ContentsSupplemnentary ReadingReading 1NegotiationforBusinessOwnersReading 2Pre-negotiation Homework (1)Reading 3Pre-negotiation Homework (2)Reading 4NegotiationStylesReading5HowtoNegotiate:TheStrategiesReading 6The Negotiation ProcessReading7Seven Major Pitfalls toAvoid When NegotiatingReading 8Emotionand Nonverbal CommunicationinNegotiationReading 9TheBehavior of SkilledNegotiatorsReading 10Stress-free NegotiationsReading 11CulturalDifferencesinBusinessNegotiationsReading 12ClosingYour BusinessNegotiationsChinese Versions of the Dialogues in Section 2Keys
Contents Supplementary Reading Reading 1 Negotiation for Business Owners Reading 2 Pre-negotiation Homework (1) Reading 3 Pre-negotiation Homework (2) Reading 4 Negotiation Styles Reading 5 How to Negotiate: The Strategies Reading 6 The Negotiation Process Reading 7 Seven Major Pitfalls to Avoid When Negotiating Reading 8 Emotion and Nonverbal Communication in Negotiation Reading 9 The Behavior of Skilled Negotiators Reading 10 Stress-free Negotiations Reading 11 Cultural Differences in Business Negotiations Reading 12 Closing Your Business Negotiations Chinese Versions of the Dialogues in Section 2 Keys
SupplementaryReadingReadinglNegotiationforBusinessOwnersBusinessowners'abilitytonegotiateskillfullyisimportantbecausetypicallywhethertheyrealizeitornot,they spendhours everyweek negotiating with subordinates,suppliers,lenders,significantothers,children,parents,in-laws,cardealers,andothers.Decidinghowmuchtopayanewofficemanagerorwheretogotolunchwitha client involvesnegotiation.Theofficemanagermaychoosetoacceptlessmoneyif1oopercentofhealthbenefitsarepaid,whileaclientmayagreetogoforMexicanfoodifChinesefoodwill bethechoiceon thenext occasion.Even though all business owners are experiencednegotiators,they may not be skillednegotiators.Beinga skillful negotiator requires patienceattentiveness,flexibility.andawarenessofpersonalnegotiationstyle,issuesanddetailsofthecase,aswell asthegoalsandobjectives oftheotherparty.Negotiationcanbedescribedasnonviolentcommunicationbetweentwoormorepartieswhomayhaveconflictingand common interests inan attempttoreachanagreementthatmeetsthegoalsof oneorboth parties. In simple terms, negotiation is a process for getting something you want.Manypeople are afraid tonegotiate because ofall the stereotypes associated with negotiation.Althoughbusinessownersspenduptohalftheirtimeatworknegotiating,manystillfeeluncomfortablewiththeprocess.Somefearthattheymaycomeacrosstotheotherpartyasimpolite,pushy,unfair,orevencheap.One common misconception about negotiation is that good negotiators use tactics similar to thestereotypicaldeceitful,connivingused carsalesman.Being agoodnegotiatordoesnotmeanyouhavetoresorttobeingaslick,smoothtalker.Contrary to popular belief, negotiating should not be compared to a game or a war in which both partiesentertheprocesswiththegoalofwinningandcrushingtheotherparty'sspirit.Theendresult ofwaroragameisthatonepartycomes outastheclearwinnerandtheotherastheabsoluteloser.Upon completionofasuccessful negotiation, incontrast,bothparties shouldfeel thattheyhavewon something.Anotherreasonbusinessownersfeeluncomfortablenegotiatingisbecausetheyfeeltheyhavetomaketrade-offsbetweengettingalongwiththeothersideandgettingwhattheywant.Itisnotuncommonforbusinessownerstofeelthattheyhavetoeithergiveintotheotherside'sdemandsorplayhardball inorderto avoid conflict,damaging theirfuture relationship,orbeingtaken advantage ofby the otherpartyMany people feel more relaxed when they find out that they will be negotiating with a woman becausethey assume that women are not as aggressive as their male counterparts and, therefore,cannotbe aseffective as negotiators.This is another common misconception.While women tend to be moreconcernedwith preserving relationships and men with arriving at an agreementas quickly as possible,thisis notalwaysthecase.Somemenarepatientandaremoreinterested inachievingadealthatmeetstheneedsofallpartieswhilesomewomenprefertoenterthenegotiationwithacompetitivedrivetowinWhether you arenegotiating with women ormen,you should alwaysdo your homework.Learn asmuch
Supplementary Reading Reading 1 Negotiation for Business Owners Business owners’ ability to negotiate skillfully is important because typically, whether they realize it or not, they spend hours every week negotiating with subordinates, suppliers, lenders, significant others, children, parents, in-laws, car dealers, and others. Deciding how much to pay a new office manager or where to go to lunch with a client involves negotiation. The office manager may choose to accept less money if 100 percent of health benefits are paid, while a client may agree to go for Mexican foo d if Chinese food will be the choice on the next occasion. Even though all business owners are experienced negotiators, they may not be skilled negotiators. Being a skillful negotiator requires patience, attentiveness, flexibility, and awareness of personal negotiation style, issues and details of the case, as well as the goals and objectives of the other party. Negotiation can be described as nonviolent communication between two or more parties who may have conflicting and common interests in an attempt to reach an agreement that meets the goals of one or both parties. In simple terms, negotiation is a process for getting something you want. Many people are afraid to negotiate because of all the stereotypes associated with negotiation. Although business owners spend up to half their time at work negotiating, many still feel uncomfortable with the process. Some fear that they may come across to the other party as impolite, pushy, unfair, or even cheap. One common misconception about negotiation is that good negotiators use tactics similar to the stereotypical deceitful, conniving used car salesman. Being a good negotiator does not mean you have to resort to being a slick, smooth talker. Contrary to popular belief, negotiating should not be compared to a game or a war in which both parties enter the process with the goal of winning and crushing the other party’s spirit. The end result of war or a game is that one party comes out as the clear winner and the other as the absolute loser. Upon completion of a successful negotiation, in contrast, both parties should feel that they have won something. Another reason business owners feel uncomfortable negotiating is because they feel they have to make trade-offs between getting along with the other side and getting what they want. It is not uncommon for business owners to feel that they have to either give in to the other side’s demands or play hardball in order to avoid conflict, damaging their future relationship, or being taken advantage of by the other party. Many people feel more relaxed when they find out that they will be negotiating with a woman because they assume that women are not as aggressive as their male counterparts and, therefore, cannot be as effective as negotiators. This is another common misconception. While women tend to be more concerned with preserving relationships and men with arriving at an agreement as quickly as possible, this is not always the case. Some men are patient and are more interested in achieving a deal that meets the needs of all parties while some women prefer to enter the negotiation with a competitive drive to win. Whether you are negotiating with women or men, you should always do your homework. Learn as much
