CONFIDENTIAL
BUS356 Business
Negotiation
Seminar 3: Planning and Strategising the Negotiation &
Power in Negotiation
Booster Shot: Winners make it HAPPEN!
• Get it RIGHT THE 1ST TIME! CONSISTENCY WINS THE DAY!
• FOCUS! BE A MISSILE! GET RESULTS! E.g. Plan, prepare. Get teeth
fixed. Call dentist for an appt X. I will look good when I am done. I
can eat ribs again. TMA example?
• I AM PROACTIVE. I LISTEN, I CLARIFY, I PARTICIPATED, I POSTED
IN DB, I VALUE-ADDED for GBA. I AM ORGANISED. I CHASE
DEADLINES.
BE THE 15% WHO ARE
MUCH MORE COMMITTED.
100% of SMARTER EFFORT!
75% WAIT, TRY, HOPE, ETC. LIKE TO SUCCEED.
VS MAKE IT HAPPEN!
The MORE responsibility you take,
the MORE POWER YOU HAVE.
Attitudes Makes the ____ DIFFERENCE
Winners:
This is something to learn for Lesson 3.
I will do it! I CAN DO IT!
COMMIT - Invest, Give All, 1ST Things 1ST.
ACHIEVE!
Reach Your Full Potential!
EXAMPLE: JOB APLICATION.
I am In! I am Invested!
My name is ___. I like to answer your Q!
(1) (2)
Smart Smart
Lazy Hardworking
(3) (4)
Stupid Stupid
Lazy Hardworking
HAVE YOU CONTRIBUTED? Or No Time? No Mood?
Contribution to discussion board question.
What are the 2 learnings you have learnt from the Lesson _
which you can and shall APPLY in your life (1/2-3/4 page)?
State the lesson number and topic.
Without Efficiency, Can there be Effectiveness?
RECAP, DEEPEN KNOWLEDGE FM DB POSTS
4 Key Steps in the Integrative Process. Identify and define the problem. Understanding interests
and needs. Generating alternative solutions. Evaluate and selecting the best alternatives.
Application. In my team project negotiations.
• When resolving project conflicts, I will first ensure that all stakeholders have a clear
understanding of the issue.
• Uncover underlying interests, I can propose solutions that address the needs of multiple
parties. During brainstorming, I encourage open dialogue to explore different perspectives
and identify creative solutions that satisfy all.
• I will systematically evaluate the proposed solutions to ensure they align with strategic
goals and resource constraints.
RECAP, DEEPEN KNOWLEDGE FM DB POSTS
Learning: Understanding the Importance of Target, Resistance, and ZOPA.
Critical to clearly understand above. They define the boundaries within a successful
negotiation. ZOPA is the overlap between your expectations and the other party’s.
Application.
I will now set clear targets and know my bottom lines before entering any negotiation. For
instance, in salary negotiations or purchasing a product, I’ll establish my ideal outcome, the
minimum I am willing to accept and look for common ground.
Understanding these key points will help me avoid being swayed by emotions or pressure,
ensuring I make well-informed decisions in any negotiation.
RECAP, DEEPEN KNOWLEDGE FM DB POSTS
Seminar 2: A strong BATNA gives a person the power to walk away from a deal that doesn't
meet their needs. It strengthens their negotiating position. By clearly understanding their
BATNA, they can set realistic goals and avoid accepting unfavorable terms.
Application. I will analyse my BATNA before entering negotiation. I can then set clear boundaries
and make informed decisions, ensuring I don't settle for less than what I deserve.
Learning 2: The value of creating a free flow of information in integrative negotiation.
Openly sharing information and understanding the other party's needs and interests are crucial for
achieving mutually beneficial outcomes. By fostering a collaborative environment where both
sides feel comfortable sharing their true objectives, we can identify common ground and
explore creative solutions. Application. I will strive to create an open and trusting environment
where everyone feels comfortable sharing.
RECAP, DEEPEN KNOWLEDGE FM DB POSTS
Seminar 2: Strategy & Tactics of Distributive Bargaining & Integrative Negotiation
Learning 1: Information is key . Ask (direct assessment) or research (indirect assessment).
