DIARY

AUTONOMOUS GROUP LEARNING(AGL)

AGL 21 – NEGOTIATION (EUROPE)

DRAFT FOR TESTING 12.12.12

COURSE DIARY(Retained)

NAME .................................................

Copyright: RGAB 2012/1 No copies of without written permission.

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INDEX

Item Page No

1. Important note on the learning 3

2. Summary lecture - Part I 4

3. Summary lecture - Part II 15

4. Cultural challenges 21

5. Action plan for the future 24

6. Negotiation shorthand 25

7. Some ideas to think about 26

8. Local case series 27

Appendices:

A. Registration 29B. First Feedback Summary 31C. Second Feedback Summary 33D. Quiz Answer Sheets 35E. Glossary 37

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1. - IMPORTANT NOTE ON THE LEARNING

1. AGL is specially designed as an intensive basic negotiation course, for the manager with relatively little or no formal training or experience. Some parts may be challenging even for the experienced manager with some years of experience.

2. AGL creates a very special group learning environment that is new to the group members. It is a highly effective but challenging learning experience. Members should therefore try to keep an "open mind" on their reactions until the second day of the program.

3. Members can and do solve ALL the problems and answer ALL the questions, from the special materials provided and the experience of other members of the group.

4. The Organizer is not a teacher. The Organizer's job is to help members to:

a. Understand the AGL learning systemb. Use efficiently and effectively the special learning

materials and the group experiences.c. Resolve administrative problems

5. The Organizer does not usually respond directly to technical financial questions, since the learning is better when members help each other. The critical skill of the Organizer is to HELP the participants to WORK TOGETHER to resolve successfully, all questions arising. Thus by the end of the program EVERY QUESTION is resolved!

6. Since the same learning materials are used for both the two day and the three day versions of the course, the Organizer will occasionally outline differences in the timing of some parts of the work.

7. Members should not be disturbed by references to ECU since the AGL materials are used extensively in many different countries.

8. Since 1970 over 80,000 executives have successfully completed AGL programs throughout the world.

9. We hope you too will find AGL stimulating, efficient and effective for you!

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2. - SUMMARY LECTURE - PART I

11.1 COURSE OBJECTIVES

The program provides members with the opportunity to use negotiation concepts, terms, techniques and skills and become more complete managers.

The specific learning objectives are to:

a. To analyze negotiation process to achieve goals exceeding BATNA

a. To evaluate the impact of culture on negotiation.

b. To practice international negotiation communication skills.

c. To develop skills in achieving negotiation strategy.

d. To motivate further study in the future.

11.2 NEGOTIATION

The negotiation process includes: planning re-negotiation, initiating first moves, making the first moves, negotiating prices, closing business negotiation and undertaking renegotiation.

The key objective is to achieve win-win goals for both parties which establish trust for short and long term relationships.

BATNA - Best AlternaTive with No Agreement. Available alternative when negotiation fails. Close the deal or walk away to BATNA.

BATNA affects: cash, culture, deadlines, interests, knowledge, and the experience of both parties. Assess your BATNA at the outset and estimate the opposing BATNA.

Negotiation environment includes such complex factors as: instability and change, government control and policy, foreign exchange fluctuation, political and legal change, external stockholders and parties, ideological and cultural differences.

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The negotiation setting may includes: levels of conflict underlying potential negotiations, relationships before and during negotiation, desired outcomes, stockholder impacts, relative bargaining power and dependence and finally the negotiation style.

11.3 PLANNING

Negotiation begins with research and pre-negotiation planning with each party g with a different goal and hopes to achieve it. Thus there is need for clarification, comprehension and credibility, in order to create mutual values.

As negotiation continues the parties reach convergence of view with discussion, leading to concessions, counter proposals and commitment. The final stage is conclusion.

11.4 INITIATING

Making the first moved is critical, because the first impressions are difficult to change. An initial first competitive offer should meet the context of the surrounding discussion and must be defended with valid arguments.

In competitive markets a higher initial offer may be lowered. In traditional less competitive markets, offers on the high side with concessions may be more acceptable.

The initial offer should be confident and yet flexible to enable the negotiator to learn other party objectives and reformulate to meet specific needs. The initial negotiation phase, is the opportunity to create trust and exchange strategic in formation, not the time to make concessions.

In the initial phase, the buyer keeps his goals in mind and is ready to say no and refer to competition. He may later seek concessions or a better offer or may ask if the proposal can be adapted achieve his needs.

Thus is stage reflective cooperation.

11.5 PRICE NEGOTIATION

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Price determines the total revenue and profitability of the business by

considering: objective, cost, competition, customer and government regulations.

Price negotiations may follow a cost or market approach.

The cost approach computes relevant costs and adds markup to determine price. The market approach examines price setting from the customer’s and competitor’s viewpoint.

Need to highlight the business and product attributes, maintain flexibility and

differentiate from the competition. At closing reliability, reputation and financial

stability may be critical.

11.6 CROSS BORDER CULTURES

Cross cultural negotiations may involve culture emotionally based upon traditions, etiquette. It may relate to group behavior or just to the chosennegotiator parties as freely choose to behave.

Protocols involve dress and behavior deal with greetings, formalities, touching, eye contact, emotions, silence, eating, body language, and punctuality etc. Need to know the key players well and the informal cultural influences on the process.

11.7 SELECTING NEGOTIATING STYLE

Know your personal style and the style of the other party. Adjust to match, and ensure smooth negotiations.

Define the style as influenced by task or relationship orientation, which directly relates to cultural values.

11.8 PRE-NEGOTIATION PLANNING

In any negotiation the actual interface between the two parties is only one phase.

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The critical element is the research and planning for the preparatory stage, which must never be neglected.

Experienced negotiators may sometimes be over prepared but should never be

under prepared. With particular strengths and weaknesses, the party that is more committed works harder for its goals, and can always can achieve the best results. Preparation is the best negotiation investment!

Pre-negotiation planning requires defining the issues, knowing the other side

position, knowing the competition and the especially

11.9 MANAGEMENT OF CONCESSIONS

Study Exhibit C which provides practical-guidance on achieving success on concessions, in complex negotiation environments11.10 LEARN FROM CASE EXPERIENCE

DARCANGUES INTERNATIONAL:

a. Need for quickly establishing trust with a cooperative strategy.

b. Acceptance of the other party’s interests, objectives and limitations

c. Recognition of value differences.

d. Define conflict areas. e. Creative search for seven alternatives for every key issue.

f. Priority for fairness in long term relationships.

g. Identifying the constraints on each party for future working in the company with the tough CEO

h. Need for KSA in negotiation to achieve more than BATNA

i. Personal reputation and status are critical factors in implementing negotiated agreements.

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RICHMOND HOUSE:

a. To provide early critical feedback on negotiation style and process.

b. To use both objective and emotional criteria in negotiation.

c. To practice the skills for negotiating as a team.

d. To explore the ability to identify and integrate other side interests in the negotiation and agreement..

e. To (if videotaped) step outside and observe oneself, as you explore how the other side is feeling, and the effect of your behavior on the other side.

f. To be aware of non-verbal communication and mis-communication

g. To assess the impact of both nonverbal communication and miscommunication.

h. To instinctively make a creative search for seven alternatives for every key issue.

i. To give priority to fairness and long term relationships.

j. To identify the constraints of each party.

k. To develop KSA in negotiation to achieve more than BATNA

l. To value personal reputation and status as critical factors in all negotiations.

m. To avoid difficult negotiations when the stakes seem large.

n. To value many objective criteria that are neither fully consistent nor determinative.

o. Not to haggle, but to use a variety of bargaining tactics can be used.

p. Explore tactics which are effective under what circumstances, and why.

q. Many important concerns and legitimate criteria in the case are

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intangible and/or difficult to measure, unless turned into numbers.

r. Focus closely on what specific events cause parties to change their offers, and what brings them to the point of closing the deal.

s. Discuss deadlines, their effects and how to create them.

t. Compare techniques, attitudes and tactics that may produce more competition and/or animosity?

u. How does amicability correlate with optimal results?

v. BATNA? How does a party’s perception of its BATNA affect conduct in the negotiation? How should it? How can BATNAs be improved? When is it ethical to try to change the other side’s BATNA for the worse? When not? What are the ways of doing that?

w. How might the parties have prepared better?x. Even a simple negotiation process involves: anchoring; BATNA; bluffing;

closure; commitment; fairness; information exchange; interests, dovetailing; quantifying; joint gains; legitimacy; misrepresentation; objective criteria; offers, reservation price; and systems of negotiation etc.

11.11 Negotiation Analysis

a. The questions to analyze in a negotiation are:

1. What is the BATNA of each party, with no agreement?2. Who are the real Parties in the negotiation?3. What are the critical Interests of each party?

4. How to create value for both parties?5. What Barriers must be overcome to achieve

agreement?6. How can Power influence the process?

7. What are ethical things to do?

b. But rigorous negotiation analysis is necessary but not enough.

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c. Negotiation also needs: implementation strategy, ability to listen, persuasion, positive attitudes, patience and humour.

d. Negotiation is an interactive process, directly related to attitude and creativity that needs to encourages cooperative behavior from the people with whom we deal.

11.12 OVERALL

The six P’s of effective negotiation are : Parties, Process, Power, Product, Problem and Prognosis (outcome). The key objective is achieving a long term relationship of trust for mutual benefit and a “win-win” outcome. The BATNA is an alternative for a failed negotiation. So much depends upon the negotiation: environment, process and the setting, which can be managed!!.Business success in negotiation may well depend upon: knowing your product, customer and competition; effective business decision making; finding your market niche; quality products; creative diversity; finding expanding markets; network contacts; trust and honesty; control of cash, outcomes and risk; diffusing tension; customer loyalty; creativity and overall … on your

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skills of negotiation

So many things to learn … now … including Exhibit A on Protocols and deportment and Exhibit B Practical Advice and Exhibit C Managing Concessions.