as you can about the members of the other team, develop a relationship with them and, if necessary.alteryournegotiationstylesothatitresonateswiththeotherteam'spersonalityNegotiationis like neithera gamenora war.It is about cooperation and signing an agreementthatmakesbothpartiesfeelthattheyhavebeensuccessful.Theprimarygoalofeffectivenegotiationshouldbetoachievea dealthat bothparties can live with andthataccomplishesyourgoalswithout makingthe otherpartywalkawayfromthedealorharmingavaluablerelationship.Basically,thewholepointofnegotiatingwith someone isto get something better than whatyouwouldget withoutnegotiating.Reading2Pre-negotiation Homework (1)Tobe a successful negotiator,it is imperativethatyoudoyourhomework.Itis suggested thatyou spendabouthalfthetimeyouspendnegotiatingonpreparingforthenegotiation.Ideal MeetingLocation.Onceyouhaveestablishedarelationshipwithsomeoneorhavenegotiatedwith that party before,you mayfeel comfortablenegotiating overthe telephone.Otherwise,conductingthemeetinginpersonwouldbebetterthanoverthephonebecauseitwill giveyoutheopportunitytoobservetheotherperson'sbodylanguageandmaintaineyecontact.If you decide to meet in person, offer to meet at your office if possible. Not only will you feel morecomfortable inyour office,but you also will beable to get quicker approval from senior people (ifnecessary);and itgives youthe home advantage.Themainadvantage of meeting at theother side'sofficesisthatyou canwithhold informationuntilyoureturntoyouroffice.Of course,ifneitherpartyiswillingtoagreetomeetateitheroffice,youcanalways meetat aneutral location.EvaluateYourNegotiation Style.Beforeyou can improveyournegotiation styleyou should think aboutevaluating your current style and your personality.Thinking about the last few negotiations youparticipatedin,whattacticsdoyouthink were successful?in whatareasdoyouthinkyoucouldimprove?Wouldyousayyouused hardorsoftbargainingtechniques?Didyoutendtobedirector indirectinyournegotiationdealings?What would you say are your hot buttons?If you think about howyou react indifferent situations and what your turn-ons and turnoffs are, you will be better prepared to handle yourselfprofessionally while maintaining your composureduringyournext negotiation.And this canbe anadvantagewhendealingwithpeoplewhosetempersgetthebestof them.EstablishYourGoals and Objectives.You needto determineyour primarygoal and objectives-thatis,whatyouwanttogetoutofthenegotiation.Yourprimarygoalshouldberealisticandaccessible.Let'ssayyourmaingoalistohirea newofficemanager.It is unrealistictoassumethatyouwillbeabletohirean officemanageratsoperyearand no benefits.Youshould expandyourmaingoalto includeotherobjectives.Forexample,you would liketohire a newofficemanagerandpay $4,000permonthand75percent of health and dental insurance, offer 10 days of vacation and 5 days of sick time for the first year,andmatchupto3percentofsalaryinthecompany's401(k)plan
as you can about the members of the other team, develop a relationship with them and, if necessary, alter your negotiation style so that it resonates with the other team’s personality. Negotiation is like neither a game nor a war. It is about cooperation and signing an agreement that makes both parties feel that they have been successful. The primary goal of effective negotiation should be to achieve a deal that both parties can live with and that accomplishes your goals without making the other party walk away from the deal or harming a valuable relationship. Basically, the whole point of negotiating with someone is to get something better than what you would get without negotiating. Reading 2 Pre-negotiation Homework (1) To be a successful negotiator, it is imperative that you do your homework. It is suggested that you spend about half the time you spend negotiating on preparing for the negotiation. Ideal Meeting Location. Once you have established a relationship with someone or have negotiated with that party before, you may feel comfortable negotiating over the telephone. Otherwise, conducting the meeting in person would be better than over the phone because it will give you the opportunity to observe the other person’s body language and maintain eye contact. If you decide to meet in person, offer to meet at your office if possible. Not only will you feel more comfortable in your office, but you also will be able to get quicker approval from senior people (if necessary); and it gives you the home advantage. The main advantage of meeting at the other side’s offices is that you can withhold information until you return to your office. Of course, if neither party is willing to agree to meet at either office, you can always meet at a neutral location. Evaluate Your Negotiation Style.Before you can improve your negotiation style, you should think about evaluating your current style and your personality. Thinking about the last few negotiations you participated in, what tactics do you think were successful? In what areas do you think you could improve? Would you say you used hard or soft bargaining techniques? Did you tend to be direct or indirect in your negotiation dealings? What would you say are your hot buttons? If you think about how you react in different situations and what your turn-ons and turnoffs are, you will be better prepared to handle yourself professionally while maintaining your composure during your next negotiation. And this can be an advantage when dealing with people whose tempers get the best of them. Establish Your Goals and Objectives. You need to determine your primary goal and objectives—that is, what you want to get out of the negotiation. Your primary goal should be realistic and accessible. Let’s say your main goal is to hire a new office manager. It is unrealistic to assume that you will be able to hire an office manager at $0 per year and no benefits. You should expand your main goal to include other objectives. For example, you would like to hire a new office manager and pay $4,000 per month and 75 percent of health and dental insurance, offer 10 days of vacation and 5 days of sick time for the first year, and match up to 3 percent of salary in the company’s 401(k) plan
