Description
This is a presentation describes on different negotiation styles, different negotiation strategies, negotiation tactics.
“Negotiation
parties exchanging a series of offers to arrive at a mutually acceptable resolution of their conflict/disagreement over goals and interests (or claims over resources)”.
is a process of two or more
?
?
?
Two or more parties makes a decision about their interdependent goals and objectives. The parties are committed to peaceful means for resolving the dispute. There is no clear cut or established method for making the decision.
?
? ?
What do you want Why should they negotiate What are your alternatives
NEGOTIATION PROCESS •Offer •Counter offer •Concession •Compromise •Agreement INFLUENCING CONTENT Interdependence Trust STRUCTURE OF
•Outcomes •Goals
PROCESSES •Power •Persuasion •Communication
Influence on Goals and Outcomes Personality, Values, Preferences, Social Context
Negotiation Styles
DREAMER CONCERN FOR OTHERS PROBLEM SOLVER HAGGLER
DODGER
COMPETITOR CONCERN FOR SELF
Strength
?Shows
Weakness
?Cannot
Best for
?Avoiding
indifference ?Will assess risk first ?Has low needs
make decisions ?Dislikes negotiating ?Fails to prepare ?Is not comfortable with people /differences
entry into bad deals ?Testing the market when issues are trivial ?Relationship is insignificant ?Avoiding no win situation
Strength
?Seeks
Weakness
?Wants
Best for
?Seeking
to be well
relationship ?Shows concern for others ?Values friendship
liked ?Concedes easily ?Preserves relationships at own expense ?Gives too much away
entry into new markets ?Dealing with relationship oriented markets ?When you are powerless but have no wish to block the other person ?When you realize you are wrong
Strength
•Makes quick decisions •Likes making deals •Has no strong positions •Is easy to deal with •Is open to counter proposals
Weakness
•Is win-lose oriented •Accepts lower outcomes •Is satisfied with quick results •Is short term oriented •Gives in easily
Best for
•Cooperation is important but time & resources are ltd. •When finding even suboptimal solution is better than a stalemate •Issues that are not considered important •Breaking deadlocks •Restarting discussion
Strength
•Is a risk taker •Cares for own needs •Controls discussions •Is persuasive /persistent •Enjoys pressure
Weakness
•Is not interested in other party •Is mostly short term oriented •Is unwilling to shift positions •Is poor listener •Leads to frequent breakdowns
Best for
•Emergency Decisions •You are right and being right is more important than preserving relationships •Competitive Markets •When similar styles are used
Strength ?Shares information ?Creates values ?Is win-win oriented ?Seeks win-win deals ?Develops options ?Is good listener ?Asks a lot of questions
Weakness Best for ?Is a slow ?Long term deals decision maker ?Repeat ?Can be business unrealistic at ?Complex times negotiations ?Takes time ?Important Deals ?Requires thorough preparation
1. 2. 3.
The extent of aspirations of both parties The degree of firmness in aspirations and resistance to yield The perceived integrative potential
? ? ? ?
Faith in own problem solving ability Momentum from previous success Availability of mediator Other’s perceived readiness for problem solving
4.
5.
The Role of Trust The Perceived cost
1. 2. 3. 4.
5.
6. 7.
Integrating-Integrating=Integrating Integrating-Competing=Principled collaboration or soft competition Integration-Accommodating=Integrating Integration-Avoiding= Focused Accommodation Competing-Competing= Competing or Principled collaboration Competing-Accommodating= Soft Competition or integration Competing-Avoiding= Principled Collaboration or Soft Competition
?
How do you identify interests:
? Ask Why ? Ask Why Not: Think about their choices
? ?
Understand Human Needs Talk about Interests
Diagnosis: 4 obstacles
? Premature judgment ? Searching for the single answer ? The assumption of a fixed pie ? Thinking that solving their problem is their problem
?
Prescription:
? Separate inventing options from
deciding
? Broaden the options rather than look
for a single answer: The circle chart
? Search for mutual gains: identify
shared interests
? Make their decision easy
Step II Analysis •Diagnose Problems •Categorize Symptoms •Suggest Causes •Discover Barriers Step I Problem •What’s wrong •What are current symptoms •What are disliked facts
Step III Approaches •What are possible Strategies/ideas •Generate and List them Step IV Action Ideas •What might be done •What Specific Steps?
? ? ?
Fair Standards Fair Procedure Negotiate on that basis
?
Frame each issue as a joint search for objective criteria ? Reason and be open to reason ? Never yield to pressure, only to principle
?
?
?
Distributive Strategy: Claiming all the profit or the maximum share for oneself—winning it all Integrative Strategy: Creating Value (expanding the pie) and finding solutions that best fit needs of all or most parties—especially over time. Mixed-Motive Strategy: Expanding the pie and meeting the needs of all or most parties as much as possible while claiming appropriate share.
?
?
?
Reservation Price BATNA: Know yours and Others Better your BATNA, the greater your power
?
?
?
?
