04/08/2023

A PRESENTATION

ON INVESTIGATIVE NEGOTIATION

BY:- DEEPAK KUMARMANISH SINGHNORANG LALSUMIT LATHER

04/08/2023

Negotiating is the art of reaching an agreement by resolving differences through creativity. Negotiation is a dialogue intended to resolve disputes, to produce an agreement upon courses of action, to bargain for individual or collective advantage, or to craft outcomes to satisfy various interests. It is the primary method of alternative dispute resolution.

There are four types of negotiation:-

Investigate:::What do you want?What does the other side need?Decide on styleWhat are the consequences of each choice.

OVERVIEW OF NEGOTIATION

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Presentation:::Prepare other side’s casePresent the reasons for your side betterPlanning sheet

Issues involvedRealistic, possible, worst

Bargaining:::When in doubt, ask questions!Open questionsReflective questions

Agreement:::Arrangements should be neutral and comfortable Pay attention to what others sayScreen out all visual distractionsAsk open ended questionsListen to responsesProactive vs. reactive behavior

CONTD…

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INVESTIGATIVE NEGOTIATION

Concept of Investigative negotiation is recommended by Deepak Malhotra and Max H. Bazerman. According to this to be an effective negotiator focus less on selling your position on the issue at hand. Instead , pose questions to uncover information about the other party’s constraints, interests, and priorities. Armed with that data, you will expand agreement options and you will forge far more successful deals.

Investigative negotiation is an art of finding the reasons behind any uncompleted deal and to make it complete by investigating further for the reasons to go for successful deal.

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FIVE PRINCIPLES OF INVESTIGATIVE NEGOTIATION

There are following five principles of investigative negotiation:

1. Don’t just discuss what your counterparts want, find out why they want?

2. Seek to understand and mitigate the other side’s constraints.

3. Interpret demands as opportunities.4. Create common ground with adversaries.5. Continue to investigate even after the deal

appears to be lost.

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PRINCIPLE 1:

Don’t just discuss what your counterparts want, find out why they want?

Ask why the other side wants what it wants.Don’t just discuss what your counterparts want; find out why they want it. By asking this question, you uncover a wider range of options for crafting a mutually satisfying deal.

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PRINCIPLE 2:

Seek to understand and mitigate the other side’s constraints

Mitigate the other party’s constraints.Collaborating on solutions to other parties’ concerns can prevent their problems from becoming your problems once a deal is implemented.

Don’t view the other side’s constraints as ”their” problem.The two sides can help mitigate each other’s constraints.

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Example:After a manufacturer had negotiated an order with a parts supplier that specified delivery within three months, the supplier seemed uneasy about the delivery deadline. Realizing that a delivery delay would cost her company $1 million, the manufacturer offered to accept a potential delay if the supplier dropped his price by that amount. He refused. She asked, “Why can’t you cheaply manufacture the parts in three months?” He said: “We can—but we can’t cheaply ship the order to arrive on time.” The manufacturer had favorable terms with a shipping company and offered to have it deliver the parts in 2.5 months. The supplier agreed to pay shipping costs and drop his price by $.5 million.

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PRINCIPLE 3:

Interpret demands as opportunities.

Interpret demands as opportunities.Consider what seemingly unreasonable demands suggest about the other party’s needs and interests.

Do not adopt a defensive mindsetWhat can we learn from the other side’s insistence on this issue?What does the demand indicate about the other party’s needs and interests?How can the information be used to create and capture value?

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Example:A builder and developer were negotiating a contract. When the developer demanded the builder pay large penalties if the projectfell behind schedule, the builder speculated that the developer might value early completion. He proposed paying even higherpenalties if the project was delayed but suggested the developer pay him a bonus if he finished ahead of schedule. They sealed the deal.

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PRINCIPLE 4:

Create common ground with adversaries.Don’t assume that your industry competitors are always adversaries. Consider them as potential allies in negotiations with a common third party.It is possible to cooperate and compete with others simultaneously.

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Example:Two pharmaceutical companies wanted to buy eggs from a supplier. One needed 80,000 eggs; the other, 70,000. But the supplier had only 100,000 eggs. Through discussion, the companies realized their needs were complementary. One needed egg whites; the other, yolks. They split the cost of the eggs, each taking what they needed.

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PRINCIPLE 5:

Continue to investigate even after the deal appears to be lost.

Investigate even if the deal seems lost. New information may help you save a seemingly unsuccessful negotiation.

Sometimes the deal can be revived. In other cases, important information that will help in future negotiations can be acquired. More info can be acquired about the customer’s future needs, the interests and concerns of similar customers or the strategies of other players in the industry.

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Example:A manufacturing CEO learned a prospect had decided to purchase from a competitor. She asked the prospect’s VP why. He said the competitor, despite charging more, included product features he valued. She had assumed he cared mostly about price so had originally offered a barebones low cost deal. She revised her offer to give him the best price and competition-beating features. Her prospect accepted.

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How to get information from Distrustful Negotiators?Negotiation Entails Risk. If we share private information with other

party , they might misuse it. And other party feels same thing. So instead of hiding information and evading questions ,try to giving them benefit of doubt , recognizing that most people are reluctant to open up negotiations because they don’t know whether we can be trusted?So there are following three tactics that can help us in getting information when there is lake of trust:-Share information and encourage reciprocity.Negotiate multiple issues simultaneously.Make multiple offers at same time.

1. Share information and encourage reciprocity.

Be the first to share information, making it clear that you expect reciprocity.Explicitly state the ground rules up front “I will start ” and then follow suit.If parties don’t have full confidence in each other , share information incrementally, taking turns with other side.

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2. Negotiate multiple issues simultaneously.

Identify all the issues up front and put everything on the table at same time.Go back and forth between the issues as you make offers and counteroffers.Look at following signs: 1). Which issue does the other party want to return to constantly? 2). Which issue makes counterpart most emotional, stressed? 3). Which issues are most likely to lead other party to try to control the conversation, rather than listen? 4). What is the other side most obstinate about when you ask for a concession or compromise?

3. Make multiple offers at same time.

Make two offers at the same time that they are equally valuable to you but differ on the details of one pair of issues.Making multiple offers simultaneously is a great tactic for other reasons as well. It allows you to discover the interest of reticent negotiators.It makes you appear flexible and empathetic.It signals to the people on the other side that you are willing to be accommodating and interested in understanding their needs.

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Effective negotiation requires a strong focus on the other side’s interests, priorities and constraints.

Constructing a value maximizing deal often hinges not on the ability to persuade but on the ability to listen.

Ultimately, negotiation is an information game.

Those who can obtain more information perform better than those who stick with what they know.

Conclusion

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Thank You…