EXHIBIT A - PROTOCOLS

Try hard to avoid making obvious mistakes with different nationalities:

English - definite and polite with proper protocol and etiquette.

French - expecting others to behave as if in France, conducting business, with the French language

German - protocol important. Conservative dress and posture with manner expected. Seriousness of purpose and appropriate dress.

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Swedish - formal relationships without price disputes. Expect complete professional proposals without errors and of high quality.

Italians - extremely hospitable and volatile. Make points with dramatic gestures and emotional expression.

Japanese - may spend days or weeks creating a friendly, trusting atmosphere before discussing any business at all.

Chinese - follow fixed protocol in negotiation, always preceded by small. Opposed to touching. Greeting with short bow and very brief handshake.

Indians - formal business with polite relaxed manner. Connections are the key to trust. Always request permission before entering, sitting or smoking.

Mexicans - practice negotiation with heavy emotion . Drama more important than logic. Negotiators often selected for skills in dramatic and distinguished performances.

Brazilians - negotiating process valued more than the actual result. Discussions lively, heated, eloquent, and witty. Great hospitality to establish comfortable social climate.

Russians – Tend to distrust business managers. Extremely cautious when dealing with new parties.

EXHIBIT B – PRACTICAL ADVICE

a. Risk averse negotiators are sometimes desperate to avoid risk and may take a quick first offer.

b. The target point is the point at which a negotiator would like to conclude negotiations; it is not the negotiator's bottom line;, not the first offer a negotiator quotes to his opponent; not the initial price set by the seller.

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c. Both tangible and intangibles factors can be the most powerful in any negotiation. f. Highly individualized (idiosyncratic) deals are much more common today, and they are not reserved only for a special few.

d. “Coordinate (cooperative) adjustment””, involves, making conscious changes to your approach to be more appealing to the other party; both parties making mutual adjustments to find a common process for negotiation; crafting an approach that is specifically designed to achieve success in the negotiation situation

e. Multiparty negotiations differ from two-party deliberations in so many ways; more negotiators at the table; more issues and more information introduced; environmental changes from one-on-one dialogue to small group discussion; the parties approach multiple issues simultaneously; tend to achieve lower quality agreements; increase the likelihood of achieving some agreement; and yet exchange less information and have less insight into the preferences and priorities of all the other parties at the table.

f. Reputation in negotiation is a perceptual identity; a reflective of the combination of personal characteristics; demonstrated behaviour. All of these define reputation.

g. The perceptual process involves a special order: stimulus, attention, recognition, translation, behaviour. Visibility is important as it involves centrality or criticality in negotiation network structures.

h. Hardball tactics are designed to be used primarily against powerful negotiators; to clarify ;to a distributive (zero-sum) bargaining approach and to pressure d parties to do things they would not otherwise do..

i. Frames (see glossary – twice) are important in negotiation because disputes are often nebulous and open to different interpretations. Frames do not allow

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parties to develop separate definitions of the issues; frames can not be avoided; frames do not allow negotiators to articulate just one aspect of a complex social situation.

j.. The most dominant cause of breakdowns and failures in negotiation are distortions in perception, feedback, and behaviors; it is not just meaning or cognition.

EXHIBIT C MANAGING CONCESSIONS

Plan concessions in advance, concentrating on the other party’s underlying interests.Provide sufficient margins particularly in cultures that are extremely demanding.

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Set aside a few concessions in reserve to be used when concluding the deal.Trade small concessions early on to encourage the other party to share information and to promote trust.Insist on obtaining immediate reciprocity after making a concession (future promises lose value over time).

Determine, the real value of the concessions and what other party is willing to pay forRemember that 80% of the concessions are traded in the 20% remaining time.Have the party work hard in obtaining concessions to be appreciated as well as encouraging the other party to reciprocate generously Provide justification/benefits for each concession to enhance its value.Keep a few nontangible concessions, including symbolic ones to break a deadlock or to conclude.Observe the other party's body language to detect hidden motives. Take into consideration that negotiators from different cultures concede differentlyBe aware that how you concede is just as important as what you concede.Trade concessions in fewer and fewer amounts requiring the -other party to spend more and more time and effort.Manage time efficiently by concentrating on key issues. Know the competition to resist giving away unnecessary concessions.Be aware of false concessions.Build trust; otherwise reciprocity is not adhered to.

11.13 LEARNING PATTERNS - REVIEW

Six P’s of effective negotiation:

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Parties Process PowerProduct Problem Prognosis

11.14 INSTRUCTIONS (20 minutes)

(a) Reassemble in SG

(b) Review the Summary Lecture for Part I and discuss questions arising

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(c) Get the best out of Part II of the program, complete ALL of homework tonight:

1. Study the course text book: Practical Solutions to Global Business Negotiations (Cellich & Jain) - Chapter 1 and explore the contents of the book for future study.

2. Study again the AGL Summary Lecture Part 1 and Glossary in the Diary.

3. Review HBS Article (Negotiation Analysis).

4. Very briefly review the two new cases: Quick Drying Paint and GE (handouts).

5. Review your notes for Part I of the course and list outstanding questions to be resolved in Part II

(d) Be sure to return the Workpack to the organizer now, You have all you need in the Diary.

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3. SUMMARY LECTURE - PART 2

12.1 COURSE OBJECTIVES:

The program provides members with the opportunity to use negotiation concepts, techniques and skills so that they become more complete managers.

The specific learning objectives are to:

a. To analyze negotiation process to achieve goals exceeding BATNA

e. To evaluate the impact of culture on negotiation.

f. To practice international negotiation communication skills.

g. To develop skills in achieving negotiation strategy .

h. To motivate further study in the future.

12.2 NEGOTIATION

The key objective is to achieve the goal exceeding BATNA. Helped during talks, when effective relationship negotiators focus on a variety of non-contractual issues, including:

Getting to know the other side well.Establishing a positive personal chemistry between the leadership of the companies involved. Understanding and respecting each other’s cultures, expectations, and goals. Putting mechanisms in place to foster communication after the contract is signed.Ensuring that the proposed deal is balanced and advantageous for both sides. Identifying and planning for potential obstacles to implementation

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12.3 COMMUNICATION

The exchange of messages between people to may achieve common meaning, in three forms:

a. Instrumental/goal directed communication - where the sender seeks to achieve specific effects in the receiver - most important in work. Such deliberate communication is "transmitted".

b. Expressive communication - where an emotional state (e.g. joy or anger) or a motivational state (e.g. enthusiasm or frustration) is spontaneously "emitted"

c. Incidental and often un-conscious communication where the sender "imparts" information to others without intending to.

Be prepared for a practical reality “face to face" communication, as information may transmitted as follows:

10% - in words50% - in facial expressions40% - in vocal intonation and inflection.

Thus words themselves or the "rational component", may convey only about 10%

of the communication message. 90% of each message depends on the "emotional feelings content", whether we are aware of it or not!. Communication is helped by words and feelings.

12.4 INTER-GROUP BEHAVIOR

In negotiation between groups, to survive and be effective, a group must work through differences with other groups.

Inter-group relationships are fostered by the norm of reciprocity ie. exchange of favors - like a human resource bank account. Communication can fail when a group refuses to provide favors for another.

Older more inflexible individuals and groups tend to become resistant to change. Such groups are "frozen". Frozen groups, contrast with dynamic groups that are more able to change.

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People who perceive their established positions, status, security, privileges etc. to be threatened by change will resist it more strongly.

12.5 NEGOTIATION CONCEPTS

Everything is negotiable with the tools of: time, power and information and with a "win/win" style of negotiation.

Win/lose negotiation styles do not support long term cooperation, Successful win/win negotiation lies in finding out what the other side "really" wants and showing them the way to get it while we get what we want.

Most needs can be satisfied by the way we act and behave, when the goal is mutual satisfaction (but we must avoid "nibbles" - asking for extras AFTER a deal!).

12.6 COMMUNICATION AN NEGOTIASTION SKILLS FROM A-Z

Study the ideas in Exhibit A and recognize the ones which you have already learned.

12.7 PRACTICAL THINGS NOT TO DO IN NEGOTIATION

Study the ideas in Exhibit B and recognize the ones which you have already learned.

12.8 LEARN FROM EVERY CASE EXPERIENCE

LICENCING:

a. Clarify the different roles in licensingb. Recognize the complexity of licensing and the risk of patent

loss.c. Define what the licensor must be sure to dod. Decide on the ownership of improvementse. Forecast outcomes with specific clauses and controlsf. Decide who bears foreign exchange riskg. Provide for dispute resolution with an agreed arbitratorh. Be realistic on possible outcome of litigation in Mexico or

USA

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i. Recognize the possible unequal parties in licensing.j. With no agreement back to BATNA k. Contrast of cultural values.l. Possible joint venture despite highly different objectives.m. Several other alternatives availablen. Why is tit that negotiations failo. How to ensure fulfillment of Rumanian contractsp. Meetings to agree a relationshipq. Cross cultural behaviours and endeavoursr. Nature of the win-win deals. Need to accept and structure re-negotiationt. With trust for a long term potential together

SUISSE COMPUTERS:

a. Rescope the taskb. Think long termc. Seek outside resourcesd. Invent creative optionse. Build workable packagesf. Risk of playing the wrong gameg. Need for joint problem solvingh. Require mutual commitmenti. Disclosure of needsj Trade on different prioritiesk Spread the work over two budgets.l. Rescope the work so that the most important parts get done first.m. Use off-budget resources; for example, have the consultant train the trainers.n. Pay the consultant in kind: perhaps he or she needs training space for other clients and GC computers can be used.o. See if there would be economies of scale if some of GE’s business friends or clients would hire the consultant for their computer work.p. Tie this contract into a longer service arrangement.q. Use GC as a beta-site, so the consultant can bring other potential clients to see a working system.r. Assign the rights of any software that is developed to the consultant, who is in a better position to promote it in any market.s. Give GC a rebate for such sales.t. Get external resources: the original vendor must have some responsibility in seeing this system work successfully?

