Hmmm, Now What…..  I want the last remaining orange and so do you

Principled Negotiation:“Getting to Yes”  Focus on interests, NOT positions  Ask why do you want the orange – what are you interested in?  Ask why do you want the window open – what are you interested in?  Behind opposed positions lie shared and/or compatible interests  Each side likely has multiple interests that may be valued differently by each party

Principled Negotiation: “Getting to Yes”  Separate the people from the problem  Perceive yourself working side by side with the other party to resolve the issue  Do not attack people  Physically sit on the same side of the table  “We’re are on the same side of the table”  Together we can attack this problem

 Insist on objective criteria  Search for a standard such as market value, expert opinion, law  This way, neither party is “giving in” to the other and a fair agreement is possible  I want $2,000 per month in rent  How did you arrive at that rate?  Is it supported by market data?

Issues in Negotiation  Mythical fixed pie  Assumption that our interests conflict with the other side  “What’s good for them must be bad for us”  Terms that appear beneficial when suggested by your side often seem disadvantageous when proposed by the other side  Assume that there can only be one winner and one loser (distributive bargaining approach)  Fail to find mutually agreeable trade-offs

Distributive vs. Integrative Bargaining BargainingDistributiveIntegrative Characteristic BargainingBargaining Available resources Primary motivations Primary interests Focus of relationships Fixed amount of resources to be divided I win, you lose Opposed to each other Short term Variable amount of resources to be divided I win, you win Convergent with each other Long term

Preparation for Negotiation  BATNA  Best alternative to a negotiated agreement  The lowest acceptable value to an individual for a negotiated agreement  Need to develop an alternative so you know at what point to stop negotiating  Find other job offers  If we cannot receive an offer of X amount for the house, then we will rent it  Idea is to keep you from making agreements you may later regret

Issues in Negotiation  Anchoring  Putting too much weight on an initial offer  Framing effect  Present information as a gain, not as a loss  Credit surcharge versus cash discount  Fee for buying plane ticket over the phone versus “save $2 by buying ticket over the internet”