Lecture 17. Negotiating:  planning,  strategies,  typical mistakes Introduction to a problem  Negotiation is a joint partners’ activity aimed at solving their common problems.  To be successful negotiations must be mutually beneficial – “win-win” situation.  But “white gloves” may contain strong fists  The content is often clearer than the procedure 2 Main Functions of Negotiations  Decision making  Informational  Communicative  Regulatory  Controlling 3  Coordination of actions  Destructive  Propaganda-advertising  Masking  Peace-making Types of Negotiations (according to their Purpose)  Aimed at prolonging the agreements clinched earlier;  Aimed at settling the conflict situation;  Aimed at reaching the redistribution agreement;  Aimed at clinching a new deal;  Aimed at getting indirect results not reflected in the contracts. 4 Types of Negotiations (according to their style)  Soft – concession on the part of the partner who wants to avoid the conflict;  Hard – driving a hard bargain in order to win by all means;  Principal – finding the mutual benefit not where it is possible but where the interests do not coincide 5 Preparation to Negotiations  Define the areas of the mutual interests;  Create the working relations with the partner;  Solve organizational problems;  Define the general approach (conception) and prepare the negotiation position with alternatives 6 Organizational Preparation  Make up the program of reception;  Determine place and time;  Agree on the agenda and consult the third persons involved;  Form the list of delegation  Gather the information about partners; 7 Preparing the Content  Problem analysis and diagnosis of the situation;  Developing the conception (general approach);  Defining the alternative solutions;  Proposals and arguments for them;  Necessary papers and materials; 8 Which negotiation model to choose?  Opposition of the parties;  Showing friendliness;  Looking for mutually acceptable solutions; (Fisher and Ury, 1982) 9 Drawbacks of positional bargaining They do not meet the following criteria:  Negotiations must lead to a reasonable agreement if any.  Negotiations must be effective;  Negotiations must improve or at least not spoil the relations between the partners. 10 So, what style to choose? Soft or Hard? None! 11 Principal Negotiations  People: differentiate between the participants and the subject of the negotiation;  Interests: focus on interests, not positions;  Variants: before deciding what to do determine the circle of opportunities;  Criteria: insist on the result being based on some objective norm. 12 Unlike positional bargaining Principal negotiations Focus on  Key interests,  Mutually satisfying alternatives,  Fair criteria Lead to  Reasonable agreement (meets the parties’ legal interests, controls conflicting interests fairly, is long-term and takes into account the society interests.) 13 Differentiate between the participants and the subject of the negotiation;  Every participant is a human being;  Every partner wants to meet his interest and improve relationship with a partner;  A problem is not tied with relations;  Put yourself in the partner’s shoes;  Do not judge the people’s intentions by your prejudices;  Do not look for the guilty, solve your problem; 14 Focus on interests, not positions;  Interests are the main in negotiating;  Interests are the motivator for actions;  How to find out the partner’s interests: – Put yourself in the partner’s place; – The strongest interests are the basic human needs; – Talk about interests; – Acknowledge their interests to be the part of the problem; – Be flexible, firm and tactful. 15 Mutually Beneficial Variants: typical mistakes  Jumping to conclusions;  Search for one answer;  Belief that the “cake” cannot be increased;  Opinion: “Their problem solution is their problem” 16 Mutually Beneficial Variants: overcoming typical mistakes  Separate developing variants from their assessment;  Vary your approaches and alternatives;  Increase the ‘cake’ and look for mutual benefit;  Coordinate different interests 17 How to make the decision easy for the partner  Put yourself in the partner’s shoes;  Offer the partner an answer, not a problem;  Work over the preliminary projects;  Make the decisions legitimate and fair;  Use a precedent;  Proposals are more effective than threats 18 Apply Objective Criteria  Every problem should be prepared for the common search of objective criteria;  Think and be open to arguments;  Do not concede under pressure; 19 Negotiation Positions  Open;  Closed;  Stressing the common views on the problem;  Stressing the differences 20 Negotiation Tactics  Involve into bargaining;  Find allies among the strangers;  Accept the partner’s first proposal;  Package of proposals;  Play on the interest;  Jumping back;  Common area for solution;  Splitting the problem to components  Gradual increase of complexity;  From great to minor;  Blocking  One text procedure;  The only claim;  Zest  Special efforts  Info drain  Warning  Create the authority  Deadline  Limited offer  Choice without choice  Letters of reference • The deal admitted • Show your interest; • Avoid simple executives; • Agree on parts; • Concession for concession • Negotiation gambit • Double • Departure;  Waiting;  Salami; 21 • Shifting the accents; Reverse Negotiation Tactics  Independence effect  Exclusive reputation;  Inaccessibility effect;  Challenge to the partner;  Show reliability 22 Dishonest Play in Negotiations  Deliberate deception (false allegations; fishy intentions);  Psychological war (create discomfort; personal hostility; trick “bad- good”; threats)  Positional pressure (refusal to negotiate; set too high demands; false accents in your position; ‘burning the bridges’; choice without choice; ‘I’d like to but my partner ’; negotiation lead-time) 23 You have been said “No”…  The partner’s objection is just a request for getting further information.  Do not reassure, give the proofs once again;  Find out the real reason for the negative reaction: – Diffidence, fear to make mistake; – Inability to persuade; – Disagreement with price; – Indefinite need; 24 Systematic Analysis after Negotiations  The extent of achieving the target;  The success factor;  Preparation of negotiations;  Tuning to the partner;  Freedom of actions within the negotiations framework;  Effectiveness of argumentation; 25  New aspects;  Plan of negotiations;  Teamwork;  Atmosphere of negotiations;  Prospects of the relations development;  Drawbacks;  Conclusions and proposals . Lecture 17. Negotiating:  planning,  strategies,  typical mistakes Introduction to a problem  Negotiation. problem; – Be flexible, firm and tactful. 15 Mutually Beneficial Variants: typical mistakes  Jumping to conclusions;  Search for one answer;  Belief that