To “Negotiate”

To “Negotiate” is to arrange or settle by

conferring or discussing; or to use
information and/or power to affect human
behavior in an environment filled with
multiple issues.
Characteristics of Negotiations
 Two or more parties are involved.
 There exists a perceived conflict of interest between those
parties.
 Parties chose to negotiate because they believe they can
influence each other to get a better deal than what they would
otherwise get if action was unilateral.
 For time being, parties prefer to work together for resolution
rather than fight or seek other non-negotiated remedies.
 Parties expect to experience “give and take” during their
negotiations as each side compromises positions.
 Parties expect that negotiations will allow them to manage
both the “tangibles” and the “intangibles” contained in their
issues.
Negotiation Styles are
 Competitive: Competitive personalities are results-
driven.
 Collaborative. Collaborative negotiators are open and
honest, and understand the concerns and interests of
the other party.
 Compromising
 Avoiding
 Accommodating
Barriers to Successful Negotiations
Parties may not be open about their desired
outcomes.
Parties may not be clear in their own minds about
what they actually want to accomplish with their
proposals.
Parties may not reveal all of the truth regarding
their positions to each other.
Parties may not be willing to believe all that they
hear from each other.
Parties may not have the right negotiators.
Parties may not be ready to settle.
Traditional Negotiation Relationship
Assumptions
 For me to win, you must lose: therefore, we must
compete
 To help you is a sign of my weakness and it will hurt
me: therefore, little real communication
 My power comes from opposing, criticizing and
beating you: therefore, parties are more rigid
Traditional Negotiation Relationship
Outcomes
 One-sided victories (Win-Lose)
 Split-the-difference compromise
 Escalation into conflict
 Costs high to both parties
 Neither party fully achieves goals
 May lead to decay and decline of both parties
Aim of Negotiation
To reach a desired and durable result by including
the interests of both parties

To reach agreement efficiently and fairly using

talents of all participants to solve problems

To develop a shared sense of satisfaction from

working together successfully
Negotiating Methods
The outcome of any agreement will reflect
the extent and manner in which the parties
deal with the basic methods of negotiation.

Power
Rights
Interests
Power
Negotiation Method - Power
The ability to direct the outcome of
negotiations.

Difficult to determine who is more powerful

without a destructive power contest
Perception of other party’s power often incorrect
Other party may respond irrationally
Rights
Negotiation Method - Rights
The entitlement to a negotiating outcome.

Advocating rights is frequently costly and time

consuming
Rights assertion frequently requires intervention
by a third party
Interests
Negotiation Method - Interests
What is needed for a acceptable negotiating
outcome.

Interests usually underlie positions

Concern needs, desires, concerns, fears, values, or
matters that a party really cares about
Seeks to preserve relationships
 Power

Rights Interests
Creating a Stable Negotiating
Environment
Engage in discovery and mutual education
Create advocacy
Listen, seek to understand
Enhance enforcement
Enhance implementation
Unilateral Bargaining –
Conciliatory

Party B

Party A

Unilateral conciliatory bargaining occurs when one or more parties

informally, and possibly privately, explore alternatives for settlements
with members of another team. Those proposal are conducted with the
full knowledge of the team in the hope that the information shared will lead
to fruitful bargaining for all sides.
Bilateral Bargaining
Party B ?
!

Party A
Bilateral bargaining occurs between the teams and is generally conducted
by a spokesperson or by authorized team members. In this type of
negotiation, the history of the dispute is reviewed, issues and interests
are identified, alternatives are generated and discussed and agreements
are reached.
 External Factors
Press Influential
Individual

Party B

Party A

Demonstrations Environmental
Group
Collective Participation

Party B

Party A
What are the cultural influences in negotiations to be
aware of when dealing with representatives from:

France
Germany
Italy
UK
Influences in negotiations
 Goals (contract or relationship)
 Attitudes towards negotiation process (win-win, win-lose)
 Personal styles (formal vs. informal)
 Styles of communication (direct/indirect)
 Time sensitivity (high or low)
 Emotionalism (high or low)
 Agreement form (specific or general)
 Agreement building process (bottom up or top down)
 Negotiating team organization (unilateral or consensus)
 Risk Taking (higher or lower)
France
 Less team oriented – negotiate individual
 Debate is stimulating
 Well prepared
 Parties can make decisions
 Strategies include logical proposals, arguments and
counter proposals
 Preference for discussing philosophy
 Important meetings treated very formally
Germany
Well prepared, serious, organized
Tough positional stances
Least affected by interpersonal issues/relations
Negotiations are formal and will follow agenda
Relationships should not intrude on tasks
Low risk takers
Conflict viewed as inadequate preparation
Emotional outbursts and frequent interruptions
not appreciated
Decision making takes time
British
 Value bottom line and short term results
 Open about opinion but indirect in its expression,
emphasizing courtesy and tact and formality.
 Don’t show true emotions – often reserved and
understated
 Risk averse and cautious, favoring security and status
quo
Italy
Personal relationships important
Need to feel they can get along with counterparts
Confident, shrewd and competent
Initial negotiations can include lots of casual talks
and positioning tactics
Takes a long time to get to point
Multiple conversations at once and interruptions
common
Presentation must be organized, clear and
polished with dramatic effect for audience
Action Planning
 Identify the real problem
 Redefine the problem
 Determine the causes of the problem
 Discuss consequences of not resolving it
 Brainstorm possible solutions
 Use consensus to select a solution
 Record the agreement
Management of Negotiations
Expectations
 Reality Checking

 Objective Standards

 BATNA/WATNA
Alternative Outcomes to Reaching a
Negotiated Agreement

BATNA WATNA
Best Alternative to a Worst Alternative to a
Negotiated Negotiated Agreement
Agreement