ResearchtheOtherTeam'sMembersandPersonalities.Onceyouhaveestablishedyourgoalsandobjectives andthoseof the otherparty,thenextstepinpreparingfor negotiation isgatheringas muchinformationasyou can abouttheopposingparty'spersonalities.If youdonothavearelationshipwiththemalready,begintoestablishonebysettingupameetingortwopriortothenegotiation.Perhapsyoucanmeetinformallyoverlunchoneafternoon.ifyouareunabletomeetwithyourcounterpartspriortothe negotiation,consider calling their assistants to find outmore informationregarding how to make themcomfortable during the negotiation. Ask their assistants what they like to eat and drink so that you canhavethingspreparedatthetimeofthenegotiation.Alsothink abouthowyouwill gettheirattentionatthestartofthenegotiationmeeting.Whatdoyouhaveincommonwiththem?PerhapsyoubothliketohikeandyoucandiscusstrailsyouhavehikedrecentlyWhatdothey liketodoforfun?Ifthey liketoplaytennis,youcanaskaboutthelastgametheyplayedor how well they played.Or you could bring up the latest professional tennis tournamentthat you recentysaw on television.This is a great way to get their attention before you begin negotiating.Do you think the other side uses a hard or soft bargaining strategy? Can you trust them? How long dotheyanticipatetheprocesswill take?Doyouknowanyoneacquaintedwitha memberoftheoppositeteam who can give you some information about them?What makes them tick? Are they impatient?Demanding?Howlongdotheyanticipatethisprocesstotake?Themoreyouknowabout the people on theother side, themore preparedyou willbe forthe negotiation.Andthemorepreparedyouare,themoreconfidentyouwill bebecauseyouwillknowwhattoexpect.Make a List of Assumptions.Skilled negotiators realize that people sometimes have mistakenassumptionsthattheybelievetobefacts.Whennegotiatingwithanotherpartyforthefirsttime,wehavetomakecertainassumptionsastowhatsomeoftheirbodylanguage,expressions,orphrasesmeanAskforclarification!Don'tassumeanything.Makea listofassumptionstobringtothenegotiationandclarifyanypointsthatareunclearoruncertain.GatherFacts and Conduct Research.Thenext step involvesgathering as much information as youcan abouthe subjectof thenegotiation.Let'ssaythatyouowna pizzarestaurantandyouarenegotiatingpriceswiththelandlordwhoownsthebuildinginwhichyouoperateyourrestaurant.Topersuadetheothersidethatyouareaskingforsomethingthatisreasonable,youneedtoprovidesupportingdataFor example, if you would like to renew your lease at the same price you paid the previous year, youwouldneedtoprovewhy it wouldbeunfair of yourlandlord to increaseyour rent.Researchregardingreal estate prices in similar buildings located in the surrounding area of your restaurant,restaurantoccupancyratesinyourcity,thenumberofnewrestaurantopeningsinthepastyearinyourcity,andtheaverageincrease inrent inyourcitywouldbesometopicsworthresearchingpriortothenegotiation.Youcan find this type of information on the Internet, by asking forassistance at your local community library.byspeakingtoalocal real estateleasingagent,orbymeetingwithotherbuildingowners inyour area.You may also want to find out about what the current issues are in the real estate industry. Another wayto getthe latest news and informationregardingtherealestate industryis to read tradepublications orvisit theweb sites ofrealestatetradeassociationsforcurrentarticles
Research the Other Team’s Members and Personalities. Once you have established your goals and objectives and those of the other party, the next step in preparing for negotiation is gathering as much information as you can about the opposing party’s personalities. If you do not have a relationship with them already, begin to establish one by setting up a meeting or two prior to the negotiation. Perhaps you can meet informally over lunch one afternoon. If you are unable to meet with your counterparts prior to the negotiation, consider calling their assistants to find out more information regarding how to m ake them comfortable during the negotiation. Ask their assistants what they like to eat and drink so that you can have things prepared at the time of the negotiation. Also think about how you will get their attention at the start of the negotiation meeting. What do you have in common with them? Perhaps you both like to hike and you can discuss trails you have hiked recently. What do they like to do for fun? If they like to play tennis, you can ask about the last game they played or how well they played. Or you could bring up the latest professional tennis tournament that you recently saw on television. This is a great way to get their attention before you begin negotiating. Do you think the other side uses a hard or soft bargaining strategy? Can you trust them? How long do they anticipate the process will take? Do you know anyone acquainted with a member of the opposite team who can give you some information about them? What makes them tick? Are they impatient? Demanding? How long do they anticipate this process to take? The more you know about the people on the other side, the more prepared you will be for the negotiation. And the more prepared you are, the more confident you will be because you will know what to expect. Make a List of Assumptions. Skilled negotiators realize that people sometimes have mistaken assumptions that they believe to be facts. When negotiating with another party for the first time, we have to make certain assumptions as to what some of their body language, expressions, or phrases mean. Ask for clarification! Don’t assume anything. Make a list of assumptions to bring to the negotiation and clarify any points that are unclear or uncertain. Gather Facts and Conduct Research. The next step involves gathering as much information as you can about the subject of the negotiation. Let’s say that you own a pizza restaurant and you are negotiating prices with the landlord who owns the building in which you operate your restaurant. To persuade the other side that you are asking for something that is reasonable, you need to provide supporting data. For example, if you would like to renew your lease at the same price you paid the previous year, you would need to prove why it would be unfair of your landlord to increase your rent. Research regarding real estate prices in similar buildings located in the surrounding area of your restaurant, restaurant occupancy rates in your city, the number of new restaurant openings in the past year in your city, and the average increase in rent in your city would be some topics worth researching prior to the negotiation. You can find this type of information on the Internet, by asking for assistance at your local community library, by speaking to a local real estate leasing agent, or by meeting with other building owners in your area. You may also want to find out about what the current issues are in the real estate industry. Another way to get the latest news and information regarding the real estate industry is to read trade publications or visit the web sites of real estate trade associations for current articles
