Negotiation Preparation & Planning

Negotiation & Conflict Management

Class 5 Part 1

John D. Blair, PhD

Georgie G. & William B. Snyder Professor in Management

Why Plan?
Critical to successful negotiations Provides the ability to set the tone and direction of the negotiation

Individuals with higher levels of planning inclinations will have more successful negotiation outcomes than those who are less preparation-inclined.

Information Needs
Negotiators should know:
Other parties needs & interests Available resources of the other party Reputation and styles of the other parties Ability and authority of other party to make agreements Strategies & tactics the other party might utilize Understanding of when the other party might walk away from the negotiations

Negotiation Game Plan

Important to be prepared for any situation competitive or cooperative
Steps to Prepare for Negotiation
Organize Thoughts Identify Ideal Outcomes Develop Contingencies & BATNA

Negotiation Game Plan continued

Identify communication elements
Tone for negotiation (e.g. apologetic, determined, concerned) Frames for describing positions (e.g. metaphors, analogies) Body language to maximize effectiveness Claims, data, objective criteria Questions Persuasion strategies Methods to ensure commitments

Intelligence Gathering
Skilled negotiator gathers intelligence:
Interests mutual & divergent Concerns mutual & divergent Emotional issues Primary claims Evidentiary support strengths & weaknesses Potential avenues around resistance Style compatibility considerations

ICE Model: Three Key PerspectiveShaping Factors

Before beginning any negotiation, the three key perspective-shaping factors (interests, concerns & emotions) must be assessed not assumed!

Concerns Interests

Emotions
7

Identifying Interests
Skilled negotiators must elicit information regarding the others interests both mutual and divergent Utilize self-disclosure to encourage openness Share a story of a previous negotiation Place interests in continuum from mutual-to-divergent When interests are mutual, cooperative or integrative negotiation is likely When interests are divergent, antagonistic, distributive forms of negotiation emerge

Identifying Concerns
All parties have concerns or worries Failure to address or identify concerns may hinder successful negotiations

Identifying Emotions
Individuals may become emotionally involved with issues or positions Emotions may be as important as rational or cognitive arguments If emotions are ignored, negotiations may fail

10

Identifying Primary Claims

Defined: Statements about interests that each negotiator is likely to make Argument development Claim outcome or position for which youre arguing Data evidence or reasoning supporting the claim Warrant general statement that indicates why the data are supportive of the claim Dissect reasoning to identify potential weaknesses and develop stronger arguments Lead with the strongest claims and ones that the other party may care about or are likely to believe

11

Argument Claim Development

Toulmins Model
Issue: ___________

Therefore Data: Since Warrant: Because Backing:

12

Claim:

Using a Logical Vocabulary

Proposition True or false statement within an argument but not alone Premise Proposition used as evidence in an argument Conclusion Proposition used as a thesis in an argument Argument A group of propositions from which one follows from another Induction Process through which premises provide some basis for the conclusion Deduction Process through which premises provide conclusive proof for the conclusion

13

Listen for Indicators

Argument indicators: should, must, ought, necessarily Premise indicators: since, because, for, as, in as much as, for the reason that, first Conclusion indicators: therefore, hence, thus, so, consequently, it follows that, one may infer, one may conclude

14

Prepare & Anticipate Counterclaims

Anticipate the possible ways in which your counterpart might respond Seek to understand
Acknowledge counterclaim Assess counterclaim to gain better understanding of their position Respond utilize other forms of substantive evidence or data Confirm agreement that youve addressed their counterclaim

15

Identify Fallacies
Fallacies of relevance occur when premises are irrelevant to the conclusion Fallacies of ambiguity occur when ambiguous, changeable wording in propositions lead to more than one meaning in an argument

16

Utilize Mind Maps

Brainstorm possible outcomes areas of disagreement Think beyond simplistic outcomes Visualize and rehearse the many possible outcomes at various negotiation choice points

17

Goals The Focus That Drives Negotiation Strategy

Determining goals is the first step in the negotiation process Negotiators should specify goals and objectives clearly The goals set have direct and indirect effects on the negotiators strategy
18

The Direct and Indirect Effects of Goals on Strategy

Direct effects
Wishes are not goals Goals are often linked to the other partys goals There are limits to what goals can be Effective goals must be concrete/specific

Indirect effects
Forging an ongoing relationship
19

Strategy versus Tactics

Strategy: The overall plan to achieve ones goals in a negotiation Tactics: Short-term, adaptive moves designed to enact or pursue broad strategies
Tactics are subordinate to strategy Tactics are driven by strategy

Planning: The action component of the strategy process; i.e. how will I 20 implement the strategy?

Approaches to Strategy
Unilateral: One that is made without active involvement of the other party Bilateral: One that considers the impact of the others strategy on ones own

21

Strategic Options
Per Dual Concerns Model, choice of strategy is reflected in the answers to two questions:
How much concern do I have in achieving my desired outcomes at stake in the negotiation? How much concern do I have for the current and future quality of the relationship with the other party?
22

The Dual Concerns Model

very

Subordination
very

Avoidance: Dont negotiate Competition: I gain, ignore relationship Collaboration: I gain, you gain, enhance relationship Accommodation: Subordination I let you win, enhance relationship
23

The Nonengagement Strategy: Avoidance

If one is able to meet ones needs without negotiating at all, it may make sense to use an avoidance strategy It simply may not be worth the time and effort to negotiate The decision to negotiate is closely related to the desirability of available alternatives
24

Active-Engagement Strategies
Competition distributive, win-lose bargaining Collaboration integrative, win-win negotiation Subordination involves an imbalance of outcomes (I lose, you win)

25

Understanding the Flow of Negotiations: Stages and Phases

How does the interaction between parties change over time? How do the interaction structures relate to inputs and outcomes over time? How do the tactics affect the development of the negotiation?
26

Understanding the Flow of Negotiations: Stages and Phases Negotiation proceeds through distinct phases or stages
Beginning phase (initiation)
Middle phase (problem solving) Ending phase (resolution)

27

Key Steps to an Ideal Negotiation Process

Preparation
What are the goals? How will I work with the other party?

Relationship building
Understanding differences and similarities Building commitment toward a mutually beneficial set of outcomes

Information gathering
Learn what you need to know about the issues
28

Key Steps to an Ideal Negotiation Process

29

Key Steps to an Ideal Negotiation Process

Information using
Assemble your case

Bidding
Each party states their opening offer Each party engages in give and take

Closing the deal

Build commitment

Implementing the agreement

30

Getting Ready to Implement the Strategy: The Planning Process

Define the issues Assemble the issues and define the bargaining mix
The bargaining mix is the combined list of issues

Define your interests

Why you want what you want

31

Getting Ready to Implement the Strategy: The Planning Process Know your limits and alternatives Set your objectives (targets) and opening bids (where to start)
Target is the outcome realistically expected Opening is the best that can be achieved

Assess constituents and the social context of the negotiation

32

The Social Context of Negotiation: Field Analysis

33

Getting Ready to Implement the Strategy: The Planning Process

Analyze the other party
Why do they want what they want? How can I present my case clearly and refute the other partys arguments?

Present the issues to the other party

34

Getting Ready to Implement the Strategy: The Planning Process Define the protocol to be followed in the negotiation
Where and when will the negotiation occur? Who will be there? What is the agenda?

35

Summary on the Planning Process

...planning is the most important activity in negotiation.

36