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Hmmm, Now What…..

Hmmm, Now What…. I want the last remaining orange and so do you. Principled Negotiation:“Getting to Yes”. Focus on interests, NOT positions Ask why do you want the orange – what are you interested in? Ask why do you want the window open – what are you interested in?

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Hmmm, Now What…..

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  1. Hmmm, Now What….. • I want the last remaining orange and so do you

  2. Principled Negotiation:“Getting to Yes” • Focus on interests, NOT positions • Ask 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 interests • Each side likely has multiple interests that may be valued differently by each party

  3. Principled Negotiation: “Getting to Yes” • Separate the people from the problem • Perceive 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

  4. Insist on objective criteria • Search for a standard such as market value, expert opinion, law • This way, neither party is “giving in” to the other and a fair agreement is possible • I want $2,000 per month in rent • How did you arrive at that rate? • Is it supported by market data?

  5. 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 side • Assume that there can only be one winner and one loser (distributive bargaining approach) • Fail to find mutually agreeable trade-offs

  6. Distributive vs. Integrative Bargaining Bargaining Distributive Integrative Characteristic Bargaining Bargaining Available resources Primary motivations Primary interests Focus of relationships Fixed amount of resources to be divided I win, you lose Opposed to each other Short term Variable amount of resources to be divided I win, you win Convergent with each other Long term

  7. Preparation for Negotiation • BATNA • Best alternative to a negotiated agreement • The lowest acceptable value to an individual for a negotiated agreement • Need 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 it • Idea is to keep you from making agreements you may later regret

  8. Issues in Negotiation • Anchoring • Putting too much weight on an initial offer • Framing effect • Present information as a gain, not as a loss • Credit surcharge versus cash discount • Fee for buying plane ticket over the phone versus “save $2 by buying ticket over the internet”

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