Reading3Pre-negotiationHomework(2)FocusontheOtherSide's InterestsratherThanStatedPositions.Itis almostalways inyourbestinteresttofindawin-winsolutionforbothparties,tocompleteanegotiationknowingthatbothsidesaresatisfiedwiththeresults.Iftheotherpartyisdissatisfied,itcanhavenegativeconsequencesforyou.Forexample,if a customer feelshewas cheated,youwill loseher as a customerandperhapsfuturecustomers because ofhernegative comments.Ifanewhire feels cheated out ofa better salary,hemayquithis jobinafewmonthswhenhefindssomethingelsethatpaysmoreafteryoujustinvestedtimeandmoney in training him.Leaving the other side feeling disgruntled,cheated,or deceived destroysrelationships, which could be risky for your business.The next step in preparing for negotiation is to imagine that you havetonegotiateforthe other sideanddevelopalistofquestionsyoushouldaskthem.Putyourselfintheirshoesanddotheirhomework.Whatquestionswilltheyaskyourteam?Bepreparedtoanswerthem.Althoughitseemslikethemostimportantquestiontoasktheothersideiswhattheywant,RogerFisherstatesthatthereis anotherevenmore crucial questionthatlooks attheunderlying interests ofthe otherparty. Why do they want what they want? Walk a mile in their shoes and determine what you thinkmotivatestheirstatedpositionsYou may already befamiliar with this story,but imagine that one of your coworkers, Lisa, finds a bag of30orangesonsaleata localgrocerystore.Sheneedsonly10of themsoshebringstheremaining20orangestotheofficetosharewithanyonewhowantsthem.BothKarenandAnnadecidetheywantthemAfter negotiating for a few minutes, they decide to each take home 10 oranges.However, if theyhadfocusedontheir interests(onewants just thepeelsand the otherwants onlythejuice)insteadoftheirstatedpositions(wantingtheoranges),theywouldhavebeenableto sharethe20orangesandachievetheirgoals.Karenwantedtheorangessoshecouldsqueezefreshorangejuiceinher juicer.Annawanted theoranges so shecouldgratetheorangepeelsforanorangemuffinrecipe.Sinceneithersideaskedtheopposingsidewhyshewantedtheoranges,bothKarenandAnnahadtomakeatriptothesupermarket.Anna'srecipecalledfortherindsof20orangesandKarenneededenoughjuice for herfamily of five for breakfast, which also requiredthe juice from20 oranges. If they had focusedon interests,theywouldnoteachhavehadtomakeatriptothegrocerystore,andthepeels ofKaren'sorangesandtheorange juicefromAnna'sorangeswouldnothavebeenwasted.Don'tassumethateveryparty'sinterestsandmotivationsrevolvearoundmoney.Let'sassumethatyouownasmallmarketingresearchfirmandarelookingforanewprojectmanager.Youhavecompletedtheinterviews andare intheprocessof negotiatinganofferwithaprospectivecandidate.Whenyouofferhim a salary of s50.000 a year, he states that he thinks you should offer him $55,000.When you ask himwhyhethinkshe deserves s5,ooo morethan youoffered him,you realizethat money isnot what ismotivating him. He feels he should get anextra s5,oooin returnfor settling for the title of project manager.Hehas 10years of projectmanagementexperienceand thinks he shouldhave thetitleof project directorinstead of project manager.He is considering applyingtoanexecutiveMBAeveningprogramat the local
Reading 3 Pre-negotiation Homework (2) Focus on the Other Side’s Interests rather Than Stated Positions. It is almost always in your best interest to find a win-win solution for both parties, to complete a negotiation knowing that both sides are satisfied with the results. If the other party is dissatisfied, it can have negative consequences for you. For example, if a customer feels he was cheated, you will lose her as a customer and perhaps future customers because of her negative comments. If a new hire feels cheated out of a better salary, he may quit his job in a few months when he finds something else that pays more after you just invested time and money in training him. Leaving the other side feeling disgruntled, cheated, or deceived destroys relationships, which could be risky for your business. The next step in preparing for negotiation is to imagine that you have to negotiate for the other side and develop a list of questions you should ask them. Put yourself in their shoes and do their homework. What questions will they ask your team? Be prepared to answer them. Although it seems like the most important question to ask the other side is what they want, Roger Fisher states that there is another even more crucial question that looks at the underlying interests of the other party. Why do they want what they want? Walk a mile in their shoes and determine what you think motivates their stated positions. You may already be familiar with this story, but imagine that one of your coworkers, Lisa, finds a bag of 30 oranges on sale at a local grocery store. She needs only 10 of them so she brings the remaining 20 oranges to the office to share with anyone who wants them. Both Karen and Anna decide they want them. After negotiating for a few minutes, they decide to each take home 10 oranges. However, if they had focused on their interests (one wants just the peels and the other wants only the juice) instead of their stated positions (wanting the oranges), they would have been able to share the 20 oranges and achieve their goals. Karen wanted the oranges so she could squeeze fresh orange juice in her juicer. Anna wanted the oranges so she could grate the orange peels for an orange muffin recipe. Since neither side asked the opposing side why she wanted the oranges, both Karen and Anna had to make a trip to the supermarket. Anna’s recipe called for the rinds of 20 oranges and Karen needed enough juice for her family of five for breakfast, which also required the juice from 20 oranges. If they had focused on interests, they would not each have had to make a trip to the grocery store, and the peels of Karen’s oranges and the orange juice from Anna’s oranges would not have been wasted. Don’t assume that every party’s interests and motivations revolve around money. Let’s assume that you own a small marketing research firm and are looking for a new project manager. You have completed the interviews and are in the process of negotiating an offer with a prospective candidate. When you offer him a salary of $50,000 a year, he states that he thinks you should offer him $55,000. When you ask him why he thinks he deserves $5,000 more than you offered him, you realize that money is not what is motivating him. He feels he should get an extra $5,000 in return for settling for the title of project manager. He has 10 years of project management experience and thinks he should have the title of project director instead of project manager. He is considering applying to an executive MBA evening program at the local
