Special topic: negotiations (LO5)
Understanding the elements of negotiation
- What is a negotiation?
- When do we negotiate?
- Approaches to negotiation?
- How do you prepare for negotiations?
Approaches to negotiation
There are many different ways to describe negotiations. One type is to categorize negotiations as hard, soft, and interest-based. Take a look at the characteristics of each one.
- Haggling, with a win-lose approach
- Endangers relationships
- Seek agreement at almost any cost
- Protects relationships above all
- Full trust of the other side
- Risks sacrificing key interests
- Focus on the issues
- Separate people from the point of negotiation
- Arriving at a wise agreement for both parties
Interest-based negotiation
People
- You are negotiating with another person
- Two interests: Relationship and Substance
- Communicate positions and perceptions
- Build a relationship prior to negotiating
Interests
- Focus on (mutual) interests, not winning/losing or advancing your position
- Look for common ground
- Communicate
- Look for win-win
Harvard Negotiation: https://www.youtube.com/watch?v=RfTalFEeKKE
Chris Voss: https://www.youtube.com/watch?v=_NWElrHgbGo
Criteria
- Develop objective criteria
- Fair procedures and standards
- Be open-minded
Preparation: know yourself
There are different approaches to negotiation and often people have established preferences for how they engage in them. Even more powerful, though, is to know your strengths, identify and improve on your weaknesses, and be strategic in your choice of approaches.
Preparing for negotiations
- Know what you want
- Make a plan
- Know yourself and develop your tactics accordingly
- Get the final position in writing
- Figure out exactly what it is that you want. What are the minimum criteria that you would consider as acceptable?
- Plan: Develop an understanding of the person you will be negotiating with. Consider their limitations as well as what they have.
Do your research. Lay ground work – ask your negotiating partner questions.
- What are the issues?
- Understand your bargaining power
- What if you don’t get what you want?
Strategies during negotiations
The strategies we used during the earlier sections still apply here! Empathy, active listening, and maintaining safety in the conversation remain paramount. There are many approaches, but for now we will use the same ones as we did above.