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12.9OVERALL

SWOT and KSA to achieve a goal exceeding BATNA.

The six Harvard P’s of effective negotiation are : Parties, Process, Power, Product, Problem and Prognosis (outcome).

The key negotiation objective is achieving a long term relationship of trust for mutual benefit and a “win-win” outcome.

The BATNA is an alternative for a failed negotiation.

So much in negotiation will depend upon you managing: environment, process and the setting, Now you can do it …!!!

On we go together … when you have time … be sure to study section 4.0 Cultural Challenges … and you will find that you have absorbed the answer to each case instinctively after 2 days of AGL interaction … negotiation instincts … worth a million?

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EXHIBIT A - COMMUNICATION AND NEGOTIATION SKILLS A-Z

A. "ACTIVE LISTENING" is the key to good communication!

B. Use outside consultants skilfully as "organizational symbols" who "take the BLAME" for necessary changes that MUST be introduced.

C. The objective of communication is to ensure that expectations and reactions are CONGRUENT.

D. Appreciate cultural DIFFERENCES. Many messages mean different

things with different emotional consequences in different cultures!!

E. EMPATHIZE with the receiver/sender.

F. Seek continual FEEDBACK. Listen actively and accept, use and reward contributions from colleagues.

G. GO for: trustworthiness, trust, empowerment and alignment. which build commitment and promote effective comunication and delegation.

H. Seek assistance from others who may be HELPFUL prior to communicating - ignoring them may be an insult!!

I. Clarify IDEAS before communicating them.

J. Recognize PREJUDICE (sexual/racial/national/religious/age ... oneself too!) ... is everywhere ... and communicate accordingly.

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K. Sometimes we all need a little KITA to improve our efficiency (doing things right) and effectiveness (doing the right things).

L. Accept that personal needs and survival are everybody's normal first priority regardless of what they say. Look for the four "L's" : living, loving, learning and legacy.

M. Consistent MEANING - don't keep changing your message.

N. Recognize the cultural NORMS of the environment within which you communicate.

O. Examine your OBJECTIVES and expectations for each communication (facts? attitudes? feelings?)

P. PRACTICE what you preach because people judge you by your "action communication" (80%) not merely your "word communication" (20%).

Q. Recognize that failure to use "politically correct" terminology could lead to significant adverse reactions.

R. Good communication needs a "RELATIONSHIP" - to make it with a foreign speaker - make the effort to learn some of her/his language - even though you may work together in English.

S. Recognize that people are committed to change only in terms of their own personal SAFETY systems.

T. Remember that it is not only what you say but how you say it ("TONE") that determines the real effect of communication.

U. Remember that to be a successful manager and communicator it is just as necessary for you to UNDERSTAND other people's point of view, as it is for them to understand yours.

V. Seek organizational culture not by complete control or complete freedom but by the third domain of interdependent commitment expressed in meaningful mission statements that respond to the needs and VALUES of all of the stakeholders.

W. Be very creative (brain storm) in seeking "WIN-WIN" solutions, by seeking out the magic "seven" alternatives for every problem.

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X. And remember that every Napoleon theory (X) always perceives himself/herself to be a tolerant, benevolent, participative theory (Y) manager ...!!!

Y. Recognize that when a manager says she/he is "LOYAL" to the company", she/he is really saying "my personal needs are being satisfied by this organization and therefore I want it to survive".

Z. "Starters" achieve effective change but don't hesitate to replace them with "Runners" when the time comes.

EXHIBIT B - PRACTICAL THINGS NOT TO DO IN NEGOTIATION

Study the ideas in Exhibit B and recognize the ones which you have already learned after two whole days of AGL effort.

So please do not:

Confuse cost and value. Accept concessions too easily. Be the first to make concessions on key issues. Offer a large concession early in the discussions, as it encourages the other party to ask for more. Give away important concessions under time pressure. Show too much enthusiasm when accepting concessions (winners curse) Accept future promises in exchange for valuable concessions. Assume that the other party values concessions the same way as you do. Suppose that the other party has similar priorities, needs, goals, and motivation. Trade concessions without first creating value. Make concessions that affect the bottom line negatively. Claim value before creating value. Be arrogant when refusing a concession. Adopt a concession strategy that can be easily detected by the other party. Make quick decisions under time pressure.

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Give away information to the other party without reciprocity.Negotiate against yourself.Rush into concessions to satisfy the other party.

12.10 LEARNING PATTERNS – REVIEW

KSA

Knowledge Skills

Atttudes S… W… O … T

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FINAL NOTE

This ends our AGL program; one of a six part series:

AGL 1 - Finance for Non-Financial ManagersAGL 2 - Cost ControlAGL 3 - Planning and Budgetary ControlAGL 4 - Capital Investment AnalysisAGL 10 - Management of Working CapitalAGL 20 - Negotiation

We hope it has inspired you to develop your skills by practical application. You are now ready to study the whole course text book which is excellent:

Practical Solutions to Global Business Negotiations

(Cellich & Jain)

Thank you for your interest and hard work. Keep the glossary handy as a daily reference for finance and other negotiations. Do the things in this diary sections: 5. 6, 7 and 8 and study the glossary.

We hope that you have much enjoyed the AGL experience and that it motivates you to read widely in negotiation and to continue your studies in the future. We suggest The Economist (weekly) and the WSJ (Wall Street Journal) every morning - as good as an MBA!!!

Be sure to reinforce your learning with the all the extra activities (5-8) set out in the Diary, and with the LRT (Learning Recall Tape) routine, as explained by the organizer.

In the month following completion of the program. Please send us the Final Feedback Summary on day 28.

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We trust that you have found AGL to be both "efficient" (doing things right) and "effective" (doing the right things).

Thank you for being a member of the program.

RGABdrbobboland@hotmail.com www.crelearning.com

5. ACTION PLAN FOR THE FUTURE

Set out seven personal things from AGL that you will

need to remember in future negotiation experiences:

1.

2.

3.

4.

5.

6.

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6. NEGOTIATION SHORTHAND

BATNA Best alternative attainable with failed negotiation

SWOT Strengths,. Weaknesses and Opportunities

ZOPA Zone of Possible Agreement

KSA Knowledge, skills and attitudes

ZSG Zero sum game

PO - Pareto Optimum

NOTE: Please note … symbols are a shorthand for learning ...

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7. SOME IDEAS TO THINK ABOUT

WRITE SOMETHING ON:

1. How do negotiation concepts vary in different countries?

2. How reliable is a negotiation data without audit?

3. What is "creative accounting"?

4. What does a long delay in negotiation closing affect you?

5. How to judge the reliability/creativity in negotiation?

6. How relevant are FOREX and DERIVATIVES to negotiation useful hedges?

7. Where to get the current cost pricing data for your particular industry?

8. How to judge the reliability of negotiation offers with such questions as: Who did it? Why? Who for? When? What assumptions? How validated? Checked by whom? Compared with what standard? What record of reliability in the past? Related to which industrial associations, banks, credit agencies?

9. How to get the best out of The Economist on negotiation?

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10. How relevant is your culture to your personal negotiation performance?

11. How to use the INTERNET (NETSCAPE, WWW, DOW, HARVARD etc.) for further study of negotiation?

AND THEN CHECK YOUR IDEAS WITH YOUN NEGOTIATION COLLEAGUES ...

8. LOCAL CASE SERIES

Build up a record of practical negotiation cases that you have had to resolve:

1.

2.

3.

4.

5.

6.

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APPENDIX A - REGISTRATION SHEET

PART I Basic data:

AGL: No. 20 NegotiationDate and location:

Name:

Title:

Organization:

Address, telephone, fax:

PART 2 PREVIOUS BACKGROUND

Please write 1-4 lines on your relevant training and experience in the subject area of the program.

PART 3 OBJECTIVES

Please complete the attached sheet: "Learner Objective Setting".

List below three objectives in your taking the program.

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1.

2.

3.

PART 4 QUIZ RESULTS

1. Quiz___ 2. Quiz___ 3. Quiz___ 4. Quiz___ 80 20 20 80

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APPENDIX A - REGISTRATION SHEET

LEARNER OBJECTIVE SETTING

1. Briefly, what is your idea of a working knowledge of the subject area?

2. Briefly describe a situation you faced in the last six months which involved the subject area. How did it arise? What did you do? What was the result? What did you feel?

3. Can you now list (below) 20 technical words, relevant to the subject area, that you need to use frequently?

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APPENDIX B - FIRST FEEDBACK SUMMARY

1. Basic data:

AGL: No. 20 Negotiation

Date and location:

Name of member:

Title:

Organization:

Address, telephone, fax:

2. Previous background:

3. Quiz results:

1. Quiz___ 2.Quiz___ 3. Quiz___ 4. Quiz___ 80 20 20 80

4. To what extent did you achieve your personal objectives? Did anything surprise you?

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APPENDIX B - FIRST FEEDBACK SUMMARY

5. Do you have any suggestions for improving the program?

6. What other programs might be useful to your company?

7. At this time, what is your overall evaluation of the program. in terms of content, presentation, administration and usefulness?

Excel. Very Good Good Fair Poor

Content

Presentation

Administration

Usefulness

Note: Please score 1 (poor) to 5 (excellent)

8. - Other comments:

Signature ........................ date ................

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APPENDIX C - SECOND FEEDBACK SUMMARY

1. Basic data:

AGL: No. 20 Negotiation

Date and location:

Name of member:

Organization:

2. Did you complete the LRT routine exactly as scheduled the Organizer? Could you please explain your reactions and difficulties?

