Effective Negotiating: Both Sides Win

Anjuan SimmmonsSam Houston State University

“Let us never negotiate out of fear. But let us never fear to negotiate.” – John F. Kennedy

Anjuan Simmons About Me

EDUCATION

B.S. ElectricalEngineering

EMPLOYMENT

MBA

SOCIAL

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Agenda Why are negotiations important? What is a negotiation? Key terms

oBATNAoZOPA

Negotiation tactics

Why are negotiations important?

International

Bashar al-Assad Moaz al-Khatib

Consequences: war or peace

National

Barack Obama John Boehner

Consequences: recession or growth

Personal

Fiancé Fiancé

Consequences: bliss or anguish

You

You Future Employer

Consequences: wealth or poverty

What is a negotiation?

Definition Parties Possessions Positions

Definition In every negotiation, there are two or more parties

who have possessions desired by the other in trades based on the positions of all involved.

People often start negotiating by making concessions in their positions until an agreement is made or gridlock occurs. Each side tries to gain the most profit.

Scenario

$12,000

$22,000

$14,000

$21,000

$19,500$21,000

Distributive vs Integrative

NegotiationsDistributive Negotiations Integrative Negotiations

Winners and Losers Winners

Focus on winning Focus on problem solvingOffers and Concessions

Questions and Answers

Enemy Combatants Equal Counterparts

Integrative Negotiations

It is usually better to see people instead of parties, principles (interests) instead of possessions, and trade based on properties instead of positions. Each side tries to gain the best solution to the problem instead of simply maximizing profit.

Scenario

Key Terms

BATNA

BATNA: Best Alternative to a Negotiated Agreement.

This is simply what you can get without negotiating.

BATNA

$19,000

$18,000

BATNA Your BATNA is the best measure for determining

the value of what is being offered to you. Your BATNA also protects you from regretting the

agreement. Maximize your BATNA. Disclose your BATNA only if it is very strong and

better than the current offer. Remember that your counter-part also has a

BATNA.

ZOPA ZOPA: Zone of Possible Agreement: This is the

overlap between the minimum and maximum accepted prices of both parties.

ZOPA

$17,500Seller’s Reserve Price

$21,500Buyer’s Reserve Price$0

$22,000

$21,000$18,000

ZOPA ZOPA: Zone of Possible Agreement: This is the

overlap between the minimum and maximum accepted prices of both parties.

ZOPA

$17,500Seller’s Reserve Price

$18,000Buyer’s Reserve Price$0

$22,000

$21,000$18,000

Negotiation Tactics

Know Yourself

Know your deadlines Know your options Don’t negotiate until you are fully prepared

Know Your Counterpart

Deadlines Demographics

o Gendero Ethnicityo Country of Origino Socio-economic statuso Religion

Find Hidden Negotiators

Leverage Information

10 Tips1. Negotiate in person2. Use the power of . . . . silence3. Control the documentation and distribution of

information4. Interrogate reality5. Put yourself in your counterpart’s shoes6. Do dry runs7. Dig your relationship well before you’re thirsty8. Don’t accept the first offer9. Don’t feel pressured to concede in kind10. Don’t be afraid to negotiate. You’re doing it

already.

Thank YouAny questions?

Anjuan Simmons About Me

EDUCATION

B.S. ElectricalEngineering

EMPLOYMENT

MBA

SOCIAL

twitter.com/Anjuan

facebook.com/Anjuan

AnjuanSimmons.com