Time management session PPT For business communcation

1. Negotiation

2.  Negotiation: A process by which two or more people come
to agreement on how to allocate scarce resources.
◦ Parties are interdependent; neither has complete power to
choose
◦ The process is a decision, not a contest of wills

3.  Leaving money on the table (lose-lose negotiation)
 Settling for too little (winner‟s curse)
 Walking away from the table (hubris)
 Settling for terms that are worse than your current
situation (agreement bias)
Common Problems in Negotiation

4.  Absence of relevant and diagnostic feedback
◦ Search for confirming information
◦ Egocentrism
 Satisficing
◦ Versus Optimizing
 Self-reinforcement
◦ Fear of change and experimentation
Why Are People Ineffective Negotiators?

5.  Good negotiators are born, not made
 Experience is a great teacher
 Good negotiators are risk-takers
 Good negotiators rely on intuition
Myths

6. Barriers to Successful Negotiations
 Parties may not be open about their desired outcomes.
 Parties may not be clear in their own minds about what they
actually want to accomplish with their proposals.
 Parties may not reveal all of the truth regarding their positions to
each other.
 Parties may not be willing to believe all that they hear from each
other.
 Parties may not have the right negotiators.
 Parties may not be ready to settle.

7. Traditional Negotiation Relationship
 Assumptions
◦ For me to win, you must lose: therefore, we must compete
◦ To help you is a sign of my weakness and it will hurt me:
therefore, little real communication
◦ My power comes from opposing, criticizing and beating you:
therefore, parties are more rigid

8. Traditional Negotiation Relationship
 Outcomes
◦ One-sided victories (Win-Lose)
◦ Split-the-difference compromise
◦ Escalation into conflict
◦ Costs high to both parties
◦ Neither party fully achieves goals
◦ May lead to decay and decline of both parties

9. What is the Aim of Negotiations?

10. Aim of Negotiation
 To reach a desired and durable result by including the
interests of both parties
 To reach agreement efficiently and fairly using talents of
all participants to solve problems
 To develop a shared sense of satisfaction from working
together successfully

11. Types of negotiation
 Distributive (win-lose)
 Integrative (win-win)
 Benefits of win-win
Negotiation Skills

12. What have you negotiated?
 What have you successfully negotiated ?
 What factors helped enable your success?
Negotiation Skills

13. Defining The Terms
INTEREST-
BASED
NEGOTIATIO
N
POSITION
BASED
NEGOTIATIO
N

14. 4 Principles: Interest-Based Negotiations
Separate people from the
problem
Invent options for mutual gain
Focus on interests, not positions
Insist on objective criteria

15. Approaches To Negotiation

16. BATNA–
Best Alternative To Negotiated Agreement
To identify your BATNA, you should consider three kinds of alternatives:
What can you do all by yourself to pursue your interests?
- your walk away alternative.
What can you do directly to your opponent to make him respect your
interests?
- your interactive alternative.
How can you bring a third party into the situation to further your
interests?
- your third party alternative.

17.  Best Alternative To a Negotiated Agreement (BATNA)
 Reservation price
 Bargaining zone
 Aspiration level
Key Negotiation Principles

18. Planning to negotiate
 Establish your objectives
 Establish other party‟s objectives
 Frame negotiation as a joint search for a solution
 Identify areas of agreement
 Trouble shoot disagreements: bargain & seek alternative
solutions, introduce trade offs
 Agreement and close: summarise and ensure acceptance
Negotiation Skills

19.  Best Alternative To a Negotiated Agreement (BATNA)
 Reservation price
 Bargaining zone
 Aspiration level
Key Negotiation Principles

20.  Know your BATNA
◦ Do not think of your BATNA in aggregate terms
 Improve your BATNA before you negotiate
◦ “Fall in love with three” rule
 You want your counterpart to think you have a
good BATNA
BATNA Tips

21.  Best Alternative To a Negotiated Agreement
(BATNA)
 Reservation price
 Bargaining zone
 Aspiration level
Key Negotiation Principles

22.  Reservation Price is your bottom line
◦ The point at which you are indifferent to whether you achieve a negotiated
agreement or walk away. Beyond the reservation price, you prefer no
agreement.
 Reservation Price is equal to your BATNA +/- other issues that
make you want to do the deal
◦ e.g., opportunity costs, switching costs, ego, miscellaneous preferences
 Define your reservation price before negotiating
 Learn your opponents‟ reservation price, if possible
Reservation Price

23. How to influence others
 The three „Ps‟:
◦ Position (power?)
◦ Perspective (empathy)
◦ Problems (solutions)
Negotiation Skills

24. Tips
 Aim high to begin with – easier to lose ground than gain
 Give concessions „reluctantly‟
 Break down complex deals
 Language:
◦ Make proposals with open questions such as:
 “what would happen if we…?”
 “suppose we were to…”
 “what would be the result of?”
◦ Dealing with stone-walls: “what would need to happen for you to be willing to
negotiate over this?”
 Always get agreement in writing
Negotiation Skills