DRI Sharing Success Seminar Negotiation Part Two
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The first document describes competitive or distributive bargaining, which involves making high initial demands and small concessions while sharing little information. The goal is to get the best outcome for your side. The second document describes interest-based negotiation, which aims to satisfy both parties' interests by expanding the total benefits and finding solutions that meet as many needs as possible. The third document provides tips for different stages of negotiation including making small talk to build rapport, explaining your own position and interests, and asking questions to understand the other side.
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DRI Sharing Success Seminar Negotiation Part Two
- 1. Competitive • Start high/low Distributive Bargaining • Make small/grudging concessions • Demand reciprocity • Share little information • Maintain high aspirations • Make hypothetical offers you can later disown • Stress BATNA • Make multiple offers with same benefit to you
- 2. A process in which we Interest Based seek to expand the Negotiation pie of benefits available to the parties in an attempt to satisfy as many of their needs, desires, preferences and priorities as possible (their interests).
- 3. • Let’s have lunch or coffee . . . • Small talk . . . • How’s business? • Me too . . . . • I was hoping we might be able to discuss . . . . • Here’s what I bring to the table . . . • I thought it might benefit you to have . . . • Here’s my proposal
- 5. • 10 minutes total • Ask woman next to you for something you don’t believe you are entitled to – 5 minutes • Switch sides – 5 minutes • Askee – just LISTEN; do not respond
- 6. Ask Diagnostic Questions • Who • What • When • Where • Why • How
- 7. Build Trust
- 8. Any Reason Will Do • 98% compliance • 97% compliance • 60% compliance
- 10. Play to your strengths
- 11. • Reassert your suggestions – I understand Bob didn’t want to revisit the issue but I’ve got an idea that will be good for all of us – You may not have heard what I said, let me explain again • Ask Clarifying Questions – I may not have understood your proposal in all its dimensions; tell me one more time – So that are three parts to your proposal – 1) this; 2) that and 3) this other thing – is that right? • Use What Works and Merge It with your own plan – Numbers 1 and 2 are good; if we include them with my points 10 and 15, we’d be able to [do what we’re both trying to accomplish or avoid the problem we’re worried about]
- 12. Anchoring • Make the first offer • Make it aggressive • Set the bargaining range • Resist being anchored • anchors are most compelling in conditions of uncertainty • Know your BATNA • Create false anchors • Pretend you’re negotiating for someone else "Should You Make the First Offer?" by Adam D. Galinsky, Northwestern University's Kellogg Graduate School of Management..
- 13. Framing • Present Losses as Gains •Strong tendency to prefer avoiding losses over acquiring gains • competitor’s deal would be a loss because – mired in bureaucracy; can afford to fail; product not as good • Use language that emphasizes your position & frames information in your favor • fewer rather than greater – greater attention to needs; partner in place; more dedicated, motivated, faster
- 14. Frame Issue to Support Your Proposal
Hinweis der Redaktion
- fear that an aggressive first offer will annoy the other side is typically exaggerated most negotiators make first offers that are not aggressive enough a nonaggressive first offer requires small concessions or a decision to stand by the original demand one of the best predictors of negotiator satisfaction with an outcome is the number and size of the concessions extracted from an opponent by making an aggressive first offer your opponent is able to "extract" concessions from you WHY IS THIS SO?items being negotiated have both positive and negative qualities—qualities that suggest higher & lower priceshigh anchors selectively direct our attention toward an item's positive attributes; low anchors to its flaws a high list price directed real estate agents' attention to the house's positive features (such as spacious rooms or a new roof) while pushing negative features (such as a small yard or an old furnace) to the back recesses of their minds similarly, a low anchor led mechanics to focus on a car's worn belts and ailing clutch rather than its low mileage and pristine interior
- 1912 Presidential campaignUsed photo of Roosevelt without permission3 million copies printedPenalty $1/copyTelegram: planning to print 3 million copies of campaign speech. Excellent opportunity for photographers.How much are you willing to pay us to use your photograph?“Appreciate opportunity but can afford to pay $250.”