university and feels that the title of project director would be viewed more favorably by the university.Oncehehasshared histrue interestswithyou,youagreetogivehimthetitleofprojectdirectorandagreetopayyournewprojectdirectora salaryof $50,o00ayear.Considerthis example:Boss: Based on our conversations over the past few days, I would like to extend an offer to you for$44,000ayearplus10daysofvacationtimeand5sickdays.Employee:Well,I'mgoingtobehonestandsaythatIamabitsurprised.Iwasexpectingtheoffertobeclosertothe$50,000salaryrange.Boss:Why wereyouexpectingan offerofapproximately $50o00?Employee:Well, sinceIhave beenfreelancingforthepastfewyears,I havegrown accustomed tohavingmore time to go on vacations. I work hard for most of the year but I am also able to take a fewweeks ata timetotravelabroad.I will beunabletodomuchtraveling ifI haveonlytwoweeksofvacation timea year.So if Iwon'tbeable to travelasmuch,I shouldat leastmakemoremoney.Boss:Isee.Howabout this? I'll throw in an extra weekof vacationforthenext threeyears so you'll have15daysofvacationtime.Inadditiontothose15daysofvacationtime,youwill have5daysofsicktime.If you do notget sick during the year,you can use them as vacation days duringthe lastquarteroftheyear.So,you couldhaveupto2ovacationdaysyourfirstthreeyears!And, ifyouwork withmeforthreeyears,I'll increasethatto20vacationdaysplus5sickdays.And,onceaquarter,youcanwork1ohourseitherMondaythroughThursdayorTuesdaythroughFridayandtakea longweekendoff.Ithink thatsoundsfair.Whatdoyouthink?Employee:I think I'll accept the offer-s44,oo0 sounds good as long as I have enough vacation time totravel.Boss: Great, welcome aboard then!Atfirstglanceitmayappearthatbothpartieswantcompletelydifferentthingsandhavenointerestsincommon.However,onceyoustarttothinkabout whatmotivatestheotherteamandwhattheirgoalsare,youwill noticethatsometimesbothteamshavemoreshared intereststhanopposingones.Let'sgobacktotheexample aboutthe small marketingresearch firm ownerandthe newly hiredprojectdirector.You,asthebusinessowner,andyournewemployeehaveafewinterestsincommon.Firstyoubothwantthecompanytoperformwell.Youbothrelyonyourcompany'ssalestosupportyourfamilies.Second,youbothwantstability.You,the owner,wantyour companyto growandwould liketokeepyour valuableemployees;youdonotwanttolosethemtothecompetition,so youofferthemcompetitive salaries,vacationtime,andbenefits.Yournewprojectdirectorisalsolookingfor job security.Hedoesn'twanttohavetoswitchjobsandmovehisfamilyeveryfewyearstogetacompetitivesalaryandbenefits.Thirdyouareboth interested inmaintainingagoodrelationshipwitheachother.Youwantyouremployeetobehappywith his job so that he stays around, and your project director wants to be able to use you as areferenceorfornetworkingpossibilities inthefuture.UseObjectiveStandards.Inordertoconvincetheotherpartythatwhatyouareaskingforisfairandreasonable,tryto use objective standards wheneverpossible.If you arein thenegotia tion process withaprospectivecandidate,you will want topayheras littleaspossibleandshewill want to earn as muchaspossible.Ratherthanfeelingthattheotherpartyistryingtoripyouoffandhagglingback andforth,the easiest solution isto use an independentobjectivestandard.Independentobjective standardsmayincludemarketvalue,replacementcost,depreciatedbookvalue,competitiveprices,precedentsfor
university and feels that the title of project director would be viewed more favorably by the university. Once he has shared his true interests with you, you agree to give him the title of project director and agree to pay your new project director a salary of $50,000 a year. Consider this example: Boss: Based on our conversations over the past few days, I would like to extend an offer to you for $44,000 a year plus 10 days of vacation time and 5 sick days. Employee: Well, I’m going to be honest and say that I am a bit surprised. I was expecting the offer to be closer to the $50,000 salary range. Boss: Why were you expecting an offer of approximately $50,000? Employee: Well, since I have been freelancing for the past few years, I have grown accustomed to having more time to go on vacations. I work hard for most of the year but I am also able to take a few weeks at a time to travel abroad. I will be unable to do much traveling if I have only two weeks of vacation time a year. So if I won’t be able to travel as much, I should at least make more money. Boss: I see. How about this? I’ll throw in an extra week of vacation for the next three years so you’ll have 15 days of vacation time. In addition to those 15 days of vacation time, you will have 5 days of sick time. If you do not get sick during the year, you can use them as vacation days during the last quarter of the year. So, you could have up to 20 vacation days your first three years! And, if you work with me for three years, I’ll increase that to 20 vacation days plus 5 sick days. And, once a quarter, you can work 10 hours either Monday through Thursday or Tuesday through Friday and take a long weekend off. I think that sounds fair. What do you think? Employee: I think I’ll accept the offer—$44,000 sounds good as long as I have enough vacation time to travel. Boss: Great, welcome aboard then! At first glance it may appear that both parties want completely different things and have no interests in common. However, once you start to think about what motivates the other team and what their goals are, you will notice that sometimes both teams have more shared interests than opposing ones. Let’s go back to the example about the small marketing research firm owner and the newly hired project director. You, as the business owner, and your new employee have a few interests in common. First, you both want the company to perform well. You both rely on your company’s sales to support your families. Second, you both want stability. You, the owner, want your company to grow and would like to keep your valuable employees; you do not want to lose them to the competition, so you offer them competitive salaries, vacation time, and benefits. Your new project director is also looking for job security. He doesn’t want to have to switch jobs and move his family every few years to get a competitive salary and benefits. Third, you are both interested in maintaining a good relationship with each other. You want your employee to be happy with his job so that he stays around, and your project director wants to be able to use y ou as a reference or for networking possibilities in the future. Use Objective Standards. In order to convince the other party that what you are asking for is fair and reasonable, try to use objective standards whenever possible. If you are in the negotia tion process with a prospective candidate, you will want to pay her as little as possible and she will want to earn as much as possible. Rather than feeling that the other party is trying to rip you off and haggling back and forth, the easiest solution is to use an independent objective standard. Independent objective standards may include market value, replacement cost, depreciated book value, competitive prices, precedents for
