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CHAPTER 4 Negotiation : Strategy and Planning

Overview of Chapter 4
Figure 4.1 Relationship between key steps in the planning process

Goals

Strategy

Planning

The Titles
1. GoalsThe oc!s That "rives a #egotiation Strategy $. StrategyThe Overall Plan to %chieve Ones Goals &. 'n(erstan(ing the low of #egotiation Stages an( Phases 4. Getting Rea(y to )*ple*ent the Strategy+ The Planning Process ,. Chapter S!**ary

1. Goals: The Focus That Drives a Negotiation Strategy Direct Effects of Goals on Choice of Strategy. Four as ects of ho! goals affect negotiation are i" ortant to un#erstan#: $1% &ishes are not goals' es ecially in negotiation. $(% Goals are often lin)e# to the other artys goals. $*% There are +oun#aries or li"its to !hat goals can +e. $,% Effective goals "ust +e concrete' s ecific' an# "easura+le. Direct Effects of Goals on Choice of Strategy.

(. StrategyThe -verall .lan to /chieve -nes Goals Strategy versus Tactics 0nilateral versus 1ilateral to Strategy The Dual Concern 2o#el as a 3ehicle for Descri+ing Negotiation Strategies. /lternative Situation Strategies The Nonengage"ent Strategy: /voi#ance /ctive4Engage"ent Strategies: Co" etition' Colla+oration' an# /cco""o#ation

The Dual Concern 2o#el Figure 4.2


Su#$tantial outcome im!ortant" Yes Relational Outcome m!ortant" No

Yes Collaboration Accommodation

No

Competition

Avoidance

*. 0n#erstan#ing the Flo! of Negotiation Stages an# .hases Figure 4.% Phases of #egotiation
Phase 1 Phase $
Relationship b!il(ing

Phase &
)nfor*ation gathering

Phase 4
)nfor*ation !sing

Phase ,

Phase Closing the (eal

Phase .
)*ple*entating The agree*ent

Preparation

/i((ing

5o!ever' eo le fre6uently #eviate fro" this "o#el an# that one can trac) #ifferences in their ractice accor#ing to his or her national culture.

,. Getting 7ea#y to 8" le"ent the Strategy: The .lanning .rocess 41 $1%Defining the 8ssues $(%/sse"+ling the 8ssues an# Defining the 1argaining 2i9 $*%Defining 8nterests $,%:no!ing ;i"its an# /lternatives $<%Setting Targets an# - enings $=%/ssessing Constituents an# the Social Conte9t of the Negotiation $>%/naly?ing the -ther .arty $@%.resenting 8ssues to the -ther .arty $A%&hat rotocol nee#s to 1e Follo!e# in The Negotiation.

,. Getting 7ea#y to 8" le"ent the Strategy: The .lanning .rocess 4( /efore we co**encing this (isc!ssion0 we want to note fo!r things+ &e assu"e that a single lanning rocess can +e follo!e# for +oth an #istri+utive an# an integrative rocess. There are several Bstructural C factors surroun#ing a negotiation that "ay also affect the strategi?ing an# lanning rocess. &e assu"e that negotiations !ill +e con#ucte# ri"arily one to one. Co" lete an# u 4to4#ate lanning !ill re6uire a certain #egree of shuttling +ac) an# forth +et!een ste s.

4.1 "efining the )ss!es 11 Figure 4.4 5o! 8ssues /ffect the Choice +et!een Distri+utive an# 8ntegrative Strategy

8ncreasing 3alue to 1uyer

A C

Clai*ing 2al!e

Creating 2al!e

&

8ncreasing 3alue to Seller

,.1 Defining the 8ssues 4( &hile the nu"+er of issues i" act strategy' it #oes not reclu#e the ossi+ility that single4issue negotiations can +e "a#e integrative' or that "ulti le4issue negotiations !ill re"ain #istri+utive. Single4issue negotiations can often +e "a#e integrative +y increase the nu"+er of issues. Si"ilarly' in "ulti le4issue negotiations' the o ortunity to create value "ay +e lost in co" etitive #yna"ics.

