Negotiation Strategy and Planning
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Transcript of Negotiation Strategy and Planning
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Overview of Chapter 4
Figure 4.1 Relationship between key steps inthe planning process
StrategyGoals Planning
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The Titles
1. Goals The oc!s That "rives a#egotiation Strategy
$. Strategy The Overall Plan to %chieve
One s Goals&. 'n(erstan(ing the low of
#egotiation Stages an( Phases
4. Getting Rea(y to )*ple*ent theStrategy+ The Planning Process,. Chapter S!**ary
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1. Goals: The Focus That Drives a Negotiation Strategy
Direct Effects of Goals on Choice of Strategy. Four as ects of ho! goals affect negotiation are
i" ortant to un#erstan#:$1% &ishes are not goals' es ecially in negotiation.
$(% Goals are often lin)e# to the other artys goals. $*% There are +oun#aries or li"its to !hat goals can +e. $,% Effective goals "ust +e concrete' s ecific' an#
"easura+le. Direct Effects of Goals on Choice of Strategy.
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The Dual Concern 2o#el
Figure 4.2
RelationalOutcomem!ortant"
Yes
No
Yes No
Su#$tantial outcome im!ortant"
Collaboration Accommodation
Competition Avoidance
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*. 0n#erstan#ing the Flo! of Negotiation Stages an#hases
Figure 4.% Phases of #egotiation
5o!ever' eo le fre6uently #eviate fro" this "o#el an# that onecan trac) #ifferences in their ractice accor#ing to his or hernational culture.
Phase $Phase 1 Phase & Phase 4 Phase , Phase - Phase
Relationshipb!il(ingPreparation
)nfor*ationgathering /i((ing
)nfor*ation!sing
Closingthe (eal
)*ple*entatingThe agree*ent
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,. Getting 7ea#y to 8" le"ent the Strategy: Thelanning rocess 41
$1%Defining the 8ssues$(%/sse"+ling the 8ssues an# Defining the argaining 2i9$*%Defining 8nterests$,% no!ing ;i"its an# /lternatives$%/naly?ing the -ther arty$@% resenting 8ssues to the -ther arty
$A%&hat rotocol nee#s to e Follo!e# in The Negotiation.
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,. Getting 7ea#y to 8" le"ent the Strategy: Thelanning rocess 4(
/efore we co**encing this (isc!ssion0 we want tonote fo!r things+&e assu"e that a single lanning rocess can +efollo!e# for +oth an #istri+utive an# an integrative
rocess.There are several Bstructural factors surroun#ing anegotiation that "ay also affect the strategi?ing an#
lanning rocess.&e assu"e that negotiations !ill +e con#ucte#
ri"arily one to one.Co" lete an# u 4to4#ate lanning !ill re6uire a certain#egree of shuttling +ac) an# forth +et!een ste s.
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4.1 "efining the )ss!es 1
Figure 4.4 5o! 8ssues /ffect the Choice +et!eenDistri+utive an# 8ntegrative Strategy
8ncreasing3alue touyer
8ncreasing3alue toSeller
Clai*ing 2al!e
Creating 2al!e
A
C
&
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,.1 Defining the 8ssues 4(
&hile the nu"+er of issues i" act strategy' it #oes not reclu#e the ossi+ility that single4issue negotiationscan +e "a#e integrative' or that "ulti le4issue
negotiations !ill re"ain #istri+utive. Single4issue negotiations can often +e "a#e integrative
+y increase the nu"+er of issues.
Si"ilarly' in "ulti le4issue negotiations' the o ortunityto create value "ay +e lost in co" etitive #yna"ics.
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,.( /sse"+ling the 8ssues an# Defining the argaining 2i9
;arge +argaining "i9es allo! "any ossi+leco" onents an# arrange"ents for settle"ent' thusincreasing the li)elihoo# that a articular ac)age !ill
"eet +oth si#es nee#s. /fter asse"+ling issues' the negotiator ne9t "ust
rioriti?e the". rioriti?ation inclu#es t!o ste s:
Deter"ine !hich issues are "ost i" ortant an# !hichare less i" ortant.
Deter"ine !hether the issues are lin)e# together or
se arate.
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,.* Define 8nterests
/lthough #efining interests is "ore i" ortant tointegrative negotiation than to #istri+utive +argaining'even #istri+utive #iscussions can +enefit fro" one or
+oth arties i#entifying the )ey interests. /s)ing B!hy 6uestions usually +ring critical values'
nee#s' or rinci les that !e !ant to achieve in the
negotiation to the surface. 8nterests "ay +e Su+stantive' rocess4+ase#' or
7elationshi 4+ase#.
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,., no!ing ;i"its an# /lternatives
Goo# re aration re6uires that you esta+lish t!o clear oints: your resistance point an# your alternatives .
A resistance point is the lace !here you #eci#e that you
shoul# a+solutely sto the negotiation rather thancontinue +ecause any solution +eyon# this oint is"ini"ally acce ta+le .
Alternatives #efine !hether the current outco"e is +etterthan another ossi+ility .
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,.< Setting Targets an# - enings
Target Setting 7e6uires ositive Thin)ing a+out-nes -!n -+ ectives.
Target Setting often 7e6uires Consi#ering 5o! toac)age Several 8ssues an# -+ ectives .
Target Setting 7e6uires an 0n#erstan#ing of Tra#e4offs an# Thro!a!ays.
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4.- %ssessing Constit!ents an( the Social Conte3tof the #egotiation
&hen eo le negotiate in a rofessional conte9t' there"ay+e "ore than t!o arties.
&hen one has a constituent or o+servers' other issues
arise' such as !ho con#uct the negotiation' !ho can artici ate in the negotiation' an# !ho has the ulti"ate o!er to ratify negotiate# agree"ents.
-ne !ay to assess all the )ey arties in a negotiation isto co" lete# a Bfiel# analysis .
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,.> /naly?ing the -ther arty
The -ther artys 7esource' 8ssues' an# argaining2i9
The -ther artys 8nterests an# Nee#s
The -ther artys Targets an# - enings The -ther artys Constituents' /uthority' an# SocialStructure
The -ther artys 7e utation an# Style The -ther artys Strategy an# Tactics
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4. Presenting )ss!es to the Other Party
-ne i" ortant as ect of negotiations is to resent a caseclearly an# to rovi#e a" le su orting facts a#argu"ents another is to refute the other artys
argu"ents !ith counterargu"ents. ecause of the +rea#th an# #iversity of issues that can
+e inclu#e# in negotiations' it is not ossi+le to s ecify
all the roce#ures that can +e use# to asse"+leinfor"ation. There are' ho!ever' so"e goo# generalgui#es that can +e use#.
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,.A &hat rotocol nee#s to e Follo!e# in The Negotiation
/ negotiator shoul# consi#er a nu"+er ele"ents of rotocol or rocess:
&hat agen#a shoul# !e follo!
&here shoul# !e negotiate
&hat is the ti"e erio# of negotiation
&hat "ight +e #one if negotiation fails
5o! !ill !e )ee trac) of !hat is agree# to
5o! #o !e )no! !hether !e have a goo# agree"ent
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