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?)

  1. 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?