Application. I assume I understand the entire situation based on hearsay without seeking more
information. As a result, I often lack the necessary details to negotiate effectively and
achieve the best outcome at work. I need the habit of asking the other party questions.
Learning 2: Integrative Negotiation is better as it is a win-win.
Application. I need to overcome the dilemmas that negotiators face: asking the right questions
and answering truthfully. Instead of thinking, "That's your problem" or "I just need to solve my
issues," I should adopt a mindset of "We need to solve this together." Only then can I find a
favourable outcome for both parties.
RECAP. DEEPEN KNOWLEDGE FM DB POSTS
Learning: Managing the other party’s impression. Screen activities where information is
controlled before revealing it to the other party.
Application. Reveal only what you need to and have to. Applies to all all aspects of my life
including relationships with colleagues. This is to remain in control and not let the other party
gain information that can be used or leveraged against me. Prevents me from being lowballed.
If am selling the house because I desperately need cash. If my buyer knows this, he can use it
to hold me down, ask for a lower price, and force me into a “take it or leave it” situation,
knowing that there’s a high chance I may take the offer since I am desperate for cash and short of
time to look for another buyer. Therefore, only provide information that position myself positively.
RECAP, DEEPEN KNOWLEDGE FM DB POSTS
Learning: Different methods of closing would attract different outcomes, and it should be
applied accordingly to avoid the loss of potential clients. 5 different ways to close the deal.
1. Providing Alternatives
2. Assuming the Close
3. Split the difference
4. Exploding Offers
5. Sweeteners
Application. Can apply different methods of closing of deals…..pros and cons?
RECAP, DEEPEN KNOWLEDGE FM DB POSTS
Learning: Concessions should not be given too quickly or unconditionally. Instead, they
should be used strategically to create a fair exchange.
A well-structured concession strengthens relationships while maintaining operational efficiency.
Application.
Staff scheduling is common challenge. If an employee frequently requests Mondays off, I will
not grant the request without conditions.
Instead, I will trade it for a commitment that the employee reports to work on Fridays,
another high MC day.
While the employee gets their preferred schedule adjustment, the business also secures
coverage during peak operational periods. By using concessions strategically, I maintain
fairness while ensuring that operational needs are met without excessive disruption
RECAP, DEEPEN KNOWLEDGE FM DB POSTS
Learning: Creating A Win-Win Negotiation Deal.
Instead of focusing only on my own interests and trying to get the most out of the deal, I can apply
integrative negotiation method that emphasizes value creation and benefiting both parties.
Application for Learning 2:
I can apply the integrative negotiation method to lower my rental costs by offering marketing
services to my landlord. By promoting his office facilities to attract more tenants, we can
create a mutually beneficial arrangement. This collaboration efforts allow my landlord to
increase occupancy while I get a discounted rental rates.
DB Posting: HOW I HAVE BEFITTED FROM MY TIME SPENT
Learning 2: The Strategic Role of Information in Distributive Bargaining
In distributive bargaining, information acts as a double-edged sword. …
Application: I will develop sophisticated information management strategies.
Be more discerning about the information I disclose and improving my skills in
eliciting information from others without revealing my position.
I will focus on enhancing my ability to read non-verbal cues and understand
implicit messages, which can offer invaluable insights into the other party's
stance and intentions.
DB Posting: HOW I HAVE BEFITTED FROM MY TIME SPENT
Learning: Importance of Building Rapport and Trust in Integrative Bargaining
Application.
• I will build rapport with the other party from the outset of the negotiation.
• Find common ground, being respectful and understanding.
• Actively listening to the other party's concerns.
• I will be transparent and honest in my communication with the other party. This will help to build
trust.
• I will work collaboratively with the other party to identify mutually beneficial solutions. This may
involve brainstorming ideas, making concessions, and being willing to compromise.
GBA. Qs allocated?
Meet as group to improve? When?
How many times?
Worry ONLY IF….
Group Leader On? State your role. Name the file properly.
Use full name as in the university register.
Name of Group Leader in the uploaded GBA.
WHAT CAN WE LEARN FROM OTHERS?
