effective negotiating
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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