Hmmm, Now What''

1
Hmmm, Now What..

• I want the last remaining orange and so do you

2
Principled NegotiationGetting to Yes

• Focus on interests, NOT positions
• Ask why do you want the orange what are you
  interested in?
• Ask why do you want the window open what are
  you interested in?
• Behind opposed positions lie shared and/or
  compatible interests
• Each side likely has multiple interests that may
  be valued differently by each party

3
Principled Negotiation Getting to Yes

• Separate the people from the problem
• Perceive yourself working side by side with the
  other party to resolve the issue
• Do not attack people
• Physically sit on the same side of the table
• Were are on the same side of the table
• Together we can attack this problem

4

• Insist on objective criteria
• Search for a standard such as market value,
  expert opinion, law
• This way, neither party is giving in to the
  other and a fair agreement is possible
• I want 2,000 per month in rent
• How did you arrive at that rate?
• Is it supported by market data?

5
Issues in Negotiation

• Mythical fixed pie
• Assumption that our interests conflict with the
  other side
• Whats good for them must be bad for us
• Terms that appear beneficial when suggested by
  your side often seem disadvantageous when
  proposed by the other side
• Assume that there can only be one winner and one
  loser (distributive bargaining approach)
• Fail to find mutually agreeable trade-offs

6
Distributive vs. Integrative Bargaining
Bargaining Distributive Integrative Characteristic
Bargaining Bargaining
Available resources Primary motivations Primary
interests Focus of relationships
Fixed amount of resources to be divided I win,
you lose Opposed to each other Short term
Variable amount of resources to be divided I
win, you win Convergent with each other Long
term
7
Preparation for Negotiation

• BATNA
• Best alternative to a negotiated agreement
• The lowest acceptable value to an individual for
  a negotiated agreement
• Need to develop an alternative so you know at
  what point to stop negotiating
• Find other job offers
• If we cannot receive an offer of X amount for the
  house, then we will rent it
• Idea is to keep you from making agreements you
  may later regret

8
Issues in Negotiation

• Anchoring
• Putting too much weight on an initial offer
• Framing effect
• Present information as a gain, not as a loss
• Credit surcharge versus cash discount
• Fee for buying plane ticket over the phone versus
  save 2 by buying ticket over the internet