BATNA is your power in negotiations Reservation Price is your worst deal acceptable. It is based on BATNA What is Bargaining zone or ZOPA (area of overlap of RPs) What is the role of Aspiration point (Target): keeps you motivated
Goals/Interests: -Purchase 10,000-18,000 units -One Shot Deal BATNA = No Alternative Source
Buyer (AccelMedia)
Buyer ’s Aspir ation
Buyer ’s Reser vation Pr ic e
5
10
15
20
25
30
35
40
45
ZOPA
Seller (GTechnica)
Seller ’s Reser vation Pr ic e
Goals/Interests: -Sell up to 15,000 units -One Shot Deal BATNA = No Alternative Buyer
Seller ’s Aspir ation
?
?
? ?
?
Aspirations The Openings (who makes the first offer) Anchorings Pattern of concessions (larger first and small later to signal that you are reaching your RP) Threats (if you continue negotiating after that you lose credibility)
SIMPLE AND DIRECT ? You’ve worked with the party before ? Deal is bogging down ? Immediate closure is a goal PRESS AND PUSH ? Your side is stronger ? The other side needs a quick close ? You want to asses limits
COOL & ALOOF ? The other side is stronger ? Your side is under time pressure ? You have other alternative deals
?
Patience: helps to defuse and control the deal
?
? ? ?
Slow Agony: Defense against High Pressure
Apathy: Defense against High Pressure Empathy: Breaks deadlocks & Bridge Gaps Sudden Shifts: To dislodge blockages and overcome obstacles
?
Faking: An art in Trading
?
Walking: When other side has more power and pushed you too hard Fait Accompli: To control a critical issue Salami: To make small gains
? ?
?
? ?
Limits: To set bounds to further pushing
Deadlines: To clinch a deal Antagonism: Not a good tactic: evokes same response
?
Limited Authority: Side A uses to bargain hard, to use time for agonizing and testing patience. Counter: by Asking what the authority wants and the way they want. Bottom Line: To help you come up with creative solution to ensure a deal. Saying No: To get “No” to elicit why of it and know the needs of the customer more
?
?
?
Expectation and Control: Split non-negotiable with negotiable Auction: Find out where is it the lowest and then build solutions/trade-offs around it. Rationale: Satisfies the others and makes them negotiate Concessions: Make it conditional and not unilateral
?
?
?
Interests, Rights and Power
? ? ? ? ? ?
Do your Homework Build relationships whenever possible Avoid quick concessions Accentuate the positives Maintain your composure Don’t Give up
doc_223724216.pptx
This is a presentation describes on different negotiation styles, different negotiation strategies, negotiation tactics.
“Negotiation
parties exchanging a series of offers to arrive at a mutually acceptable resolution of their conflict/disagreement over goals and interests (or claims over resources)”.
is a process of two or more
?
?
?
Two or more parties makes a decision about their interdependent goals and objectives. The parties are committed to peaceful means for resolving the dispute. There is no clear cut or established method for making the decision.
?
? ?
What do you want Why should they negotiate What are your alternatives
NEGOTIATION PROCESS •Offer •Counter offer •Concession •Compromise •Agreement INFLUENCING CONTENT Interdependence Trust STRUCTURE OF
•Outcomes •Goals
PROCESSES •Power •Persuasion •Communication
Influence on Goals and Outcomes Personality, Values, Preferences, Social Context
Negotiation Styles
DREAMER CONCERN FOR OTHERS PROBLEM SOLVER HAGGLER
DODGER
COMPETITOR CONCERN FOR SELF
Strength
?Shows
Weakness
?Cannot
Best for
?Avoiding
indifference ?Will assess risk first ?Has low needs
make decisions ?Dislikes negotiating ?Fails to prepare ?Is not comfortable with people /differences
entry into bad deals ?Testing the market when issues are trivial ?Relationship is insignificant ?Avoiding no win situation
Strength
?Seeks
Weakness
?Wants
Best for
?Seeking
to be well
relationship ?Shows concern for others ?Values friendship
liked ?Concedes easily ?Preserves relationships at own expense ?Gives too much away
entry into new markets ?Dealing with relationship oriented markets ?When you are powerless but have no wish to block the other person ?When you realize you are wrong
Strength
•Makes quick decisions •Likes making deals •Has no strong positions •Is easy to deal with •Is open to counter proposals
Weakness
•Is win-lose oriented •Accepts lower outcomes •Is satisfied with quick results •Is short term oriented •Gives in easily
Best for
•Cooperation is important but time & resources are ltd. •When finding even suboptimal solution is better than a stalemate •Issues that are not considered important •Breaking deadlocks •Restarting discussion
Strength
•Is a risk taker •Cares for own needs •Controls discussions •Is persuasive /persistent •Enjoys pressure
Weakness
•Is not interested in other party •Is mostly short term oriented •Is unwilling to shift positions •Is poor listener •Leads to frequent breakdowns
Best for
•Emergency Decisions •You are right and being right is more important than preserving relationships •Competitive Markets •When similar styles are used
Strength ?Shares information ?Creates values ?Is win-win oriented ?Seeks win-win deals ?Develops options ?Is good listener ?Asks a lot of questions
Weakness Best for ?Is a slow ?Long term deals decision maker ?Repeat ?Can be business unrealistic at ?Complex times negotiations ?Takes time ?Important Deals ?Requires thorough preparation
1. 2. 3.
