Negotiations - extracts from course by George J. Siedel

NegotiationsInspired by George J. Siegel

https://www.coursera.org/learn/negotiation-skills/

Preparing to NegotiationNegotiatingClosing NegotiationMajor Psychological TrapsChecklists

● How to prepare

What you’ll find here..

Should you negotiate at all?Think of this first. Define your Best Negotiation Alternative (BATNA). Think again.Then continue - or not.

Define your negotiation stylePosition-based (get a contract) or Interest-based (establish a long-term relationship), considering:

goalattitudespersonal stylecommunications etc.

Define your way to talk1.Power (fighting to each other)2.Litigation3.Arbitration*4.Mediation*5.Negotiation*6.Avoidance

* called ADR - Alternative Dispute Resolution

Should you use an Agent?In reality, many of contracts are performed via agents.Pro: preserving anonymity.Con: need to check if other side’s agent has authority.

Interests-based processesMediationNegotiation

Rights-oriented processesLitigationArbitration

Who shall make the first offer?

The other side?Pro - conventional wisdomCon - anchoringRule of thumb: let it be another side if the

price is unknownIf they pass the ball back to you - start from

information exchanging

Get to know the other sidemeet in advance, not talking about business more listen than talkprepare for cross-cultural negotiation if anyget their BATNAstart negotiation with a handshake :)know their value and beliefs (“deep culture”)

Is your contract ethical?Required by Law:

no frauduphold your fiduciary dutydon’t act in unconscionable mannerVoluntary:meet your organizational standards if anyfollow your mentor if anymeet your personal standards

Your negotiation powerstrong BATNA -> uncover to the other sideweak BATNA -> hideshould you lie if your BATNA is weak?know the other side BATNAuse / be aware of Psychological Tools / Traps

Psychological tools/trapsMystical Fixed Pie AssumptionReactive DevaluationAnchoringOverconfidenceFramingAvailability (using easily available information only)Escalation (or Competitive Arousal)ReciprocationContrast PrincipleBig Picture Perspective

Perspectives of contractobtaining a contract - the primary goal of a

business entitycontract is an agreement enforceable by lawwill my agreement be enforced?dispute resolution: litigation as BATNAfreedom of contract

Business vs Legal aspectslegally perfect contract prevents lossesbusiness goal is to create a valueneed to keep focus on not getting into

legalitiesshort-term contracts: more formallong-term contracts: tend to be more leanvisualization as a way to reduce complexity

Performing an Agreementalways better to prevent disputesuse ADR - mediation and arbitrationADR tools:

corporate pledgesscreenscontract clausesonline dispute resolution systems

What’s next?enjoy the 6-week course at Courserapractice the negotiations at the end of it - sell

(or buy) your uncle’s houseuse the negotiation techniques to make your

life easier and happier :)use the following checklists :)

Access your negotiation styleEvaluate yourself using 1..5 scale:1. What is your goal - binding contract or creating a relationship?2. What is your attitude - win/lose or win/win?3. What is your personal style - informal or formal?4. What is your communication style - direct or indirect?5. Is your sensitivity to time high or low?6. Is your emotionalism high or low?7. Do you prefer specific or general?8. Do you view negotiation as bottom up or top down?9. Do you prefer one leader making decision, or decision by consensus?10. Is your tendency towards risks high or low?

Planning negotiation: checklist❏ What is my goal? What I want to achieve?❏ What is my BATNA?❏ Will I disclose my BATNA to the other side?❏ How can I improve my BATNA?❏ What is the other side’s goal? How they would achieve that?❏ What is the others side’s BATNA?❏ How can I weaken the other side’s BATNA?❏ What issues are likely to arise during negotiations? List each, and provide:

❏ is it tradable?❏ if not - why is it important to you?❏ is it tradable for the other side?❏ if not - why it is important for the other side?

❏ Do I have a personal long-term relationship with the other side?❏ Using the list of issues - what are the ways to provide benefits for both sides?❏ What is my Reservation price?❏ What is my Most like price?❏ What is my Stretch goal?❏ Should I be the first to state the price?❏ I am negotiating as an agent? If so, what are my limits of authority?❏ Is the other side negotiating as an agent? If so, what are their limits of authority?

Closing contract: law checklist

❏ are you using a preliminary document?❏ have you reached a final agreement?❏ have both sides given up something?❏ is the agreement legal?❏ is the agreement in writing? (know Parol Evidence rule!)❏ does your written contract cover all the terms that you

negotiated? ❏ are there any implied terms that are not part of the

contract?

Web linksThe Book: Negotiating for Success: Essential Strategies and Skills by George Siedel

Harward Business Review articles:

Turning Negotiation into a Corporate Capability

Getting Past Yes: Negotiating as if Implementation Mattered

When Winning Is Everything

About....these slides - they contain only small piece of information given in the course - strongly recommend...the creator of this presentation - see me in LinkedIn.