Negotiation: Strategizing, Framing, and Planning

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Negotiation Strategizing, Framing, and Planning
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Strategic Options

• A negotiators unilateral choice of a negotiation
  strategy is reflected in the answers to the
  following questions
• How much concern does the actor have for
  achieving the substantive outcomes at stake?
• How much concern does the negotiator have for the
  current and future quality of the relationship
  with the other party?

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Considering a Unilateral Negotiation Strategy
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Avoidance The Nonengagement Strategy

• Reasons not to negotiate
• We are able to meet our needs without negotiating
• Not worth our time
• Availability of outcomes that can be achieved if
  the negotiation does not work out

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Avoidance The Nonengagement Strategy

• Alternatives that can be obtained if the
  negotiation fails are a source of power in
  negotiation
• If we have strong alternatives, we may want to
  avoid negotiation just because we do not want to
  waste time
• If we have weak alternatives, we may want to
  avoid negotiations because we will not have a
  strong bargaining position

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Active-Engagement Strategies Competition,
Collaboration, Accommodation

• Competition win-lose
• Collaboration win-win
• Accommodation win-lose (I lose and you win)

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Defining the Issues - Framing

• Framing is the process of determining what issues
  are at stake
• Types of Frames
• Substantive what the conflict is about
• Outcome predisposition the party has to
  achieving a particular outcome
• Aspiration predisposition the party has toward
  satisfying a broader set of interests or needs
  (win-win)
• Conflict management process how the parties
  will go about resolving their dispute
• Identity how the parties define who they are
• Characterization how the parties define the
  other parties
• Loss-gain how the parties view risk associated
  with particular outcomes

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How to make an Initial Offer

• Before making an initial offer, what does Larry
  need to understand about negotiation?
• Each person is expected to give and take
• What if Larrys initial offer was 135,000?
• His first concession would move away from his
  target price and closer to his resistance point
• Instead, Larry should start lower than his target
  price to create room for concessions.
• What if Larrys initial offer is too low?
• Monica will think that Larry is not serious, or
  unreasonable

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Understanding The Flow of Negotiations Stages
and Phases

• Phase 1 Preparation
• Phase 2 Relationship building
• Phase 3 Information gathering
• Phase 4 Information using
• Phase 5 Bidding
• Phase 6 Close the deal
• Phase 7 Implementing the agreement

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The Planning Process

• Defining the issues
• Assembling issues and defining the bargaining mix
• Defining interests
• Defining limits and alternatives
• Defining ones own objectives (targets) and
  opening bid
• Defining the constituents to whom one is
  accountable
• Understanding the other party and its interests
  and objectives
• Selecting a strategy
• Planning the issue presentation and defense
• Defining the protocol where and when the
  negotiation will occur, who will be there, etc..