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CHAPTER 4 CHAPTER 4 Negotiation : Negotiation : Strategy and Planning Strategy and Planning
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Page 1: CHAPTER 4 Negotiation : Strategy and Planning Overview of Chapter 4 Figure 4.1 Relationship between key steps in the planning process StrategyGoalsPlanning.

CHAPTER 4CHAPTER 4

Negotiation : Strategy and Negotiation : Strategy and PlanningPlanning

Page 2: CHAPTER 4 Negotiation : Strategy and Planning Overview of Chapter 4 Figure 4.1 Relationship between key steps in the planning process StrategyGoalsPlanning.

Overview of Chapter 4

• Figure 4.1 Relationship between key steps in the planning process

StrategyGoals Planning

Page 3: CHAPTER 4 Negotiation : Strategy and Planning Overview of Chapter 4 Figure 4.1 Relationship between key steps in the planning process StrategyGoalsPlanning.

The Titles

1. Goals—The Focus That Drives a Negotiation Strategy

2. Strategy—The Overall Plan to Achieve One’s Goals

3. Understanding the Flow of Negotiation:Stages and Phases

4. Getting Ready to Implement the Strategy: The Planning Process

5. Chapter Summary

Page 4: CHAPTER 4 Negotiation : Strategy and Planning Overview of Chapter 4 Figure 4.1 Relationship between key steps in the planning process StrategyGoalsPlanning.

1. Goals: The Focus That Drives a Negotiation Strategy

• Direct Effects of Goals on Choice of Strategy. Four aspects of how goals affect negotiation are importa

nt to understand: (1) Wishes are not goals, especially in negotiation. (2) Goals are often linked to the other party’s goals. (3) There are boundaries or limits to what goals can be. (4) Effective goals must be concrete, specific, and meas

urable.• Direct Effects of Goals on Choice of Strategy.

Page 5: CHAPTER 4 Negotiation : Strategy and Planning Overview of Chapter 4 Figure 4.1 Relationship between key steps in the planning process StrategyGoalsPlanning.

2. Strategy—The Overall Plan to Achieve One’s Goals

• Strategy versus Tactics• Unilateral versus Bilateral to Strategy• The Dual Concern Model as a Vehicle for Describing

Negotiation Strategies.

Alternative Situation Strategies

The Nonengagement Strategy: Avoidance

Active-Engagement Strategies: Competition, Collaboration, and Accommodation

Page 6: CHAPTER 4 Negotiation : Strategy and Planning Overview of Chapter 4 Figure 4.1 Relationship between key steps in the planning process StrategyGoalsPlanning.

The Dual Concern Model

• Figure 4.2

RelationalOutcomeImportant?

Yes

No

Yes No

Substantial outcome important?

Collaboration Accommodation

Competition Avoidance

Page 7: CHAPTER 4 Negotiation : Strategy and Planning Overview of Chapter 4 Figure 4.1 Relationship between key steps in the planning process StrategyGoalsPlanning.

3. Understanding the Flow of Negotiation: Stages and Phases

• Figure 4.3 Phases of Negotiation

• However, people frequently deviate from this model and that one can track differences in their practice according to his or her national culture.

Phase 2Phase 1 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7

RelationshipbuildingPreparation

Informationgathering Bidding

Informationusing

Closing the deal

ImplementatingThe agreement

Page 8: CHAPTER 4 Negotiation : Strategy and Planning Overview of Chapter 4 Figure 4.1 Relationship between key steps in the planning process StrategyGoalsPlanning.

杠杆原理

Page 9: CHAPTER 4 Negotiation : Strategy and Planning Overview of Chapter 4 Figure 4.1 Relationship between key steps in the planning process StrategyGoalsPlanning.

4. Getting Ready to Implement the Strategy: The Planning Process -1

(1)Defining the Issues

(2)Assembling the Issues and Defining the Bargaining Mix

(3)Defining Interests

(4)Knowing Limits and Alternatives

(5)Setting Targets and Openings

(6)Assessing Constituents and the Social Context of the Negotiation

(7)Analyzing the Other Party

(8)Presenting Issues to the Other Party

(9)What protocol needs to Be Followed in The Negotiation.

Page 10: CHAPTER 4 Negotiation : Strategy and Planning Overview of Chapter 4 Figure 4.1 Relationship between key steps in the planning process StrategyGoalsPlanning.

4. Getting Ready to Implement the Strategy: The Planning Process -2

• Before we commencing this discussion, we want to note four things:

We assume that a single planning process can be followed for both an distributive and an integrative process.

There are several “structural ” factors surrounding a negotiation that may also affect the strategizing and planning process.

We assume that negotiations will be conducted primarily one to one.

Complete and up-to-date planning will require a certain degree of shuttling back and forth between steps.

Page 11: CHAPTER 4 Negotiation : Strategy and Planning Overview of Chapter 4 Figure 4.1 Relationship between key steps in the planning process StrategyGoalsPlanning.

