negotiation mistakes to avoid

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Negotiation Mistakes

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By avoiding these classic negotiation mistakes you will be able to strike the best deal possible in both complex and simple situations.

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Page 1: Negotiation Mistakes to Avoid

Negotiation Mistakes

Page 2: Negotiation Mistakes to Avoid

•  1912 – U.S. Presidential election •  3 million Roosevelt photograph have been printed

and the permission has not been granted. •  No time to reprint brochure and it is critical for the

campaign

•  Copyright law: owner can demand $1 per copy

Page 3: Negotiation Mistakes to Avoid

telegram to the copyright owner:

Campaign manager sends  

Page 4: Negotiation Mistakes to Avoid

"Planning to print three mil

lion copies of

campaign speech with photogr

aphs. Excellent

publicity opportunity for ph

otographers.

How much are you willing to

pay to use your

photographs?“

Page 5: Negotiation Mistakes to Avoid

Photographer’s responds:

Page 6: Negotiation Mistakes to Avoid

“Appreciate opportunity,

but can only

afford to pay $250”

Page 7: Negotiation Mistakes to Avoid

negotiation [ noun ]

A process we used to satisfy our needs when someone else controls what we want

Page 8: Negotiation Mistakes to Avoid

Strategy & methods are key to  

successful negotiation

Page 9: Negotiation Mistakes to Avoid

Intelligent solve problems;  

genius prevent

Page 10: Negotiation Mistakes to Avoid

� How can I avoid making classic mistakes?

� What self-knowledge do I need?

� What do I need to know about my client and the situation?

� How do I prepare for success?

� What moves do I need to make at the table? � How can I avoid making

classic mistakes?

Page 11: Negotiation Mistakes to Avoid

4 classic mistakes

Not being clear about the type of negotiation

1

Failing to set parameters prior to the negotiation 2

Failing to identify interests 3

Adopting a narrow and inflexible range of value or options 4

Page 12: Negotiation Mistakes to Avoid

Not being clear about the type of negotiation

Page 13: Negotiation Mistakes to Avoid

Relationship Based Results Based

Balanced Concerns

“Know the Type of Negotiation”

Page 14: Negotiation Mistakes to Avoid

Results Based

The items being negotiated are the main concern; the relationship is of little or no concern

Page 15: Negotiation Mistakes to Avoid

Relationship Based

The relationship is the main concern; the items being negotiated are important but secondary

Page 16: Negotiation Mistakes to Avoid

Balanced Concerns

The results and the relationship are roughly equal concerns

Page 17: Negotiation Mistakes to Avoid

Failing to set parameters prior to the negotiation

Page 18: Negotiation Mistakes to Avoid

“Set Negotiation Parameter”

Desired Outcome

1

Walk-Away 2

BATNA: Best Alternative To a Negotiated Agreement 3

Page 19: Negotiation Mistakes to Avoid

Desired Outcomes

The "best case" for how the negotiation will turn out for you or your business

Page 20: Negotiation Mistakes to Avoid

Your Walk-Away

5,00,000

Range of Acceptable Agreement

Desired Outcome

7,00,000

Walk Away

Your walk-away is the least favorable deal you will accept

Page 21: Negotiation Mistakes to Avoid

BATNA

Your BATNA is your best course of action in the event you can’t reach an agreement

1

A weak BATNA 2

A strong BATNA 3

Page 22: Negotiation Mistakes to Avoid

Failing to identify interests

Page 23: Negotiation Mistakes to Avoid

“Identify Interests”

Positions: The concrete things you and the client each say you want (dollars and cents; terms and conditions

Interests: The motivations that lead you and the client to take specific positions in a negotiation

Page 24: Negotiation Mistakes to Avoid

Adopting a narrow/ inflexible range of options

Page 25: Negotiation Mistakes to Avoid

“Think Broadly About Value”

Fixed Options Expand Options

Page 26: Negotiation Mistakes to Avoid

“Common sources of Value”

Terms Logistics Time Resource

Page 27: Negotiation Mistakes to Avoid

Avoid mistakes for successful negotiation

Page 28: Negotiation Mistakes to Avoid

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