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
. Lecture 17. Negotiating:
planning,
strategies,
typical mistakes
Introduction to a problem
Negotiation. problem;
– Be flexible, firm and tactful.
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Mutually Beneficial Variants:
typical mistakes
Jumping to conclusions;
Search for one answer;
Belief that