Negotiation is the application of basic principle that we all use on
daily basis. It is a problem solving process for resolving conflicts in
which all parties attempt to find a solution to which all will voluntarily
Fundamental Principles of Negotiation:
Focus on your target:
One of the laws of "human nature" which holds true in negotiations
is that those who set and focus on the most favorable targets achieve the
most favorable settlements. All offers shoudl be based on sound information.
The psychology of negotiation is that typically, the initial settlment
offer should leave "negotiating" room. By setting a favorable resolution
target within the settlement range, and by making an initial offer that
leaves aadequate negotiating room. The adversary should be encouraged to
make a more realistic assessment of the value of the case. The negotiator's
ability to focus on the settlement target often influences the perceptions
and expectiations of the other negotiator. The negotiation plan should
be executed within the parameters of the strategy established.
Manage Information Skillfully:
Managing information means planning and preparing before the negotiation,
which will empower the negotiator.
Position Your Theme Advantageously:
Positioning your theme allows you to frame the issues being negotiated
in a fair yet empowering way. Effective negotiators create a clear theme
that accurately reflects their position. What critical and key facts are
the most favorable from whic you can construct your theme? Positioning
is most effective when the theme is both compeelling and reated often.
The negotiator who can continually return the discussion to his/her most
favorable issue is far more likely to create advantages in the negotiation.
Know and Maintain Your Power:
Negotiations center around power. To be successful in a negotiation,
you must recognize and develop all of your sources of power. When you have
confidence and are fully aware of your power, you are able to act with
the level of conviction and resolve necessary to persude other negotiators
and produce fair and favorable settlements.
Power can be either good or bad. Power should be used in an eghical,
professional, non-punitive way to move the negotiation toward mutually
Your power can come from information, being prepared, your negotiation
skills, the strength of the case, or your personal resolve and motivation.
Emphasize Needs Over Wants:
Try to become attuned to the needs that may underlie the opposing party's
demand. Do not be swayed by the opposing party's posturing or unreasonably
high demands. Determine the value of the case based on the facts rather
than the demands of the opposing party. Do not assume that the other party's
position lacks merit. Again, probe what, if anything is the demand based
on. Be alert and listen actively to uncover information. The art of negotiation
is the ability to peel away layers of information, which reside between
opening demands, and mutually acceptabel settlements.
Concessions are the compromises you make after your opening offer to
move the negotiation forward. To concede strategically means to develop
a plan that manages the concession process that will enable the negotiator
to exert control over the negotiation process and outcome. Your concession
pattern sends a message: so make sure that the way you make a concession
sends the right message. Don't make unnecessary concessions. De-escalate
the concession process. Each one should be less than the previous one.
When you do make a concession, do it slowly, and make sure you get a concession
Powerful Tips - A quick reference
guide from Batna.com
If a negotiation is a test, this is the one-page cheat sheet you're allowed
to bring with you. Thorough preparation and practice are the real
keys to success.
1. Your power lies in your walk-away alternatives. Make sure that
you have real, viable options that don't require an agreement:
2. Do not disclose your walk-away alternatives. When you remind
others of the options you have should they not acceptably satisfy your
needs, your commitment to negotiation falls into question, and the environment
becomes hostile. This draws the attention away from underlying needs,
and the climate becomes less conducive to the development of creative options.
You'll be empowered to support your interests.
Your confident attitude will compel others to listen to and meet your interests.
They'll realize that they have to if they intend to obtain agreement.
3. Figure out the walk-away alternatives of the other parties.
Knowing what options they have if no agreement is reached will help you
construct options that are favorable relative to their specific negotiation.
In other words, you'll be able to construct an agreement that improves
on their alternativesæa fair agreementæwithout giving away
4. No offer is too high. Any offer is valid provided you can present
objective criteria that prove each term of the offer fills to some extent
the underlying needs of all parties.
5. Don't react emotionally. When you encounter tactics intended
to intimidate, rush, draw out discussions, or otherwise derail the focus
from underlying needs and mutual gain, patiently react to the problem at
hand: The discussion needs to be refocused. Draw attention
back to substantive interests and options that fairly address those interests.
Use personal attacks as a signal that it's time to reestablish everyone's
commitment to a mutually beneficial outcome.
6. Remember that all the needs presented are not of equal importance.
Focus time on building an understanding of which needs are most likely
to influence the outcome. Strive to create options that satisfy those
7. Listen more than you talk. As a listener, you are gathering
information that can help you figure out which of the other side's needs
must be met for an agreement to be considered acceptable, and to what degree
those needs will have to be met. Listening gives you the advantage.
The better your understanding, the more flexibility and creativity you'll
have as you create options. Talking gives this advantage to the other
8. Know the authority of each person in the room. Make sure you
know whether or not you are negotiating with someone empowered to make
the final decision. If you aren't, make sure you present options
in such a way that they meet the perceived needs of the negotiator and
the other members of their organization.
9. Analyze concessions. Look for patterns in the types of concessions
made by the other parties, and be attentive to the messages sent by your
10. Never be bludgeoned into splitting the difference. When an apparent
impasse has been reached, splitting the difference is widely regarded as
the ultimate fair solution. But the suggestion to split the difference
is often used to induce guilt. Guilt is likely to lead to concessions
on your partæmaybe even concessions that lead to an outcome worse
for you than splitting the difference. Additionally, splitting the
difference rarely results in an outcome that surpasses anyone's expectations,
and it does not ensure that the interests of all parties are satisfied.
Small concessions give the impression that the bottom line is not far off.
Large concessions indicate that a lot more can still be conceded before
the bottom line is reached.
Rapid or large concessions undermine the credibility of the initial offer.
All concessions teach the lesson that more concessions will be made. Never
make concessions expecting that the other side will meet your terms on
the next issue. On the contrary, they will expect more concessions.
Remember: When the other side makes a concession on the terms of
a specific issue, it is statistically certain that a second concession
on the same issue can be secured.
Distinguish between interests and positions
The classic story to illustrate this describes two sisters fighting over
the only orange in the family larder. Each sister must have the entire
orange for herself, any less is impossible. A wise parent asks each of
the girls (in private) why she wants the orange. One explains she wants
to drink the juice; the other wants to use the rind to cook a pudding.
What each sister wants is her position, why she wants it is her interest.
In this case, the simple solution is to give the cook the rind after the
juice has been squeezed for the thirsty sister - thus meeting the interests
On Interests Rather Than Positions Conflict Resolution Key"
"Problem Solving and Conflict Resolution -
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