Best Practices in Negotiations

Best Practices in Negotiations

1. 1 Be prepared

   • Should occur before negotiation begins
     • Very important, it gives you multiple advantages
       • Setting aspirations
       • Ability to analyse other party´s offers
       • Achieve negotiation goals

2. 2 Diagnose The Fundamental Structure of the Negotiation

   • Choose strategies accordingly to situation
     • 3 types
       • Integrative
         • Cooperate
       • Blend of two
       • Distributive
         • Two or more parties are trying to claim the maximum amount of value

3. 3 Identify and work the BATNA

   • Best alternative to a negotiated agreement
     • Having a strong BATNA is important to make pressure to the other party
     • 3 things to do
       • Monitor it carefully
       • Remind of adventages in comparisson to their BATNA
       • Suggest their BATNA is not as strong as they think

4. 4 Be Willing to Walk Away

   • The goal is not reached
   • There is no agreement
   • If there walk away or BATNA becomes the better choice

5. 5 Master the Key Paradoxes of Negotiations

   • Trust vs Distrust
     • If you do not trust you will not get to an agreement
     • Vulneravility if you believe everything
     • Start slow and as negotiation advance you can trust the more
   • Open vs Close
     • How much information to reveal and how much to conceal
       • Open
         • If you expose a lot they might take advantage
       • Close
         • You do not create grounwork and you will lack of reputation
   • Streategy Vs Opportunistic Persuit
     • Distinguish phantom opportunities from real ones
       • Note*
         • A good strategy brings good opportunities
   • Sticking to you principles vs Being resilient to the flow
     • vs
       • Principles of what is fair and just for you
       • Flexibile thinking and understanding
   • Claiming Vs Creating Value
     • Parties decide who gets how much of what
     • Value creation stage where parties work to expand resources under neg

6. 6 Remember the Intangible

   • Affect negotiation in a negative way, happen without notice
     • Examples
       • winning, avoiding loss, looking tough, being fair , etc.
     • Try to discover intangibles
       • This will make negotiation to be more fluent and to discover the other´s motives
       • Take an observer to the meeting
       • Ask questions (They should be calm and nice)

7. 7 Actively Manage Coalitions

   • 3 types
     • Against you
     • Loose
     • Support you

8. 8 Savor and Protect Your Reputation

   • Important to buid, easy to brake and very hard to rebuilt once broken
   • Negotiatiors with a reputation of breacking their word will have a much more difficult time negotating
     • Rafael Estrada A00369048
   • If you negotiate with someone with reputation you know it might be a tough negotiation but that at the end he will mantain his word

9. 9 Rationality and Fairness Relative

   • Fairness should apply to the negotiation
   • Achieve a common , agreed upon perspective agreement that determines what is fair for the outcome of both parties
   • It is important to know the other´s definition of fairness

10. 10 Continue to Learn

    • 3 must do after negotiating
      • Take a lesson from a trainer or coach
      • Plan a personal refelction time after each negotiation
      • Keep a personal diary on strenghts and weakness and develop a plan to work on them