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Negotiating for Win-Win

Negotiating for Win-Win. Interest-Based Negotiation. CASFAA Conference, 2008 Anaheim, CA Presented by Natasha Kobrinsky Pepperdine University Graziadio School of Business and Management. Do You Negotiate?!. Session Objectives. Recognize your negotiation skills

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Negotiating for Win-Win

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  1. Negotiating for Win-Win Interest-Based Negotiation CASFAA Conference, 2008 Anaheim, CA Presented by Natasha Kobrinsky Pepperdine University Graziadio School of Business and Management

  2. Do You Negotiate?!

  3. Session Objectives • Recognize your negotiation skills • Understand the negotiation process • Enhance your negotiation skills by using the interest-based approach and mediation techniques

  4. What is Negotiation? • It’s a power imbalance • It’s a discussion intended to produce an agreement • It’s a process to resolve disputes • It’s a process of learning and discovery • It’s a process of bargaining for individual or organizational advantages

  5. Approaches to Negotiation • Positions are tangible items people say they want • Interests are the things one cares about and wants

  6. Approaches to negotiation • Negotiations could be right-based • Power-based • Interests-based

  7. Negotiation Outcomes • Win-Lose • Lose-Lose • Win-Win

  8. Criteria to compare negotiation outcomes: • Transaction cost • Satisfaction with outcomes • Effect on the relationship • Recurrence of disputes

  9. Interest-Based Negotiation vs. Distributive Negotiation • Creating a free flow of information • Attempting to understand the Other Party’s real needs and Objectives • Searching for Solutions that meet the goals and objectives of both sides • Crafting an outcome for mutual interests

  10. Identify and define the real issues/problems • Understand what drives the negotiation and • What drives the negotiator • Define the issues in a mutually acceptable way

  11. Determine your and your opponents’ real interests • Substantive interests- economic and financial issues • Process interests • Relationship interests • Interests in principle

  12. Establish your goal • Best outcome • Good enough outcome • Tolerable outcome • Get ready to compromise

  13. Plan & Prepare • Determine your walk-away point (resistance point) • Determine your BATNA and WATNA (best and worst alternatives to negotiations )

  14. Plan & Prepare • Learn about your opponents • Their personality • Their background, culture • Their personal situation • Look for precedents

  15. Plan & Prepare • Determine your and your opponents’ strengths • Consider your and your opponents’ weaknesses • Identify the risk factor and try to remove it • Identify the barriers and try to remove them • Consider the impact of deadlines

  16. Plan & Prepare • Develop alternative solutions: • Generate as many options & packages as possible to make the pie larger

  17. Depersonalize the problem • Separate the problem definition from the search for solution • Build trust • Do not use threats • Remove emotional barriers for the opponents • Show respect (Lack of respect triggers the majority of legal actions)

  18. Propose • Try not to go first with an offer • Give a reasonable offer • Be prepared to change it

  19. Propose & Probe • What if … • Why not … • What would you suggest …

  20. Ask Questions • Use open-ended questions to get more information • Use close-ended questions to force the other party into seeing things your way • The less you say, the more you hear

  21. Influence the other party’s resistance point but … • Be ready to change your position • Concession-making indicates an acknowledgement of other party and a movement toward the other’s position. • Flexibility keeps your negotiation going

  22. Listen • Use active listening techniques: restate, paraphrase other party’s statements • Take notes • Discover the other party’s outcome values, resistance point, motives and etc. • The opponents’ answers are the best guides

  23. Make Counterproposal • Try to increase the real or potential rewards of a transaction for opponents • Align organizational & personal incentives • Motivation & incentives will increase a chances of making a deal

  24. Trade • Exchange terms or items • Trade something you value less for something you value more

  25. Factors that facilitate successful interest-based negotiation • Some common objective or goal • Faith in one’s problem-solving ability • Belief in the validity of one’s own position and the other’s perspective • Motivation • Commitment to work together • Trust • Clear and accurate communication

  26. Achieving closure It’s important to know when to “shut up” and reduce the agreement to written form.

  27. Key steps for interest-based negotiation • Identify and define the real issues • Define the problem in a mutually acceptable way for both sides • Depersonalize the problem • Set mutual goals • Separate a search for mutually beneficial solutions from problem definition

  28. Key steps for interest-based negotiation • Establish trust and positive feeling that are likely to lead to an integrative outcome • Advantages of moving beyond positions to real interests • Learn to expend the “pie” by looking for alternative solutions • Bargain for individual advantages • Craft outcomes for mutual interests • The best way to get what you want is to give the opponents what they want

  29. People say YES to people they like!

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