BMATWT 353 - Business of Building

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Negotiation Skills

Building Interpersonal Communication Skills

Negotiating Theory and Practice

1) Definition
2) Why plan for negotiation?
3) Steps in Negotiation Planning
4) Negotiation Stages
5) Situational Influence Model
6) General Tactical Orientation

1) Definition:

A process wherein:
· 2 or more parties with common & conflicting vested interests
· come together with intention
· to put forward & discuss explicit proposals
· for the purpose of reaching agreement

2) Why plan for negotiation?

Need:
· High quality agreements
· Lasting agreements
· Good relationship
· Efficient use of time

3) Steps in Negotiation Planning

Assess Your position AND the other Parties'

· Needs
· Objectives
· Currencies
· Power
· Strategy
· General Tactical Orientation

4) Negotiation Stages

A) Preliminary

• Building a Positive Climate
• Determining Ground Rules
  
  

B) Opening

• Stating Initial Position
• Testing Other's Opening Position
  

C) Exploring

• Exploring Underlying Needs
• Testing Availabiilty of Currencies to Meet Needs
• Testing Value of Your Currencies
  
  
  D) Closing
  

• Matching Currencies to Needs
  
• Contracting

5) Situational Influence Model

• Push
• Pull
  
• Moving Away
  

Push
Persuading - Proposing, Reasoning
Asserting - State expectations, Evaluate, Incentives & Pressures

Pull
Bridging - Involving & Supporting, Listening, Disclosing
Attracting - Visioning, Finding Common Ground

Moving Away
Disengaging
Avoiding

6) General Tactical Orientation
How important is the relationship?
What is the level of trust between the parties?

General Tactical Orientation: Negotiation

SOFT:
· Present moderately high demands
· Present opening position that indicates flexibility (Persuading vs. Asserting)
· Be active in exploring other parties needs and available currencies.
· Be patient
· Show optimism about reaching an acceptable agreement

HARD:
· Negotiate ground rules to protect your interests
· Present high demands
· Present opening position as inflexible (Assert rather than Persuade)
· Be active in exploring other parties needs and currencies from the perspective of winning.
· Make concessions reluctantly
· Exert deadline pressure

General Tactical Orientation: Negotiation

OPEN:
· Be willing to reveal your true: authority, real deadlines, worries and concerns
· Be willing to disclose your true needs including most basic need
· Indicate currencies you have available and your assumptions about their value
· Disclose actual value you place on others' currencies

CLOSED:
· Reveal needs cautiously
· Disguise your basic need
· Be cautious about revealing your most costly and expensive alternative currencies
· Do not readily reveal the actual value you place on others' currencies
· Disguise your settlement position