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APPENDIX C - SECOND FEEDBACK SUMMARY

3. For learning research, could you please indicate your reactions to the total AGL experience (circle YES or NO):

A1 Was enough guidance, briefing and helpprovided? YES NO

A2 Did the program stimulate you? YES NO

A3 Did you know the learning objectives beforeyou started? YES NO

A4 Do you think you achieved the learningobjectives? YES NO

A5 Would you choose to learn this way again? YES NO

A6 Were the materials practical and relevantto you? YES NO

B1 Were the technical difficulties and shorthanduseful in your learning? YES NO

B2 Would an experienced teacher have improvedthe learning environment? YES NO

B3 Did you find the materials too confusingat times? YES NO

B4 Were you a little embarrassed during thelearning experience? YES NO

B5 Did the constraints upset you? YES NO

B6 Did something disturb your learning? What was it? YES NO

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APPENDIX C - SECOND FEEDBACK SUMMARY

4. Have you actually used what you taught yourself in the AGL? Do you feel ready now for further training?

5. How "efficient" was the AGL learning (doing things right)? Please explain.

6. How "effective" was the AGL learning (doing the right things)? Please explain.

7. Do you have any other helpful comments?

8. Would you kindly return this final feedback summary to the organizer on the 28th day after completion of the AGL program.

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APPENDIX D - QUIZ ANSWER SHEETS

Name: ...................................................

Mark each correct answer with a clear "X"

1 a b c d 26 a b c d 51 a b c d 76 a b c d 2 a b c d 27 a b c d 52 a b c d 77 a b c d 3 a b c d 28 a b c d 53 a b c d 8 a b c d 4 a b c d 29 a b c d 54 a b c d 79 a b c d 5 a b c d 30 a b c d 55 a b c d 80 a b c d

6 a b c d 31 a b c d 56 a b c d 81 a b c d 7 a b c d 32 a b c d 57 a b c d 82 a b c d 8 a b c d 33 a b c d 58 a b c d 83 a b c d 9 a b c d 34 a b c d 59 a b c d 84 a b c d 10 a b c d 35 a b c d 60 a b c d 85 a b c d

11 a b c d 36 a b c d 61 a b c d 86 a b c d 12 a b c d 37 a b c d 62 a b c d 87 a b c d 13 a b c d 38 a b c d 63 a b c d 88 a b c d 14 a b c d 39 a b c d 64 a b c d 89 a b c d 15 a b c d 40 a b c d 65 a b c d 90 a b c d

16 a b c d 41 a b c d 66 a b c d 91 a b c d 17 a b c d 42 a b c d 67 a b c d 92 a b c d 18 a b c d 43 a b c d 68 a b c d 93 a b c d 19 a b c d 44 a b c d 69 a b c d 94 a b c d 20 a b c d 45 a b c d 70 a b c d 95 a b c d

21 a b c d 46 a b c d 71 a b c d 96 a b c d 22 a b c d 47 a b c d 71 a b c d 97 a b c d

23 a b c d 48 a b c d 72 a b c d 98 a b c d 24 a b c d 49 a b c d 73 a b c d 99 a b c d 25 a b c d 50 a b c d 74 a b c d 100 a b c d

Score: /100

Note of errors for correction later:

40

APPENDIX D - QUIZ ANSWER SHEETS

Name: ...................................................

Mark each correct answer with a clear "X"

1 a b c d 26 a b c d 51 a b c d 76 a b c d 2 a b c d 27 a b c d 52 a b c d 77 a b c d 3 a b c d 28 a b c d 53 a b c d 8 a b c d 4 a b c d 29 a b c d 54 a b c d 79 a b c d 5 a b c d 30 a b c d 55 a b c d 80 a b c d

6 a b c d 31 a b c d 56 a b c d 81 a b c d 7 a b c d 32 a b c d 57 a b c d 82 a b c d 8 a b c d 33 a b c d 58 a b c d 83 a b c d 9 a b c d 34 a b c d 59 a b c d 84 a b c d 10 a b c d 35 a b c d 60 a b c d 85 a b c d

11 a b c d 36 a b c d 61 a b c d 86 a b c d 12 a b c d 37 a b c d 62 a b c d 87 a b c d 13 a b c d 38 a b c d 63 a b c d 88 a b c d 14 a b c d 39 a b c d 64 a b c d 89 a b c d 15 a b c d 40 a b c d 65 a b c d 90 a b c d

16 a b c d 41 a b c d 66 a b c d 91 a b c d 17 a b c d 42 a b c d 67 a b c d 92 a b c d 18 a b c d 43 a b c d 68 a b c d 93 a b c d 19 a b c d 44 a b c d 69 a b c d 94 a b c d 20 a b c d 45 a b c d 70 a b c d 95 a b c d

21 a b c d 46 a b c d 71 a b c d 96 a b c d 22 a b c d 47 a b c d 71 a b c d 97 a b c d

23 a b c d 48 a b c d 72 a b c d 98 a b c d 24 a b c d 49 a b c d 73 a b c d 99 a b c d 25 a b c d 50 a b c d 74 a b c d 100 a b c d

Score: /100

Note of errors for correction later:

41

GENERAL NEGOTIATION GLOSSARY

(Includes a General Glossary and a Legal Glossary – some words twice and gives you every word you ever need to know about Negotiation!)

AccommodatingAn approach to negotiation that emphasizes empathy over assertiveness. Accommodating negotiators prize good relationships, and display concern, compassion, and understanding in a negotiation. They may negotiate in order to resolve differences quickly, and typically listen well but may be too quick to give up on their own interests when they sense that relationship is threatened. (Robert H. Mnookin, Scott R. Peppet and Andrew S. Tulumello, Beyond Winning [Belknap Press, 2004], 52)

Active ListeningA set of skills and an attitude. By asking open-ended questions, seeking clarification, driving for specificity, and then demonstrating a grasp of what the other party has said, you both learn and project empathy with your counterparts' point of view. Typical active-listening questions include, "If I understand you correctly, you need... Why is that important to you?" and "What specific concerns do you have about our proposal?" (Roger Fisher and William Ury, Getting to Yes [Penguin Books, 1991], 34)

Adjudicative ProceedingA method of dispute resolution that decides the legal rights of specific persons in order to settle or determine a dispute. Unlike mediation, adjudicative proceedings (i.e., litigation, arbitration, or mediation-arbitration) relinquish control of the legal process to a third party neutral who then determines the rights and obligations of the parties involved.

Adversarial ApproachAn approach to conflict that sees negotiation as combat; the tougher and more aggressive negotiator wins, and the more conciliatory one loses. The adversarial approach lends itself to competition between negotiators. (Robert H. Mnookin, Scott R. Peppet and Andrew S. Tulumello, Beyond Winning [Belknap Press, 2004], 169)

AdvocacyThe process of taking and working for a particular side's interests in a conflict. Lawyers engage in advocacy when they represent a client in a legal proceeding. Disputants can also engage in advocacy themselves--arguing for their own position in negotiation, mediation, or a political debate. Any attempt to persuade another side to agree to your demands is advocacy. (from http://www.colorado.edu/conflict/peace/glossary.htm)

AgentA person who acts on a principal's behalf in a negotiation. Agents - such as lawyers, sports agents, or diplomats - may have special training or be able to assert the principal's interests more effectively than the principal. (Michael L. Moffitt and Robert C. Bordone, eds., Handbook of Dispute Resolution [Program on Negotiation/Jossey-Bass, 2005], 189). Also see "principal-agent theory."

AlternativesThe range of possible things you can do away from the table without the other negotiator's agreement. (Robert H. Mnookin, Scott R. Peppet and Andrew S. Tulumello, Beyond Winning[Belknap Press, 2004], 19)

AnchoringAn attempt to establish an initial position around which negotiators will make adjustments. (Richard

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Arbitration

An adjudicative process by which a private third-party neutral renders a binding determination of an issue in dispute. (Michael L. Moffitt and Robert C. Bordone, eds., Handbook of Dispute Resolution [Program on Negotiation/Jossey-Bass, 2005], 318-19)

ArbitratorAn impartial third party with the coercive power to impose terms on the disputants. An arbitrator is not biased in favor of either party and subordinates personal preferences to some set of rules or values. Nor does a pure arbitrator have a sufficient stake in the outcome to bargain with the disputants. (Michael Watkins and Susan Rosegrant, Breakthrough International Negotiations [Jossey-Bass, 2001], 94)

Aspiration ValueOutcome to which you aspire that would serve your interests much better than your best alternative. Your aspiration value should aim high (much research has shown that negotiators with high aspirations on average do better), but also be supportable by arguments about why this value is reasonable. (Robert H. Mnookin, Scott R. Peppet and Andrew S. Tulumello, Beyond Winning [Belknap Press, 2004], 34)

AssertivenessAdvocacy of one's own needs, interests, and perspective. (Robert H. Mnookin, Scott R. Peppet and Andrew S. Tulumello, Beyond Winning [Belknap Press, 2004])

AveragingAn inter-personal bargaining tendency for resolving a group-action problem in distributive negotiation whereby the final agreement is roughly the average amount of the initial offer and any subsequent counteroffers. (Howard Raiffa, The Art and Science of Negotiation [Harvard University Press, 1982], 300-01)

AvoidingAn approach to negotiation that emphasizes neither assertiveness nor empathy. Avoiders shy away from conflict, and disengage in the face of explicit disagreement. (Robert H. Mnookin, Scott R. Peppet and Andrew S. Tulumello, Beyond Winning [Belknap Press, 2004], 52-53)

Agent: A person who acts for or in place of another individual or entity as their representative in a negotiation with a third party. An agent, sometimes referred to as a third party agent, has full or limited authority to act on the behalf of the party they represent. (read more about the 

