Week 4 - Planning and Strategy

Question 1

Goals

Answer 1

The focus that drives negotiation strategy

• Determining goals is the first step in the negotiation process
• Negotiators should specify goals and objectives clearly
• The goals set have direct and indirect effects on the negotiator’s strategy

Question 2

Direct effects of goals on strategy

Answer 2

• Wants are not goals
• Goals are often linked to the other party’s goals
• Goals must be attainable
• Effective goals must be concrete, specific and measurable

Goals can be intangible or procedural - Intangible goals might include enhancing your reputation

Question 3

Indirect effects of goals on strategy

Answer 3

Forging an ongoing relationship

Relationship-oriented goals should motivate the negotiator toward a strategy choice in which the relationship with the other party is valued as much as the substantive outcome

Question 4

The Planning Process (1)

Answer 4

• Define issues
• Assemble the issues and define the bargaining mix (combined list of issues from each side)
• Prioritize issues based on.. which are least important, whether the issues are linked or separate
• Define interests (why you want what you want)

Question 5

Interests may be…

Answer 5

Substantive (directly related to the focal issues under negotiation)

Process-based (related to how the negotiators behave as they negotiate)

Relationship-based (tied to the current or desired future relationship between the parties)

Question 6

Planning process (3)

Answer 6

• Define limits (resistance point) and alternatives
• Set your targets and opening bids (where to start)

Target: is the outcome realistic expected
- setting targets requires positively thinking about own objectives, understanding how to package several issues, understanding trade-offs and throwaways,
Asking price: is the best outcome that one can hope to achieve

• Assess constituents and the social context of the negotiation

Question 7

The social context of negotiation: field analysis

Answer 7

All key parties - bosses, superiors, other parties who will evaluate and critique, observers, indirect actors, opposing actors, environmental factors

Question 8

Analyze the other party’s…

Answer 8

• Resources, issues and bargaining mix
• Interests and needs
• Resistance point and alternatives
• Targets and objectives
• Reputation and negotiation style
• Constituents, social structure, authority to make an agreement
• Likely strategy and tactics

Plan the issue presentation and defence

Question 9

Define the protocol to be followed in the negotiation

Answer 9

The agenda
The location
The length
What might be done if negotiation fails?
How will we keep track of what is agreed to?
How do we know whether we have a good argument?

Question 10

Strategy

Answer 10

The overall plan to accomplish one’s goals in a negotiation

Question 11

Tactics

Answer 11

Short-term, adaptive moves designed to enact or pursue broad strategies

Tactics are subordinate to strategy
Tactics are driven by strategic considerations

e.g. integrative strategy? tactics: open-ended questions; active listening

Question 12

Approaches to strategy

Answer 12

Unilateral: one that is made without active involvement of the other party

Bilateral: considers information about the other party, as well as the impact of the other’s strategy on the one’s own

Question 13

The dual concerns model

Answer 13

Avoidance: Don’t negotiate
Competition: I gain, ignore relationship
Collaboration: I gain, you gain, enhance relationship
Accommodation: I let you win, enhance relationship

Question 14

Alternative situational strategies

Answer 14

The choice of strategy is reflected in the answers to two questions:

How much concern do I have for achieving my desired outcomes at stake in the negotiation? - strong interest in substantive outcomes

How much concern do I have for the current and future quality of the relationship with the other party? - strong interest in relationship goals

Question 15

The non-engagement strategy: Avoidance

Answer 15

• If one is able to meet one’s needs without negotiation at all, it may make sense to use an avoidance strategy
• It simply may not be worth the time and effort to negotiate
• The decision to negotiate is closely related to the desirability of available alternatives

Question 16

Active-engagement strategies

Answer 16

Competition - distributive, win-lose bargaining (I win, you lose)

Collaboration - integrative, win-win negotiation

Accommodation - involves an imbalance of outcomes in opposite direction (I lose, you win)

Question 17

Summary and key points

Answer 17

Understand the key issues that must be resolved

Assemble all the issues together and understand the complexity of the bargaining mix

Understand and define the key interests at stake that underlie these issues

Define the limits - points where we will walk away - and alternatives - other deals we could do if this deal does not work out

Clarify the targets to be achieved and the opening points - where we will begin the discussion

Question 18

More key points

Answer 18

Understand their constituents and what they expect of me

Understand the other party in the negotiation - their goals, issues, strategies, interests, limits, alternatives, targets, openings, authority

Plan the process by which they will present and “sell” their ideas to the other party (and perhaps their own constituency)

Define the important points of protocol in the process - agenda, who will beat the table or observing, where and when, and so on.