1. Chapter 5: Preparing to Drive Stages of a Successful Negotiation

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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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!

9. 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

10. 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

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

12. 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

13. 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