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Negotiation 6-10

In: Business and Management

Submitted By patrchu
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CH. 6: STRATEGY

KEY STRATEGY ELEMENTS

1) Time (deadlines)

80/20 rule (Pareto’s law) often applies in negotiations. 80% of the deal getting done in the last 20% of the time spent in bargaining.

If you have a firm deadline, use one of 3 strategies…

1) Without revealing your deadline, work to reach a settlement well in advance 2) Declare an earlier “deadline” before your real deadline 3) Question negotiators on the other side about their deadline – and if you find out their deadline is before yours, agree to it and work to meet it. If it’s a deadline for both sides, then neither has an advantage

BOX 6.1: Use Time to Your Advantage (p. 142)

2) Info

Called the “The Heart of Negotiations” because it shapes our appraisal of reality, our negotiation strategy, our BATNA, our expectations of what can be achieved and the outcome of a negotiation.

Often, more info discovered both before and during a negotiation process makes you a better negotiator. The party that has more and better info is more likely to negotiate a better outcome. So, why do people fail to get info? Several reasons…

1) People regard a negotiation encounter as a limited or one-time event and simply fail to anticipate that they will need info until they are heavily involved in negotiations. 2) Novice negotiators believe the process doesn’t start until they the other party face-to-face and don’t prepare at all. 3) Homework! People dislike homework and don’t do it.

The most important piece of info is your BATNA. Some people make mistakes with regards to their BATNA…

1) May set a broad or vague BATNA, which cannot be easily used as an absolute minimum or maximum thus not exactly realizing when their BATNA has been crossed. They may also allow a savvy negotiator to talk them out of

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