Important Advices

NegotiationSkillsProfessor: Ricard Musté

12 Golden Rules 1. Separate the people from the problem2. Dont bargain over positions, do it over interests3. Invent options for mutual gain4. Use objective criteria to value deals5. Make people feel at ease 6. Build trust

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12 Golden Rules 7. Avoid negatives8. Test understanding with summarising9. Offer few, but strong arguments and repeat them10. Be assertive, not angry!11. Be emphatic and reflecting12. Do not assume rationality

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Seven-Element Preparation Guide• Identify both parties’ interests

• Identify; clarify; probe for underlying interests• Options on the negotiated deal

– Create options to meet interests; maximize joint gains• Alternatives to the negotiated deal

– Select and improve batna, identify theirs• Criteria for decisions

– Use external standards as a sword and shield; fairness of the process; offer them attractive ways to explain their decision

• Relationship– Separate people from the issue; build working relationship

• Commitment– Identify issues to be included in the agreement, steps to agreement

• Comunication– Question my assumptions; identify what to listen for

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Distributive Vs Integrative Approaches

DISTRIBUTIVE APPROACH

Single IssueParties have opposing needsStrategy is based on compromise between needsBoth parties win something and lose somethingOften confrontational with push and pull tacticsSometimes ends in win-lose or lose-lose situationQuasi ZERO-SUM Game

INTEGRATIVE APPROACH

Many IssuesParties have differing needsProblem-solving strategy – joint option-generation Both parties understand each other’s interests and winBased on understanding of needsDesired outcome is always win-win (or no agreement)

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Case: The Pakistani Prunes