Negotiation strategies by bhawani nandan prasad gurgaon india

1. PRINCIPLES OF
Negotiation Strategies
BHAWANI NANDAN PRASAD
MBA, IIM Calcutta & STRATFORD
UNIVERSITY USA, M.TECH. IT

2. Negotiation
Creative Negotiating, Stephen Kozicki, Adams Press, 1998
“Negotiation is the art of
reaching an agreement by
resolving differences
through creativity”

3. What is a good agreement?
A good agreement is:
 wise
satisfy both the parties' interests
are fair
are lasting.
 efficient
Cost effective,
Time conserving
 Improves Trust & Develops Relationship.

4. Why Negotiation Becomes a tough job?

5. The “Principles” of Negotiation
1. Separate the People from the Problem
Identify key issues
Then on the strategies

6. The “Principles” of Negotiation
2. Attend to the communication issues
a. Acknowledge and manage emotions
b. Avoid the blame game
c. Listen
d. Use I-messages,

7. The “Principles” of Negotiation
3. Focus on Interests, not Positions
 Positions: Simple statements about what you want.
No reasons, no subtlety, no justification. Just a
demand:
 I want the orange!
 Interests: The reasons underlying the position
—what you really want or need ?
—the answer to the question WHY.
 I need to bake a cake.
 I'm hungry I want to eat the orange.

8. The “Principles” of Negotiation
4. Generate many options & look for Options for Mutual
Gain
 Brainstorm options by listing all possibilities first,
 Evaluating options second.
 Look for ways to meet everyone's interests at the
same time.

9. The “Principles” of Negotiation
5. Find Legitimate Criteria to Guide Decisions
 What's been done before?
 What's “fair”

10. The “Principles” of Negotiation
6. Analyse the Best Alternative to a Negotiated Agreement
(BATNA)
BATNA = Walk Away Point—when you tell the other person you are
not interested in their offer because you can do better in another
way.

11. Why do you care about BATNAs?
 They tell you what you should agree to
 What you should walk away from.
 They also give you negotiating power.

12. The “Principles” of Negotiation
Work with Fair and Realistic Commitments
Is agreement
Reasonable?
Doable?
Face-saving?
Practical?

13. Handling Emotions
Emotional
Challenges
Anger/exasperation
Insult
Guilt
False flattery
Recommended
Response
Allow venting
Digest for the time being
Focus on key issues
Re-focus
Tips:
•Try to defuse with acknowledgement, empathy, patience,
impartiality.
•Consider dealing with less emotional issues first
•Don’t lose your cool (Act like a swan!).

14. Are you a Motivated Negotiator?
Enthusiasm
 Confidence
 Engaged
Recognition
 Accomplishment
 Pat on the back
Integrity
 No trickery
 Trustworthiness
Social Skills
 Enjoy people
 Interest in others
Teamwork
 Better as a team
 Self-control
Creativity
 Always looking for
ways to complete
the deal

15. A Good Negotiator Is..
Creative
Versatile
Motivated
Has the ability to
walk away

16. “Win-Win” Negotiation

17. Strategy
 Do not assume what the other party wants-explore and
test
 Remember that initial offers are generally not accepted
 Provide room to negotiate
 Do not be modest in demands. Get all demands of the
opposite party on the table before you concede anything
 Persuade the other side to make the first concession on
major issues; Making large concessions at an early
stage results in loss of position
 Make the other party work for every concession.

18. Strategy
 Grant concessions over a period of time
 Get something for every concession
 Do not be afraid to say NO.
 Keep a record of concessions made by each side.
 Put a time limit on important concessions
 Classify concessions that you can give and those you
must not give.
 Resist making concessions which are retroactive.

19. Difference between
successful negotiation
and
unsuccessful negotiation
Is
HOME WORK.

20. 29
 You cannot shake hands with a clenched fist.
Indira Gandhi
[ Clenched Fist - Woodblock by Frank Cieciorka, 1965 ]

21. THANKS
FOR
YOUR
ATTENTION
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