❑ Last minute work. 2-3 days late. No plan. No discipline. So fight a “war” when weakest. Just
needed that 2 hours from the past few weeks. Yet, enter auto marks deduction zone.
Those with LOTS OF EFFORT:
❑ Wrong theory (Flat 0). Never use theory fully (foolish simplicity.) Google and use AI for what
we did not teach you! Never surface enough evidence.
❑ Never follow pointers. Key words of Q not in answer (never address key words). Never
answer part by part (problem?) Never write in direct manner (problem?). Say final view first
and enhance relevancy. Never deduce marks allocated esp. for heavy weightage Qs (will
need definitions, wasted word count on Part A when Part B is crucial).
❑ Not proactive in clarifying with classmates and tutors when there is all the chance to do so.
Strategic Break
The key learning objective of this Class Activity is for students to
recap and practice strategy and tactics learnt in Study Unit 2.
The buying/selling of a flat is a predominantly distributive situation
but there is opportunity for some integrative elements as well.
Class Activity: Let Us Negotiate
• This apartment at Jalan Bingsu (JB) has 2 bedrooms, is on the 3rd storey and is over
30 years old. It is located near the Bukit Batok MRT Station. The Seller does not live
in the apartment which has always rented out.
• The Seller and prospective Buyer are meeting for a second viewing to negotiate for
the sale of the apartment.
• In this activity, some of you will play the role of a buyer and some will be the seller. A
group of you will be the observer. Read the fact sheet given to you. Keep the
instructions confidential and do not share with others. You have 10 minutes to read,
strategise and plan on how to achieve a successful negotiation outcome.
• When the instructor starts the “negotiation” - each group will be given 20
minutes to arrive at a deal.
Class Activity: Let Us Negotiate
• Sellers and Buyers to answer the Post-Negotiation questions in instruction
sheet.
• Did you have a deal?
• What was the ZOPA?
ZOPA $1,100,000
$1,000,000
Buyer’s Resistance
Seller’s Resistance
• What was your opening position – what is the difference between your
opening and the settlement point?
• How was your concession-making process?
Class Activity
Let’s negotiate!
$10k ZOPA $100,000?
$1,000,000 $1,100,000
Seller’s Resistance Buyer’s Resistance
$990,000 $1,200,000
Seller saved Removal Costs Buyer keeps Antique
If Buyer keeps Antique Furniture Furniture worth over $100k
• Was the negotiation distributive or integrative?
• Obtaining more information from each other (e.g., how each party felt about the
antique furniture). It can add value to the negotiation. Besides the apartment –
there antique furniture and their removal costs added an integrative dimension to
the negotiation.
• The Seller does not want the furniture and see them as a “cost” item whereas the
Buyer sees value in keeping them.
• Rethink the ZOPA. Consider the $10K removal costs.
• Value of the old dining set. This will expand the ZOPA.
• Seller should be prepared to sell at $990,000 as the saved $10,000 effectively
translates to $1,000,000.
• Buyer should be prepared to offer higher than $1,100,000 to pay for the antique
furniture as well.
Useful and Interesting Learning Today
• Develop the goals to drive the negotiation strategy;
• Formulate the 10-step plan to implement the negotiation strategy;
• Analyse the role of power when dealing with more powerful negotiators.
Goals
• To achieve your goals as a negotiator, you should strategise and plan your negotiation.
• Goals can be:
o Substantive (e.g., money)
o Intangible (e.g., winning)
o Procedural (e.g., having your say)
• Effective Goals:
o Wishes are not goals. Linked to other party’s goals.
o Must be attainable. Concrete, specific and measurable.
Your goals will have a direct impact on
your choice of strategy and how you execute the negotiation.
Strategy
• Goals drive strategy, which leads to planning.
• These three elements do not always have a linear Goals Strategy
relationship.
• Many negotiators work their way “backward/forward” until Planning
the three steps are aligned and in sync with one another.
What is the difference between strategy and tactics?
• Negotiators must differentiate between strategy and tactics.
• Accommodation. Competition. Collaboration are strategies.
• A major difference between the two is that of scale, perspective, or immediacy. T
• actics are short-term moves intended to implement broad strategies.
