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
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
- Define limits:
- protects from bad agreements
- protects from rejecting good agreements
- Determine power:
- BATNA / WATNA
- Leverage
- Consequences
- 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??
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.
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