Arbitration: A process to resolve a dispute between negotiating parties who have reached a deadlock in their negotiation. The parties in dispute are referred to a ‘third party’, which is one that is either agreed upon by the parties in dispute, or as provided by legislated law. The third party renders a judgement that is binding on the parties in dispute. Arbitration is often used in international negotiations and in collective bargaining. (read more about the 

Aspiration Base: This is a realistic view of setting the highest achievable standard in terms of goals or objectives in concluding a negotiated agreement. (read more about the

BATNABest Alternative to a Negotiated Agreement. The true measure by which you should judge any proposed agreement. It is the only standard which can protect you both from accepting terms that are too unfavorable and from rejecting terms it would be in your interest to accept. (Roger Fisher and William Ury, Getting to Yes [Penguin Books, 1991], 100-01)

Brainstorming

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A free-flowing session in which ideas for solutions are generated by both parties. Ideas should not be evaluated during the brainstorming session, and parties should not take ownership of ideas. The goal of a brainstorming session is to liberate those at the table to suggest ideas. (Robert H. Mnookin, Scott R. Peppet and Andrew S. Tulumello, Beyond Winning [Belknap Press, 2004], 37-38)

BATNA: An acronym described by Roger Fisher and William Ury which means Best Alternative to a Negotiated Agreement. It is the alternative action that will be taken should your proposed agreement with another party result in an unsatisfactory agreement or when an agreement fails to materialize. If the potential results of your current negotiation only offers a value that is less than your BATNA, there is no point in proceeding with the negotiation, and one should use their best available alternative option instead. Prior to the start of negotiations, each party should have ascertained their own individual BATNA. (read more about the 

Bargaining: A form of distributive negotiation. Bargaining is a simple form of negotiation process that is both competitive and positional. Bargaining predominates in one-time negotiations and often revolves around a single issue – usually price. One party usually attempts to gain advantage over another to obtain the best possible agreement. (read more about the 

Bargaining Zone: Is the range or area in which an agreement is satisfactory to both parties involved in the negotiation. The bargaining zone is essentially the overlap area between walk away positions in a negotiation. See also "Zopa" (read more about the

Circle Of ValueAn approach used to find creative ways to satisfy as many shared and differing interests as possible. The approach is characterized by exploring options without commitments (or threats), using interests and standards of legitimacy to explore ways to create and distribute value, and the parties' avoiding becoming a voice of authority. Also see "Problem-solving approach." (Bruce Patton, Building Relationships and the Bottom Line: The Circle of Value Approach to Negotiation[Harvard University Press, 2004], 4-5)

CoalitionStructures that become possible when three or more parties negotiate, and parties ally together to exploit or buy off each other. Coalition dynamics can arise across the table (between parties in a dispute) or behind the table (among individuals on one side or the other). (David A. Lax, James K. Sebenius)

CommitmentAn agreement, demand, offer, or promise by one or more parties, and any formalization of that agreement. Commitment is commonly signaled by words such as, ÒI will offer,Ó I demand,Ó ÒWe agree,Ó or ÒI promise not toÉÓ Commitments can occur at any point in a negotiation and encompass anything from a minor procedural point (for example, a shared understanding of an agenda) to final and complete agreement, and anything in between (agreement to meet again; agreement on some terms, but not all). (Michael L. Moffitt and Robert C. Bordone, eds., Handbook of Dispute Resolution [Program on Negotiation/Jossey-Bass, 2005], 284)

CommunicationThe process by which parties discuss and deal with the elements of a negotiation. (Michael L. Moffitt and Robert C. Bordone, eds., Handbook of Dispute Resolution [Program on Negotiation/Jossey-Bass, 2005], 284)

Competition

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An approach to negotiation that emphasizes assertiveness over empathy. Competitive negotiators have winning as a goal, and enjoy feeling purposeful and in control. They also may seek to control the agenda and frame the issues in a negotiation, perhaps resorting to intimidation or bullying to get the biggest slice of the pie. (Robert H. Mnookin, Scott R. Peppet and Andrew S. Tulumello, Beyond Winning [Belknap Press, 2004], 51)

ConcessionsThe things one side gives up in order to deescalate or resolve a conflict. They may simply be points in an argument, a reduction in demands, or a softening of one side's position. (from http://www.colorado.edu/conflict/peace/glossary.htm

ConciliationEfforts by a third party to improve the relationship between two or more disputants. It may be done as a part of mediation, or independently. Generally, the third party will work with the disputants to correct misunderstandings, reduce fear and distrust, and generally improve communication between the parties in conflict. Sometimes this alone will result in dispute settlement; at other times, it paves the way for a later mediation process. (from http://www.colorado.edu/conflict/peace/glossary.htm)

Conflict ManagementThe long-term management of intractable conflicts and the people involved in them so that they do not escalate out of control and become violent. (from http://www.colorado.edu/conflict/peace/glossary.htm)

Conflict ResolutionThe process of resolving a dispute or a conflict permanently, by providing each sides' needs, and adequately addressing their interests so that they are satisfied with the outcome. (from http://www.colorado.edu/conflict/peace/glossary.htm

Conflict TransformationA change (usually an improvement) in the nature of a conflict, a de-escalation or a reconciliation between people or groups. The concept of conflict transformation reflects the notion that conflicts go on for long periods of time, changing the nature of the relationships between the people involved, and themselves changing as people's response to the situation develops over time. (from http://www.colorado.edu/conflict/peace/glossary.htm)

ConsensusAn agreement among all participating stakeholders. (Lawrence E. Susskind, Sarah McKearnan and Jennifer Thomas-Larmer, The Consensus Building Handbook [Sage Publications, 1999], 327)

Consensus Building A process involving a good-faith effort to meet the interests of all stakeholders seeking unanimous agreement. (Lawrence E. Susskind, Sarah McKearnan and Jennifer Thomas-Larmer, The Consensus Building Handbook, [Sage Publications, 1999], 6)

Contingency ContractA provision in an agreement that leaves specific elements of the deal unresolved until a particular source of uncertainty is resolved in the future. Such provisions allow both sides in the negotiation to ÒbetÓ on their differing beliefs regarding the probability of a future event. (Deepak Malhotra and Max Bazerman, Negotiation Genius [Bantam, 2007], 305)

Coalitions: A temporary union between two or more individuals or groups for a common aim or goal. A relatively common practice utilized in multi party negotiations, it is used to gain advantage in the negotiation process. (read more about the 

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Collective Bargaining: A negotiation process that occurs between employers (or their representatives) and the representatives of a union to negotiate issues that consists of wages, hours of work and other conditions of employment. Normally results in a written contract that is defined by specific time duration – ‘life of the contract’. (read more about the 

Common Ground: This term refers to the area of agreement or a basis for an understanding, that is mutually agreed upon by all parties to a negotiation. (read more about the 

Concession Strategy: Your concession strategy is a plan of the goals / positions and sometimes the underlying interests that you will be trading with the other party. Before you enter the negotiations, at the very least you should have clarity on your and the other party's goals, and an sequence of which goals you want to trade or exchange. Concession strategies vary in detail. 'Concession Strategy' is more accurately called the 'Trading Plan'. (read more about the 

Constituent: A constituent is someone or a group on the same side of the negotiating party but who exerts an independent influence on the outcome through the principal negotiator, or to whom the principal negotiator is accountable. For example, a union negotiator must have an agreement voted upon by the union members (constituents) before it can be ratified as an agreement. (read more about the 

Counter Purchase: An arrangement where one company agrees to sell products to a foreign purchaser for cash, but also simultaneously agrees to purchase specified products or services from the foreign partner. Also known as parallel bartering and is the most commonly used form in a countertrade agreement in international business interactions. (read more about the 

Counter Trade Agreement: An international trade arrangement with a foreign business partner. A barter system whereby the parties agree to exchange, or purchase (buy back) for resale, goods or services in exchange for another type of goods or services. Goods or services exchanged may be used in the primary product or service being sold. (read more about the 

Counterparty: In a negotiation, a counterparty (counterparties – plural) is the other representatives(s) of the other negotiation party(s) with whom one is negotiating a potential agreement or contract. (read more about the 

Dance Of ConcessionsSee Òpositional-bargaining approachÓ.

Deal DesignAn approach to negotiation that goes beyond tactics and takes into account sources of economic and noneconomic value. (David A. Lax and James K. Sebenius, 3-D Negotiation [Harvard Business School Press, 2006], 2)

Difficult ConversationA framework for describing how to apply interest-based negotiation techniques to conversations and dilemmas in daily life. According to this framework, underlying every difficult conversation are actually three deeper conversations. (Douglas Stone, Bruce Patton and Sheila Heen, Difficult Conversations [Viking/Penguin, 1999], 7). Also see Òthree conversationsÓ.

Distributive NegotiationA type of negotiation in which the parties compete over the distribution of a fixed pool of value. Here, any gain by one party represents a loss to the other. Also known as a zero-sum negotiation or win-lose negotiation. (Richard Luecke, Harvard Business Essentials: Negotiation [Harvard Business Press, 2003], 2-3)

Dovetailing DifferencesA term that refers to identifying differences in interests or priorities among the parties in a negotiation, and making strategic decisions based on these differences in order to create value. (David A. Lax and James K. Sebenius, 3-D Negotiation [Harvard Business School Press, 2006], 125)

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Debt Negotiation: A negotiation process where one party negotiates the amount (debt) and other any other applicable terms of a loan such as arrears, liability, or balance due which is owed to another party. (read more about the 

Distributive Negotiation: A distributive negotiation type or process that normally entails a single issue to be negotiated. The single issue often involves price and frequently relates to the bargaining process. Also referred to as ‘Win – Lose’, or ‘Fixed – Pie’ negotiation because one party generally gains at the expense of another party. 'Win - Win' negotiation is conversely often referred to as Integrative Negotiation. (read more about the 

EmpathyDemonstrating an understanding of the other sideÕs needs, interests, and perspective, without necessarily agreeing.