Extra Notes
o Tactics are adaptive moves designed to enact or pursue broad or high-level
strategies, which in turn provide stability and continuity and direction for
tactical behaviours.
o EXAMPLE. Strategy might be integrative.
o Supporting tactics include describing your interests, using open ended
questions and active listening to understand the others’ interests to invent
options,
Extra Notes: Strategy. Much depends on the following:
• Relationship versus Substantive outcome. If you have a short-term mentality,
you may ignore relationships. You may want substantive outcomes more.
• If negotiation is complex, you need relationship building.
• Strategy depends on negotiators’ attitudes and values. Example.
Collaboration versus competition. Example. An accomodation strategy is used
when the goal is relationships.
10-Step Planning Process
1. Define the negotiating goal. 1. Buy/sell the flat
2. Define major issues related to the goal. 2. Price, location, timelines, etc
3. Assemble & prioritise issues, define
bargaining mix. 3. Which is most important – price? location?
Financing? Are issues connected? Any trade-offs?
4. Define the interests. 4. Understand why the negotiators want what they
want. Are there different interests?
5. Know your alternatives
(BATNAs). 5. Are there other offers? Does the buyer have a
contingency (e.g. renting in the meantime?)
PLANNING (Relate to Flat Negotiation): 10 Step Planning Process
6. Know your limits (incl. resistance 6. Buyer/Seller’s resistance points.
points).
7. Know other party – what is his/her resistance –
7. Analyse and understand other
how far can you push? Why is he/she buying or
party’s goals issues and
selling?
resistance points.
8. What is own target (specific, achievable and
8. Set your own target and opening
verifiable)? What is your opening – high or low?
bids.
9. Constituents (spouse, parents, children)?
9. Assess the social context.
Context?
10. Present the issues to other side:
[Link] supporting facts/arguments make you more
substance and process. If really do credible? How to be more persuasive? When and
well, can have success! how to communicate the offer? How to modify?
• 10-Step planning process can be followed for both distributive bargaining
and integrative negotiation.
• The number of issues will influence choice of distributive or Issues
integrative strategy.
• Combine the issues from both sides to form the bargaining mix. Larger
mix allows more settlement options and may increase chances of
success. But this also adds complexity.
• After assembling issues:
o Prioritise the issues – to know which to focus and to manage trade-off
and packaging.
o Determine if issues are linked – to make effective concessions and
trade-offs.
Interests
• Define underlying interests and needs behind the issues.
• Issues tell us what the parties want from the negotiation, and
interests explains why the parties want them. GIVE
EXAMPLES. Interests may be: (details overleaf)
o Substantive;
o Process-based;
o Relationship-based. Examples from you?
What was your interest during the
negotiation to buy or sell the flat?
Extra Notes: Interests may be:
o Substantive interests.
Objective needs that a party wants to have satisfied or exchanged as a result of negotiations.
Examples. Needs for financial remuneration, property, performances, time expenditure, etc.
Example. Car price. The buyer's substantive interest would be to get the car at the lowest possible
price, while the seller's substantive interest would be to get the highest possible price.
o Process-based interests. These are interests related to how the negotiators behave as they
negotiate. Individuals may be as concerned about how the negotiation plays as they are about
the interests at stake or the outcome.
o Relationship-based. These interests are tied to the current or desired future relationship
between the parties. Individuals are often affected greatly by their social interactions with others.
Extra Notes: Note different way of naming.
o Interests can be Substantive (concerning the content or substance of
the dispute),
o Procedural (concerning the process by which a decision was made,
how a dispute is handled or how a settlement will be implemented)
o Psychological (concerning the relationships and/or the emotional
aspects of a situation
PLANNING (Relate to Flat Negotiation): 10 Step Planning Process
6. Know your limits (incl. resistance 6. Buyer/Seller’s resistance points.
points).
7. Know other party – what is his/her resistance –
7. Analyse and understand other
how far can you push? Why is he/she buying or
party’s goals issues and
selling?
resistance points.
8. What is own target (specific, achievable and
8. Set your own target and opening
verifiable)? What is your opening – high or low?
bids.