4.1 Defining the Issues -1

• Figure 4.4 How Issues Affect the Choice between Distributive and Integrative Strategy

IncreasingValue to Buyer

IncreasingValue to Seller

Claiming Value

Creating Value

A

C

B

Page 12: CHAPTER 4 Negotiation : Strategy and Planning Overview of Chapter 4 Figure 4.1 Relationship between key steps in the planning process StrategyGoalsPlanning.

4.1 Defining the Issues -2

• While the number of issues impact strategy, it does not preclude the possibility that single-issue negotiations can be made integrative, or that multiple-issue negotiations will remain distributive.

• Single-issue negotiations can often be made integrative by increase the number of issues.

• Similarly, in multiple-issue negotiations, the opportunity to create value may be lost in competitive dynamics.

Page 13: CHAPTER 4 Negotiation : Strategy and Planning Overview of Chapter 4 Figure 4.1 Relationship between key steps in the planning process StrategyGoalsPlanning.

4.2 Assembling the Issues and Defining the Bargaining Mix

• Large bargaining mixes allow many possible components and arrangements for settlement, thus increasing the likelihood that a particular package will meet both sides’ needs.

• After assembling issues, the negotiator next must prioritize them. Prioritization includes two steps:

Determine which issues are most important and which are less important.

Determine whether the issues are linked together or separate.

Page 14: CHAPTER 4 Negotiation : Strategy and Planning Overview of Chapter 4 Figure 4.1 Relationship between key steps in the planning process StrategyGoalsPlanning.

4.3 Define Interests

• Although defining interests is more important to integrative negotiation than to distributive bargaining, even distributive discussions can benefit from one or both parties identifying the key interests.

• Asking “why” questions usually bring critical values, needs, or principles that we want to achieve in the negotiation to the surface.

• Interests may be Substantive, Process-based, or Relationship-based.

Page 15: CHAPTER 4 Negotiation : Strategy and Planning Overview of Chapter 4 Figure 4.1 Relationship between key steps in the planning process StrategyGoalsPlanning.

4.4 Knowing Limits and Alternatives

• Good preparation requires that you establish two clear points: your resistance point and your alternatives.

A resistance point is the place where you decide that you should absolutely stop the negotiation rather than continue because any solution beyond this point is minimally acceptable.

Alternatives define whether the current outcome is better than another possibility.

Page 16: CHAPTER 4 Negotiation : Strategy and Planning Overview of Chapter 4 Figure 4.1 Relationship between key steps in the planning process StrategyGoalsPlanning.

4.5 Setting Targets and Openings

• Target Setting Requires Positive Thinking about One’s Own Objectives.

• Target Setting often Requires Considering How to Package Several Issues and Objectives .

• Target Setting Requires an Understanding of Trade-offs and Throwaways.

Page 17: CHAPTER 4 Negotiation : Strategy and Planning Overview of Chapter 4 Figure 4.1 Relationship between key steps in the planning process StrategyGoalsPlanning.

4.6 Assessing Constituents and the Social Context of the Negotiation

• When people negotiate in a professional context, there maybe more than two parties.

• When one has a constituent or observers, other issues arise, such as who conduct the negotiation, who can participate in the negotiation, and who has the ultimate power to ratify negotiated agreements.

• One way to assess all the key parties in a negotiation is to completed a “field analysis”.

Page 18: CHAPTER 4 Negotiation : Strategy and Planning Overview of Chapter 4 Figure 4.1 Relationship between key steps in the planning process StrategyGoalsPlanning.

4.7 Analyzing the Other Party

• The Other party’s Resource, Issues, and Bargaining Mix

• The Other party’s Interests and Needs• The Other party’s Targets and Openings• The Other party’s Constituents, Authority, and Social

Structure • The Other party’s Reputation and Style• The Other party’s Strategy and Tactics

Page 19: CHAPTER 4 Negotiation : Strategy and Planning Overview of Chapter 4 Figure 4.1 Relationship between key steps in the planning process StrategyGoalsPlanning.

4.8 Presenting Issues to the Other Party

• One important aspect of negotiations is to present a case clearly and to provide ample supporting facts ad arguments; another is to refute the other party’s arguments with counterarguments.

• Because of the breadth and diversity of issues that can be included in negotiations, it is not possible to specify all the procedures that can be used to assemble information. There are, however, some good general guides that can be used.

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4.9 What protocol needs to Be Followed in The Negotiation?

• A negotiator should consider a number elements of protocol or process:

What agenda should we follow?

Where should we negotiate?

What is the time period of negotiation?

What might be done if negotiation fails?

How will we keep track of what is agreed to ?

How do we know whether we have a good agreement?

Page 21: CHAPTER 4 Negotiation : Strategy and Planning Overview of Chapter 4 Figure 4.1 Relationship between key steps in the planning process StrategyGoalsPlanning.

5. Chapter Summary

• Planning is critically important actively in negotiation. As we noted the outset, however, negotiators frequently fail to plan for a variety of reasons. Effective planning allows negotiators to design a road map that will guide them to agreement.

• While this map may frequently need to be modified and updated as discussions with the other side proceed, working from the map is far more effective than attempting to work without it.

Page 22: CHAPTER 4 Negotiation : Strategy and Planning Overview of Chapter 4 Figure 4.1 Relationship between key steps in the planning process StrategyGoalsPlanning.

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