similarcases,scientificjudgment,professional standards,moral orethical standards,orgovernmentstandards.You can also speak to experts in thefield to learn what is considered fair market value forwhatevergoodsor services the negotiation is about.Using objectivestandardscanreducetheamountoftimeittakestoconcludeanegotiationbecausetheyaremorelikelytobeacceptedbytheotherpartyasafairandreasonableoffer.If the other party offers to pay or accept a specific amount,always ask how they arrived at that specificnumber.Did theyusean objectivestandard?If so,whichone?Ifnot, suggestonebeused in ordertoeliminatebiasandbefair,andtocreateawin-winsituationforbothparties.If theyareunabletoprovideyouwithdetailsforhowtheyarrivedatthatamountand refusetobudge,you should seriouslyconsiderto agreetodisagree and not negotiate.If,however,theprice seemsfairand is based ona trustworthyobjectivestandard,bewillingtobeopen-mindedwhenconfrontedwithareasonableoffer.Thinkaboutthefollowing example:Doctor: I am pleased to tell you that I met with everyone you interviewed with and would like to extendyouanofferofs45,000peryearasyoursalary.Employee:Howdidyouarriveatthatamountexactly?Doctor:Well,wethink itisaveryfairsalary.Accordingtoourhumanresourcesdepartment,theaveragesalarypaidtopediatricnurseswithyour levelofexperienceinthiscityis$43,789.Notonlydowepay slightly more than average, but we also offer additional benefits. While most doctors offer theirnursestwoweeksofvacation,wewouldgiveyouthree.Youwouldalsobeabletobegincontributingtoyour4o1(k)planimmediatelyratherthanwaitingforsixmonthsas inmanyotherofficesAdditionally,thevastmajorityofournurseshavebeenwithusformorethan10years.Theaveragetenure at our office for nurses is 14.5 years.And every year for the past five years, we have beenworkingwithamarketresearchfirmtoconductan employeesatisfaction survey.Accordingto lastyear'sresults,92percentofouremployeesareeithersatisfiedorverysatisfiedwiththeirjobs,94percent with the benefits, and 90 percent with their bosses. We really value our employees hereand Ithinkthey recognizethat.Employee: Sounds like once nurses are hired at your office, they don't want to work anywhere else.Doctor:Exactly.We have one of thehighestretentionrates in the cityfor nurses.Employee:Well,nowthatyouexplainedhowhappyyouremployees are,IthinkIwould liketoworkhereas well.Doctor:I'mgladto hear it. I'll notifythehumanresourcesdepartmentandhavethemsendyourpaperworkbytheendof theday.You shouldreceiveitbytheendoftheweek.Generate Options That Meet Interests of Both Parties.Once you have figured out what the opposingpartyreallywants,youcanstarttodevelopalistofcreativeoptionsthatmeetstheinterestsofbothparties.Remember, if you meet only your own interests, you risk alienating the other party and the possib ility thatthey will lose their patience and walk away.Youmaywant to considera suggestionofholdinga brainstormingsessionwithfiveto sevencolleaguesoff-site with a facilitatorto generate a comprehensive list ofideas.Have the facilitator display the ideasonan easelorwhiteboardandrecordall ideasmentioned,realisticornot.Remindall participantsthatallideasshouldprovideawin-winsolutionforbothsides.Theunrealisticideascanbetossedoutwhenthegroup meets again before the negotiation to select the best ideas that will be discussed during thenegotiation
similar cases, scientific judgment, professional standards, moral or ethical standards, or government standards. You can also speak to experts in the field to learn what is considered fair market value for whatever goods or services the negotiation is about. Using objective standards can reduce the amount of time it takes to conclude a negotiation because they are more likely to be accepted by the other party as a fair and reasonable offer. If the other party offers to pay or accept a specific amount, always ask how they arrived at that specific number. Did they use an objective standard? If so, which one? If not, suggest one be used in order to eliminate bias and be fair, and to create a win-win situation for both parties. If they are unable to provide you with details for how they arrived at that amount and refuse to budge, you should seriously consider to agree to disagree and not negotiate. If, however, the price seems fair and is based on a trustworthy objective standard, be willing to be open-minded when confronted with a reasonable offer. Think about the following example: Doctor: I am pleased to tell you that I met with everyone you interviewed with and would like to extend you an offer of $45,000 per year as your salary. Employee: How did you arrive at that amount exactly? Doctor: Well, we think it is a very fair salary. According to our human resources department, the average salary paid to pediatric nurses with your level of experience in this city is $43,789. Not only do we pay slightly more than average, but we also offer additional benefits. While most doctors offer their nurses two weeks of vacation, we would give you three. You would also be able to begin contributing to your 401(k) plan immediately rather than waiting for six months as in many other offices. Additionally, the vast majority of our nurses have been with us for more than 10 years. The average tenure at our office for nurses is 14.5 years. And every year for the past five years, we have been working with a market research firm to conduct an employee satisfaction survey. According to last year’s results, 92 percent of our employees are either satisfied or very satisfied with their jobs, 94 percent with the benefits, and 90 percent with their bosses. We really value our employees here and I think they recognize that. Employee: Sounds like once nurses are hired at your office, they don’t want to work anywhere else. Doctor: Exactly. We have one of the highest retention rates in the city for nurses. Employee: Well, now that you explained how happy your employees are, I think I would like to work here as well. Doctor: I’m glad to hear it. I’ll notify the human resources department and have them send your paperwork by the end of the day. You should receive it by the end of the week. Generate Options That Meet Interests of Both Parties. Once you have figured out what the opposing party really wants, you can start to develop a list of creative options that meets the interests of both parties. Remember, if you meet only your own interests, you risk alienating the other party and the possib ility that they will lose their patience and walk away. You may want to consider a suggestion of holding a brainstorming session with five to seven colleagues off-site with a facilitator to generate a comprehensive list of ideas. Have the facilitator display the ideas on an easel or whiteboard and record all ideas mentioned, realistic or not. Remind all participants that all ideas should provide a win-win solution for both sides. The unrealistic ideas can be tossed out when the group meets again before the negotiation to select the best ideas that will be discussed during the negotiation
