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Nine Steps to a Deal

Nine Steps to a Deal. Preparing to negotiate

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Nine Steps to a Deal

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  1. Nine Steps to a Deal Preparing to negotiate • People who know what they want, what they are willing to settle for, and what the other side is all about, stand a better chance of negotiating, a favorable deal for themselves. You are more likely to be an effective negotiator if you follow these nine preparatory steps.

  2. Step 1: Determine satisfactory outcomes • Step 2: Identify opportunities to create value • Step 3: Identify your BATNA and reservation price • Step 4: Improve your BATNA • Step 5: Assess who has authority • Step 6: Study the other side • Step 7: Prepare for flexibility in the process • Step 8: Gather objective criteria to establish fairness • Step 9: Alter the process in your favor

  3. Negotiation Tactics

  4. Tactics for getting off to a good start • Set a positive tone with your opening remarks. • Review the agenda. • Discuss your expectations regarding process. • Offer information.

  5. Tactics for distributive negotiations In most distributive negotiations, a gain by one side represents a loss to the other side. You can use several techniques to achieve gains and prevent losses: • Do not disclose any significant information about your circumstances. • Learn as much as possible about the other side.

  6. Establish an anchor. • Divert the discussion away from unacceptable anchors. • Make cautious concessionary moves. • Use time as a negotiation tool. • Offer multiple proposals, and consider packaging options. • Signal your interest in closing the deal.

  7. Tactics for integrative negotiations • The most important trip you may take in life is meeting people half way. —Henry Boyle

  8. Integrative negotiations rely on collaboration and information exchange to create and claim value so consider using the following tactics: • Inquire about the other side's interests. • Provide significant information about your circumstances. • Look for differences to create value. • Take your time.

  9. Framing • Framing, or how you choose to describe a situation, is useful in both distributive and integrative negotiations. • A frame can determine how negotiations will ensue. It orients the parties and encourages them to examine the issues within a defined perspective. How one side frames a solution can determine how others decide to behave.

  10. Generally, you can use one of these frames: • Presentyour proposal in terms that represent a gain instead of a loss. • Use risk aversion to your advantage.

  11. Skills of Effective Negotiators

  12. The effective negotiator • Align negotiating goals with organizational goals. • Prepare thoroughly. • Determine the other side's BATNA and reservation price. • Identify the interests of both sides and develop value-creating options. • Separate personal issues from negotiating issues.

  13. The effective negotiator • Recognize potential barriers to agreement. • Know how to form coalitions. • Develop a reputation for reliability and trustworthiness. • Recognize relationship value.

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