BCO 313 NegotiationAnne Dwyer

What are the phases in negotiation?

How many are there?Are they always key?

What happens if you skip one?

The 5 phases

1. Identification of issues and objectives2. Due diligence3. Proposal of issues4. Negotiated agreement or resolution5. Debriefing

Steps 1 + 2 = Preparation. KNOW:

• Yourself and the other parties• Each party’s BATNA. Can either partuy walk

away? What will be the outcome?• Your settlement range• Your options and the pros and cons of each• The other party’s reputation and negotiation

models

Step 3 … set the stage

• Create an appropriate environment for the meeting:

• Physical: neutral, non-threatening, calm and supportive location, venue and seating

• Verbal: clear, understandable language (interpreter?)

• Time frame: be flexible

Step 3: establish the ground rules

• Behavioural: interruptions, turn-taking, respect, tone of verbal and nonverbal communication

• Procedural: clarify roles, check the negotiating clout/authority of the participants

• Substantive: What can be discussed and decided? Confidentiality, privacy, media

Step 3: Identify the issues

• Identify the non-negotiables• Identify and agree on the issues to be

negotiated • Divide the issues into parts• Clarify the areas of disagreement

• Address less difficult aspects when stuck; make sure you refocus on the issues

Step 4: Principled bargaining PIOC= People, Interests, Options, Criteria: Negotiators need to

1. State their case well2. Organise their facts well3. Use fair procedures4. Be ware of the timing and speed of the talks5. Avoid abusing power6. Assess the others’ needs properly7. Be sensitive to those needs8. Have patience9. Not be unduly worried by conflict10. Be committed to an integrative (‘win-win’) philosophy

Step 5 Debriefing checklist1. Were the other party’s needs identified/met?2. Were your needs being met?3. Was your negotiation style appropriate?4. Was the environment appropriate/adequate?5. Was your body language accepting and cooperative?6. Did you both check achievements and aim to build on

these?7. Did you negotiate the issue? Or the people?8. Did comon ground exist between the parties?9. Were your goals realistic?10. Were clear agreements made and recorded?

Due diligence…preparing the brief

• Case 1: prenuptial agreement• Case 2: business start-up with several partners• Case 3: sponsorship agreement• Case 4: investment in a start-up• Case 5: contracting a VIP/star for an

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Case 1: pre nuptials

• What are you going to negotiate?• What are your BATNAs and WATNAs?• Cross border divorce:Couples in 14 EU countries

can choose which country's law applies to their divorce, helping them avoid potentially long and expensive proceedings. The countries are Austria, Belgium, Bulgaria, France, Germany, Hungary, Italy, Latvia, Luxembourg, Malta, Portugal, Romania, Slovenia and Spain.

Case 2: business start-up with several partners

Case 3: sponsorship agreement

Case 4: investment in a start-up

Case 5: contracting a VIP/star for an advertisement

Roleplay: Lisa

• Lisa is one of five employees in a fashion design business located in the CBD. She is responsible for reception duties, word processing and other clerical work. As well as working, Lisa attends a desktop publishing course two nights a week from 18-21h. Two month ago Lisa injured her back and now requires physiotherapy twice a week min.

Role play: Marion

• Marion is Lisa’s boss and wants Lisa to have a regular working day. The company depends on Lisa’s work. To make it possible for Lisa to go to the physiotherapist, Marion has agreed to allow Lissa to start work two days a week at 9.30. For the past two weeks, Lisa has been arriving late. When Marion raises the issue, Lisa says “My physio is from 8 to 9. It’s harder to find a park at that time, so I arrive late.”

Negotiate!

• Lisa• Marion• Observer

Homework

• Prepare your due diligence for one of the five cases.