Empathy LoopA technique to demonstrate understanding and empathy with another party. The empathy loop has three steps: (1) Inquire about a subject or issue, (2) the other side responds, and (3) you demonstrate your understanding of the response and test or check that understanding with the other person. In other words, you loop your understanding of the other sideÕs perspective back to them. (Robert H. Mnookin, Scott R. Peppet and Andrew S. Tulumello, Beyond Winning [Belknap Press, 2004], 63)

FacilitatorA professional trained to help parties negotiate productively. The role of a facilitator may vary, but in most cases they are responsible for keeping the conversation on track and communication open. (Lawrence E. Susskind and Jeffrey L. Cruikshank, Breaking RobertÕs Rules [Oxford University Press, USA, 2006], 27)

Feelings ConversationThe part of a Òdifficult conversationÓ that asks and answers questions regarding feelings and emotions. (Douglas Stone, Bruce Patton, Sheila Heen, Difficult Conversations [Viking/Penguin, 1999 ], 7)

FrameThe story or narrative each bargainer tells herself about the negotiation. Your frame in a negotiation reveals how you understand what you and the other bargainer are negotiating and what you think the task ahead is. (Robert H. Mnookin, Scott R. Peppet and Andrew S. Tulumello, Beyond Winning [Belknap Press, 2004], 207)

Facilitator: This is usually a mutually agreed upon neutral third party to lead a complex meeting of two or more parties involved in a negotiation. Often employed in ‘multi party’ negotiations. Their purpose is to organize, aid, and offer assistance in helping the negotiating parties find their own solutions on the issues under discussion. (read more about the 

Framing: A means to process and organise information. A frame provides a perspective of the problems or issues for a decision maker. One can use a frame to understand the importance of facts or issues in relation to each other. One can use this understanding of the facts or issues to then determine possible outcomes and consider contingency actions to solve a problem. Using a framework can allow you to consider all potential gains and losses and available options for any situation. (read more about the 

Haggling: A form of distributive negotiation. Haggling means to negotiate, argue, or barter about the terms of a business transaction, usually focussing on the purchase or selling price of a product or service. (read more about the 

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Hostage Negotiation: A negotiation conducted between law enforcement agencies, diplomatic or other government representatives for the release of a person(s) held hostage against their will by criminal, terrorist or other elements. (read more about the

IdentityThe way people see themselves Ð the groups they feel a part of, the significant aspects of themselves that they use to describe themselves to others. Some theorists distinguish between collective identity, social identity, and personal identity. However, all related in one way or another to a description of who one is, and how one fits into his social groups and society overall. (from ttp://www.colorado.edu/conflict/peace/glossary.htm)

Identity ConversationThe part of a Òdifficult conversationÓ that we have with ourselves about what a problematic situation means to us. This conversation is an internal debate about who we are and how we see ourselves. (Douglas Stone, Bruce Patton and Sheila Heen, Difficult Conversations [Viking/Penguin, 1999], 8,14)

Information AsymmetryA situation in which one party has more information than the other. (Richard Luecke, Harvard Business Essentials: Negotiation [Harvard Business Press, 2003], 128)

Integrative NegotiationNegotiations in which there is a potential for the partiesÕ interests to be integrated in ways that create joint value or enlarge the pie. Integrative negotiation is possible when the parties have some shared interests or opportunities to realize mutual gains through trades across multiple issues. (Michael Watkins and Susan Rosegrant, Breakthrough International Negotiations [Jossey-Bass, 2001], 31)

Interest-based NegotiationSee Òproblem-solving approachÓ.

InterestsA partyÕs basic needs, wants, and motivations that are potentially at stake in a negotiation. The measure of success in a negotiation is how well your interests are met. (David A. Lax and James K. Sebenius, 3-D Negotiation [Harvard Business School Press, 2006], 69)

Initial Public Offering (IPO): A companys first sale of stock to the public. The IPO is usually tendered, but not always, by those of young, small companies attempting to locate equity capital and a public market for their stock. An IPO may present considerable risk but also has the potential of significant profits for investors. Investment companies (closed end funds) generally include underwriting fees which represent a load which is then passed onto buyers. (read more about the 

Integrative Framework : A means of negotiation decision making to conceptualise the actions, contingencies of all possible outcomes, options and scenarios. Applied to integrative negotiations with the intention of incorporating the goals and aims of all the negotiating parties to create maximum value through collaborative negotiation. (read more about the 

Integrative Negotiation: Integrative negotiation is often referred to as 'win-win' and typically entails two or more issues to be negotiated. It often involves an agreement process that better integrates the aims and goals of all the involved negotiating parties through creative and collaborative problem solving. Relationship is usually more important, with more complex issues being negotiated than with Distributive Negotiation. (read more about the 

Interests: Interests are considered to be the motivating factor(s) and underlying reasons behind the ‘position’ adopted by a negotiating party. They often entail some combination of economic, security, recognition, and control issues, or the desires, concerns, aims or goals of a negotiating party in a negotiation process.

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Internal Negotiation: A process that occurs between two or more members or colleagues of the same company, organization or constituency. Colleagues need to negotiation internally, most especially when preparing for an external client, supplier, government, regulatory body or other negotiation. The word 'preparation' is often used interchangably with the phrase 'internal negotiation'. The different reward structures, motivations and phsychology play a major role in ensuring that internal negotiations are often as challenging as external negotiations. (read more about the 

Joint Venture Agreement: A contractual agreement between 2 or more business partners to assume a common business strategy on a project. All partners generally agree to share the profits and losses through their common shareholdings. (read more about the 

Ladder Of InferenceA model that describes how individuals reach conclusions and make decisions based on facts. The model states that individuals move from observable data and experiences to selected Òdata,Ó added meanings, assumptions from those selected data and meanings, conclusions that are drawn, beliefs from those conclusions, and actions based on those beliefs. (Peter M. Senge, Art Kleiner, Charlotte Roberts and Bryan J. Smith, The Fifth Discipline Fieldbook [Currency, Doubleday, 1994])

LegitimacyA feeling of being treated fairly in a negotiation. Often an interest in legitimacy and feeling fairly treated is the main driver in a dispute. However, parties with differing views on what is fair may fail to realize that beneath their conflicting positions is the same underlying interest. For example, in the Israeli-Palestinian conflict, the perceived legitimacy of where the border is drawn between Israel and a Palestinian state is at least as important as how many acres are on each side. (Michael L. Moffitt and Robert C. Bordone, eds., andbook of Dispute Resolution [Program on Negotiation/Jossey-Bass, 2005], 281-282)

LitigationA formalized legal process to resolve a dispute through legal action in the form of a lawsuit. It often entails a contractual issue. It is the act of either bringing or challenging a lawsuit. (from www.negotiations.com/definition)

LogrollingThe act of trading across issues in a negotiation. Logrolling requires that a negotiator knows his or her own priorities, but also the priorities of the other side. If one side values something more than the other, they should be given it in exchange for reciprocity on issues that are a higher priority to their opponent. (Deepak Malhotra and Max Bazerman, Negotiation Genius [Bantam, 2007], 61)

Litigation: A formalised legal process to resolve a dispute through legal action in the form of a lawsuit. It often entails a contractual issue. It is the act of either bringing or challenging a lawsuit. (read more about the 

Lose-Lose Negotiation: A negotiation result where all parties to a negotiation leave resources or gold on the table at the conclusion of a negotiation and fail to recognize or exploit more creative options that would lead to a ‘win-win’ negotiated outcome. A term also used in ‘Game Theory’ and Economics. (read more about the 

Lose-Win Negotiation: This term refers to a distributive negotiation whereby one party’s gain is another party’s loss. Both parties are competing to get the most value from the negotiation. Also called the ‘fixed-pie’ scenario in that there is only a limited amount to be distributed. A term also used in ‘Game Theory’ and Economics. (Also known as Win - Lose Negotiation). (read more about the 

Mediation

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A negotiation between two or more parties facilitated by an agreed-upon third party. Skilled third-party mediators can lower the emotional temperature in a negotiation, foster more effective communication, help uncover less obvious interests, offer face-saving possibilities for movement, and suggest solutions that the parties might have overlooked. (David A. Lax and James K. Sebenius, 3-D Negotiation [Harvard Business School Press, 2006], 108-109)

MediatorAn impartial, mutually acceptable third party whose goal is to help conflicted parties resolve their dispute. Mediators lack the power to coerce or bargain, but they can use facilitative power to influence disputants. (Michael Watkins and Susan Rosegrant, Breakthrough International Negotiations [Jossey-Bass, 2001], 93)

Meeting FacilitationThe impartial management of meetings designed to enable participants to focus on substantive issues and goals. (Lawrence E. Susskind, Sarah McKearnan and Jennifer Thomas-Larmer, The Consensus Building Handbook [Sage Publications, 1999], 207)

Moral HazardA problem created when a contract shifts risk from one party to another party and information asymmetries permit the non-riskbearer to behave adversely under the contract without detection or consequence. (Robert H. Mnookin, Scott R. Peppet and Andrew S. Tulumello, Beyond Winning [Belknap Press, 2004], 26)

Multi-track DiplomacyThe idea that international exchanges can take many forms beyond official negotiations between diplomats. Examples of multi-track diplomacy include official and unofficial conflict resolution efforts, citizen and scientific exchanges, international business negotiations, international cultural and athletic activities and other international contacts and cooperative efforts. (from http://www.colorado.edu/conflict/peace/glossary.htm)

Majority Rule: A concept often employed in ‘Group’ or ‘Multi Party’ negotiations to achieve consensus or agreement. As the term implies, a decision or agreement is reached after having been voted upon and decided in favour by a majority of the parties present at the negotiating table (read more about the 

