Negotiating To Win Win

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Prof. Subir Verma Management Development Institute Gurgaon

 
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Œ o or more parties makes a decision about their interdependent goals and objectives. Œhe parties are committed to peaceful means for resolving the dispute. Œhere is no clear cut or established method for making the decision.

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÷hat do you ant ÷hy should they negotiate ÷hat are your alternatives

  
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Strength

÷eakness

Best for

uSho

uCannot

uAvoiding

s indifference u÷ill assess risk first uHas lo needs

make decisions uDislikes negotiating uFails to prepare uIs not comfortable ith people /differences

entry into bad deals uŒesting the market hen issues are trivial uRelationship is insignificant uAvoiding no in situation

 Strength

÷eakness

Best for

uSeeks

u÷ants

uSeeking

relationship uSho s concern for others uValues friendship

liked uConcedes easily uPreserves relationships at o n expense uGives too much a ay

to be ell

entry into ne markets uDealing ith relationship oriented markets u÷hen you are po erless but have no ish to block the other person u÷hen you realize you are rong



  
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  Strength uShares information uCreates values uIs in- in oriented uSeeks in- in deals uDevelops options uIs good listener uAsks a lot of questions

÷eakness Best for uIs a slo uLong term deals decision maker uRepeat uCan be business unrealistic at uComplex times negotiations uŒakes time uImportant Deals uRequires thorough preparation

Π        o. 2.

3.

Œhe extent of aspirations of both parties Œhe degree of firmness in aspirations and resistance to yield Œhe perceived integrative potential u u u u

4. 5.

Faith in o n problem solving ability Momentum from previous success Availability of mediator Other¶s perceived readiness for problem solving

Œhe Role of Œrust Œhe Perceived cost

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   `   o. 2.

3. 4. 5.

6.

7.

Integrating-Integrating=Integrating Integrating-Competing=Principled collaboration or soft competition Integration-Accommodating=Integrating Integration-Avoiding= Focused Accommodation Competing-Competing= Competing or Principled collaboration Competing-Accommodating= Soft Competition or integration Competing-Avoiding= Principled Collaboration or Soft Competition

  

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Ho do you identify interests: u u

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Ask ÷hy Ask ÷hy Not: Œhink about their choices

Understand Human Needs Œalk about Interests

    !" Diagnosis: 4 obstacles U U U U

Premature judgment Searching for the single ans er Œhe assumption of a fixed pie Œhinking that solving their problem is their problem

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Prescription: U

Separate inventing options from deciding

U

Broaden the options rather than look for a single ans er: Œhe circle chart

U

Search for mutual gains: identify shared interests

U

Make their decision easy

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Fair Standards Fair Procedure Negotiate on that basis U Frame each issue as a joint search for objective criteria U Reason and be open to reason U Never yield to pressure, only to principle

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Distributive Strategy: Claiming all the profit or the maximum share for oneself² inning it all Integrative Strategy: Creating Value (expanding the pie) and finding solutions that best fit needs of all or most parties²especially over time. Mixed-Motive Strategy: Expanding the pie and meeting the needs of all or most parties as much as possible hile claiming appropriate share.

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Reservation Price BAŒNA: Kno yours and Others Better your BAŒNA, the greater your po er

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BAŒNA is your po er in negotiations Reservation Price is your orst deal acceptable. It is based on BAŒNA ÷hat is Bargaining zone or ZOPA (area of overlap of RPs) ÷hat is the role of Aspiration point (Œarget): keeps you motivated

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Aspirations Œhe Openings ( ho makes the first offer) Anchorings Pattern of concessions (larger first and small later to signal that you are reaching your RP) Œhreats (if you continue negotiating after that you lose credibility)

 
$ SIMPLE AND DIRECŒ u You¶ve orked ith the party before u Deal is bogging do n u Immediate closure is a goal PRESS AND PUSH u Your side is stronger u Œhe other side needs a quick close u You ant to asses limits

 
$ COOL & ALOOF u Œhe other side is stronger u Your side is under time pressure u You have other alternative deals

- Π u

Patience: helps to defuse and control the deal

u

Slo Agony: Defense against High Pressure

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Apathy: Defense against High Pressure

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Empathy: Breaks deadlocks & Bridge Gaps

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Sudden Shifts: Œo dislodge blockages and overcome obstacles

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Faking: An art in Œrading

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÷alking: ÷hen other side has more po er and pushed you too hard

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Fait Accompli: Œo control a critical issue

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Salami: Œo make small gains

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Limits: Œo set bounds to further pushing

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Deadlines: Œo clinch a deal

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Antagonism: Not a good tactic: evokes same response

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Limited Authority: Side A uses to bargain hard, to use time for agonizing and testing patience. Counter: by Asking hat the authority ants and the ay they ant.

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Bottom Line: Œo help you come up ith creative solution to ensure a deal.

u

Saying No: Œo get °No´ to elicit hy of it and kno the needs of the customer more

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Expectation and Control: Split non-negotiable ith negotiable

u

Auction: Find out here is it the lo est and then build solutions/trade-offs around it.

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Rationale: Satisfies the others and makes them negotiate

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Concessions: Make it conditional and not unilateral

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anterests, Rights and Power

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Do your Home ork Build relationships henever possible Avoid quick concessions Accentuate the positives Maintain your composure Don¶t Give up

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