Interest
- Leverage
- Your Bargaining Style
- Understand your bargaining instincts
- Acquire a willingness to prepare
- Set high expectations
- Have the patience to listen
- Make commitment to personal integrity
- Your Goals and Expectations
- Think Carefully about what you want
- Set an optimistic-but justifiable target
- Be specific
- write down your goals and stick to it.
- Carry your goals with you into the negotiations
- Authoritative standards and Norms
- Investigate and abide by the prevailing standards and norms.
- Take time to understand norms of that organization if you want to negotiate change.
- Find range-finding standards
- Prepare a positioning theme
- Relationship
- Don’t fall to the Reciprocity Trap
- Build working relationships across the table with small steps
- don’t trust too quickly
- Be fair to those that are fair to you
- Other Party’s Interest
- Find a shared interest that will motivate the other side to agree with your proposal
- Explore why they might say “NO”
- Lead with areas you have in common
- Meet the other side’s objections one by one with the lowest cost concessions you can make.
- Leverage
- Which side has the most to lose from no deal
- For whom is time a factor
- Can you improve alternatives
- Can I commit the other party to norms that favor my results
- Can I form a coalition to improve my position
consistency Principle
commitment
Influence , Collins
commitment. If I can get you to make a commitment (that is, to take a stand, to go on record), I will have set the stage for your automatic and ill- considered consistency with that earlier commitment. Once a stand is taken, there is a natural tendency to behave in ways that are stubbornly consistent with the stand.
consistency Principle
commitment
commitment. If I can get you to make a commitment (that is, to take a stand, to go on record), I will have set the stage for your automatic and ill- considered consistency with that earlier commitment. Once a stand is taken, there is a natural tendency to behave in ways that are stubbornly consistent with the stand.
Four stages of Negotiations
- Prepare your strategy
2 Exchange information - Opening and making concessions
- Closing and gaining commitments
- Bargaining for advantage
Three different concession strategies
1 Start high then refuse to move
- Start moderately then refuse to move
- Start high and gradually concede to the moderate point.
- bargaining for advantage
Concessions
are the language of cooperation. They tell the other negotiator in concrete believable terms that you accept the legitimacy of his or her demands and recognize the necessity of sacrifice on your own part to secure a joint decision
Closing and gaining commitments
Two psychological factors
- Scarcity effect
2. Over commitment
Scarcity affect
Our human tendency to want things more when we think the supply is running out.
Leverage
Your ability to get what you want in negotiations often depends on the other side’s perception that it has something to lose from a
“no deal”result
Scarcity affect combined with competition and deadlines.
Concession rates skyrocket in both amount and frequency as the negotiating parties perceive that they are under a deadline imposed by stiff competition
Scarcity affect
Is an emotional response not a rational on. It is used to inject urgency and even panic into an otherwise reasoned process
It can be used when you are either
- telling the truth
- Bluffing
Understand another
- How to win friends and influence people , Dale Carnegie
Carl Rogers, psychologist on his book “Becoming A Person”
Our first reaction to most of the statements which we hear from other people isn’t valuation or judgment, rather than an understanding of it. When someone expresses some feelings attitudes or beliefs, our tendency is almost immediately to feel “that’s right” or “that stupid”” that’s abnormal”” that’s unreasonable”. “ that’s incorrect”, “that’s not nice”
Very rarely do we permit ourselves to understand precisely what the meaning of the statement is to the other person
The goal of all negotiations is to secure commitment , not merely agreement
Closing and gaining commitment
- Bargaining for Advantage
The secret of making commitments a simple
Set the situation up so the other party has something to things if it fails to perform. Examples SLA
“people are usually more convinced By reasons they discovered by themselves then by those found by others”.
French philosopher, Braise Pascal
More than three centuries ago
Demands and bottom- line prices
Bargaining for advantage
Assert the legitimacy of preference and set the boundaries of the bargaining range without incurring any risk of loss. Misleading statement about bottom-line prices demands also enable parties to test the limits of the other sites commitment to their express preferences.
Six principles of influence
Six principles of influence
- consistency
- reciprocation
- social proof
- authority
- liking
- scarcity
Influence by Robert B. Cialdini
