Chapter 5: Preparing to Drive Stages of a Successful Negotiation

Stages of a Successful Negotiation Closing Deal-Making Information-Trading/Gathering Rapport-Building Preparation

Goals have direct and indirect effects on the negotiator’s strategy Preparation 1st Question – Is there a need to negotiate? If NO – Move On If YES – GAME ON Step 1: Identify the Situation Step 2: Determine your SMART Goals Clearly specify goals and objectives Step 3: Research, Research, Research Step 4: Think about your strategy Goals have direct and indirect effects on the negotiator’s strategy

SMART Goals video 5 Steps to Know: 1. Specific - who, what, when, where, why, how 2. Measurable - numeric or descriptive measure 3. Attainable - be practical 4. Realistic- make sure you have control 5. Timely - set a reachable deadline

Rapport-Building What is Rapport? The ability to be on the same wavelength and to connect mentally and emotionally Building commitment toward a mutually beneficial set of outcomes Build a climate of trust and respect You do not have to agree, but understand where the other person is coming from See the other's viewpoint, appreciate each others point of view

Information-Trading/Gathering What Information? How do my SMART Goals compare or conflict with my opponents goals?? Learn what you need to know Evaluate your research Exchange materials, facts, specifics Discuss pricing, options, demands, ideas Begin to Assemble your Case

Deal-Making Let’s Make A Deal! Bidding Bargaining Mix Brainstorming Each party states their “opening offer” Each party engages in “give and take” Bargaining Mix Combined list of issues Brainstorming Concessions

Closing It’s A Wrap Final Offers Contract Terms Get it in Writing Implementation End Result: Agreement! Remember: You Don’t Always Get What You Want… You Get What You Negotiate!

BATNA Know your BATNA A Strong BATNA: A Weak BATNA: Improves your bargaining position Allows you to negotiate for more favorable terms A Weak BATNA: Makes it difficult to walk away from a negotiation Can decrease your negotiation power if the other party is aware of your weak BATNA

Gottas & Wantas NEEDS: Got to have it or NO deal WANTS: Want it but can be flexible INTERESTS: Like to have it but not critical

Negotiation Styles Competitive Collaborative Accommodating Distributive Win-Lose Bargaining Collaborative Integrative, Win-Win Negotiation Accommodating Involves an imbalance of outcomes “I Lose, You Win”

Negotiation Strategies *Remember the Dual-Concerns Model Competitive or Distributive Strategy Single-Issue transaction Maximize YOUR outcome with little or no concern about the other negotiator’s outcome Collaborative or Problem-Solving Strategy Multi-Issue process Seek to maximize YOUR outcome and the other negotiator’s outcome is important

Negotiation Strategies Accommodations Strategy YOUR specific outcome is not as important as the other negotiator’s outcome Avoidance Strategy Very little concern with YOUR outcome or with the other negotiator’s outcome Compromising Strategy Interest in maximizing YOUR outcome and interest in the other’s outcome