Effective Organizational Communication

SESSION 14
BY
Mr. Eesar Khan
 An Introduction to Negotiation
In life you don’t get what you want
You only get
What you negotiate
Getting To YES
 What is Negotiation?

•Negotiation takes place when two or more people, with differing

views, come together to attempt to reach agreement on an issue. It is
persuasive communication or bargaining.
•Mutual discussions for the purpose of arriving at the terms of a
transaction or agreement.
“Successful negotiating is a skill. It is not something you have
or don’t have.”
“Negotiation is about getting the best possible deal in the best
possible way.”
 Elements of Negotiation

In Getting to Yes, Fisher, Ury, and Patton describe the four main
elements of principled negotiation.
4 Elements of Principled Negotiation:
• Separate the people from the problem
• Focus on interests, not positions
• Invent options for mutual gain
• Insist on using objective criteria
 Stages of Negotiation

• Establish your objectives

• Establish other party’s objectives
• Frame negotiation as a joint search for a solution
• Identify areas of agreement
• Trouble shoot disagreements: bargain & seek alternative solutions,
introduce trade offs
 Types of Negotiation

There are basically two types of negotiation:

• Distributive (win-lose / lose-win)
• Integrative (win-win)
 Types of Negotiations

1. Distributive Negotiation is often filled with conflict, because both

parties maintain an intractable position in their attempt to lose
less than the other side.
2. Integrative Negotiation is typically less fraught with tension, as
both sides enter the negotiation with the willingness to
compromise to achieve a consensus.
It is a negotiation in which both parties come away winners and
both parties are committed to upholding their ends of the
agreement.
 Win-Win Approach/Negotiation

Getting what the negotiator wanted after a negotiation does not

mean that he won and the other participant lost. There is a
possibility of a win-win situation where both parties win which is
the ideal outcome for almost all negotiations.
Good negotiators find a balance between each party’s objectives to
create a win-win outcome (Black, 2009).
 Principles of Win – Win Negotiating

• What it is not: A game — where one side wins and the other side
loses
• What it is: A relationship whereby We both win (1+1 = 11) Why?
• Fundamental principle in negotiations — need satisfaction
• Look for creative ways to satisfy your and your counterpart’s needs
• Establish a friendly climate of mutual interests and trust
 Principles of Win-Win Negotiation

• Negotiation is the beginning of a process, not the end —

Look for a long-term mutually beneficial relationship
• Don’t be afraid to give up something to get something
• Be open to creative ways to satisfy critical needs — look beyond
current situation for win – win
Everyone is better off than before the negotiation
 Win-Lose Negotiation - BATNA

• Best alternative to a negotiated agreement

• The best alternative to a negotiated agreement (BATNA) is the
course of action that a party engaged in negotiations will take if
talks fail, and no agreement can be reached.
• Cannot be made. In other words, a party's BATNA is what a
party's alternative is if negotiations are unsuccessful. The
term BATNA was originally used by Roger Fisher and William Ury
in their 1981 book entitled “Getting to Yes: Negotiating Without
Giving In.”
 BATNA and ZOPA

BATNA stands for Best Alternative To Negotiated Agreement.

Your BATNA is what you'll do if you don't reach a deal.
The ZOPA is the set of all deals that are at least as good for each
party in a negotiation as their respective BATNAs.
 Do’s and Don’ts of BATNA

The following five do’s and don’ts will help you manage your BATNA
with confidence.
 1. Don’t reveal a weak BATNA

Never share your BATNA with the other party if it is hopelessly weak.
A bad BATNA is also known as a WATNA, or worst alternative to a
negotiated agreement. Telling a supplier, for example, that you
dumped your last partner and are desperate to do a new deal is a
surefire way to ensure the supplier will highball you on price and
resist compromising.
You will also want to be careful to avoid appearing to be in a hurry,
seeming stressed, or revealing that you have a wide-open schedule—
all potential “tells” that you don’t have much else going on and may
be ready to close a deal on your counterpart’s terms.
 2. Don’t bluff about your BATNA

What if the other side asks you about your BATNA directly? Explain
(truthfully) that you are working on various possibilities but want to
concentrate on the deal on the table for the time being.
Resist the urge to embellish or fabricate a BATNA to try to boost
your bargaining power. You’ll sacrifice not only your ethics but
perhaps also your reputation if you’re caught in an exaggeration,
misrepresentation of facts, or lie.
 3. Don’t reveal your BATNA too early

