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How to negotiate

How to negotiate. Mapping Business Opportunities in China. Strive to achieve a „wise agreement“. Any method of negotiation may be fairly judged by three criteria: It should produce a wise agreement if agreement is possible It should be efficient (fast)

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How to negotiate

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  1. How to negotiate Mapping Business Opportunities in China

  2. Strive to achieve a „wise agreement“ • Any method of negotiation may be fairly judged by three criteria: • It should produce a wise agreement if agreement is possible • It should be efficient (fast) • And it should not damage the relationship between the parties • Most usedmethodofnegotiation: • HARD VS SOFT NEGIOTAION

  3. Make use of principled negotiaions • Four basic points: • People – separate the people from the problem • Interests – focus on interests, not positions • Options – Generate a variety of possibilities for mutual gain before deciding what to do • Use objective criteria

  4. Separate the People from the Problem • Address the other side’s concerns • Negotiators are people first • Put yourself in their shoes

  5. Focus on Interests, Not Positions • For a wise solution reconcile interests not positions. • Reconciling interests rather than positions works for both parties. • How do you identify the interests of the other side?Askwhy! • Make a list of interests • Acknowledgethem!

  6. Invent Options for Mutual Gain • Expand the pie before dividing it. • Obstacles that inhibit the inventing of an abundance of options: • Premature judgment • Searching for a single answer • The assumption of a fixed pie • Thinking that “solving their problem is their problem” • Solution – brainstorm and separateinventingoptionsfromjudgingthem

  7. Insist on Using Objective Criteria • Carrying on a principled negotiation involves two questions: • How do you develop objective criteria? • How do you use them in negotiating? • Negotiating with objective criteria – three points to remember: • Frame each issue as a joint search for objective criteria. • Be open to reason as to which standards are most appropriate. • Never yield to pressure, only to principle.

  8. Developyour BATNA • What is your BATNA? – it is your Best Alternative To a Negotiated Agreement. • Knowing your BATNA protects you against accepting an agreement you should reject and rejecting an agreement you should accept. • Not knowingyourBATNAmakesyouweaker. • The better your BATNA, the greater your power.

  9. What If They Use Dirty Tricks? • Recognize the tactic • Raise the issue explicitly • Question the tactic’s legitimacy and desirability ofbringing it up

  10. Some Common Tricky Tactics • Phony facts • Ambiguous authority • Stressful situations • Personal attacks • The good-guy/bad-guy routine • Threats • Hardhearted partner • A calculated delay • “Take it or leave it.”

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