Negotiation Basics II: Strategy and Planning Flashcards
Goals:
The focus that drives a negotiation strategy.
Strategy:
The overall plan to achieve one’s goals.
Planning:
The planning process for implementing the strategy.
What is the first step in the negotiation process?
Determining goals is the first step in the negotiation process
Goals can be:
substantive, intangible, or procedural
Recall the Dual Concerns Model: the choice of strategy is reflected in the answers to two questions:
- How much concern do I have in achieving my desired outcomes at stake in the negotiation?
* That is, how much concern do I have with achieving my own outcomes? - How much concern do I have for the current and future quality of the relationship with the other party?
* That is, how much concern do I have with the other party achieving their outcomes?
Competition:
distributive, win-lose bargaining (“I win, you lose”)
Accommodation:
involves yielding to other party (“I lose, you win”)
Compromise:
involves splitting the difference (“I win/lose some, you win/lose some”)
Collaboration:
integrative, mutual gains negotiation (“I win, you win”)
The Planning Process:
Planning is the “action” component of the strategy process, which means how will I implement the strategy?
Is planning the most important part of negotiating?
“…planning is the most critically important activity in negotiation.”
Negotiation Planning Guide:
- Define the issues
- Assemble the issues - Identify the parties/stakeholders
- Assess constituents and the social context - Identify your interests and those of the other party
- What do you want, what do they want? - Know your alternatives and BATNA
- What alternatives/BATNA do you think the other party has? - Generate possible options
- Brainstorm; separate inventing from judging - Research objective standards/criteria
- Standards; precedents - Consider what commitment might look like
- What is a good outcome? - Define protocol to be followed in the negotiation
Negotiation Protocol:
What is the agenda?
Where and when will the negotiation occur?
Who will be there?
What is the time period?
What might be done if the negotiation fails?
How will we keep track of what is agreed to?
Have we created a mechanism for modifying the
deal if necessary?
How do we know whether we have a good agreement?
Common Ways of Defining Success:
- Reaching agreement
“Hey, we got a deal! We persuaded them to accept” - Avoid conflict
“Wow, that was easy. She was friendlier than I expected.” - “Equity”
“Seems fair, we split it 50-50.” - “Winning”
“I did better than he did. He conceded a lot more than I did.” - Breaking their bottom line
I did great! The other team agreed to much worse terms than what they wanted.
A Framework for Negotiation Success:
- The agreement achieved:
1. Is better than your Best Alternative to a Negotiated Agreement (BATNA)
2. Satisfies Interests: *Ours, well - Theirs, at least acceptably
- Others’, tolerably
3. Leaves no joint gains on the table: is the best among many Options
4. Is Legitimate: parties view the outcome and the process as fair according to objective Criteria
5. Contains Commitments that are well-planned, realistic, sufficient, and operational, with contingencies for no-commitment
6. Is reached efficiently: through effective, two-way Communication
7. Helps to build a good working Relationship among the parties
ZOPA stands for:
Zone of Potential Agreement
Zone of Potential Agreement (ZOPA) is also known as:
the positive bargaining range or settlement range
ZOPA is
the spread between the resistance points of the parties
What is resistance point, or reservation price?
Resistance point, or reservation price, is a negotiator’s bottom line
