Negotiation Strategies

1. Negotiation Strategies

2. Distributive Bargaining The goals of one party are usually in fundamental and direct conflict with the goals of the other party. Resources are fixed and limited, and both parties want to maximise their share of the resources.

3. MIN – MAX Strategy • What is the minimum that I can get? • What is the maximum that I can ask for? • What is the minimum I can offer? • What is the maximum that I can give away?

4. BATANA • Best alternative to a negotiated agreement • What is the best option that the party has if this negotiation does not go through? • The sooner each party is able to get an idea of the other’s BATANA, the likelihood is higher that the negotiation would get concluded.

5. The use of POWER in negotiations • POWER could mean different things to different people • People have power if they have the ability to bring about the outcomes they desire or the ability to get things done the way they want them to be done. • BATANAs are a measure of the balance of power among parties • BATANAS can change during the course of the negotiation • Sometimes the best deal in town is ‘no deal’

6. Perception of Power • How do you perceive as to what power you have? • How do you want your negotiating partner to perceive what power you have? • How does your negotiating partner actually perceive what power you have?

7. Sources of Power • Information and expertise (legitimate) • Control over resources • Positional authority • Class and status

8. Elements of BATANAs • Deadlines • Alternatives • Your own resources • Other parties’ resources • Information • Experience • Interests • Knowledge • Stamina • Assumptions

9. The Past has no Future In negotiation, looking back does not help. The negotiation if it has to work will work prospectively

10. The Power of Silence Silence can be disconcerting and uncomfortable. When used strategically, it could be of immense advantage to the negotiator

11. Changing priorities during negotiation You might want to do some hard bargaining on some peripheral issues, only so that you may like to give it up when the really important issue to you comes up for negotiation

12. The winner’s curse When your partner capitulates too easily. What’s the catch? or ‘must be a bad deal’

13. Intuition Listen to your inner voice

14. The Good Cop/Bad Cop strategy This is a group negotiation strategy where normally one or more would act tough in the negotiation with whom they are negotiating, and the other(s) would play a more soft and charming role to make the negotiators accede to whatever is being demanded of them

15. High ball/low ball approach Depending on what you are asking or what you are offering, this approach is taken. It is a ploy to start the negotiation which otherwise may not take place. In its worst form it could degenerate into a ‘bait and switch’ opportunity

16. Compromise Very often, it is thought that a compromise is an acceptable solution, that makes both negotiating parties equally happy. But what if it is a solution that makes both parties equally unhappy?

17. Negotiation traps • Plunging in • Overconfidence • Frame blindness • Lack of frame • Taking shortcuts • Going by gut feel • Group failure • Misinterpreting feedback • Not recording past negotiations • Failure in auditing one’s own decision processes