Make surethat all the ideas selectedmeetthefollowingbasichumanneeds thatmotivatethepositionspeople choose so that you can reach mutual agreementmore quickly:VRiskreductionandsecurity-jobsecurity.V Sense ofbelonging-fitting in at homeand atwork with specificroles and responsibilities. Economic security-beingableto affordbasicnecessities (food,shelter,etc.).VRecognition and approval-feelingvaluedforaccomplishing challenging work.V Controlover one's life-managing,organizing,and running one's life in the desired way.Consider this example:Employee:Thankyouforagreeingtomeetwithmetodiscussmyraisefornextyear.Boss:IwantyoutoknowthatIthinkyouareanassettomycompanyandIappreciateeverythingyoudoaroundhere.Ithinkyourreviewwentwell thisyear,andIhavedecidedtogiveyouan8percentraise for all your hard work.Employee:Iappreciatethe8percentbutIhavetosaythatIwashopingfor15percentBoss: Please tell me why you werehoping for 15percent.Employee:Well, I really like my job but it's expensive to keep my kids in day care from3:30 to 5:30 everyday.I was hoping for a 15 percentraise so thatI can keep up with the rising costs of day care.Boss: I'll tell you what I can do. What about letting you work flexible hours? Maybe you could work from6:30A.M.to 3:00P.M.each weekdaywith a 30-minute lunch.Thiswayyou can still work40hoursaweekandbehomeintimetotakecareofyourkidswhentheycomehomefromschool.Notonlywould yougetto spend morequalitytimewithyourkids,butyou alsowouldn'thavetosendthemtodaycare.Employee: Wow, that's a great idea. The 8 percent raise sounds fine. Thank you.Theboss wasabletomeethisownneedsofwantingtogive his employee araiseof8percentand thoseofhisemployeebysolvinghisday-carecostincreaseproblems,leavingbothpartiesfeelingthattheyhadwon.DetermineYourBATNA.Inorderto negotiatebetter,youmustdeterminewhatyour BATNAis priortonegotiating.BATNA,firstcoined by Fisherand Ury,standsfor"bestalternativeto anegotiated agreement"Ifyouareunabletoreachanagreementwiththeotherparty,whatisyournextbestoption?KnowingyourBATNA helps you to decide at what point the deal the other side is offering you is no longer beneficial toyou. Remember, the whole point of negotiating with someone is to get something better than what youwould getwithout negotiating.So,you should considersealingadeal only if you areableto comeoutahead.Forexample,let's say you own a small advertisingagency and are looking for a seasoned accountexecutive for one of your largest accounts. You are in the process of negotiating an offer with the leadingcandidate.Generate a list of as many alternatives as you can think of for not hiring this candidateandthenpick the one option that seems to be the best. Bear inmind that you havea stronger position ifyourBATNAistohireafreelancerwhousedtobeanemployeeofyourcompanyuntilapermanentemployeeishired.Thispersonwouldrequire littleornotrainingsincesheisfamiliarwithhowyourcompanydoesthingsandwouldbeabletoproducework immediately.If,however,youhavenootherprospectsinmind,havetoadvertisethepositiontogenerateresumes,andtheofficialstartdateoftheprojectisnextweek,youhaveaweakerBATNA
Make sure that all the ideas selected meet the following basic human needs that motivate the positions people choose so that you can reach mutual agreement more quickly: ✔ Risk reduction and security—job security. ✔ Sense of belonging—fitting in at home and at work with specific roles and responsibilities. ✔ Economic security—being able to afford basic necessities (food, shelter, etc.). ✔ Recognition and approval—feeling valued for accomplishing challenging work. ✔ Control over one’s life—managing, organizing, and running one’s life in the desired way. Consider this example: Employee: Thank you for agreeing to meet with me to discuss my raise for next year. Boss: I want you to know that I think you are an asset to my company and I appreciate everything you do around here. I think your review went well this year, and I have decided to give you an 8 percent raise for all your hard work. Employee: I appreciate the 8 percent but I have to say that I was hoping for 15 percent. Boss: Please tell me why you were hoping for 15 percent. Employee: Well, I really like my job but it’s expensive to keep my kids in day care from 3:30 to 5:30 every day. I was hoping for a 15 percent raise so that I can keep up with the rising costs of day care. Boss: I’ll tell you what I can do. What about letting you work flexible hours? Maybe you could work from 6:30 A.M. to 3:00 P .M. each weekday with a 30-minute lunch. This way you can still work 40 hours a week and be home in time to take care of your kids when they come home from school. Not only would you get to spend more quality time with your kids, but you also wouldn’t have to send them to day care. Employee: Wow, that’s a great idea. The 8 percent raise sounds fine. Thank you. The boss was able to meet his own needs of wanting to give his employee a raise of 8 percent and those of his employee by solving his day-care cost increase problems, leaving both parties feeling that they had won. Determine Your BATNA. In order to negotiate better, you must determine what your BATNA is prior to negotiating. BATNA, first coined by Fisher and Ury, stands for “best alternative to a negotiated agreement.” If you are unable to reach an agreement with the other party, what is your next best option? Knowing your BATNA helps you to decide at what point the deal the other side is offering you is no longer beneficial to you. Remember, the whole point of negotiating with someone is to get something better than what you would get without negotiating. So, you should consider sealing a deal only if you are able to come out ahead. For example, let’s say you own a small advertising agency and are looking for a seasoned account executive for one of your largest accounts. You are in the process of negotiating an offer with the leading candidate. Generate a list of as many alternatives as you can think of for not hiring this candidate and then pick the one option that seems to be the best. Bear in mind that you have a stronger position if your BATNA is to hire a freelancer who used to be an employee of your company until a permanent employee is hired. This person would require little or no training since she is familiar with how your company does things and would be able to produce work immediately. If, however, you have no other prospects in mind, have to advertise the position to generate resumes, and the official start date of the project is next week, you have a weaker BATNA
OnceyouhavedeterminedyourBATNA,you should considertheBATNAoftheotherparty,keeping inmindthatthepartywiththestrongerBATNAtendstobethemorepowerfulpartyinthenegotiationprocess.Iftheprospectivecandidateyouareinterestedinhiringhasanotherjob,shehasamorepowerful BATNAthan ifhersecondbestalternativeistoremainunemployedforan indefiniteamountoftimeuntilanothersuitable job is offered. If both parties have strong BATNAs, the best solution may be to not negotiate witheachotherandinsteadnegotiatewithotherpartiesornotatall.Reading4NegotiationStylesThere are two main types of negotiation styles, hard and soft. Hard bargaining is also referred to aspositional,aggressive,contending,orcompetitivebargaining:and softbargainingissynonymouswithrelationalorcooperativebargaining.Hard Bargainers. In a nutshell, hard bargainers want to be victorious and are willing to jeopardizerelationshipstoaccomplishtheirgoalofwinning.Whilethisnegotiationstyleeliminatestheneedtomakeconcessions,italsoincreasesthelikelihoodthattheotherpartywill walkaway,resultinginnoagreement,andthattherelationshipwillbeseveredorseverelydamaged.Hard bargainers consider satisfying the otherparty's needs only if it helps to accomplish their goals andobjectives.Theytendto withhold important information,purposely provide incorrectbottom-linefigures,andembellishfacts.Asaresult