negotiating outcomes presentation pp

Negotiating Outcomes

By: Clarissa Basuil Jo DeGusman Renzo Ferrada Boris Slager

Roberto Araujo

Harvard School of Press

Presentation Contents�• Why we chose this book - By Jo

• Chap. 1-2. Types of Negotiations & Four key concepts - by Clarissa

• Chap. 3-4. Four Key Concepts & The Nine Steps to a Deal - by Boris

• Chap. 5-6. Tactics for Getting Off To a Good Start & Barriers to Agreement - by Jo

• Chap. 7-8. Cognitive Traps & Skill of Effective Negotiators - by Renzo

• Chap. 9-10. Tools for Negotiating Outcomes & Test Yourself - by Roberto

• Skit on Negotiation


Why This Book... Negotiating Outcomes

• Involved Numerous Situations:

A. Work B)Home C) Recreation

• Prepare for, conduct, and close negotiations

• Negotiating and resolving conflict throughout your personal and professional life

• Negotiation skills among most significant determinants of career success

• Brief but complete book.

Types of Negotiations • Negotiation is the process by with people deal with

their differences

• 2 Types of Negotiations:

• Distributive Negotiation: “Who will claim the most value?”

• Integrative Negotiation: the goal is of each side to “create”as much value as possible for itself and for the other side

Negotiating Outcomes Ch. 1

Multiphase and Multiparty Negotiations

• Multiphase negotiations are implemented over time in different phase

• Example: Architectural design contract

• In Multiparty negotiations, coalitions or alliances can form among the parties and influence the process or outcome

• Coalition: temporary alliance of separate entities or individuals who join together to seek a common purpose

• 2 Types of Coalitions:

• Natural Coalition

• Single Issues Coalitions


Four Key Concepts

• BATNA - Best Alternative To a Negotiated Agreement

• Reservation Price: walk away price

• ZOPA - Zone Of Possible Agreement

• Value Creation Through Trades


The Nine Steps to a Deal 1. Determine Satisfactory Outcomes

2. Identify opportunities to create value

3. Identify your BATNA and reservation price

4. Improve your BATNA

5. Determine who has authority

6. Study the other side

7. Prepare for flexibility in the process

8. Gather objective criteria to establish fairness

9. Alter the process in your favor


Negotiation Tactics

• Tactics for getting off a good start

• Tips for establishing the right one

• Tactics for distributive negotiations

• Steps for closing a deal

• Tips for listening actively

• Framing the solution


Barriers To Agreement

• Die-hard bargainers

• Lack of trust

• Dealing with Saboteurs

• Difference in gender and culture

• Communication problems


Cognitive Traps • Irrational Escalation

• Partisan Perception

• Unreasonable Expectation

• Overconfidence

• Unchecked Emotions


The Skills Of Effective Negotiators

• Align negotiating goals with organizational goals

• Be thoroughly prepared

• Determine the other side’s BATNA and reservation price

• Identify the interests of both sides and develop value-creating options

• Separate personal issues from negotiating essues

• Develop a reputation for reliability and trustworthiness

• Recognize relationship value


Tools for Negotiating Outcomes

• Several Forms to fill out:

• Determining Your Reservation Price

• Assessing the Other Side’s Interests

• Identifying and Improving your BATNA

• Evaluating Your Authority and That of the Other Side

• Sales Negotiation Planning Form



• Multiple Choice Questions

• Answers Provided

Example:

I. Why is it important to know your BATNA before walking into a negotiation? A. Your BATNA enables you to create value through trades.

B. Your BATNA determines the point at which you can say no to an unfavorable proposal.

C. Your BATNA helps you identify when it is advantageous to form a coalition.

D. Because BATNA will always stick-out for friend Robin.

B. Your BATNA determines the point at which you can say no to an unfavorable proposal.

Test Yourself

Skit On Negotiations • Scene: Business partners go to the “Bank Of Loans”

branch and look to get a business loan. They want to buy a Bagel Shop. Actual price of the shop is $80,000.


• Narrator: Clarissa

• Bank Manager: Boris

• Bank Employee: Renzo

• Business Partner 1: Jo

• Business Partner 2: Roberto

Cast

THE END (Autographs will be provided at the end of the class)