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STRATEGIC NEGOTIATION TOOLS AND TACTICS




Presented by Jean H. Gagnon
jhgagnon@fmc‐law.com
+1 514 878 5888 

March 16, 2012


                                          1
1.   A few key principles of strategic negotiation:

     1.1   Accurately identify the best alternative to the negotiated agreement (the 
           “BATNA”).

     1.2   Do not dwell on the views expressed, but do try to identify the interests
           hiding behind them.

     1.3   Explore options that will make it possible to satisfy the real interests of each 
           party (avoid remaining trapped in linear negotiation).

     1.4   Distinguish between these two phases:  searching for options and making                 
           decisions. 

     1.5   Search for the best option among many (and don’t stop at the first 
           acceptable proposal).

     1.6   The agreement is not always the best option. 



                                                                                               2
2.   A few really beneficial tactics and strategies:

     2.1   Be well prepared
     2.2   Choose the most appropriate moment to negotiate (the right
           timing)
     2.3   Make sure you are communicating with the right person and 
           verify his or her level of authority before negotiation begins
     2.4   The risks of BATNA 
           2.4.1   The “anchor” effect
     2.5   Create optimistic expectations
     2.6   Ask for more than your expectations
     2.7   Prepare an agenda
     2.8   Insert a few decoys
     2.9   To make, or not to make, the first offer… That is the question




                                                                            3
2.10 Listen attentively 
      2.10.1 Listen before you speak 
      2.10.2 Listen carefully (and through to the end) 
2.11 Ask questions rather than argue 
2.12 Adapt your communications to the other negotiator’s personality type
2.13 Use silence to your advantage
2.14 Plan your concessions 
2.15 Regularly review your ultimate objectives and evaluate the 
     evolution of the negotiation toward these 
2.16 Choose the appropriate mode of of communication 
2.17 Present multiple options 
2.18 Establish realistic deadlines
2.19 Tip the “scale” in your favour 
2.20 Take a lot of notes, share them, and try to obtain instructions to 
     draft the agreement. 

                                                                            4
3.     Where to negotiate?

       3.1    In our own environment 
       3.2    In the other party’s environment
       3.3    Elsewhere



     Note: The impact of the table shape and seating plan




                                                            5
4.   Team negotiation:
     4.1    Team size

     4.2    Team composition

     4.3    A single team leader

     4.4    Role distribution 

     4.5    Team preparation

     4.6    Caucuses and the signal to call for a caucus 




                                                            6
5.   A few tactics and strategies that are less 
     desirable and quite risky:
     5.1    Good cop/Bad cop

     5.2    Splitting the difference

     5.3    The salami

     5.4    Pulling out

     5.5    Backing off

     5.6    The ultimatum

     5.7    Making it look easy

     5.8    Last minute demands

                                                   7
The preceding presentation contains examples of the kinds 
of issues companies dealing with strategic negotiation 
could face. If you are faced with one of these issues, please 
retain professional assistance as each situation is unique.
Thank you!

    Jean H. Gagnon
jhgagnon@fmc‐law.com
    +1 514 878 5888 
        LinkedIn

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Strategic Negotiation Tools and Tactics

  • 2. 1. A few key principles of strategic negotiation: 1.1 Accurately identify the best alternative to the negotiated agreement (the  “BATNA”). 1.2 Do not dwell on the views expressed, but do try to identify the interests hiding behind them. 1.3 Explore options that will make it possible to satisfy the real interests of each  party (avoid remaining trapped in linear negotiation). 1.4 Distinguish between these two phases:  searching for options and making                  decisions.  1.5 Search for the best option among many (and don’t stop at the first  acceptable proposal). 1.6 The agreement is not always the best option.  2
  • 3. 2. A few really beneficial tactics and strategies: 2.1 Be well prepared 2.2 Choose the most appropriate moment to negotiate (the right timing) 2.3 Make sure you are communicating with the right person and  verify his or her level of authority before negotiation begins 2.4 The risks of BATNA  2.4.1   The “anchor” effect 2.5 Create optimistic expectations 2.6 Ask for more than your expectations 2.7 Prepare an agenda 2.8 Insert a few decoys 2.9 To make, or not to make, the first offer… That is the question 3
  • 4. 2.10 Listen attentively  2.10.1 Listen before you speak  2.10.2 Listen carefully (and through to the end)  2.11 Ask questions rather than argue  2.12 Adapt your communications to the other negotiator’s personality type 2.13 Use silence to your advantage 2.14 Plan your concessions  2.15 Regularly review your ultimate objectives and evaluate the  evolution of the negotiation toward these  2.16 Choose the appropriate mode of of communication  2.17 Present multiple options  2.18 Establish realistic deadlines 2.19 Tip the “scale” in your favour  2.20 Take a lot of notes, share them, and try to obtain instructions to  draft the agreement.  4
  • 5. 3. Where to negotiate? 3.1 In our own environment  3.2 In the other party’s environment 3.3 Elsewhere Note: The impact of the table shape and seating plan 5
  • 6. 4. Team negotiation: 4.1    Team size 4.2    Team composition 4.3    A single team leader 4.4    Role distribution  4.5    Team preparation 4.6    Caucuses and the signal to call for a caucus  6
  • 7. 5. A few tactics and strategies that are less  desirable and quite risky: 5.1    Good cop/Bad cop 5.2    Splitting the difference 5.3    The salami 5.4    Pulling out 5.5    Backing off 5.6    The ultimatum 5.7    Making it look easy 5.8    Last minute demands 7
  • 9. Thank you! Jean H. Gagnon jhgagnon@fmc‐law.com +1 514 878 5888  LinkedIn