Preparation for Negotiations How to Prepare Preparation for

Preparation for Negotiations How to Prepare

Preparation for Negotiations u Introduction u Information Gathering u Methods and Sources of Information Collecting u Making a Negotiation Plan

Information Gathering u Roles of Negotiation Information u Information on Related Environmental Factors u Knowing the Opponent u Knowing Competitors u Knowing Oneself

Roles of Negotiation Information u As the basis for working out strategic plans u As a means to control the negotiation process u As the medium between the two parties

Information on Related Environmental Factors u The Political State u The legal System u Religious Beliefs u Business Conventions u Financial State u Social Customs u Infrastructure and Logistics System u Climate factor

Importance of Knowledge u Knowing the Opponent u Nature of the company – Credit status and financial status – Individuals u Knowing competitors u Knowing oneself

Making Negotiation Plans u u u u u Establishing goals Clarifying objectives Prioritizing one’s goals Three levels of goals Defining one’s interest Choosing a Strategy Setting an agenda Building one’s BATNA Choosing negotiation places Adjusting based on reality backed up by learning

Prioritizing One’s Goals u Three levels of goals – Ideal target – Minimum target – Realistic target

Defining one’s interest u u u Substantive interest Process-based interest Relationship-based interest

Choosing a Strategy u Avoidance u Competition u Accommodation u Compromise u Collaboration

Setting an agenda u List all issues to be debated u Give time frames to each issue u Arrange order for the topics

Building One’s BATNA u Best Alternative To a Negotiation Agreement

Choosing Negotiation Places u Host Court u Guest Court u Third Party’s Court

Rehearsing Roles u Discover advantages and disadvantages of the team u Determine the order of negotiation u Analyze what sticky problems might appear u Work out measures to deal with them

Adjusting based on reality backed up by learning u. A model of negotiation u Repeated cycles of – Learning – Planning