Hmmm, Now What…..

I want the last remaining orange and so do you

Principled Negotiation:“Getting to Yes”

Focus on interests, NOT positionsAsk why do you want the orange – what are you

interested in?Ask why do you want the window open – what are you

interested in? Behind opposed positions lie shared and/or

compatible interestsEach side likely has multiple interests that may be

valued differently by each party

Principled Negotiation: “Getting to Yes”

Separate the people from the problemPerceive yourself working side by side with the other

party to resolve the issue Do not attack people

Physically sit on the same side of the table“We’re are on the same side of the table”Together we can attack this problem

Insist on objective criteriaSearch for a standard such as market value,

expert opinion, lawThis way, neither party is “giving in” to the other

and a fair agreement is possibleI want $2,000 per month in rent

How did you arrive at that rate?Is it supported by market data?

Issues in Negotiation Mythical fixed pie

Assumption that our interests conflict with the other side“What’s good for them must be bad for us”Terms that appear beneficial when suggested by your side

often seem disadvantageous when proposed by the other sideAssume that there can only be one winner and one loser

(distributive bargaining approach)Fail to find mutually agreeable trade-offs

Distributive vs. Integrative Bargaining

Bargaining Distributive IntegrativeCharacteristic Bargaining Bargaining

Available resources

Primary motivations

Primary interests

Focus of relationships

Fixed amount ofresources to be divided

I win, you lose

Opposed to each other

Short term

Variable amount ofresources to be divided

I win, you win

Convergentwith each other

Long term

Preparation for Negotiation BATNA

Best alternative to a negotiated agreementThe lowest acceptable value to an individual for a negotiated

agreementNeed to develop an alternative so you know at what point to

stop negotiating Find other job offers If we cannot receive an offer of X amount for the house, then we will

rent itIdea is to keep you from making agreements you may later

regret

Issues in Negotiation Anchoring

Putting too much weight on an initial offer Framing effect

Present information as a gain, not as a lossCredit surcharge versus cash discountFee for buying plane ticket over the phone versus “save $2 by

buying ticket over the internet”