L4. Negotiation
Negotiation?
strategic discussion that resolves an issue in a way that both parties find acceptable
in a negotiation, each party tries to persuade the other to agree with his/ her point of view
by negotiating, all involved parties try to avoid arguing but agree to reach some form of compromise
negotiations involve give and take away
INFORMATION IS POWER
Ethics & negotiation
unethical conduct
the unethical conduct might allow the negotiator to gain rewarding outcomes that could not be avilable if the negotiator behave ethically
the other side reaction
anger, willingness to revenge, lose of trust, destruction of relationship with this party, bad reputation
No trust & bad reputation
How can I know?
1.reciprocity (Would I want others to treat me this way?)
2.publicity(would I be comfortable if my actions were fully and fairly described in social networks?)
- trusted friend(would I be comfortable telling my best friend/children what I am doing?
4.universality(would I advise anyone else in my situation to act this way?)
5.legacy(does this action reflect how I want to be remembered?)
Doing right thing sometimes means that we must accept a know cost, but in the long run, doing the wrong thing may be even more costly
Stages of negotiation
2.negotiation
3.closing through forming a contract
1.planning negotiation strategy
4.contract performance(follow up)
1st thing to do, more important than the negotiation itself
trying to persuade that other person to reach an agreement
closure of the agreement trough detailed contract, if the contract is ambiguous and open to interpretations, the judge will not validate the contract
how you perform the contract
follow up agreed conditions
Should I be negotiating?
Cristal clear, 0 doubts
is it possible?
cost and benefits
opportunity cost
is it worth it?
Position based VS interest-based negotiation
Positional based negotiation
Interest based negotiation
focus on THE WHAT
what we want without disclosing the motive
disruptive, does not create value
leaves value on the table
focus on WHY
integrative approach to negotiation
both sides work together to find best solution for all parties involved
creates value trough collaborative effects
Win-lose
Win-win
trust: element key! with trust you will be able to better explore interests of the other side while at the sime time disclosing your desires
position-based or interest based negotiation?
dispute resolution or deal making negotiation
what is my BATNA?