Tài liệu Negotiating: planning, strategies, typical mistakes docx

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
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Main Functions of Negotiations
 Decision making
 Informational
 Communicative
 Regulatory
 Controlling
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 Coordination of actions
 Destructive
 Propaganda-advertising
 Masking
 Peace-making
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.
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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
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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
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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;
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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;
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Which negotiation model to choose?

 Opposition of the parties;
 Showing friendliness;
 Looking for mutually acceptable solutions;
(Fisher and Ury, 1982)
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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.
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So, what style to choose?

Soft or Hard?

None!
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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.
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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 long-term and takes into account the society
interests.)
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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;

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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.
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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”
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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
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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
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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;
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Negotiation Positions
 Open;
 Closed;
 Stressing the common views on the
problem;
 Stressing the differences
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Negotiation Tactics
 Involve into bargaining;
 Find allies among the
strangers;
 Accept the partner’s first
proposal;
 Package of proposals;
 Play on the interest;
 Jumping back;

 Common area for solution;
 Splitting the problem to
components
 Gradual increase of
complexity;
 From great to minor;
 Blocking
 One text procedure;
 The only claim;
 Zest
 Special efforts
 Info drain
 Warning
 Create the authority
 Deadline
 Limited offer
 Choice without choice
 Letters of reference
• The deal admitted
• Show your interest;
• Avoid simple executives;
• Agree on parts;
• Concession for concession
• Negotiation gambit
• Double
• Departure;
 Waiting;
 Salami;
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• Shifting the accents;
Reverse Negotiation Tactics

 Independence effect
 Exclusive reputation;
 Inaccessibility effect;
 Challenge to the partner;
 Show reliability
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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)
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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;
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Systematic Analysis after Negotiations
 The extent of achieving the

target;
 The success factor;
 Preparation of negotiations;
 Tuning to the partner;
 Freedom of actions within the
negotiations framework;
 Effectiveness of
argumentation;
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 New aspects;
 Plan of negotiations;
 Teamwork;
 Atmosphere of negotiations;
 Prospects of the relations
development;
 Drawbacks;
 Conclusions and proposals