PRELUDE

• The bargaining mix is complicated with more issues

• There are many strategic relationships to manage
• Relationships are ongoing with multiple bargaining rounds
• Information is complex, uncertain, or even unavailable
• Negotioation partners come from different countries and use variety
of strategies
• Interested outside parties need effective communication
MULTIPARTY NEGOTIATION
Coordinating Negotiation Teams
• Assembling a negotioation team
• Think about topic and parties involved (technical expert, relation expert)
• Clarify individual roles and overall strategy (everyone should know what
they’re responsible for)
• Consider developing nonverbal signals to communicate silently
• Practice with team as much as possible
• Consider hiring a negotiable consultant
Handling Multiple Negotiation Partners
• Negotiate rules first
• Name all bargaining points (define and identify potential option)
• Shared a room up with shared white space
• Focus shift to a problem-solving session
• Manage coalition
Using Agents in Negotiation
• When to hire an agent
• To access specialized knowledge or expertise
• To leverage an agent’s network
• To remain emotionally detachment
• Negotiate yourself when the peronal relationship matters
• Agent dinamics
• Determine if tour presence is needed
• Be patient
• Let your agent use their network
Communicating with Constituents During
Negotiation
• Consultation
• Invite constituents
• Survey key parties
• Brainstorming the other side’s objections
• Anchoring
• Manage expectations
• Share the wors-case scenario
• Over communicate
• Provide regular updates
• Create a daily summary
• Help the other side communicate
• Coordinate joint communication
International Negotiation
• Avoid stereotyps by focusing on the individual
• Long-term relationship cannot develop from international negotiation
• Don’t pretend ti be a cultural expert
• Ask for help
• Focus on preparation
• Stay professional and focused
LONG TERM ORIENTATION
Maintaining Relationship While Negotiating
Price
• Start empathic planning
• Be transparent as you can
• Provide a rationale
• Make a clear opening offer
• Take a break when you’re emotionally drawn in
• Offer a concession
• Look for the future
• Follow up with a personal message
Managing Relationship Away From The
Table
• Recognize that trust takes time
• Build a personal relationship
• Listen without judgement
• Tips
• Tour their facility
• Invite to a business event
• Listen how they introduce their company
• Learn about their perspective
• Create psychological safety by asking for feedback
• Commit to telling the truth
• Long-term credibility is worth more than a shirt-term gain
COMPLICATE PLANNING
Making The First Offer When Negotiating
• Anchoring effect = relying heavily on an initial piece of information
offers when making decision
• Get everything on the table you want to discuss
• Making the opening offer
• Set the agenda
• Frame it as gain
• Use precision strategically
• Fokus on your value proposition not your price
Making Multiple Opening Offer
• MESO (Multiple Equivalent Simultaneous Offer)
• Preparing MESO’s
• List items that might matter for both parties
• Determine the value of each item to you
• Thinks about alternatives
Understanting Psychological Traps When
Negotiating
• NOT TO Anchoring (to be influenced
by the first thing we hear)
• NOT TO Egocentric bias (To
overestimate what we deserve, To
underestimate what the other
parTy should get)
• NOT TO Sunk Cost (to struggle with
walking away from an unprofitable
situation)
• NOT TO Confirmation bias
• Avoiding anchoring
• Refocus attention on other numbers
• Havs an aspirational goal
• Avoiding egocentric bias
• Find information unfavorable to your
side
• Involved third party
• Actively practice empathy
• Overcoming Sunk Cost
• Explore other opportunity cost
• Avoiding confirmation bias
Is it best to be nice or be aggressive when
negotiating?
• Use small talk wisely
• Ask good opening questions
• Confirm what you know about their needs
• Ask why
• Frame as problem-solving
• Show confidence on your offer
Handling tough negotiators
Gender and negotiation