NEGOTIATION

The positions when negotiating (types of agreements, MAP, concessions)

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OBJECTIVES

- Identify different negotiation styles and to choose the best fitted

to a given specific situation.

- Detect negotiation practices and strategies so they can put into

practice them.

- Facing a negotiation process presenting proposals in an efficient

way and being able to close a negotiation successfully and
exposing correctly the agreements reached.

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 NEGOTIATION
The positions when negotiating

Negotiators’ positions are the things they demand you give them and also the things that they refuse to provide you
with. Negotiation positions are typically communicated in meetings, emails, and proposals. Inexperienced negotiators
too often take the positions of the other side at face value and don’t probe with questions or challenge sufficiently.
Competitive negotiators are infamous for employing positions, they’re clear on what they want and communicate this
early, strongly, and repeatedly. It’s usually unwise to give in to someone’s first position or demand. Wiser is to ask them
questions, with ‘Why?’ being the most useful question. There are many ways of asking ‘why’ questions, such as:

‘What will this enable you to do?’

‘What will happen if you don’t get this?’

‘How will having this help you?’

The empowering answers you get are called the other negotiator’s interests.

 
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 NEGOTIATION
The Negotiation Position

The
simple reason why many people fail to find a negotiated agreement is that each has taken what is known as a
 
“negotiation position.” One wants something that the other doesn’t.
  motivating forces underlying negotiation positions are what we refer to as “negotiation interests.”
The
Interests are the “why” behind the negotiation position.
The main problem is that the people involved in a dispute tend to know the positions of the other negotiators.
However, people often neglect to understand why the other person has taken this position.

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 Negotiation Interests
NEGOTIATION
Negotiation interests largely relate to basic human needs. Our needs are powerful influences in our decision-making

processes and informing the positions we take. Interests include those tangible desires that relate to the specific problem
 
at hand, such as increasing sales or productivity. Also, our interests can link to our more basic human emotions.
 
These emotions are less obvious to the participants.
These basic emotional needs are couched in our psyche, but some examples might include our need for:

Security
Empowerment
Inclusion
Control
Recognition

These intangible needs show what we may be overlooked when considering the interests of the other side.
We might even neglect to truly consider our own basic human needs when trying to define or describe our interests to
someone else. Our human needs are equally valid and just as important.
It’s vital to ferret out all the underlying information to determine not only our interests, but the interests of the other side.

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 NEGOTIATION
What We Need To Know

What’s the issue?

  We must be clear we understand an issue or problem by stating it clearly. Both sides should agree on the
  key issues at stake before even attempting to resolve the issues. Otherwise, the sides will be at cross
purposes, and resolution will be extremely difficult, if not impossible.

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 NEGOTIATION
What We Need To Know

What
Are the Obstacles?
  Having defined the problem, it is equally crucial we understand what obstacles are preventing us from solving
  our dilemma. Each side will relate both similar and dissimilar obstacles that are acting as barriers to finding
common ground. Both sides need to fully understand all the specific obstacles involved. If we neglect to
perform this crucial step, both sides will not fully appreciate all the obstacles that prevent them from achieving
closure.

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 NEGOTIATION
What We Need To Know

Separation

  Training yourself to take a step back is important in gaining perspective in a negotiation.
  When confrontational disputes linger, there is a tendency towards personal animosity. We begin to take the
matter too personally, and a highly charged atmosphere surrounds what we could describe as “verbal
combat.” Participants on both sides need to separate themselves from the problem and restore some
degree of objectivity.

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 NEGOTIATION
What We Need To Know
What Are Your Negotiating Interests?

Our negotiating interests include those tangible needs, or what we might consider as the underlying mechanical
 
components, of the problem.
 
Payment terms, transportations costs, and scheduling are some of the issues that can be addressed at one level.
Other interests, such as trust or anxiety, which also relate to our business interests, are equally relevant in terms of
importance. We should observe caution, as either side could have a different opinion about the degree of
importance they attach to each other’s interests.

