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Negotiation Steps

Research & Planning

Research

  • Standards & Benchmarks
  • Players & Stakeholders

Analysis

  • Reorganize the data
  • Anticipate the other side's position
  • Assess weaknesses and strengths
  • Assess risks and opportunities

Identify

  • Issues
  • Goals
  • POSITIONS -> WHAT DO YOU WANT
  • INTERESTS -> WHY DO YOU WANT
  • CONCESSIONS -> WHAT WOULD YOU GIVE UP
  • BATNA / WATNA
  • Relationship you want to build

Process

Process of Negotiation Process of Negotiation

Hard-sell or soft-sell? => How important is the relationship?

Position vs Interest

Interest
Why you want it
Position
What you want

Reframing

Reframing = Position -> Interest

  • Reframing the question to be interest-based.

Example

  • Position: I want to buy a car
  • Interest: I want to get to work
  • Options: Small car, big car, etc.
  • Alternatives: Car, bike, bus, train, taxi, etc.

Alternatives

  1. Define limits:
    • protects from bad agreements
    • protects from rejecting good agreements
  2. Determine power:
    • BATNA / WATNA
    • Leverage
    • Consequences
  3. Define the bottom line:
    • What is the minimum you are willing to accept?
    • What is the maximum you are willing to pay?

Exchange Stage

  • Trustworthiness? => How much information do you share?
  • Competency? => Am I talking to the right person?
  • Likeability? => Is this person likeable?
  • Alignment of Intersts? => Do we have the same interests?

GO OR NO GO??

Go or No Go? Go or No Go?

Types of Agreement

What do we agree on?

  • Agenda: What are we going to talk about?
  • Process: How are we going to talk about it?
  • Shared values/principles: What is important to us?
  • Shared goals/interests: What do we want to achieve?
  • Criteria/constraints: What are the limits?
  • Disagreement on specific issues: What do we disagree on?
  • Process for handling future disputes: How do we handle future disputes?
  • Specific behavior or actions

Build Rapport

Rapport

Harmony, trust, and cooperation in a relationship

Common Ground

  • Common Values
  • Common Ideas
  • Common Problems / Needs
  • Common AFFILIATIONS -> What do you have in common? (birthplace, universities, sports, etc..)
  • Connections in common

Small Talk

  • OBSERVE -> What do you notice about the other person?
  • LISTEN -> What do you hear about the other person?
  • ASK -> What do you want to know about the other person?

The more unknown the other person is, the more you need to build rapport.

How to Build Rapport

  • MIRROR -> Match the other person's body language, tone, and words.
  • MIMIC -> Repeat the other person's words.

Price Anchoring

Anchoring

When you're the first person to set a price, you set a reference point.

Example

  • Anchoring: $100
  • Counter: $50
  • Final: $75

ZOPA

ZOPA = Zone Of Possible Agreement

The zone of possible agreement is the range of outcomes that both parties can agree to.

ZOPA Example Image ZOPA Example Image

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