Negotiation clock

Negotiation clock

1. 1. BARTERING

   • mean of exchanging goods without exhcanging money
   • there is a value but no money
   • ex : giving a # to receive a counter value (media : awarenesss)
   • try to pretend that there is trust or respect in what each other is saying.

2. 2. BIDDING

   • emotions affects our limits
     • should set a max price
   • sentiment
     • self awareness is important
   • tendering process
     • send proposal to supplier XYZ
     • bid on your offer
   • bid on
     • payment conditions
     • supplier reliability
     • supplier image
     • product quality
     • delivery process
   • be prepared to walk away
     • competition

3. 3. HARD BARGAINNING

   • “What I get you lose and what you get I lose”
     • competing
       • victory = goal
     • not looking for common agreement
       • demand concessions as a condition of the relationship
   • not the best approach
     • if you want to maintain the relationship
   • to go somewhere
     • get information
       • bargaining range
       • pressure point
       • break point
   • extreme proposal leads to extreme reactions
     • NO
     • may loose the relationship
   • ZOPA ?

4. type of bargainning

   • distributive bargainning
     • win lose
     • competitive negotiation strategy
     • cannot "extand the pie"
       • get the most of the pie
   • positionnal bargainning
     • holding onto a fixed idea/position/opinion
     • regardless of any interests
   • integrative bargainning
     • win-win bargainning
     • collaboration
     • developmutual beneficial agreement
   • identify your interests ?
     • maslow pyramid

5. Zone Of Potential Agreement

   • = bargaining range
     • critical to successful outcome of negotiation
     • may take some time whether a ZOPA exists
     • may become known once parties have explored their interests & options
     • know their alternatives
       • bottom line
       • walk away position
   • distributive negotiation
     • divide fix pie
     • difficult to find solutions
       • x2 claims as much pie as possible
   • integrative negotiation
     • creating value
       • enlarging the pie
     • possible when have shared interests
       • or dealing with +srs issues
     • create a joint value

6. 4. DEALING

   • simply agreeing on terms
     • little possibilities
       • incremental benefits
     • good climate likely to exist/need to be considered
   • made up
     • compromises
     • rather than low cost/high value
   • + respectful

7. part of the clock based on

   • competition
   • partnership
   • joint venture

8. 5. CONCESSIONS

   • both parties recognize that some level of cooperation is required if mutual interests are in progress.
   • nothing is agreed until everything is agreed
     • park an issue & come back on it
     • other issues need to be looked after in order to help resolve the impasse.
   • offer conditional concession to provide some value
     • satisfaction that they have agreed a good deal with you.
   • example : If you place your order today, we will guarantee the delivery by tomorrow…
     • no cost

9. 6. WIN-WIN APPROACH

   • both sides win or come out ahead.
   • both parties will make decisions based on the fact that if one party offers you something of greater value than that which you seek, giving you incremental gain, then you are more likely to accept it.
   • go beyond expectations
   • emotional side of the relationship plays an impt role

10. 7. PARTNERSHIP PROBLEM SOLVING

    • negotiate on
      • performance
      • compliance
      • risk (minimize it)
    • build + dependency btw parties
    • "if it benefits me, it benefits you, if it harms us , it will harm you"
    • Attention should be focused on issues that could create problems to both parties

11. Relationship building

    • key words
      • transparency
      • creativity
      • possibility
    • The broader the agenda,
      • the greater the scope of building robust deals with added value.
    • require
      • patience
      • strenght
        • the agreement may have to come at the cost of short term margins or profit maximization

12. key takeaways

    • no fix ways
      • no right
      • no wrong
      • to negotiate
    • clock = approach
      • each negotiation
      • move around the clock
    • 8->12
      • build value
    • 1->6
      • favor of 1 party

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