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 NEGOTIATION
What We Need To Know

 
 

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 NEGOTIATION
What We Need To Know

 
 

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 NEGOTIATION
What We Need To Know
Negotiation Problem-Solving
With negotiation problem-solving, we seek to first start with an understanding of the problem and the obstacles
  that need to be overcome, together with fully understanding the needs and interests behind each side’s
  position. The possibility of finding a solution is then greatly enhanced.
We can address our approach to problem-solving through a mutual perspective of both sides’ unique
circumstances. We can break down most negotiation problems into different components, lessening the strength
of any obstacles that lay in the path to a mutually agreeable negotiated resolution.

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 NEGOTIATION
What We Need To Know

All
negotiation positions are supported by interests. When we train ourselves to both know and define these
  interests, we can become effective in appreciating and understanding the full extent of the dispute. This
  approach applies to many kinds of disputes, for example, in business ventures, disputes with co-workers, and
even within the fabric of our everyday lives.

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 NEGOTIATION
What is a Negotiated Agreement?

When
  two or more parties need to reach a joint decision but have different preferences, they attempt to work out a
negotiated
  agreement.
A negotiated agreement happens through back-and-forth communication in the hopes of reaching a deal when
you and the other side have both shared and opposing interests. Of course, finding your counterparts’ interests and
reconciling them with your own is a process.
Furthermore, some negotiation experts would have you believe that a mutually beneficial negotiated agreement is
one in which each side grabs as much as it can from a finite pot of resources and calls it a day.

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 NEGOTIATION
Requirements
In order to reach an agreement, parties need only come to a common understanding as to their relative

rights and responsibilities, what is often termed a “meeting of the minds.” The requirements for the formation
 
of a contract are more precise and comparatively stricter. A contract must contain the following essential
 
elements:

Offer and Acceptance: Every contract must include a specific offer, and the acceptance of that specific
offer.

Mutual Consent: The offer and acceptance must be freely consented to by the parties, without coercion.
All parties must agree to the same terms, and all must intend for a binding agreement to be formed.

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 NEGOTIATION
Requirements

Consideration: This is something of value that is exchanged between the parties. Consideration can take the form of
 
money, goods, or services, but both parties must provide something of value for a contract to be formed. If only one
 
side provides something, it is a gift, not a contract.
Competence: Both parties must comprehend the situation and understand what the contract will entail. Thus, no
party can be a minor, under the influence of drugs or alcohol, or mentally deficient in a way that would prevent
them from understanding the terms of the contract. A non-competent party to a contract may disavow the
contract, which would render it void.
Legal Purpose: The purpose of the contract must fall within the confines of lawful conduct. In other words, a court
would never enforce a contract regarding something illegal.

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Types of Agreements:
NEGOTIATION
Business agreements are the heart and soul of most companies and organizations. They help ease business operations and
processes   without friction between involved parties. Business contracts, when executed correctly can help to manage
business  expectations and avoid liability.
Business agreements apply to sole proprietorships, partnerships, and even multi-million dollar corporations in all industries
including retail, manufacturing, and technology.
‌Operating a business without enforceable business agreements doesn’t work. Contracts provide guidelines on how to
address any problems that may arise during the lifecycle of a business. Drafting the right contracts for various business
scenarios can prove integral for a business, shielding it from legal loopholes that other parties in business deals may exploit.‌
The right types of business agreements can pave the way for smooth business operations by creating legal obligations for
all parties. From hiring employees to reaching agreements with influencers, business contracts ensure all parties in the
agreement know the deliverables required from them. They may also outline the legal repercussions individuals may face if
they fail to honor such agreements.
 
