Chapter 2: A Versatile Frame of Mind docx

Negotiation ContinuumDistributive Negotiation s Integrative Negotiation s Versatile Negotiation s Desire to WIN Achieve Mutual Gain... Which approach is best?achieve high mutual gain ach

Chapter 2

A Versatile Frame of Mind

 Approaches to Negotiation

• Distributive negotiation

• Integrative negotiation

 Dangers of Assumptions

• Identifying rules of engagement

 Use of Questions

 Awareness of the Environment

 Importance of Language

Negotiation Continuum

Distributive

Negotiation

s

Integrative Negotiation

s

Versatile Negotiation

s

Desire to WIN

Achieve Mutual Gain

Which approach is best?

achieve high mutual gain

achieve less

on establishing cooperation

Which approach is best?

 Negotiators who believe they have influence, assume a position of strength and hold firm

on issues of importance

 Those who believe they have little influence are more likely to make greater concessions

 Thus, a cooperative, win-win approach is

generally useful but a negotiator must also

identify how much they are willing to

concede in order to achieve the win-win

The Versatile Negotiator

 Adopt a flexible negotiating approach – moving

toward an integrative or distributive stance when

necessary

 Prioritizes goals in order to protect the most

important points but make appropriate concessions

 Not committed to a win-win or win-lose

 Win-win is preferable but sometimes will engage in a win-lose in order to achieve goals

 Does not measure their progress in comparison to

some endpoint but stay focused in their next move and how it will affect each subsequent move

Avoid Assumptions

• Myth of commonality

• We assume people are like us

• Myth of disparity

• We assume others are different from us

skeptical of easy generalizations & alert

to limitations of assumptions

action

understanding of where they are, who they are and what they are doing.”

Rules of Engagement

guiding choices

dialogue is bounded by what is

expected

to perceptions of irrelevance or

offensiveness

Identifying Expectations

• Critical in identifying assumptions &

expectations

• Assist in ensuring understanding – possible discrepancy between what was said and what was heard

• Useful in testing the progression of

negotiations

• Involves the other party more in the

SPIN Questioning

SITUATION

PROBLEM IMPLICATION

NEED

What

supplier

are you

currently

using?

What

supplier

are you

currently

using?

How satisfied have you been with your supplier’s ability to meet your needs for

“emergency shipments?

How satisfied have you been with your supplier’s ability to meet your needs for

“emergency shipments?

How have you been

affected by their

inability to meet your

emergency inventory

levels?

How have you been

affected by their

inability to meet your

emergency inventory

levels?

If we guaranteed next day delivery

on specific products, would you be interested in learning more about

our capabilities?

If we guaranteed next day delivery

on specific products, would you be interested in learning more about

our capabilities?

Adapted from SPIN Selling by Neil Rackham

Negotiation as a Learning Process

other party

Versatility in Actions

 Repertoire of verbal and non-verbal responses

 Communication in negotiations like a game of chess

player to make a desired move

moves of others – leading to greater

chances for concessions

 Knowledge of scripts

Direction of Interaction

• When both use one-up statements, the

interaction is competitive

• When both use one-down statements, very

little progression is achieved

• Useful in negotiations because they buy

who’s right

and why

of discernment

but questions designed to understand assumptions