Negotiation Process and skills.ppt

The Negotiation Process: Four Stages A Key Concept for All Negotiations Negotiator and mediator Theodore Kheel summarized a critical concept:2 “Negotiations are about changing the status quo. Unless both parties can receive something more than what the status quo provides, there is nothing for them to negotiate.” Why? If not, they will choose the status quo and walk away.2 Theodore W. Kheel, The Keys to Conflict Resolution (New York, NY: Focus Walls Eight Windows, 1999). Five Negotiation Skills Skill 1: Preparation before entering a negotiation includes deciding a BATNA Skill 2: Consider appropriate ground rules Skill 3: Develop an initial offer Skill 4: Anticipate posturing Skill 5: Decide if the negotiation is a single issue or multiple issues and if it includes two or more parties and the appropriate strategy. Also decide if an impasse occurs how it should be resolved What Is BATNA? BATNA = the Best Alternative To a Negotiated Agreement Always decide your BATNA before entering any negotiation! BATNA = the value or point at which you will choose no agreement over a settlement BATNA is similar to the “walk-away” value or point How to Determine Your BATNA!(Answer the following questions) If the other party withdrew from negotiations today, what are your alternatives? Can you list and place an estimated value on all the economic variables such as price, timing, warranty, options, etc.? How important is your long-term relationship with the other party? Can you assign a dollar value to it? Does it override other factors? Can you improve your BATNA by seeking new alternatives to no agreement? The Four Stages: Stage 1: Preparation Stage 2: Opening Statements Stage 3: Bargaining Stage 4: Settlement Stage 1: Preparation Decide your BATNA - always start with a clearly defined BATNA and stick to it List all key issues either party will want decided. Include tangibles, intangibles, throwaways…the more the better! Set priorities for the key issues by either: 1