Print SV chapter 1 overview of negotiation

It is back-and-forth communication designed to reach an agreement when you and the other side have some interests that are shared and others that are opposed.. The method Separate the P

BUSINESS NEGOTIATION

Mr CHÂU THẾ HỮU – MBA

International Business Administration Department

0907 414 021 chauthehuu@gmail.com

OVERVIEW OF

NEGOTIATION

CHAPTER 1

In this chapter

1. Overview on Negotiation

2. Types of negotiation

3. Principled negotiation

1.1 Definitions

 Negotiate (v) to try to reach an agreement by formal discussion

(Oxford Advanced Learners)

 Negotiation is a basic means of getting what you want from others It is back-and-forth communication designed to reach an

agreement when you and the other side have some interests that are shared and others that are opposed

(Roger Fisher & William Ury)

1.2 Features

 Maximize Common benefits and minimize

conflicting private ones

 Negotiation aims at Agreement, not Winning position

 Negotiation is affected by status and power of both parties

 Negotiation: an art and science!!!

1.3 Negotiation in

international business

 Definition: Negotiation relating to business transactions between parties with different nationalities

 International business negotiation is affected by:

 Economics laws

 Politic and democratic relations

 Fluctuation in the world market and economy

 Legal framework

 Cultures

2 Types of negotiation

 Based on forms

 Based on strategy

2.1 Forms of Negotiation

 Face-to-face

 Negotiation via phone

 Negotiation via mails / faxes

 Negotiation via e-commerce applications (emails, social media )

 Advantages and Disadvantages

2.2 From a strategic view

Strategy vs Tactics?

Negotiation strategies

 Competitive strategy / Win-Lose

 Cooperative strategy / Win-Win

 Lose - Lose

 Compromising strategy

 Positioning strategy: Hard vs Soft

 Principled strategy

3.1 The problem

Arguing over positions…

 Produces unwise agreements

 Is inefficient

 Endangers an ongoing relationship

Other cases

 When there are many parties?  even worse

 Being nice?  no answer

3.2 The method

 Separate the People from the Problem

 Focus on Interests, not Positions

 Invent Options for Mutual Gain

 Insist on Using Objective Criteria

3.2.1 Separate the People from the Problem

 Negotiators are people first

 Every negotiator has 2 kinds of interests: In the substance and in the relationship

 Separate the relationship from the

substance; deal directly with the people

problem

 Prevention works best

Separate the RELATIONSHIP from

the substance; deal directly with

the PEOPLE problem.

Perception

 Put yourself in their shoes.

 Don’t deduce their intentions from your fears.

 Don’t blame them for your problem.

 Discuss each other’s perceptions.

 Look for opportunities to act inconsistently with their perceptions.

 Give them a stake in the outcome by making sure

they participate in the process

 Face-saving: Make your proposal consistent with their values.

Separate the RELATIONSHIP from

the substance; deal directly with

the PEOPLE problem.

 Allow the other side to let off steam

 Don’t react to emotional outbursts

 Use symbolic gestures

Separate the RELATIONSHIP from the substance; deal directly with

the PEOPLE problem.

Communication

- Problems:

 Negotiators may not be talking to each other.

 They may not be hearing you.

 Misunderstanding

- Solutions:

 Listen actively and acknowledge what is being said.

 Speak to be understood.

 Speak about yourself, not about them.

 Speak for a purpose.

Prevention works best

 Build a working relationship

 Face the problem, not the people

Let me say this as clearly as I can:

the United States is not at war with Islam and will never be

3.2.2 Focus on INTERESTS, not Positions

 For a wise solution reconcile interests, not positions

 How to identify interests?

 Talking about interests

For a wise solution reconcile

interests, not positions

 Interests define the problem

 Behind opposed positions lie shared and

compatible interests, as well as conflicting ones

How to identify interests?

 Ask “Why?”

 Ask “Why not?” Think about their choice

 Realize that each size has multiple interests

 The most powerful interests are basic human needs

 Make a list

Talking about interests

 Make your interests come alive

 Acknowledge their interests as part of the problem

 Put the problem before your answer

 Look forward, not back

 Be concrete but flexible

 Be hard on the problem, soft on the people

3.2.3 Invent OPTIONS for Mutual Gain

 Diagnosis

 Prescription

 Premature judgment

 Searching for the single answer

 The assumption of a fixed pie

 Thinking that "solving their problem is their problem“ -> good / not good?

 Separate inventing from deciding

 Brainstorming (Before; During; After)

 Consider brainstorming with the other side

 Broaden your options

 Look for mutual gain

 Make their decision easy

Before Brainstorming

1. Define your purpose

2. Choose a few participants

3. Change the environment

4. Design an informal atmosphere

5. Choose a facilitator

After brainstorming

 Star the most promising ideas

 Invent improvements for promising ideas

 Set up a time to evaluate ideas and decide

Broaden your options

 Multiply options by shuttling between the

specific and the general: The Circle Chart

 Look through the eyesof different experts

 Invent agreements of different strengths

 Change the scope of a proposed agreement

Look for mutual gain

 Identify shared interests

 Dovetail differing interests

 Ask for their preferences

Make their decision easy

 Whose shoes?

 What decision?

 Making threats is not enough

3.2.4 Insist on Using objective criteria

 Deciding on the basis of will is costly

 The case for using objective criteria

 Developing objective criteria

 Negotiating with objective criteria

 “It’s company policy”

Developing objective criteria

 Fair standards

 Fair procedures

Negotiating with objective

criteria

 Frame each issue as a joint search for objective criteria

 Reason and be opent to reason

 Never yield to pressure

ANY QUESTIONS?

THANK YOU FOR LISTENING