Going Beyond Being Merely an Effective Negotiator Frank

Going Beyond Being Merely an Effective Negotiator Frank Jeffries

Be sure you are Solving the Right Problem You want to advance your interests You want the other side to agree and be happy about it Or as Daniele Vare said “Negotiation is the art of letting them have your way” So, on to common mistakes of negotiators

Neglect the Other Side’s Position If you are not in tune with what the other side wants you are going to be hard pressed to meet their needs It is important to see things from their point of view Framing offers in a way that they look attractive to your opponent requires understanding what they want

Let Price Bulldoze Other Interests There are usually more things on the line than money The relationship: are you going to see this person again? Social contract: behavior, changes, shared expectations Process: needs to be personable, reasonable, and fair Interests of stakeholders and constituents: who cares about the deal and has power Economics are necessary but not always sufficient to close a deal

Letting Positions Drive out Interests Issues are what we are trying to resolve Positions are where the parties stand on the issues Interests are the underlying concerns behind the position Use joint problem solving to discover the interests and meet both sets

Searching too Hard for Common Ground While generally common ground is a good thing, it is differences that create value many times Finding differences in interests opens up possibilities Risk is an area that can foster tradeoffs that are valuable to both sides

Neglecting BATNAS (Best Alternative to a Negotiated Agreement) A strong BATNA is a powerful tool Assess your and your opponent’s BATNA Cultivate your BATNA and protect it

Failing to Correct For Skewed Vision Self-serving bias: seeing you position more favorably that is realistic (think arbitration) Partisan perception: we see our side as morally superior, talented, honest and basically vilify the other side (same as groupthink) intensifying the conflict This can create a self-fulfilling prophesy (if you think they are a jerk…. )

So Let’s Finish With Some Ideas About How to do it Right Set goals Plan Develop supporting arguments Analyze the other party Choose an appropriate strategy

Set Goals involve tangible and intangible issues Goals must be specific and clearly stated Our goals are linked to the other’s goals Prioritize Make intelligent trade-offs

Set Goals have limits so be reasonable Consider four key points Target Resistance point BATNA Opening offer

Plan Define the issues for both sides Define the bargaining mix for both sides Define your interests (and theirs) Know what you want Know why you what it Make sure it is worth the work

Plan Prioritize the issues Yours and theirs Logrolling depends on this Getting what you want depends on this

Develop supporting arguments Find objective information to support your view Know what has been successful in the past Anticipate the other’s point of view/arguments Plan how to present your position in a convincing manner

Analyze the Other Party What are their: Resources, interests, needs What is their reputation and negotiation style What is their BATNA Do they have authority to make an agreement? What are their most likely strategies and tactics?

Choose an Appropriate Strategy Avoidance (lose-lose or lose-win) Competition (win-lose) Accommodation (lose-win) Compromise (lose-win) Collaboration (win-win)

Negotiation Strategy high Accommodate Concern for other’s outcomes Problem Solving Compromise Avoidance Forcing low high low Concern for my outcomes

And now a Word About Emotional Intelligence in Negotiation Think before you speak Empathize with your opponent Consider the consequences of the deal today and beyond Reputation effects are long lasting Instead of assuming, ask questions

My Final Words of Advice: Negotiate nice, but firm You are part of a supply chain. If you both don’t win, no one wins Relax, make friends, and have a good time!