Negotiating: planning, strategies, typical mistakes

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Negotiation is a joint partners’ activity aimed at solving their common problems. To be successful negotiations must be mutually beneficial – “win-win” situation. But “white gloves” may contain strong fists. The content is often clearer than the procedure

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Nội dung Text: Negotiating: planning, strategies, typical mistakes

Lecture 17. Negotiating: planning,  strategies,  typical mistakes  Introduction to a problem  Negotiation is a joint partners’ activity aimed at solving their common problems.  To be successful negotiations must be mutually beneficial – “win-win” situation.  But “white gloves” may contain strong fists  The content is often clearer than the procedure 2 Main Functions of Negotiations  Decision making  Coordination of actions  Informational  Destructive  Communicative  Propaganda-advertising  Regulatory  Masking  Controlling  Peace-making 3 Types of Negotiations (according to their Purpose)  Aimed at prolonging the agreements clinched earlier;  Aimed at settling the conflict situation;  Aimed at reaching the redistribution agreement;  Aimed at clinching a new deal;
 Aimed at getting indirect results not reflected in the contracts. 4 Types of Negotiations (according to their style)  Soft – concession on the part of the partner who wants to avoid the conflict;  Hard – driving a hard bargain in order to win by all means;  Principal – finding the mutual benefit not where it is possible but where the interests do not coincide 5 Preparation to Negotiations  Define the areas of the mutual interests;  Create the working relations with the partner;  Solve organizational problems;  Define the general approach (conception) and prepare the negotiation position with alternatives 6 Organizational Preparation  Make up the program of reception;  Determine place and time;  Agree on the agenda and consult the third persons involved;  Form the list of delegation  Gather the information about partners; 7 Preparing the Content
 Problem analysis and diagnosis of the situation;  Developing the conception (general approach);  Defining the alternative solutions;  Proposals and arguments for them;  Necessary papers and materials; 8 Which negotiation model to choose?  Opposition of the parties;  Showing friendliness;  Looking for mutually acceptable solutions; (Fisher and Ury, 1982) 9 Drawbacks of positional bargaining They do not meet the following criteria:  Negotiations must lead to a reasonable agreement if any.  Negotiations must be effective;  Negotiations must improve or at least not spoil the relations between the partners. 10 So, what style to choose? Soft or Hard? None! 11
Principal Negotiations  People: differentiate between the participants and the subject of the negotiation;  Interests: focus on interests, not positions;  Variants: before deciding what to do determine the circle of opportunities;  Criteria: insist on the result being based on some objective norm. 12 Unlike positional bargaining Principal negotiations Focus on  Key interests,  Mutually satisfying alternatives,  Fair criteria Lead to  Reasonable agreement (meets the parties’ legal interests, controls conflicting interests fairly, is longterm and takes into account the society interests.) 13 Differentiate between the participants and the subject of the negotiation;  Every participant is a human being;  Every partner wants to meet his interest and improve relationship with a partner;  A problem is not tied with relations;  Put yourself in the partner’s shoes;  Do not judge the people’s intentions by your prejudices;  Do not look for the guilty, solve your problem; 14
Focus on interests, not positions;  Interests are the main in negotiating;  Interests are the motivator for actions;  How to find out the partner’s interests: – Put yourself in the partner’s place; – The strongest interests are the basic human needs; – Talk about interests; – Acknowledge their interests to be the part of the problem; – Be flexible, firm and tactful. 15 Mutually Beneficial Variants: typical mistakes  Jumping to conclusions;  Search for one answer;  Belief that the “cake” cannot be increased;  Opinion: “Their problem solution is their problem” 16 Mutually Beneficial Variants: overcoming typical mistakes  Separate developing variants from their assessment;  Vary your approaches and alternatives;  Increase the ‘cake’ and look for mutual benefit;  Coordinate different interests 17 How to make the decision easy for the partner  Put yourself in the partner’s shoes;
 Offer the partner an answer, not a problem;  Work over the preliminary projects;  Make the decisions legitimate and fair;  Use a precedent;  Proposals are more effective than threats 18 Apply Objective Criteria  Every problem should be prepared for the common search of objective criteria;  Think and be open to arguments;  Do not concede under pressure; 19 Negotiation Positions  Open;  Closed;  Stressing the common views on the problem;  Stressing the differences 20 Negotiation Tactics  Involve into bargaining;  Zest  Find allies among the  Special efforts strangers;  Info drain  Accept the partner’s first  Warning proposal;  Create the authority  Package of proposals;  Deadline  Play on the interest;  Limited offer
 Jumping back;  Choice without choice  Common area for solution;  Letters of reference  Splitting the problem to • The deal admitted components • Show your interest;  Gradual increase of • Avoid simple executives; complexity; • Agree on parts;  From great to minor; • Concession for concession  Blocking • Negotiation gambit  One text procedure; • Double  The only claim; • Departure;  Waiting; • Shifting the accents;  Salami; 21 Reverse Negotiation Tactics  Independence effect  Exclusive reputation;  Inaccessibility effect;  Challenge to the partner;  Show reliability 22 Dishonest Play in Negotiations  Deliberate deception (false allegations; fishy intentions);  Psychological war (create discomfort; personal hostility; trick “bad- good”; threats)  Positional pressure (refusal to negotiate; set too high demands; false accents in your position; ‘burning the bridges’; choice without choice; ‘I’d like to but my partner..’; negotiation lead-time) 23 You have been said “No”…  The partner’s objection is just a request for getting further information.  Do not reassure, give the proofs once again;
 Find out the real reason for the negative reaction: – Diffidence, fear to make mistake; – Inability to persuade; – Disagreement with price; – Indefinite need; 24 Systematic Analysis after Negotiations  The extent of achieving the  New aspects; target;  Plan of negotiations;  The success factor;  Teamwork;  Preparation of negotiations;  Atmosphere of negotiations;  Tuning to the partner;  Prospects of the relations  Freedom of actions within the development; negotiations framework;  Drawbacks;  Effectiveness of  Conclusions and proposals argumentation; 25