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

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??

Types of Agreement

• 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

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?

How to Build Rapport

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

Price Anchoring

Example

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

ZOPA