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Sharing the Pie
With negotiations you need to create value and find solutions that best meet the needs
By expanding the pie and meeting the needs of all or most parties as much as possible will allow you to claim an appropriate share for yourself.
There are nine strategies outlined that can be used to increase the size of the pie
Sharing the Pie
Build trust and share information Ask diagnostic questions Provide information Unbundle issues Make package deals Make multiple offers simultaneously Use pre-settlement settlements Search for post-settlement settlements Structure contingency contracts by
capitalizing on differences
Sharing the Pie
There are 6 types of info typically exchanged
The position Underlying interests (needs) Priorities Key facts Substantiation (arguments supporting the
position)
Build Trust and Share Information
Questions related to underlying interest and priorities increase the potential of reaching an integrative solution.
These questions assist in the search for value, and may help decrease the other party’s defensiveness.
Ask Diagnostic Questions
The key information to provide is about priorities.
Provide Information
Integrative solutions require at least two issues.
Where there are multiple issues, identifying these issues, or “unbundling” them, is a way to move toward an integrative solution.
Creating new issues to negotiate may also result in a superior outcome.
Unbundle Issues
Negotiations should focus on the package of issues rather than each single issue.
Negotiating issue by issue may result in an impasse.
Making a single issue the focus of the negotiation may result in a compromise agreement, or may reduce the chances of making trade-offs across issues.
Make Package Deals
Make multiple offers of equal value to the other party.
Multiple offers have the advantage of anchoring the deal, displaying persistence, signalling priorities, obtaining information from the other party, and overcoming any aversion to concessions by the other party.
Suggested approach to multiple offers is:◦ Devise potential multiple offers◦ Select offers that have similar value to you◦ Make the offers simultaneously
Make Multiple Offers Simultaneously
A pre-settlement settlement is a binding, formal agreement that partially addresses the issues of the agreement.
In the pre-settlement settlement certain issues are negotiated and settled, with an agreement to continue negotiations.
This approach can be used as a staging platform to develop creative solutions to other issues.
Pre-settlement Settlement
Conversely, after an agreement is struck, the parties can enter a formal agreement to continue searching for mutually beneficial solutions to any outstanding or future issues.
Post-settlement Settlements
This is part of an on-line course “Negotiation Tactics”
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