,.( /sse"+ling the 8ssues an# Defining the 1argaining 2i9 ;arge +argaining "i9es allo! "any ossi+le co" onents an# arrange"ents for settle"ent' thus increasing the li)elihoo# that a articular ac)age !ill "eet +oth si#es nee#s. /fter asse"+ling issues' the negotiator ne9t "ust rioriti?e the". .rioriti?ation inclu#es t!o ste s: Deter"ine !hich issues are "ost i" ortant an# !hich are less i" ortant. Deter"ine !hether the issues are lin)e# together or se arate.

,.* Define 8nterests /lthough #efining interests is "ore i" ortant to integrative negotiation than to #istri+utive +argaining' even #istri+utive #iscussions can +enefit fro" one or +oth arties i#entifying the )ey interests. /s)ing B!hyC 6uestions usually +ring critical values' nee#s' or rinci les that !e !ant to achieve in the negotiation to the surface. 8nterests "ay +e Su+stantive' .rocess4+ase#' or 7elationshi 4+ase#.

,., :no!ing ;i"its an# /lternatives Goo# re aration re6uires that you esta+lish t!o clear oints: your resistance point an# your alternatives. A resistance point is the lace !here you #eci#e that you shoul# a+solutely sto the negotiation rather than continue +ecause any solution +eyon# this oint is "ini"ally acce ta+le. Alternatives #efine !hether the current outco"e is +etter than another ossi+ility.

,.< Setting Targets an# - enings Target Setting 7e6uires .ositive Thin)ing a+out -nes -!n -+Dectives. Target Setting often 7e6uires Consi#ering 5o! to .ac)age Several 8ssues an# -+Dectives . Target Setting 7e6uires an 0n#erstan#ing of Tra#e4 offs an# Thro!a!ays.

4.- %ssessing Constit!ents an( the Social Conte3t of the #egotiation &hen eo le negotiate in a rofessional conte9t' there "ay+e "ore than t!o arties. &hen one has a constituent or o+servers' other issues arise' such as !ho con#uct the negotiation' !ho can artici ate in the negotiation' an# !ho has the ulti"ate o!er to ratify negotiate# agree"ents. -ne !ay to assess all the )ey arties in a negotiation is to co" lete# a Bfiel# analysisC.

,.> /naly?ing the -ther .arty The -ther 2i9 The -ther The -ther The -ther Structure The -ther The -ther artys 7esource' 8ssues' an# 1argaining artys 8nterests an# Nee#s artys Targets an# - enings artys Constituents' /uthority' an# Social artys 7e utation an# Style artys Strategy an# Tactics

4.4 Presenting )ss!es to the Other Party -ne i" ortant as ect of negotiations is to resent a case clearly an# to rovi#e a" le su orting facts a# argu"entsE another is to refute the other artys argu"ents !ith counterargu"ents. 1ecause of the +rea#th an# #iversity of issues that can +e inclu#e# in negotiations' it is not ossi+le to s ecify all the roce#ures that can +e use# to asse"+le infor"ation. There are' ho!ever' so"e goo# general gui#es that can +e use#.

,.A &hat rotocol nee#s to 1e Follo!e# in The NegotiationF / negotiator shoul# consi#er a nu"+er ele"ents of rotocol or rocess: &hat agen#a shoul# !e follo!F &here shoul# !e negotiateF &hat is the ti"e erio# of negotiationF &hat "ight +e #one if negotiation failsF 5o! !ill !e )ee trac) of !hat is agree# to F 5o! #o !e )no! !hether !e have a goo# agree"entF

<. Cha ter Su""ary .lanning is critically i" ortant actively in negotiation. /s !e note# the outset' ho!ever' negotiators fre6uently fail to lan for a variety of reasons. Effective lanning allo!s negotiators to #esign a roa# "a that !ill gui#e the" to agree"ent. &hile this "a "ay fre6uently nee# to +e "o#ifie# an# u #ate# as #iscussions !ith the other si#e rocee#' !or)ing fro" the "a is far "ore effective than atte" ting to !or) !ithout it.