Debriefing- Negotiation Exercise

Three ways that something can be negotiated:

distributive, integrative, and compatible

distributive (salary/bonus)

interests are diametrically opposed to one another; one party gains the other loses

Compatible Issues

both parties want the same outcome; one wins the other wins

Integrative Issue

something is more important for one party than the other

General principles of negotiations strategies for reaching agreements:

not all issues are distributive, often there are compatible issues, and often there are integrative as well

To reach the best agreements:

don't just compromise on issues, make tradeoffs, consider several issues simultaneously

Expanding options and looking for places where interests meet

things to think about in inventing options: differences in interests can by your friends; look for different values placed on time (earlier returns for impatient parties); look for differences in risk preferences (more risk, more reward); look for different predictions of uncertain future outcomes (contingency plans)

Negotiation

If you want to change someone's mind, you have to know what is on your mind. Understand and address your counterpart's problem

Letting price bulldoze other interests

-don't focus exclusively on price
-most deals are 50% emotion and 50% economics
- develop relationships with clients

Common Ground

-the most overlooked value often comes from differences
-neglecting BANTA- know your walking away limits

How to Proceed

concentrate on: issues, key areas of importance, address the problem, not personalities, be creative, emphasize win-win

How to negotiate to the right

talk about themselves; opinions about industry and learn from them; try to get another introduction to another person

do your homework

understand the challenges the company faces, explain how you will help them solve their problems, underscore the impact you will have on your co-workers, how your involvement will have a positive impact on the organization