 
 
 
 

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Types of Agreements: NEGOTIATION
1. Amendments
A contract
amendment is a separate legal document that revises an existing business agreement’s definitions, terms,
sections,
  and clauses. It adds, removes, or changes the particulars of the original agreement once all involved parties
reach  a consensus.
Amendments to different types of business agreements happen when parties forget to include crucial clauses in the
original document or when a party’s business situation changes. For instance, contract amendments can help to
change payment terms between a business and its suppliers.
2. Bill of sale
Also known as a sales agreement, this contract transfers property between two parties. It is a legal agreement that
recognizes the transfer of rights between a seller and a buyer.

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Types of Agreements: NEGOTIATION
3. Enterprise service agreement
An enterprise
service agreement is a business contract entered between an enterprise and a customer where the
enterprise
  provides services
4. Franchise
  agreement
A franchise agreement is a legal agreement between a company or business franchisor
5. Employment agreement
These types of business contracts define the relationship between an employer and employees.

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Types of Agreements: NEGOTIATION
6. Indemnity agreement
Also known
as a release of liability agreement, this contract holds that an individual agrees to indemnify another
person  for burden, damage, or loss when providing a service or product.
7. Independent
  contractor agreement
These types of contracts lay out the scope, obligations, and deadlines of independent contractor work
8. Influencer agreement
An influencer contract is a legal agreement between a social media influencer and a brand to market products or
services.

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Types of Agreements: NEGOTIATION
9. Photography release
A photography
release form is an agreement between a photographer and a client. It is basically a photography
contract
  that signs off rights regarding the usage of the client’s photos
10. Non-compete
  agreement
It’s easy to work in a company, learn their trade secrets, master their business model, and then resign to open a similar
firm or join a competitor. A non-compete agreement prevents an employee from competing with their former
employer for a given period.

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 NEGOTIATION
Types of Agreements:

11. Transfer
agreement
 
A transfer agreement is a legal document that parties use when transferring materials or information between them.
 
12. Memorandum of understanding (MOU)
An MOU is a written business agreement between parties declaring consensus towards a common agenda and achieving
mutual goals. It establishes a business relationship between two or more parties.
13. Teaming Agreement
A Teaming Agreement (TA) is a binding agreement between one or more organizations that are joining together to
propose a new cooperative research project

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What Is an Umbrella Agreement?

An  umbrella agreement can help business negotiators build stronger, more durable partnerships but be aware
of  certain hazards when negotiating the terms of these deals.
An umbrella agreement sets out general principles that will apply to more specific give-and-take contracts in
the future. More specifically, an umbrella agreement might include clauses that stipulate whether the parties
will share industry knowledge with one another, how they will set prices, and whether they will engage in
subcontracting and under what terms.
In particular, this type of agreement can help parties understand each other’s values and adapt to changing
conditions
An umbrella agreement allows parties to jointly innovate in response to new opportunities.
 

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What is a Concession?
Closing a great deal requires strong negotiation skills. A strong negotiator knows when to ask for more and when
not to ask. Most deals hit a partial impasse when sellers or buyers remain rigid, leaving no room for giving or taking.
When
  people harden their positions, they leave little room for compromise. Successful negotiations are achieved
when
  both parties feel that they got a fair deal. One of the best ways to negotiate successfully is to compromise
using concessions. What does concession mean? A concession refers to a deviation in an offer towards the other
party's interest, thus reducing the expected benefits. 
In a negotiation, a party must be willing to give a concession to get one in return. Concessions generally bring both
parties into the zone of potential agreement (ZOPA). This is the range within which parties can find common ground
in a negotiation. A major characteristic of a concession is the creation of value where parties engage in
compromise or work hard to find a win-win solution. Parties need to be flexible and offer concessions for them to
receive concessions. 

