Negotiation (in 15 minutes)• Negotiation = any attempt to persuade or
influence a party to do something
• Good negotiators…
…build relationships
…creatively solve problems
What do we assume about negotiation?
• It’s common sense
• It’s about winning
• BATNA (Best Alternative to A Negotiated
Agreement) = Deal or No Deal
The Reality• There are several frameworks
• Getting to Yes – Roger Fisher
• Research
• It’s not about winning
• It’s not just ‘talent’
• Incompatibility bias
• Interest based
• Misinformation
• Anchoring
• Good cop, bad cop
Do you care about outcomes or relationships?
High Relationship Low Outcome
ACCOMMODATING
Lose to Win
High Relationship High Outcome
COLLABORATIVE
Win - Win
Low Relationship Low Outcome
AVOIDING
Lose - Lose
Low Relationship High Outcome
COMPETITIVE
Win - Lose
Negotiation framework:Getting to Yes
1) Separate people from problems
2) Focus on interests not positions
3) Invent options for mutual gain
4) Insist on using objective criteria
Pricing (Cont’d)
• Don’t avoid the challenge: pricing first isn’t
always a bad thing
• Be ambitious and reasonable
• Quoting vs. Persuading
Closing• Incompatibility bias
• Expand the pie through trade offs
• Find trades by learning the other party’s interests and preferences
• Build trust and share information.
• Ask questions – and Listen!
• Give away a bit more information – “Let’s discuss how this will benefit us both.”
• Make multiple offers simultaneously
• Search for a post settlement-settlement – “Let’s revisit the contract in 3 months after you’re up and running.”
• Avoid downplaying the concessions your counterpart makes
Closing (Cont’d)• BATNA
• Manage probabilistic BATNAs – how likely is your
WATNA?
• Think through 2-level BATNAs – is it the person or the
organization?
• What about competitive auctions?
• Clarify their interests and alternatives
• Make multiple simultaneous offers
• Look for a shut down move – “What would it take for
us to get this done now?”