experience vlerick day - katia tieleman

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Vlerick Business SchoolNegotiating PowerProf Katia Tieleman

#experiencevlerick

#experiencevlerick3 Vlerick Business School1.Negotiation Parameters

NOTES:Parker Gibson

HALF

LOTWILLOW STREET#experiencevlerick

5 Vlerick Business SchoolNOTES:Consistently outperforms a low aspiration base.

Yet leaves enough room for necessary concessions to achieve a win more-win more outcome.

Promotes positive psychological energy.

Communicates confidence and negates irrational negotiation behaviour.

Pressurises the other party to use more energy to lower your aspirations, so they concentrate less on promoting their own aspirations.

Anchors" the negotiation.

Beware, an AB could be seen as a position - use a range rather than a firm number.

Parties must aspire to a shared AB that meets their shared interests best.

Consistently outperforms a low aspiration base. Yet leaves enough room for necessary concessions to achieve a win more-win more outcome. Promotes positive psychological energy. Communicates confidence and negates irrational negotiation behaviour. Pressurises the other party to use more energy to lower your aspirations, so they concentrate less on promoting their own aspirations. Anchors" the negotiation. Beware, an AB could be seen as a position - use a range rather than a firm number.Parties must aspire to a shared AB that meets their shared interests best.

Aspiration Base (AB) a high aspiration base

Negotiaton to create value6 Vlerick Business SchoolNOTES:Point beyond which an agreement is no longer meaningful.

If you dont understand or know your real base:It will most likely lead to a point where a mutually beneficial outcome is not longer possible. It makes it impossible to establish the contracting zone because this rests between the RBs of the parties.You can be exploited because you dont know the point where you should withdraw from a negotiation.

Beware, RB can cause thought closure and a positional stance.Real Base (RB) - Minimum requirement for agreement

#experiencevlerick7 Vlerick Business SchoolNOTES:Reduces dependency on the other partys agreement.Ensures the other party does not over-inflate its position.The stronger the BATNA the greater the negotiating power. The more readily a negotiator can walk away from a negotiation, if necessary, the greater the negotiator's ability to influence the negotiation. Knowing the alternatives available to the other side is essential to prepare for a negotiation. A BATNA protects a negotiator fromaccepting an agreement that is unfavourable accepting an agreement that is only in the counterparty's best interests Knowing your BATNA is knowing what to do when the negotiation fails.The decision to reveal or not reveal a BATNA must be based on the strength of the BATNA and whether disclosing it is likely to weaken the counterpartys negotiation stance. Best Alternative To A Negotiated Agreement (BATNA)

#experiencevlerick8 Vlerick Business SchoolNOTES:Contracting ZoneSELLERBUYER Contracting Zone / Zone of Possible Agreement (ZOPA)ABSellers Best ScenarioSellers Worst ScenarioRBBuyers Best ScenarioABBuyers Worst ScenarioRBBATNA SellerBATNA Buyer#experiencevlerick

9 Vlerick Business SchoolNOTES:Takeaways #experiencevlerick10 Vlerick Business SchoolNOTES:2.From bargaining to value creation

NOTES:From bargaining to value creation

I versus IWin-LosebargainingWeValue creationWin - WinTo achieve value creation one must: Verify assumptionsChange positions Explore interests

#experiencevlerick

12 Vlerick Business SchoolNOTES:Seemingly opposed positions are not always opposed when it comes to the underlying interests, they could be compatible. Dont just split the pie in half. Make concessions on those issues that are not important to you, but valued by the other party.Joint Problem SolvingJoint Opportunity FindingInterests can be:OPPOSITECOMPLEMENTARYSIMILARWin more Win more

WeValue creation Win - Winto win more- win more: focus on complementary interests#experiencevlerick

13 Vlerick Business SchoolNOTES:Feel like some more?Negotiating to Create Value (November 2013)Executive MBA (September 2013)

14#experiencevlerick

Vlerick Business School14NOTES:Negotiaton to create value15

THAnk you!