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Concessions in Negotiation
Concessions
in negotiations are used to bring both parties together. Either party can suggest or make concessions
to  bring the other to a common ground. Concessions work by setting the tone of the negotiation. It also alters
perceptions
  and creates certain emotions. When used well, they can help reveal information about the
counterparty, such as their resistance point, cost implications of the negotiation, or their interests. There are four
ways a party can use concessions to its advantage. A party should: 

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Concessions in Negotiation
NEGOTIATION
-Label the concession - exchanging concessions is not always an easy process. Most of the time, concessions can end

up unappreciated, and hence unreciprocated. This occurs when the other party downplays, ignores, or overlooks a
 
concession. The main motivation for not appreciating the concession arises from a need to avoid the duty to
 
reciprocate. During negotiations, it is critical to communicate the value of every concession that one makes to ensure
that the counterpart responds with a concession having equal value. One can label a concession by emphasizing the
benefits offered to the other party. It is also important to ensure proper timing. This implies not easily giving up on one's
demands. When a counterpart views the initial demands as reasonable and serious, they will be more inclined to listen
to the concessions. 
-Demand reciprocity - since a counterpart may tend to overlook a concession, it is critical to demand reciprocity.
This helps counterparts understand what one values. Failure to do so makes the counterpart settle for what they think
one is worth or what is convenient for them to offer. 

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Concessions in Negotiation
-Make
the concessions contingent - negotiations are always successful when both parties are aware of the concerns and
interests
  of each other and achieve common ground through acting in good faith. When one party is only concerned
about   its self-interests, it fails to act in good faith and does not reciprocate. To avoid this, it is critical to make all
concessions contingent. Contingent concessions entail making the other party understand that they will only get a
concession if they agree to give one in return.
This strategy communicates to the other party that a compromise can only be achieved if they are willing to reciprocate. 
-Offer concessions on an installment basis - most negotiations entail having back and forth offers before closing a deal.
Therefore, it is important to make offers on an installment basis. If a party gives away all it can in its first offer, its counterpart
will think something is being withheld regardless of the generosity exhibited.
This strategy can also help one offer a smaller concession than initially anticipated

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 NEGOTIATION
Concessions in Negotiation

When the counterpart fails to give a concession in return, one can decide to use a unilateral concession.
 
Unilateral concession entails continually making concessions. Although this strategy can help build credibility and
  some people consider it risky. Concessions relay to the counterpart that one is flexible and ready to consider
trust,
their needs.
Every concession made should be labeled and used to obtain goodwill in return.

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 NEGOTIATION
MIND MAPPING FOR NEGOTIATIONS
One of the things that comes to mind that I think is highly relevant to Mind Mapping is that the skilled

negotiator thinks in terms of options, the less-skilled negotiator thinks in terms of limitations.
One  of the kisses of death in negotiation is to be predictable , if you can use Mind Mapping you can think
in  terms of multiple paths and that is one of the things I train people in all the time.
 

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 NEGOTIATION
MIND MAPPING FOR NEGOTIATIONS

 
 

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 NEGOTIATION
MIND MAPPING FOR NEGOTIATIONS

 
 

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 NEGOTIATION
MIND MAPPING FOR NEGOTIATIONS

 
 

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 NEGOTIATION
MIND MAPPING FOR NEGOTIATIONS

 
 

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 NEGOTIATION
MIND MAPPING FOR NEGOTIATIONS

 
 

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 NEGOTIATION
MIND MAPPING FOR NEGOTIATIONS

 
 

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EXERCISES



PREPARE A NEGOTIATION
IN GROUPS OF 6 STUDENTS

to present in class:


Leader: Members of each team in a negotiation usually appoint a leader to make the final decisions during
negotiations.

Observer: The observer
pays attention to the other party's team during a negotiation, discussing their
observations with
the leader.

Relater: A relater on a negotiation team works on building relationships with members of the other team
during bargaining.

Recorder: A recorder on a negotiating team can take notes on the discussions of a negotiation meeting.

Critic: While this may sound like a negative role, having a critic on the team during negotiations can help
you ensure you understand the concessions and other negative results of an agreement.

Builder: A builder on a negotiation team creates the deal or package for a bargaining team.
They can perform financial functions during negotiations, calculating the cost of an agreement.

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