Negotiation strategies by bhawani nandan prasad gurgaon india
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This document outlines principles of effective negotiation strategies. It discusses that a good agreement satisfies both parties' interests, is fair, lasting, efficient and improves trust. The principles of negotiation include separating people from problems, attending to communication issues, focusing on interests not positions, generating options for mutual gain, finding legitimate decision criteria, analyzing alternatives, and making fair commitments. Key negotiation strategies are to explore all parties' wants, make initial offers negotiable, get all demands on the table early, persuade the other side to make first concessions, and grant concessions over time in exchange for other concessions. The difference between successful and unsuccessful negotiations comes down to homework.
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Negotiation strategies by bhawani nandan prasad gurgaon india
- 1. PRINCIPLES OF Negotiation Strategies BHAWANI NANDAN PRASAD MBA, IIM Calcutta & STRATFORD UNIVERSITY USA, M.TECH. IT
- 2. Negotiation Creative Negotiating, Stephen Kozicki, Adams Press, 1998 “Negotiation is the art of reaching an agreement by resolving differences through creativity”
- 3. What is a good agreement? A good agreement is: wise satisfy both the parties' interests are fair are lasting. efficient Cost effective, Time conserving Improves Trust & Develops Relationship.
- 4. Why Negotiation Becomes a tough job?
- 5. The “Principles” of Negotiation 1. Separate the People from the Problem Identify key issues Then on the strategies
- 6. The “Principles” of Negotiation 2. Attend to the communication issues a. Acknowledge and manage emotions b. Avoid the blame game c. Listen d. Use I-messages,
- 7. The “Principles” of Negotiation 3. Focus on Interests, not Positions Positions: Simple statements about what you want. No reasons, no subtlety, no justification. Just a demand: I want the orange! Interests: The reasons underlying the position —what you really want or need ? —the answer to the question WHY. I need to bake a cake. I'm hungry I want to eat the orange.
- 8. The “Principles” of Negotiation 4. Generate many options & look for Options for Mutual Gain Brainstorm options by listing all possibilities first, Evaluating options second. Look for ways to meet everyone's interests at the same time.
- 9. The “Principles” of Negotiation 5. Find Legitimate Criteria to Guide Decisions What's been done before? What's “fair”
- 10. The “Principles” of Negotiation 6. Analyse the Best Alternative to a Negotiated Agreement (BATNA) BATNA = Walk Away Point—when you tell the other person you are not interested in their offer because you can do better in another way.
- 11. Why do you care about BATNAs? They tell you what you should agree to What you should walk away from. They also give you negotiating power.
- 12. The “Principles” of Negotiation Work with Fair and Realistic Commitments Is agreement Reasonable? Doable? Face-saving? Practical?
- 13. Handling Emotions Emotional Challenges Anger/exasperation Insult Guilt False flattery Recommended Response Allow venting Digest for the time being Focus on key issues Re-focus Tips: •Try to defuse with acknowledgement, empathy, patience, impartiality. •Consider dealing with less emotional issues first •Don’t lose your cool (Act like a swan!).
- 14. Are you a Motivated Negotiator? Enthusiasm Confidence Engaged Recognition Accomplishment Pat on the back Integrity No trickery Trustworthiness Social Skills Enjoy people Interest in others Teamwork Better as a team Self-control Creativity Always looking for ways to complete the deal
- 15. A Good Negotiator Is.. Creative Versatile Motivated Has the ability to walk away
- 17. Strategy Do not assume what the other party wants-explore and test Remember that initial offers are generally not accepted Provide room to negotiate Do not be modest in demands. Get all demands of the opposite party on the table before you concede anything Persuade the other side to make the first concession on major issues; Making large concessions at an early stage results in loss of position Make the other party work for every concession.
- 18. Strategy Grant concessions over a period of time Get something for every concession Do not be afraid to say NO. Keep a record of concessions made by each side. Put a time limit on important concessions Classify concessions that you can give and those you must not give. Resist making concessions which are retroactive.
- 19. Difference between successful negotiation and unsuccessful negotiation Is HOME WORK.
- 20. 29 You cannot shake hands with a clenched fist. Indira Gandhi [ Clenched Fist - Woodblock by Frank Cieciorka, 1965 ]