Negotiation Strategies and Principles

• Negotiation is the process of reaching an agreement between two or more parties.
• Interest-Based Negotiation focuses on understanding and addressing the underlying interests of all parties involved.

Win-Win Negotiation

• This solution reaches an agreement that cannot be mutually improved upon.

Lose-Lose Negotiation

• This outcome occurs when negotiators sub-optimize and there is another agreement that both parties would prefer, or one party prefers and the other is indifferent to.

Win-Lose Negotiation

• One party makes all the concessions, while the other makes excessive demands.

Paradigms of Negotiation

• Position-based negotiation is one approach
• Interest-based negotiation is another approach

Power and Influence

• Time is a factor
• Personal Power includes:
  • Title Power
  • Congruent or Referent Power
  • Charismatic Power
  • Expertise Power
  • Situation Power
• Information Power is key

Principles of Interest-Based Negotiations

• A good understanding of your interests and the other party's interests is key.
• Develop creative options that will meet those interests.

Interest-Based Negotiation Model

• Preparation leads to Process
• Process leads to Mutually Beneficial Solution
• Conflict resolution impacts both Preparation and Process

Negotiation Preparation Steps

• Identifying the positions
• Emerging Interests
• Developing a problem statement
• Brainstorming options
• Evaluating and selecting the best options
• Defining objective criteria
• Identifying the best alternative to a negotiated agreement (BATNA)

Preparation Worksheet

• In preparation, list your position and what you want or need.
• Determine what you believe the other party wants or needs.
• List your interests, chunking up from your positions.
• Chunk up the other party’s positions to identify their interests.
• Define the problem statement using the interests you defined.
• Develop proposal options by brainstorming and evaluating, then test the validity of your options against the problem statement.
• Select your best option
• List the objective criteria or standards that support your proposal that both parties can agree is fair
• Determine your BATNA or "best alternative to a negotiated agreement" if you have to walk away from the table
• Evaluate what you believe their best alternative is if they walk away from the table

Positions and Interests

• Psychological Entrapment can be a factor.

Interest-Based Questions

• The following questions are helpful
  • "If you had what it is that you want, what would that do for you?”
  • "What would that be good for?"
  • "How is that useful?"

Objective Criteria

• Include:
  • The market value of a product
  • A precedence that's been established in the workplace
  • Reciprocity, scientific judgement, or engineering judgements
  • Professional judgement
  • The efficiency of a product or service
  • A tradition that's been established
  • What your competition would do
  • What the replacement costs of a product or service would be
  • What a court would decide
  • Moral standards or equal treatment

Best Alternative To A Negotiated Agreement (BATNA)

• Walk-Away BATNA
• Interactive BATNA
• Third-Party BATNA

Negotiation Process

• Establish Ground Rules.
• Make introductions and gain rapport.
• Clarify expectations on purpose, length, and process of the meeting.
• Reach agreement on the agenda.

Agenda Preparation

• Set the prime objective of the meeting.
• Determine what is going to happen and the meeting flow.
• Assign the role of facilitator, recorder, time keeper, and minute taking.
• Determine when the meeting will start and end.

Select and Clarify Issues

• Nominate substantive issues to be dealt with
• Select issues to resolve
• Establish mutual understanding of issues

Problem Solving

• Clarify interests on the issue.
• Establish agreement on interests.
• Create interest-based problem statement.
• Generate options.
• Evaluate options against interests.
• Discuss objective criteria and principles of fairness.
• Turn promising options into "yesable" propositions.

Agreement and Follow-Up

• Generate a tentative agreement.
• Test your outcome for:
  • Agreement among group members
  • Acceptance by constituents
  • Reality of implementation
• Resolve remaining differences
• Clarify next steps to be taken.

Dealing With Problem Behaviors

• Avoid reacting to contentious behavior
• Attempt to disarm them using reflective listening and matching body position and tone
• Use reframing
• Attempt to break impasse by using interest-based questions
• Use power constructively to resolve conflicts
• Use assertion skills to manage agreements
• Be aware and accountable for your own behavior

When to Caucus

• To review new information that surfaces in the negotiation that you did not prepare for.
• To explore possible alternatives.
• To consult experts in order to verify that what you're hearing is fair and legitimate.
• To be able to illicit the approval of your constituents or superiors.
• To analyze or validate objective criteria.
• To review strategies and tactics that you might need in order to be able to move on.
• To address something unforeseen, and to reduce the high emotion that has come up during the negotiation.
• To overcome stalemates
• To give yourself time to think

Characteristics of a Good Negotiator

• Skillful communicator
• Good interpersonal skills using:
  • reflective listening
  • assertion
  • interest-based questioning
  • facilitation
• Desire to negotiate mutually beneficial solutions
• Open to learn and committed to practice

Negotiation Workshop Details

• This involves one against one negotiation between one seller and one buyer
• Use the ''Selling Side' or ''Buying Side" Scenario provided
• Identify your real goals/interests by defining the problem and focus on the party's needs, concerns, and fears instead of positions.
• Brainstorm various options for possible agreement solutions.
• Determine your BATNA (Best Alternative to a Negotiated Agreement) and what you will do if you do not reach an agreement.
• Determine your Reservation Point which is the worst you are willing to accept and still agree to the the contract.
• Determine your Aspiration Point which includes the best terms possible for the negotiation and is often presented in a first offer and supported by data, facts and logic.
• Complete your preparation sheet
• Negotiate during the allotted time
• Submit Preparation/Recap Sheet

Explore negotiation strategies, including win-win, lose-lose, and win-lose scenarios, to improve negotiation outcomes. Focus on understanding and addressing underlying interests. Learn about the role of personal and informational power in successful negotiations.