Getting What You Want Using Proven Negotiation Strategies and Tactics; It's All About Process Timothy A. Nettesheim tnettesheim@vonbriesen.com 262-292-2250 Financial Executives International Thomas A. Myers tmyers@vonbriesen.com September 11, 2018 262-923-8659 Green Bay, WI Milwaukee | Madison | Fox Valley - Green Bay | Waukesha County www.vonbriesen.com
Dealing with Hard-Bargaining Tactics 1. Extreme demands followed up by small, slow concessions. 2. Lack of authority to commit. 3. Take-it-or-leave-it non-negotiable issues and ultimatums. 4. Inviting unreciprocated offers; bargaining against yourself. 5. Escalating demands. 6. Personal insults. 7. Bluffing, puffing, and lying. 8. Threats and warnings. 9. Belittling your alternatives. 10. Good cop, bad cop. 1
Our Objective Show You That Reliable Negotiating Processes Increase the Likelihood of Getting What You Want 2
Why is Process Important? Process helps you Because everything is transition from objective priced at an objective value to subjective value value, but sold at a to reach a better subjective value. outcome. 3
Myth: Experience is a Great Teacher 4
Research Shows That Effective Negotiating negotiation is skills are not a game of learned and wits, improved by toughness, or training chance 5
What Limits Your Success? Lack of Preparation - Poor Questioning – Emotion (momentary Ignorance of Objective Not Asking WHAT, subjective value) Value and Subjective WHEN, and HOW? Value Unwillingness to Poor Listening Share Information Ego (the competitive urge to do better than the other side) 6
Distributive Win-Lose (The Car Purchase) The Two Paths of Negotiation Integrative: Win-win or Better Mutual Gains Application **Pay attention-there are vastly different tactics used in distributive v. integrative situations. One uses open communications; the other is . . . liars dice! 7
BATNA Best alternative to a Also known as your "No Deal Option” negotiated agreement Your BATNA/NDO is All about strengths, the foundation of weaknesses, and "NO" how to improve Speaking the Language 8
Reservation Position The value at which you are indifferent between “A The walk away point Deal” and “No Deal” You must know your NDO first. Always have a rock solid reservation position Speaking the Language 9
Target First step before Your aspirations in you begin a negotiation negotiation Use research 10
ZOPA Overlap between your reservation Zone or Possible Agreement position and that of the other side 11
Anchor Anchor one side of Very common for the zone of possible most first offers agreement Powerful tool 12
Managing Your Patterns of Concession 1. 2. Know the Beware large midpoint rule concessions! 3. 4. Demand Signal the end of reciprocity the road 13
Tactics for Playing the Traditional Game Well: Synthesis 1. 2. Anchor appropriately. Make sure the process is Make the first offer to perceived to be fair frame the issues 3. 4. Manage your patterns of Have a resolution if concession negotiations break down 14
Real Biases If they are at the You are not You assume the table, they feel aspirational and don’t make the first impelled to make a ZOPA is too small deal offer You assume you will You are overly be able to claim pessimistic about You fear offending more than half of your strengths and the other party the ZOPA weaknesses You overestimate You focus on the other party’s You are afraid to objective value and strengths and share information never find subjective underestimate their value weaknesses 15
What is Integrative Negotiation Trading Issues the Parties Value Differently 16
Negotiation Process Integrate the Needs of Each Side to Find Common Ground Trade off asymmetric issues Agree on compatible issues Compromise distributive issues 17
Take-Aways Establish your goals, decipher the other side’s needs and develop a negotiating strategy. Set your reservation position, target, and BATNA prior to negotiation or you will pay the price with power outcomes. 18
Take-Aways The “bargaining zone” (ZOPA) falls between the parties’ reservation position. Seek to find it. There are three types of negotiating issues: “Compatible (true win -win), distributive (zero sum) and integrative (potential tradeoffs).” Most deals have all three. Identify them. Essential to success! Sharing information, which is essential for value creating tradeoffs, presents risks, but produce the highest likelihood of a good deal. 19
Take-Aways Complementary, (off setting) behavior often produces better results. Meet dominance with deference and vice versa. The first offer is an “anchor”: It sets the starting point for the negotiation. Consider making the first offer! Be aspirational! 20
Dealing with Hard-Bargaining Tactics 1. Extreme demands followed up by small, slow concessions. 2. Lack of authority to commit. 3. Take-it-or-leave-it non-negotiable issues and ultimatums. 4. Inviting unreciprocated offers; bargaining against yourself. 5. Escalating demands. 6. Personal insults. 7. Bluffing, puffing, and lying. 8. Threats and warnings. 9. Belittling your alternatives. 10. Good cop, bad cop. 21
THANK YOU! Milwaukee | Madison | Fox Valley - Green Bay | Waukesha County www.vonbriesen.com
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