negotiation seminar

NegotiationWorkshop

Prof. Steven A. Gedeon, PhD, MBA, PEngDirector, Ryerson Entrepreneur Institute

sgedeon@ryerson.ca

Negotiation Workshop

This Evening’s Agenda

• Position Based Negotiation• Principle Based Negotiation• Basic Strategy• Basic Tactics• Single-Issue Example• Review• More Tactics

Position Based Negotiation

• “Hard” vs. “Soft”

• Tendency to Lock into a Position– The more you try to convince the other side of

your position, the harder it is to change it– Ego becomes identified with the position

• Tactics make Negotiation Take Longer

• Win-Lose Damages the Relationship

• Poor Outcomes (Lose-Lose)

Principle Based Negotiation

1. Separate the People from the Problem

2. Focus on Interests, Not Positions

3. Invent Options for Mutual Gain

4. Insist on Using Objective Criteria

Based on “Getting to Yes” Fisher & Ury

Separate the Peoplefrom the Problem

• Negotiators are People First• Negotiators’ Interest in both

Substance and Relationship• Separate Relationship From

Substance– Perception– Emotion– Communication

Focus on Interests,Not Positions

• Two Sisters and the Orange

• Ask “Why?”

• Put the Problem before your Answer

• Be Hard on the Problem and Soft on the People

Invent Options for Mutual Gain

• Diagnosis– Premature Judgment– Searching for a Single Answer– Assuming a Fixed Pie– Solving Their Problem is Their Problem

• Prescription– Separate Brainstorming from Judging– Broaden the Number of Options– Search for Mutual Gain

Insist on Using Objective Criteria

• Fair Standards

• Fair Procedures– I Divide You Decide– Last Best Offer

• Agree on Principles

Basic Strategy

• Create Gains then Capture Gains

• Assess Range then Drop the Anchor

Basic Analysis

• Determine Your BATNA (Best Alternative to a Negotiated Agreement – your “Walk Away” Position)

• Determine Their BATNA

• Assess the True Issues in the Negotiation

• Determine Important Issues to You

• Determine Important Issues to Them

Tactics 1

• Critical Role of Information

• Importance of Anchors

• Always be Reluctant, Never Enthusiastic

• Flinch, Show Disbelief

• Always Ask for More than you Expect

• Never Accept the First Offer

• Be Predictable, Explicit, Never Lie

Single-Issue Workshop

Steven A. Gedeon, PhD, MBA, PEng

sgedeon@ryerson.ca

Home Purchase

Tactics 1

• Critical Role of Information

• Importance of Anchors

• Always be Reluctant, Never Enthusiastic

• Flinch, Show Disbelief

• Always Ask for More than you Expect

• Never Accept the First Offer

• Be Predictable, Explicit, Never Lie

Tactics 2

• The Power of Silence• The Importance of Time• Let Your Minions Negotiate, then Push for Later

Concessions• Advance your Interests Outside of Negotiation• Sometimes you Need to Walk Away• Firm on Interests, Flexible on Position• Sunk Costs, Escalation• Don’t Proceed Issue-by-Issue

Getting Information

• Trial Balloons

• Ask Questions

• Give Info to Get Info

• Put out Tentative Offers or Multiple Offers

• Powerful Technique – Post Settlement Settlement

Multi-Issue Negotiation

• 3 Types of Issues:– Mutual Agreement– Integrative Issues

• Important to One Party, Not Important to the Other• Inherently Win-Win Opportunities

– Distributive Issues• Equally Important to Both Parties• Inherently Win-Lose