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- 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
Coordination of actions
Informational Destructive
Communicative Propaganda-advertising
Regulatory Masking
Controlling Peace-making
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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 longterm 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; 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;
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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 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;
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