9. Constituents (spouse, parents, children)?
9. Assess the social context.
Context?
10. Present the issues to other side:
[Link] supporting facts/arguments make you more
substance and process. If really do credible? How to be more persuasive? When and
well, can have success! how to communicate the offer? How to modify?
Step 10: Present Issues To Other Party: Substance & Process. See Chunk Recording
SUBSTANCE (Presenting and Framing the Issues)
• What facts and arguments support your points? Is what you have credible?
• Who can you consult / talk to (example experts) to support your argument / points? Do they have
relevant data? Example. The fight over the will.
• What arguments have previously worked (not worked too!) in a similar negotiation? Whom can I
consult? Example. New Condo Manager learning from old Condo Manager (Costs arguments?).
• What will the other party’s arguments be? His/her interests? What would your likely responses be?
Any new win-win options? Example. You don’t charge me too much for carpentry. My daughter’s flat
renovation will be yours.
• How can I be more persuasive with visuals or expert reports?
Explanations overleaf for these steps below.
6. Know your limits (incl. resistance points).
7. Analyse and understand other party’s goals issues and resistance points.
8. Set your own target and opening bids.
9. Assess the social context.
10. Present the issues to other side: substance and process. If really do well, can have
success!
L Group Slide Planning. Flat Example.
• Step 6 and 7. Resistance points are where you would stop negotiation because
any settlement beyond these are unacceptable to you.
• Know these in advance so that you will not agree to deals that you will later
regret.
• Step 8. Set a target or a range of targets or a class of equally
acceptable outcomes.
• Did you have high or low opening bid?
• Anchoring effect?
• Does your negotiation have “constituents” – persons who can
participate, evaluate or influence the negotiation? GIVE
EXAMPLES.
Strategic Break
What is Power?
“Power Over”
“Power With”
where power is used to dominate
where power is shared with the other
and control the other side.
side.
“Distributive Context”
“Integrative Context”
Why is Power Critical?
Most negotiators believe that power is critical because
it gives them an advantage in the negotiation.
Power Difference Power Equalisation
• Belief that more power is needed to • Belief that they currently have less power
enhance or maintain chances of getting so need power to counterbalance or
desired outcome. reduce the other side’s advantage.
• Use of power to strengthen their advantage • Use of power to offset or counter-balance
to increase chances of desired outcome. the other party’s stronger power.
Why is Power Critical?
Most believe power is critical because it gives them an advantage.
PERCEPTION 1: SEEK Power Difference PERCEPTION 2: Power Equalisation
1. Informational Power
Information Expertise
• Able to access and utilise data • Expertise is a special form of
to support own position or information power.
undermine the other party’s
• Qualifications, experience,
arguments. How to use
accomplishment.
• Concession-making relies on informational
• To have advantage in a power
exchange of information.
negotiation, the expertise must when
selling/buying a
be present and be relevant to
the negotiation. flat?
2. Personality Power
• Cognitive Orientation : “World View” – compete or cooperate?
o Unitary (PTO) Radical Pluralist
• Motivational Orientation : “Power motive”?
What is your power
• Disposition and Related Skills : Competitive or Cooperative? orientation?
Your disposition or
• Moral Orientation Toward Power : Strong or weak moral identity?
moral view about
power?
• Moods : Anger? Frustration ?
The differences in the negotiators’ personality will affect how
they acquire and use power during the negotiation.
Extra Notes. 2. Personality Power
Cognitive Orientation : “World View” – compete or cooperate? (a) Unitary (b) Radical c) Pluralist
• Unitary perspective. Assume org. is an integrated and harmonious whole with the ideal of “one happy
family”. Mutual cooperation, common values, interests and objectives. Conflict irrational. Suppressed
through coercive means. Trade unions unnecessary.
• Pluralism. Org. is perceived as being made up of powerful and divergent sub-groups, each with its own
legitimate loyalties and with their own set of objectives and leaders. E.g. mgt, unions. Principle
assumption-individual org. comprises groups which have their own aims, interests and leadership. These
aims and interests often conflict and compete with other groups and give rise to tensions.
