Negotiation preparation

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Market structures.

Ved Shyanne Dalton-Birdsong

CHAPTER 5 controlling

Ved Rafiq Kamaruddin

OTD - Chapter 8 Org. Design; strategy in a changing global environment

Ved Sander van der Kolk

Leadership Theories

Ved Lawrence Cozzens, Ph.D.

Negotiation preparation

Best alternative (BATNA)

Easier to say no

Determines "walk away" or "break off" point

Deals exclusively with the remaining options if the negotiation fails

Maybe better to postpone or call upon an arbitration court

Other means to satisfy one's interests apart from the actual negotiation

Psychological pressure to agree and to not waste the time and energy already spent

In many cases parties conclude with an agreement, leaving them worse off

Brings parties closer to their individual targets than the possible agreement could

Best solution could be breaking off the negotiation

Negotiation partner profile

Assess partner's needs and interests - priorities, pain points, what they may stand to gain or lose

Evaluate decision-making style - are they more collaborative or competitive, cautious or risk-tolerant

Consider their restraints - time, budget, authority that may impact their flexibility or offer potential leverage

Know the other side - Nixon-Khruschchev example

Target definition

Link to strategy - align targets with broader strategy (competitive, collaborative etc.) thus ensuring consistency in approach

Analysing and determining your objectives in ansystematic and clear manner

Legitimisation

Reinforce credibility - grounding arguments in data, you create stronger foundation for your case adn build trust with the partner

Use third-part endorsements - reference expert opinions, policies, or industry benchmarks to strenghten your position

Collect supporting data - gather evidence, market standards or precedents that validate your demands and show they are fair or standard

Situation analysis and determination of strategy

What is at stake? Existence, job or only peripheral effects?

Partnership (high conflict; long-time relationship)

Supplier or client relationships; banks, financial industry (banks, investment brokers), law firms, comsulting companies, auditors

Relationship (low conflict; long-time partnership)

Nearly all human interrelations designed for long term: partners deciding on furniture, lobbyists, friends picking a movie, reporter-informant.

Short or long-term partnership

Competition (high conflict; short partnership)

Temporary reorganization managers, top political level, markers with protagonists in fast-changing positions (Russia, CEE), real estate market, market for equity

"Player " can't be punished for his behaviour

Co-ordination (low conflict potential; short time horizon of partnership)

Preservatiom of one's energy and resources. Flatmates designing new door plate, someone stealing your seat while going to bathroom