Mediation: Mediation usually consists of a negotiation process that employs a ‘mutually agreed’ upon third party to settle a dispute between negotiating parties to find a compatible agreement to resolve disputes. (read more about the 

Merger and Acquisition Negotiation: A negotiation process conducted for the merger or joining of two companies into a single business entity, or the outright purchase of a company by another company. (read more about the 

Multi Party Negotiation: A negotiation that involves more than two negotiating parties in a negotiation. (read more about the 

Multiple Offers: A technique sometimes employed to offset the possibility of anchoring in an integrative negotiation. Multiple offers are two or more offers or proposals of relatively equal value that are presented simultaneously to invite greater discussion of the issues under negotiation. (read more about the 

Negotiation SkillsBack-and-forth communication designed to reach an agreement between two or more parties with some interests that are shared and others that may conflict or simply be different. Negotiation is an intrinsic part of any kind of joint action, problem solving, and dispute resolution, and may be verbal, nonverbal, explicit, implicit, direct, or through intermediaries. (Michael L. Moffitt and Robert

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C. Bordone, eds., Handbook of Dispute Resolution [Program on Negotiation/Jossey-Bass, 2005], 279)

Neutral Evaluation / Early Neutral Evaluation (ENE)A process in which a third party neutral examines the evidence in what is usually a lawsuit and listens to the disputants' positions, then gives the parties his or her evaluation on the strength of their cases and the likely outcome in court.

Negotiation: An interactive process between two or more parties seeking to find common ground on an issue or issues of mutual interest or dispute where the involved parties seek to make or find a mutually acceptable agreement that will be honoured by all the parties concerned. (read more about the 

Negotiation Agenda: A formal agreed upon list of goals to be achieved or items to be discussed in a particular order during a meeting or negotiation. Agendas can be formal and obvious, or informal and subtle in negotiations. A negotiation agenda can be used to control the negotiation meeting. (read more about the 

Negotiation Anchoring: Anchoring is an attempt to establish a reference point (anchor) around which a negotiation will revolve and will often use this reference point to make negotiation adjustments. Anchoring often occurs when the first offer is presented at the beginning of a negotiation. (read more about the 

Negotiation Concessions: Negotiation Concessions are also sometimes referred to as ‘Trade-Offs’ where one or more parties to a negotiation engage in conceding, yielding, or compromising on issues under negotiation and do so either willingly or unwillingly. Negotiation Concessions often include 'log rolling'. (read more about the 

Negotiation Game: Many negotiation training courses make use of negotiation games in order to teach their delegates useful principles of negotiation, psychology or influence in a fun and interactive environment. Some games are played between pairs, whilst others involve a room full of people. The purpose of most negotiation games is to win or avoid losing. Most negotiation games leave the decision of what 'winning' or 'losing' means to the players. Negotiation role play exercises should not be confused with negotiation games. (read more about the 

Negotiation Logrolling: A negotiation exchange that involves making negotiation concessions or the ‘trading-off’ of issues so as to maximise on each sides' value. So you will offer the other side something that they value more than you, in exchange for gaining something from them that you value more than they do. (Also: Log Rolling) (read more about the 

Negotiation Meeting:  Negotiation meetings are typically where most of the deal is negotiated, with most negotiation meetings being face to face. So the proper planning and effective running of negotiating meetings can make or break a deal. The more complexity involved, the more important getting the negotiation meeting planned correctly becomes. (read more about the 

Negotiation Skills: Negotiation Skills are required to negotiate effective deals across a variety of contexts; including different industries, products and services. Negotiation Skills are learnable, 'born negotiators' are a myth. Effective negotiation requires a variety of skills drawn from different disciplines. Negotiating Skills include: communication, persuasion and influence, planning, strategising, tactics, process and systems, teamwork and others. Since negotiation requires much face to face interaction, Negotiation Skills cannot be learned from a book alone. The betterN egotiation Skills training programs involve a great deal of role plays and feedback discussions. (read more about the

Negotiation Strategy: A pre-determined approach or prepared plan of action to achieve a specific goal or objective to potentially find and make an agreement or contract in a negotiation with another party or parties. (See Negotiation Tactics). (read more about the 

Negotiation Styles: The most popular way to divide the typical negotiation styles or approaches are: Competing (or Aggressive), Collaborating (or Cooperative), Avoiding, Compromise, Accommodating (Conceding). Most negotiators have one or two preferred negotiation styles. Ideal is to be able to choose to apply the most appropriate negotiation style to each type of negotiation,

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and to be able to switch negotiating style depending on who you are negotiating with and other important elements of your negotiation context.  (read more about the 

Negotiation Tactics:  Negotiation tactics are the detailed methods employed by negotiators to gain an advantage over other parties. Tactics are often deceptive and manipulative and are used to fulfil one party's goals and objectives - often to the detriment of the other negotiation parties. This makes most tactics in use today 'win-lose' by nature. We would like to urge negotiators to only use ethical tactics. (read more about the 

OptionsA possible agreement or pieces of a potential agreement upon which negotiators might possibly agree. Options can include substantive terms and conditions, procedures, contingencies, even deliberate omissions or ambiguities Ð anything parties might agree on that might help to satisfy their respective interests. (Michael L. Moffitt and Robert C. Bordone, eds., Handbook of Dispute Resolution [Program on Negotiation/Jossey-Bass, 2005], 283)

PeacebuildingThe process of restoring normal relations between people. It requires the reconciliation of differences, apology and forgiveness of past harm, and the establishment of a cooperative relationship between groups, replacing the adversarial or competitive relationship that used to exist. (from http://www.colorado.edu/conflict/peace/glossary.htm)

PositionA proposed outcome that represents one way among many that issues might be resolved and interests met. Explicit demands made during a negotiation often represent a partyÕs position, although the underlying interest may be broader and quite different. (Michael L. Moffitt and Robert C. Bordone, eds., Handbook of Dispute Resolution [Program on Negotiation/Jossey-Bass, 2005], 280)

Positional BargainingAn approach to negotiation that frames negotiation as an adversarial, zero-sum exercise focused on claiming Ð rather than creating Ð value. Typically, one party will stake out a high (or low) opening position (demand or offer) and the other a correspondingly low (or high) one. Then a series of (usually reciprocal) concessions are made until an agreement is reached somewhere in the middle of the opening positions, or no agreement is reached at all. (Bruce Patton, Building Relationships and the Bottom Line: The Circle of Value Approach to Negotiation [Harvard University Press, 2004], 288)

Principal-agent TheoryThree ways in which agents may differ from their principals. First, the agents may have different preferences from their principal, such as willingness to work. Second, agents may have different incentives from the principal. Agents may have a different stake in the outcome or may receive different rewards than the principal. Third, agents may have information that is unavailable to the principal, or vice versa. These types of divergences may give rise to problems relating to monitoring, incentives, coordination, and strategy. (Michael L. Moffitt and Robert C. Bordone, eds., Handbook of Dispute Resolution [Program on Negotiation/Jossey-Bass, 2005], 190)

PrisonerA Òsocial dilemmaÓ or Òsocial trapÓ in game theory between two subjects that presents one subject with the choice to act nobly or selfishly whereby their choice to act one way or the other in conjunction with the level of nobility demonstrated by their counterpart leads to respective payoffs (gains or losses) for both sides. It is called the prisonerÕs dilemma because this asocial game was initially written as a role play between two prisoners. (Howard Raiffa, The Art and Science of Negotiation [Harvard University Press, 1982], 346-47)

Problem-solving Approach

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An approach to negotiation first articulated in the book Getting to YES written by Roger Fisher and William Ury. The problem-solving approach argues that (1) negotiators should work together as colleagues to determine whether an agreement is possible that is better for both of them than no agreement, (2) in doing so they should postpone commitments while exploring how best to maximize and fairly distribute the value of any agreement, and (3) it makes sense for one party to take this approach even if the other does not. The problem-solving approach emphasizes partiesÕ underlying interests rather than their positions, and encourages parties to maintain and build their relationship even if they disagree rather than creating an adversarial process. (Michael L. Moffitt and Robert C. Bordone, eds., Handbook of Dispute Resolution [Program on Negotiation/Jossey-Bass, 2005], 292-93)

Position: This is the official defined stance or standpoint which will be strongly defended by a negotiator. A position is usually determined by the interests of a negotiating party in the negotiation process. A position is often defined in the contract that a party puts forward or is proposing to their counterpart. (read more about the 

Principal: The primary decision making authority in a negotiation. Third party agents will often represent the interests or objectives of a principal in a negotiation. (read more about the 

Principled Negotiation: Principled Negotiation is an interest-based approach to negotiation that focusses primarily on conflict management and conflict resolution.  Principled negotiation uses an integrative approach to finding a mutually shared outcome. First published in the book "Getting to Yes", Principled Negotiation is used mostly in North America and is more popular amongst Academics and Mediators than in Business. Principled Negotiation has become synonymous with the more popular phrase "Win Win " - originally taken from Game Theory. Although Fisher and Ury drew from various disciplines in their 1981 book "Getting to Yes" (including NLP), many Mediation Practitioners and Academics have subsequently contributed in answering the challenging question: How can we best achieve Principled Negotiation in many different contexts? (read more about the 

Procurement Solutions: Services provided by an internal specialist, vendors or consultants as a service to a business. Provides training, education and input about any procurement procedure as it relates to manufacturing and marketing. Issues of concern may include pricing, technology, cataloguing, discounting, shipping, inventory control, automation and logistics. (read more about the 

Purchase Order Financing: The assignment of purchase orders by a business to a third party who accepts responsibility for billing and collecting from buyers of the companys 2019 products. It is a form of expensive financing used to purchase materials required to produce products needed to fulfill a purchase order already received from a buyer. (read more about the 

