Negotiation 101 Part 1
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21-Oct-2014 -
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Transcript of Negotiation 101 Part 1
Negotiation 101Get what you want.Help everyone win.Navigate to victory.
OpeningMy intention is to present you
with: A framework for effective
negotiation A way to integrate your experience
within it A way to generate tools to drive your
success in the future.
Our 3 classes togetherClass 1:
Anatomy of NegotiationBATNAs, anchors and reservation
priceThe negotiation Process
Class 2: Interest-based negotiationNegotiating in the workplaceHow to overcome negotiating “walls”
Class 3:Debrief, review, reflect, and
workshop!
ObjectivesLearn the basic anatomy of
any negotiation. PICO (People, Interests,
Criteria and Options)Understand what a BATNA
is.Best alternative to a
negotiated agreement.Understand what an
anchor point and reservation price is.Boundaries of any
negotiation.
What’s in this for me?Clarify the elements and process
You probably already do these things. Negotiating is a mental muscle.
Spot elements soonerShe who defines, wins.
Assist on contract negotiationJobs, home, auto or other major decisions
or purchases.Negotiating conflict in your personal
lifePut the oxygen mask on yourself first.
Anatomy of a NegotiationP eopleI nterestsC riteriaOptions
Separate people from problems.
Identify issues at stake, including emotions.
Decisions should be based on objective standards.
Generate possibilities before deciding what to do.
Criteria, in more detail
Anchor PointValue attached by one
making the offerA beginning point“Floor”
Objective criteria include:Fair market valueExpert opinionsPrevious valuation
CustomsLaws
Reservation PriceMaximum amount
other party can spend, accept, etc.
Outer limit available“Ceiling”
Options, in more detailBest Alternative to a Negotiated Agreement
“Walk away” or Contingency planList alternative ideas to negotiationTranslate ideas into practical alternativesSelect the best option(s).Don’t forget the opportunity cost of agreeing to
a negotiation.
The better your BATNA, the stronger your position.
The Negotiation Process
Analysis andResearch Planning
DiscussionDecision
Repeat
as needed!
Scenario #1- eat in or go out?
Tanya wants to make dinner at home.
How could they negotiate an agreement?
Mykle wants to go to a restaurant.
Scenario #2 – Velvet ElvisYou make an amazing
find at the local flea market.
The vendor wants $45 for it. It’s a one-of-a-kind.
You have $25 in cash in your pocket. You really want this painting.
How could you negotiate an agreement?
Skill CheckCan we diagram a negotiation?Can we spot and generate
BATNAs?Can we spot and generate
anchor points and reservation prices?
Do we know what the negotiation process is?
What we learned todayWe learned in Negotiation 101:
When to hold ‘emWhen to fold ‘emWhen to walk awayWhen to runAnatomy of NegotiationBATNAAnchor points and reservation
prices
Closing and HomeworkLooking forward to working together again
next week!TUESDAY, JULY 3rd! (not Wednesday!)Tanya will email pairs with the homework
assignment and worksheets.Practice with low risk situations in your life
right now!
We are limited only by our imagination!