• Radical or critical perspective. This view of industrial relations looks at the nature of the capitalist society,
where there is a fundamental division of interest between capital and labour.
• Inequalities of power and economic wealth as having their roots in the nature of the capitalist economic
system. Conflict is therefore seen as a natural outcome of capitalism.
3. Power based on Position (Structural Power)
Organisational Hierarchy
Legitimate Power Resource Power Network
• Power derived from • Power derived from ability to
occupying an office or control and dispense valuable
position. resources in the organisation.
• Can be acquired at birth, E.g., Money, Supplies,
Human Capital, Time,
by election, through
Equipment, Critical Services,
appointment or promotion.
Interpersonal Support
3. Extra Notes: Power based on Position (Structural Power)
Network
• A newer approach sees “structure” as a network. An individual is a node in the
network. The more info. & resource flows through a node, the more powerful it is. 3
aspects of network shape power: tie strength, tie content and network structure.
• Tie strength determines the quality of connection.
• Tie content is what holds the connection together – can be resources, emotional support
etc.
• Network structure considers the overall network to determine power of a node. This
includes whether a node is centrally located, whether critical resource passes
through it, whether it is a visible node and whether the node is part of a coalition.
All these factors will affect the power of the node.
4. Relationship Power
Goal Interdependence
• Competitive goals will lead a negotiator to pursue a “power
over” approach.
• Cooperative goals will motivate a negotiator to use “power
with” approach.
Referent Power
• A negotiator will have referent power over the other party if he is
admired or respected because of certain attributes. Can
also be based on an appeal to common experiences or
group membership.
• Therefore, getting to know the other side to uncover
commonalities is one way to obtain referent power.
5. Contextual Power
• BATNAs
BATNA gives a negotiator power because he can walk away, enhances outcomes and gives
confidence.
• Culture
Culture can make a negotiator’s actions appear legitimate or illegitimate.
Organisational and national culture often cause inequalities which may take time to overcome.
Culture is an important contextual factor. Often, structural inequalities in a society reflect its
organisational and national culture. For instance, gender inequality is due to historical
power inequality in social institutions and norms. These are usually deeply rooted and take
time to overcome.
5. Contextual Power
• Agents, Constituencies and External Audiences
❑ Other parties present in the negotiation to observe or evaluate the
negotiation may be involved to increase a negotiator’s power.
❑ These parties may be able to put pressure on the other side, either
formally or informally.
In December 2020, Singapore became one of the first countries
to receive its order of the Pfizer-BioNTech Covid-19 vaccine,
merely weeks after the US and UK received theirs. At that time,
and in the months that followed, demand for vaccine
skyrocketed as number of cases exploded in several countries.
Can you identify the relevant source(s) of power that
[Link] Singapore relied on to negotiate and obtain the vaccines?
investigate-negotiate-how-singapore-took-steps-to-ensure-access-
to-covid
Extra Notes: How to deal with someone with more power?
❑ Never do an all-or-nothing deal
❑ Make the other party smaller
❑ Make yourself bigger
❑ Build momentum through doing deals in sequence
❑ Use the power of competition to leverage power
❑ Constrain yourself
❑ Good information is always a source of power
❑ Ask many questions to gain more information.
In dealing with people who have more power over you (Chapter 8, Textbook), Lewicki et al. (2021)
suggested above pts. How relevant are these points in your experience? List, in order of importance,
three key points that you believe you should always operate consciously in when you are caught in
such situations.
QUICK RECAP.
Annex Chunk Recording For 10 Steps
Which step in the planning process
do you consider to be the most critical?
10 steps in planning
• After determining your goals as a negotiator, and your choice of strategy and tactics – you need to
start planning before the negotiation session starts.
• Whether your negotiation is going to be successful depends a lot on the planning that is
undertaken.
• These steps can be followed for both distributive bargaining and integrative negotiation.
• Although these steps are presented in a linear fashion, planning frequently requires shuttling
back and forth between the steps to make sure it is aligned with your strategy.
1. Define the Negotiation Goal
The most important step is to know your own goals because these have both direct and
indirect impact on your choice of strategy.