RelationshipAs one of the Òseven elements,Ó relationship refers to the relationship a negotiator has or wants with other parties. This may include his or her relationship both with those across the table and with anyone else who might affect the negotiation or be affected by the negotiatorÕs reputation. The conduct and outcome of a negotiation have the potential to either damage or strengthen a relationship. (Michael L. Moffitt and Robert C. Bordone, eds., Handbook of Dispute Resolution [Program on Negotiation/Jossey-Bass, 2005], 282)

Reservation ValueTranslation of BATNA into a value at the table Ð the amount at which you are indifferent between reaching a deal and walking away to your BATNA. (Robert H. Mnookin, Scott R. Peppet and Andrew S. Tulumello, Beyond Winning [Belknap Press, 2004], 19)

RipenessA conflict is said to be "ripe" for settlement or negotiation when it has reached a stalemate, or when all of the parties have determined that their alternatives to negotiation will not get them what they want or need. In this case, they are likely to be ready to negotiate a settlement that will attain at least part of their interests, more than they are getting otherwise or stand to get if they pursue their force-based options further. (from http://www.colorado.edu/conflict/peace/glossary.htm)

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Rapport: When two or more parties achieve an agreement through the building of trust, establish a friendly relationship, or have a sense of mutual understanding. A successful business client relationship conducted through a negotiation is one example of a rapport. (read more about the 

Reciprocation: The act of making a similar or like exchange of something in return for something given by one party to another party. In a negotiation, this could entail an exchange of information and/or an exchange of concessions between the negotiating parties. (read more about the 

Reservation Price: The reservation price is the least favourable point at which one will accept a negotiated agreement. For example, for a seller this means the least amount (minimum) or bottom line they would be prepared to accept, while for a buyer it would mean the most (maximum) or bottom line that they would be prepared to pay. It is also sometimes referred to as the ‘walk away’ point. (read more about the 

Risk-Averse: A low level or approach in the amount of risk that a negotiator is prepared to accept in a negotiation. A negotiator who decides to accept the "sure thing" where a result is certain to be achieved is said to be "risk-averse", and is not willing to gamble further on a potential negotiated result. (read more about the 

Risk-Seeking: A high level or approach in the amount of risk that a negotiator is prepared to accept in a negotiation.. A negotiator who decides to gamble rather than accept the ‘sure thing’, and who has the expectation that they will gain more in a negotiation is said to be ‘risk-seeking’. (read more about the 

SetupActions away from the negotiating table that shape and reshape the situation to a negotiatorÕs advantage. Changes in setup may include approaching the right parties to participate in the negotiation, setting the right expectations, or dealing with the right issues that engage the right set of interests. (David A. Lax and James K. Sebenius, 3-D Negotiation [Harvard Business School Press, 2006], 2)

Seven ElementsA framework for understanding and analyzing negotiation. The seven elements include interests, legitimacy, relationships, alternatives, options, commitments, and communication. A seven-elements approach can be particularly helpful during pre-negotiation preparation. (Michael L. Moffitt and Robert C. Bordone, eds., Handbook of Dispute Resolution [Program on Negotiation/Jossey-Bass, 2005], 280)Social TrapA term used to describe the nature of the ÒprisonerÕs dilemmaÓ in game theory. It is used to highlight the competitive tension between the subjects involved. (Howard Raiffa, The Art and Science of Negotiation [Harvard University Press, 1982], 347)

Subjective ValueThe social, perceptual, and emotional consequences of a negotiation. (Jared R. Curhan, Hillary A. Elfenbein and Heng Xu, What do people value when they negotiate? Mapping the domain of subjective value in negotiation [Journal of Personality and Social Psychology, 2006], 4)

Salary Negotiation: Salary negotiation is a process where one party negotiates the amount of their pay, income, earnings, commission, salary, wages, wage remuneration, annual review, or salary raise with another party. (read more about the 

TacticsThe persuasive moves you make and the back-and-forth process you choose for dealing directly with the other side, at the table. (David A. Lax and James K. Sebenius, 3-D Negotiation [Harvard Business School Press, 2006], 2)

Three ConversationsThe notion that all difficult conversations carry a common underlying structure that can be divided into three distinguishable categories or ÒconversationsÓ; 1) The ÒWhat Happened?Ó Conversation, 2) the Feelings Conversation, 3) and the Identity Conversation. (Douglas Stone, Bruce Patton and Sheila Heen, Difficult Conversations [Viking/Penguin, 1999], 4, 7)

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Three TensionsA model of negotiation that emphasizes that the essential challenges of negotiation are rooted in three tensions: between creating and distributing value, between empathy and assertiveness, and between the interests of principals and agents. (Michael L. Moffitt and Robert C. Bordone, eds., Handbook of Dispute Resolution [Program on Negotiation/Jossey-Bass, 2005], 285)

Target: See ‘Aspiration’ (read more about the 

Trade-Off: Also sometimes referred to as a ‘Concession’ where one or more parties to a negotiation engage in conceding, yielding, or compromising on issues under negotiation and do so either willingly or unwillingly. (read more about the 

Trading Plan: A negotiation trading plan is a table or spreadsheet that sets out which goals / positions / tradables you are going to exchange or trade with the other party. A trading plan is an essential part of negotiation preparation, especially for complex negotiations. Trading plans should not only identify the goals of each party, trading plans should also rank these goals for each party and set out which goals you want to trade together. The Negotiation Experts clients are trained to use a trading plan after having prepared a SWOT analysis, and to plan a negotiation agenda using your trading plan. A trading plan is often referred to by the less accurate name of a 'Concession Strategy'. (read more about the 

Unanimity Rule: A process often employed in ‘Group’ or ‘Multi Party’ negotiations to reach a decision or agreement by the involved negotiating parties. A unanimous decision is only achieved when all the negotiating parties are in total accord in making a decision or an agreement. (read more about the 

ValueEconomic or noneconomic aspects of the process or outcome of a negotiation about which one or more parties care strongly. Value could mean cash, property, relationships, reputation, fairness, or a partyÕs self-image. (David A. Lax and James K. Sebenius, 3-D Negotiation [Harvard Business School Press, 2006], 17)

Value ClaimingThe result of competitive negotiations in which one partyÕs win is the other partyÕs loss, and one party seeks to claim a full share of the Òvalue pie.Ó Zero-sum negotiations are conducive to value claiming by the parties, although value claiming can occur even in win-win negotiations. (David A. Lax and James K. Sebenius, 3-D Negotiation [Harvard Business School Press, 2006], 17)

Value CreationThe result of cooperative problem-solving skills in a negotiation that uncover joint gains for both parties. Value creation is an aspect of Òwin-winÓ or Ònon-zero-sumÓ negotiation, in which both parties benefit from the agreement. (David A. Lax and James K. Sebenius, 3-D Negotiation [Harvard Business School Press, 2006], 17)

WATNAWorst Alternative to a Negotiated Agreement: In a negotiation, your WATNA represents one of several paths that you can follow if a resolution cannot be reached. Like its BATNA counterpart, understanding your WATNA is one alternative you can use to compare against your other options along alternative paths in order to make more informed decisions at the bargaining table.

What Happened?the part of a Òdifficult conversationÓ that addresses disagreements about what has happened or what should happen, whoÕs right and whoÕs wrong. (Douglas Stone, Bruce Patton and Sheila Heen, Difficult Conversations [Viking/Penguin, 1999], 7)

Walk Away: Walk away is the alternative that a negotiator will act on if they are not successful in a negotiation. A walk away may be an alternative supplier or buyer, to manufacture the product or

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deliver the service in-house, to wait or simply do nothing i.e. to go without. The walk away answers the negotiation question: "What will you do if you don't agree this deal?" (read more about the 

What is Negotiation?: Negotiation is a process two or more parties may choose in order to have their wants and needs met. Negotiation usually involves the exchange or trading of products, services and / or ideas. (read more about the 

Win-Lose Negotiation: This term refers to a distributive negotiation whereby one party’s gain is another party’s loss. Both parties are competing to get the most value from the negotiation. Also called the ‘fixed-pie’ scenario in that there is only a limited amount to be distributed. A term also used in ‘Game Theory’ and Economics. (Also known as Lose-Win Negotiation). (read more about the 

Win-Win Negotiation:  A win-win negotiation settlement is an integrative negotiated agreement. In theory this means the negotiating parties have reached an agreement after fully taking into account each others' interests, such that the agreement cannot be improved upon further by any other agreement. By definition, there are no resources or 'gold' left on the table and all creative options have been thoroughly exploited. "Win-Win" has its roots in Economics Game Theory. (read more about the 

Winners Curse: Occurs when an under aspiring negotiator sets their target or aspirations (goals or objectives) too low at the outset of a negotiation and is granted an immediate agreement by their negotiating counterpart. (read more about the 

ZOPA: An acronym which means a negotiation Zone of Possible Agreement. It is the range or area in which an agreement is satisfactory to both parties involved in the negotiation process. Often also referred to as the "Contracting Zone". Negotiation ZOPA or the Contracting Zone is the range between each parties Walk Away or Real Base or Bottom Lines, and is the overlap area that each party is willing to pay or find acceptable in a negotiation. (read more about the 

Zero-sum ApproachThe tendency to view a negotiation as purely distributive; what one side wins, the other side loses. (Robert H. Mnookin, Scott R. Peppet and Andrew S. Tulumello, Beyond Winning [Belknap Press, 2004], 168)

ZOPAZone of Possible Agreement: The bargaining range created by the two reservation values. The ZOPA defines a ÒsurplusÓ that must be divided between the parties. (Robert H. Mnookin, Scott R. Peppet and Andrew S. Tulumello, Beyond Winning [Belknap Press, 2004], 19)

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