NEGOTIATION Definition

▪ Negotiation (NEG) is a voluntary process.

▪ Inherent to human nature.

▪ NEG Definition : Exchange of ideas with the aim to reach a reasonable solution to a problem.

▪ Types ( refers to Strategy and Tactics applied)

Distributive vs Integrative Lewicki et al, Essentials of Negotiation (Ch. 2 & 3)

Ury & Fischer & Patton. Sí… ¡de Acuerdo! Parte 1 & 2.

Interest-based

▪ NEG requires : Knowlegde ( to properly address the Topic subject to discussion ) + Experience ( to
combine reasons & emotions) + Common Sense ( to weigh alternatives with the aim to reach a
reasonable understanding, being mindful of your bargaining power) + Awareness of cultural
background & personal styles of communication of those involved in negotiation.
 NEGOTIATION THE METHOD - Steps

NEG has the following steps:

1) Preparation & Planning

2) The Meeting(s) : Offers & Counter-offers. Exchange of ideas having BATNA in mind.

Distributive or Integrative Barganing ?

ZOPA : Zone of Possible Agreement
All issues are discussed together or topics instead are discussed separately?

3) Settlement/Agreement ( if possible) or No Settlement/Agreement

4) Remarks & Conclusions

5) Agreements/understandings/solutions/settlement are written down in the appropiate paper and/ or

digital document, to enforce what has been agreed and guide further actions.
 NEGOTIATION Preparation & Planning

▪ The Problem: Definition & Frame

▪ NEG : Who are the Parties ? who are the Negotiators?

The Parties: those concerned directly with the issue or controversy under discussion.

Negotiators: those participating in the meeting(s).

Negotiators may represent themselves or instead represent someone else

(e.g. another person or a corporation). In the latter case, do they have the power
& authority to negotiate on behalf of their Party ?

▪ Identify the Bargaining Power: Knowing yourself /Knowing the other

▪ Brainstorming (ideas)

▪ Set Case Scenarios: Worst, Fair, Best Interest Positions

▪ Identify a ZONE of Possible Agreement (ZopA)

▪ What is your BATNA ? ( Best Alternative to a Negotiated Agreement)

BATNA: Course of action to be followed in case of not reaching an agreement or settlement.
Is your BATNA strong or weak ?
 NEGOTIATION Takeaways

▪ Sometimes the problem is obvious; sometimes it is not: you have to make a deeper analysis and
frame it (what is the problem?... distinguishing even between main from secondary problems).

▪ There are times when it is wise to negotiate; and times were it is not .

▪ Most issues are open to negotiation; a few are not.

▪ To reach a “reasonable solution” has different meanings ( depending on people´s background and
culture).

▪ Distinguish “ Interest of a party” from “Position of a Party” ( Ury & Fischer).

▪ Bargaining power depends on your options. The more options you have, the better ( BATNA).
 NEGOTIATION Takeaways

▪ Time management is essential. It will not help to show the other you are in a hurry.

▪ The one who negotiates should know himself/herself (capabilities, limits, personal style, skills, etc.).

▪ The one who negotiates should know very well the other party.

▪ Distinguish between non-reversible exchanges & settlements, and those that can change throughout
time.

▪ To be prepared in advance is essential. By preparing, one sets several scenarios and tactics, the same
that should be flexible enough to reflect and get adapted to the negotiation dynamic.

▪ Negotiation is built on trust. Trust is a feeling. Takes long time to deserve it. A second to lose it.
Once you lose it, it rarely comes back.

▪ Be respectul of the point of view of the other. Distinguish the person, from the problem.

▪ If a negotiator acts on behalf of someone ( e.g. Company) be aware of their capacity/power to reach
agreements. Otherwise you will lose time , and maybe money.
 NEGOTIATION Takeaways

▪ Have a clear map of your Zone of Possible Agreement ( ZopA)

▪ Distinguish between short-term and long-term gains/achievements.

▪ Roles may change throughout time. The weak may become strong and viceversa.

▪ An un-fair negotiation is rarely forgotten.

▪ Negotiation involves reasons and emotions.

▪ “Never underestimate a man, who overestimates himself” - Franklin D. Roosevelt

▪ History is relevant: “Those who cannot remember the past, are condemned to repeat it” – G. Santayana