Goals are what you want out of the negotiation process. Goals can be:
Substantive (e.g. money), Intangible (e.g. winning) or Procedural (e.g. having your say)
List all the goals that you want to achieve.
Effective Goals:
• Wishes are not goals.
• Linked to other party’s goals.
• Must be attainable.
• Concrete, specific and measurable.
2. Define Major Issue Related to the Goal
• Need to know what are the issues to have a productive session.
• Choice of distributive or integrative strategy often depends on the number of issues
and relationship with the other party.
• The possible issues can be derived from the following sources:
o Analysis of all the possible issues that need to be decided.
• Previous experience in similar negotiations.
• Research conducted to gather information.
• Consultation with experts in the relevant industry.
3. Assemble & Rank Issues and Define Bargaining Mix
• Combine the issues from both sides to form the bargaining mix.
• Larger mix allows more settlement options and may increase
chances of success (but more complex).
• After assembling:
o Prioritise the issues – to know which to focus and to manage trade-
off and packaging. (Rank your intangible issues too)
o Determine if issues are linked – to make effective concessions
4. Define underlying interests and needs behind the issues.
• Issues tell us what the parties want from the negotiation, and interests
explains why the parties want them.
• Interests may be:
o Substantive
o Process-based
o Relationship-based
5. Know and establish your BATNA.
• BATNA is what you can get from other negotiations which still meet your needs.
• Having BATNA enables you to walk away from the current negotiation and gives you power.
• Alternatives are important in both distributive and integrative strategies.
• Your limit is the least acceptable offer from the other side that you will still agree to.
6. Know Your resistance points,
when you would stop negotiation.
• Because any settlement beyond these are unacceptable to you.
• Know these in advance so that you will not agree to deals that you will later
regret.
7 Analyse and understand the other party’s issues, preferences, priorities,
interests, alternatives, and constraints before formal negotiation begins.
o Anticipate other party’s goals - ask in advance or gather data beforehand. Whether you
have the same goals or different goals will enable you to find appropriate solutions.
o Understand the other party’s issues to have a clearer picture of the bargaining mix.
Analyse their business history, previous negotiations, financial data or find out from others
who have dealt with them.
o Understand the other party’s interests and needs – why do they want what they want?
o Know the other party’s resistance and alternatives – to inform you as to how far you can
“push”.
8. Set your own targets or a range of targets or
a class of equally acceptable outcomes and opening bids
• Specific, difficult but achievable and verifiable.
• Proactive thinking. (Target setting requires proactive thinking about
your objectives).
• Packing of issues and objectives.
• Trade-offs and throwaways.
Set an opening bid.
o High or low opening offer?
o “Anchoring effect”.
9. Assess The Social Context Of Negotiation
• Does your negotiation have “constituents” – persons who can
participate, evaluate or influence the negotiation?
• Does your negotiation take place within a context of rules? (Rules – i.e.
laws, customs, common business practices, cultural norms, or
political pressures? )
• Conduct a “field analysis” – identify key players and the broader
environment.
10. Present Issues To Other Party: Substance And Process
Presenting and Framing the Issues:
o What supporting facts and arguments add to your credibility?
o Who can you consult or enlist to support your argument?
o What arguments have previously worked in a similar negotiation?
o What will the other party’s arguments be and what are your likely responses?
o How to be more persuasive – with visuals or expert report?
• Planning the Process and Structuring the Context:
Agenda (flow), location, time, who else involved, contingency plan for failure, keeping track (of what
was agreed) and all gained and modification mechanism (for the deal).
Summary
1. Define the Negotiation Goal
2. Define the Major Issue Related to Achieving the Goal
3. Assemble the Issues, Rank their Importance, Define the Bargaining Mix
4. Define Interests
5. Know Your Alternatives (BATNAs)
6. Know Your Limits, including Resistance Point
7. Analyse and Understand the Other Party’s Goals, Issues, and Resistance Points
8. Set Your Own Targets and Opening Bids
9. Assess the Social Context of Negotiation
10. Present the Issues to the Other Party: Substance and Process
Which step in the planning process
do you consider to be the most critical?
You Have Achieved!
Discipline Always Brings Results!