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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