STRATEGIES FOR CLAIMING VALUE

STRATEGIES FOR CLAIMING VALUE

1. 1. Prepare and Set Goals

   • People negotiate more successfully when they carefully think through their 3 key positions in the bargaining zone model (initial, target, and resistance), consider alternative strategies to achieve those objectives, and test their underlying assumptions about the situation.

2. 2. Know your BATNA (The Best Alternative to a Negotaited Agreement)

   • BATNA estimates your power in the negotiation because it represents the estimated cost of walking away from the relationship. If others are willing to negotiate with you for the product or service you need, then you have high BATNA and considerable power. It would not cost you much to walk away from the current negotiation

3. 1. Prepare & Set Goals

   • 1. People negotiate more successfully when they carefully think though their 3 key positions in bargaining zone model (initial, target, and resistance), consider alternative strategies to achieve those objectives and test their underlying assumptions about the situation. They need to research what the other party wants from the negotiation.

4. 2. Know your BATNA (Best Alternative to a Negotiated Agreement)

   • BATNA estimates your power in the negotiation because it represents the estimated costs of walking away from the relationship. If others are willing to negotiate with you for the product or service you need, then you have high BATNA, and considerable power in the negotiation. It would not cost you much to walk away from the current negotiation.

5. 3. Manage Time

   • Negotiators make more concessions as the deadline gets closer. Negotiators with more power in the relationship sometimes apply time pressure through an “exploding offer”, whereby they give their opponents very short time to accept the offer. Examples are consumer sales (“On sale today only”). This commitment increases tendency to make unwarranted concessions so that the negotiations do not fail.

6. 4. Manage First Offers & Concessions

   • Negotiators who make the first offer have the advantage of creating a position around which subsequent negotiations are anchored. People tend to adjust their expectations around the initial point, thus if your initial request is high, opponents might move quickly towards their resistance point along the bargaining zone.
   • Concessions serve at least 3 important purposes, (1) They enable the parties to move towards the area of potential agreement, (2) They symbolize each party’s motivation to bargain in good faith, and (3) They tell the other party of the relative importance of the negotiating items.