The extent of aspirations of both parties The degree of firmness in aspirations and resistance to yield The perceived integrative potential
? ? ? ?
Faith in own problem solving ability Momentum from previous success Availability of mediator Other’s perceived readiness for problem solving
4.
5.
The Role of Trust The Perceived cost
1. 2. 3. 4.
5.
6. 7.
Integrating-Integrating=Integrating Integrating-Competing=Principled collaboration or soft competition Integration-Accommodating=Integrating Integration-Avoiding= Focused Accommodation Competing-Competing= Competing or Principled collaboration Competing-Accommodating= Soft Competition or integration Competing-Avoiding= Principled Collaboration or Soft Competition
?
How do you identify interests:
? Ask Why ? Ask Why Not: Think about their choices
? ?
Understand Human Needs Talk about Interests
Diagnosis: 4 obstacles
? Premature judgment ? Searching for the single answer ? The assumption of a fixed pie ? Thinking that solving their problem is their problem
?
Prescription:
? Separate inventing options from
deciding
? Broaden the options rather than look
for a single answer: The circle chart
? Search for mutual gains: identify
shared interests
? Make their decision easy
Step II Analysis •Diagnose Problems •Categorize Symptoms •Suggest Causes •Discover Barriers Step I Problem •What’s wrong •What are current symptoms •What are disliked facts
Step III Approaches •What are possible Strategies/ideas •Generate and List them Step IV Action Ideas •What might be done •What Specific Steps?
? ? ?
Fair Standards Fair Procedure Negotiate on that basis
?
Frame each issue as a joint search for objective criteria ? Reason and be open to reason ? Never yield to pressure, only to principle
?
?
?
Distributive Strategy: Claiming all the profit or the maximum share for oneself—winning it all Integrative Strategy: Creating Value (expanding the pie) and finding solutions that best fit needs of all or most parties—especially over time. Mixed-Motive Strategy: Expanding the pie and meeting the needs of all or most parties as much as possible while claiming appropriate share.
?
?
?
Reservation Price BATNA: Know yours and Others Better your BATNA, the greater your power
?
?
?
?
BATNA is your power in negotiations Reservation Price is your worst deal acceptable. It is based on BATNA What is Bargaining zone or ZOPA (area of overlap of RPs) What is the role of Aspiration point (Target): keeps you motivated
Goals/Interests: -Purchase 10,000-18,000 units -One Shot Deal BATNA = No Alternative Source
Buyer (AccelMedia)
Buyer ’s Aspir ation
Buyer ’s Reser vation Pr ic e
5
10
15
20
25
30
35
40
45
ZOPA
Seller (GTechnica)
Seller ’s Reser vation Pr ic e
Goals/Interests: -Sell up to 15,000 units -One Shot Deal BATNA = No Alternative Buyer
Seller ’s Aspir ation
?
?
? ?
?
Aspirations The Openings (who makes the first offer) Anchorings Pattern of concessions (larger first and small later to signal that you are reaching your RP) Threats (if you continue negotiating after that you lose credibility)
SIMPLE AND DIRECT ? You’ve worked with the party before ? Deal is bogging down ? Immediate closure is a goal PRESS AND PUSH ? Your side is stronger ? The other side needs a quick close ? You want to asses limits
COOL & ALOOF ? The other side is stronger ? Your side is under time pressure ? You have other alternative deals
?
Patience: helps to defuse and control the deal
?
? ? ?
Slow Agony: Defense against High Pressure
Apathy: Defense against High Pressure Empathy: Breaks deadlocks & Bridge Gaps Sudden Shifts: To dislodge blockages and overcome obstacles
?
Faking: An art in Trading
?
Walking: When other side has more power and pushed you too hard Fait Accompli: To control a critical issue Salami: To make small gains
? ?
?
? ?
Limits: To set bounds to further pushing
Deadlines: To clinch a deal Antagonism: Not a good tactic: evokes same response
?
Limited Authority: Side A uses to bargain hard, to use time for agonizing and testing patience. Counter: by Asking what the authority wants and the way they want. Bottom Line: To help you come up with creative solution to ensure a deal. Saying No: To get “No” to elicit why of it and know the needs of the customer more
?
?
?
Expectation and Control: Split non-negotiable with negotiable Auction: Find out where is it the lowest and then build solutions/trade-offs around it. Rationale: Satisfies the others and makes them negotiate Concessions: Make it conditional and not unilateral
?
?
?
Interests, Rights and Power
? ? ? ? ? ?
Do your Homework Build relationships whenever possible Avoid quick concessions Accentuate the positives Maintain your composure Don’t Give up
doc_223724216.pptx