The fundamentals of negotiation

International Negotiation Techniques

Session 1: The fundamentals of negotiation

Pat Brans: pdbrans@gmail.com

Agenda

• Sources of power• The situation• Preparation• The negotation process• Negotiation outcomes• Negotiation ploys

Sources of power• Reward/punishment• Age• Hierarchy• Credentials• Expertise• Indifference• Having few needs• Popularity• Morality• Resolve

The situation

• Public versus private• Their place versus your place• Time and schedules• Physical discomfort• Animosity or goodwill• Long term relationship, or one-time negotiation• The number of people involved in the

negotiation.

Preparation

Always prepare for a negotiation !

What to prepare:• Evaluate your needs• List your priorities• Inventory your alternatives• Research the other party’s needs• List their priorities (as you understand them)• Estimate their alternatives (as you understand them)• Look for objective measures of results

Preparation

Identify:• Your target• Your minimum• Your initial offer

Think of « currency »:• Things you can easily give, and that are valuable to the

other side.• Things the other side can easily give, and that are

valuable to you.

The negotiation process

Should you make the first offer?x If you haven’t studied the market, no.

You have no idea if it’s reasonable; and it’s hard to ask for more later.

If you have studied the market, yes.By making the first offer, you anchor the reference point for the negotiation.

The negotiation process

Think about time and silence.

Time and expectations

If you have bad news, give the other side time to accept it. They will.

Remember that over time, peoples’ expectations change, including your own.

Time and expectations

Slow down the discussion when you want to lower the other side’s expectations.

Time and expectations

Speed up the discussion when you don’t want to give the other side time to change their mind.

Time and silence

Always hesitate a little before accepting an offer.

If you accept too fast, the other side will think they could have gotten a better deal.

Time and silence

Use silence to make the other side talk.

Use silence to lower the other side’s expectations and make them question the strength of the relationship.

The negotiation process

Think about deadlines and

other time pressures.

Deadlines

If they have a deadline and you don’t, use their time pressure to your advantage.

Deadlines

If you’re the one with the deadline, look for:• Flexibility in your

deadline.• Intermediate solutions.

The negotiation process

Think about objective criteria.

Objective criteria

• Is there an independent standard you can use to measure results?

• Can you compare your deal with other deals as a benchmark?

The negotiation process

Think about differences in

beliefs, values, and priorities.

Beliefs, values, and priorities

Their values are probably different from yours. Try to understand their values and see where you can find win/win.

The negotiation process

Think about procedures.

Procedures

If you get stuck on some of the substantive issues, think about the flexibility you might in other areas – for example, in procedures.

Procedures

• Sometimes procedures are the most important part of the agreement.

• For example, in the Iran Nuclear agreement, how to check for compliance is a major issue in the agreement.

• Procedures may also be negotiable.

The negotiation process

Think about negotiation

ploys.

Negotiation ploys

• Good cop / bad cop• Emotional outbursts• The higher authority• Sign now or you’ll never get the same deal• Nibbling• Splitting the difference• It’s beyond my control

Negotiation outcomes

Lose / lose

Negotiation outcomes

Win / lose

Negotiation outcomes

Win / Win

Getting to win-win

Win/win can usually be achieved if you can establish a trusting relationship where the two sides freely exchange ideas.

International Negotiation Techniques

Session 1: The fundamentals of negotiation