When you open up about a great BATNA to your counterpart early

in the game, the information could come across as a threat: “If you
can’t give me an even better deal than the one I just outlined, I’m
out of here.” Threats foster a competitive atmosphere when
making business deals and hinder your ability to explore tradeoffs
that could create value. Even if you’re certain your BATNA is rock
solid, hold off on revealing it. It could prove to be a useful
bargaining chip during the final stages of a negotiation after you’ve
exhausted all other strategies.
 4. Do work to actively improve your
BATNA
• As BATNA examples such as the Brexit negotiations demonstrate,
it’s not enough to simply talk about your BATNA. Rather, you need
to do everything you can to try to improve it.
For Prime Minister May, that meant asking government agencies
and private companies to prepare for an orderly transition in case
there is no deal.
• For a job seeker, that might mean continuing to seek leads in your
network or thinking about other paths, such as going back to
school.
 5. Don’t let them talk about your BATNA

When a counterpart disparages your BATNA, he is obviously hoping

to taint it in your eyes. Don’t fall for this tired, old ploy. Of course,
it’s smart to investigate any potentially legitimate claims the person
makes about your BATNA, but recognize that he has very real
incentives to convince you that your outside options are not as
good as you’d like to believe.
 Lose-Lose Approach

Some people cannot stand the reality of losing a negotiation. They

spend so much time and energy to make the one who won earlier
to bleed but it usually leads to a lose-lose situation.
In lose-lose situations neither party achieves their needs or wants.
 Example of Lose- Lose Approach

Stark (2003) gives a common example of a lose-lose negotiation

which is a labour strike in which a management and labour unions
cannot come to a satisfactory agreement.
Almost always in a labour strike everybody loses. The employees
lose, the company loses and the most tragically, the customer
loses. In a lose-lose negotiation it is unlikely that either counterpart
would come back to a negotiating table with the same counterpart
in the future.
 Negotiation is a Skill

 Some people have a natural talent for it. Others do not.

 Ifyou do not have a natural inclination for negotiating, you can learn how
to do it, and do it well!
 Ifyou do have a natural talent for it, you can improve that skill with training
and practice.
 How to influence others

• The three ‘Ps’:

• Position
• Perspective
• Problems
• Underpinned by:
• Legitimacy of your case
• Confidence in presenting it
• Courtesy to the other party
• Adaptation
• Rapport
 Relationship Management

Always remember, the effects of negotiations outlast the actual

negotiations.
Think of your negotiations as the beginning of a relationship with
your counterpart.
Perform, Perform, Perform!
• If you are the contractor, you want to do such a good job that
the customer will give you favorable consideration for the
next job. Make your customer’s life easy.
 Relationship Management

• If you are working with a subcontractor, treat the sub with respect
and as a valuable member of your team.
• Seek to establish a relationship with the sub such that the last
thing he/she would want to do is let you down.
• Pay the sub on time, thank him/her for good work, provide
positive recommendations, if earned.
 Preparation (Activity)

• Congratulations — you have been selected for negotiations!

• Now it’s time to prepare for success
• First step — review this presentation and your notes to refresh
yourself on the fundamentals of effective negotiations
• Strategize with your negotiation teammates to develop a strategy
• Develop a plan incorporating your negotiation knowledge and the
needs of your customer
• Practice, refine, practice, refine, practice
 Practice

Now that you have reviewed the guidance in this presentation,

developed a negotiation strategy and prepared for your upcoming
negotiation you will want to practice:
• In front of a mirror
• With a colleague / spouse / significant other
• Feedback and refine
• With negotiation team members — ABSOLUTE MUST — even
if by conference call
• Feedback and refine
 Tactics for Success
Find Common Interests by Asking the Right Questions!
Type Example

Open-ended: “What were you hoping to settle today?”

Leading: “Don’t you think this proposal meets one of your goals?”

Clarifying: “Can you postpone collecting that fee until next year?”

Gauging: “How important to you is the 24-hour service guarantee?”

Seek agreement: “If we agree to your delivery terms do we have a deal?”

 Negotiation Myths and Facts

Myths Facts

1. Good negotiators are born 1. Good negotiators make concessions

2. Experience is a great teacher 2. Good negotiators never lie
3. Good negotiators take risks 3. Good negotiators look for common
interests
4. Good negotiators rely on 4. Everyone is a negotiator
intuition
THANK
YOU