oftheirsometimesdeceptivebehavior,theytendtodistrusttheotherparty.Othertraitsdisplayed by hard bargainers are their inflated demands and threats,impatience,pressuretactics,andinsistenceontheirownpositions.Because this approach involves little to no preparation, it is used by many negotiators. However, thisnegotiationstyleusuallydoesnotyieldthebestresultsbecause italienatestheopposingpartyandleavesthem dissatisfied with the outcome.Before deciding to use this approach,serious consideration shouldbegiventothefollowingquestions:V How important is it that the other partydoes not walk away from the negotiation? Howmuchdoyouvalueyourrelationshipwiththeotherparty?Howcomplicatedaretheissues?If you value the relationship you have with the other side,it is important to you that the other party notwalk awayfrom the negotiation, or if thematter involves complex issues,hardbargaining willmostprobablynotyield thedesired results.SoftBargainers.In contrasttohardbargainers,theprimary concern ofsoft bargainers istomaintainorimproverelationshipsbyfindingasolutionthatappeasesallparties.However,toavoidconflictwiththeother side,softbargainerswill quicklyconcede,makeconcessions,and agreetoconditionsthat areclearlyunfavorableforthem.Themajordisadvantagesofthisapproacharethatoftensoftbargainersfeelthat they are taken advantage of or become bitterand resentful following a negotiation.Softbargainerstendtobemorepatient,indirect,accommodating,andtrustingthantheirhard-bargainingcounterparts
Once you have determined your BATNA, you should consider the BATNA of the other party, keeping in mind that the party with the stronger BATNA tends to be the more powerful party in the negotiation process. If the prospective candidate you are interested in hiring has another job, she has a more powerful BATNA than if her second best alternative is to remain unemployed for an indefinite amount of time until another suitable job is offered. If both parties have strong BATNAs, the best solution may be to not negotiate with each other and instead negotiate with other parties or not at all. Reading 4 Negotiation Styles There are two main types of negotiation styles, hard and soft. Hard bargaining is also referred to as positional, aggressive, contending, or competitive bargaining; and soft bargaining is synonymous with relational or cooperative bargaining. Hard Bargainers. In a nutshell, hard bargainers want to be victorious and are willing to jeopardize relationships to accomplish their goal of winning. While this negotiation style eliminates the need to make concessions, it also increases the likelihood that the other party will walk away, resulting in no agreement, and that the relationship will be severed or severely damaged. Hard bargainers consider satisfying the other party’s needs only if it helps to accomplish their goals and objectives. They tend to withhold important information, purposely provide incorrect bottom -line figures, and embellish facts. As a result of their sometimes deceptive behavior, they tend to distrust the other party. Other traits displayed by hard bargainers are their inflated demands and threats, impatience, pressure tactics, and insistence on their own positions. Because this approach involves little to no preparation, it is used by many negotiators. However, this negotiation style usually does not yield the best results because it alienates the opposing party and leaves them dissatisfied with the outcome. Before deciding to use this approach, serious consideration should be given to the following questions: ✔ How important is it that the other party does not walk away from the negotiation? ✔ How much do you value your relationship with the other party? ✔ How complicated are the issues? If you value the relationship you have with the other side, it is important to you that the other party not walk away from the negotiation, or if the matter involves complex issues, hard bargaining will most probably not yield the desired results. Soft Bargainers. In contrast to hard bargainers, the primary concern of soft bargainers is to maintain or improve relationships by finding a solution that appeases all parties. However, to avoid conflict with the other side, soft bargainers will quickly concede, make concessions, and agree to conditions that are clearly unfavorable for them. The major disadvantages of this approach are that often soft bargainers feel that they are taken advantage of or become bitter and resentful following a negotiation. Soft bargainers tend to be more patient, indirect, accommodating, and trusting than their hard-bargaining counterparts
So,which negotiation style should you adopt-hard or soft bargaining?The answeris neither.A thirdnegotiationstylecalledprincipledorwin-winnegotiationis suggested.Themainideabehindprinciplednegotiationisthat both sides explore the interests of bothparties and discovera creativesolutionthatmakesbothsidesfeel likewinners.Principlednegotiationisbasedonthefollowingfourpoints:1.Focusontheinterestsofall parties,nottheirpositions.2.Separatethepeoplefromtheissue.3. Make a list of creative options that meet the interests of both parties.4.BasetheendresultonanobjectivestandardReading5Howto Negotiate:TheStrategiesOncetheframeworkisset,youmustbeclearonyourstrategies.Whileyouwill oftenchangeyourtactics,dependingonhowthingsevolve,youshouldsticktoyourstrategies.Focusontheobjective.This isthefirstruleandprinciple.Youmustavoidemotionssuchasangerwhileyou are in the negotiating group. The other side would like to provoke you to anger, to make you losecontrol.Remembertheobjectiveyouwanttoachieve,and donot losesightof it.Neverletyourselfbedivertedfrom it.Itdoesnotmatterifyoudonotliketheotherparty-youhavetorespectthem.Youarenot negotiating with your friend; you are negotiating with your adversary.Look tothefuture,notatthepast.Weoftenlookatthepast.But thepast isonlygoodforreference.Itis what you wantto establish inthefuturethat is important.You have identified a problemwithyouradversary,andwhenyouhaveidentifiedit,youaskthem:Whatisyourgoal?Whatdoyouwanttoachieve?Bebold in askingthe otherpartywhat theywantto resolve inthedisputeyoubothhave identified.Inmostcases,wheretheconflictiscomplex,youneedamediatororafacilitator,simplyasarefereeDonotspendtimeontrivialmatters.Inordertoavoidthetrapoftrivia,youshouldalwayscheckwhereyou are.On a scale from1to10,check the priorityof the issue you are negotiating.You should alwaysbeabovethehalfwaymarkonthisscale.ifyouarecomingnearthemiddle,checkyourpriorities.Ifthenegotiationsproduceanswerstothem,closethedeal.Negotiationscanbesimplecomplex,orevenverycomplicated,sodo notwastetimeontrivia.Whatistrivia?In myview,thequestion of"whoisgoingtosignthisagreement"istrivial.Anothertrivial matterisdeterminingwhowillgainwhichappointment inthefuture,as you are not in the futureyet.Do not negotiate an agreement with personal interests in mind.These matters are trivia. Establish institutions (e.g., "there shall be a state legislature"), but one shouldnotfocus onpersonal positions in the institutions thatare tobe setup.Knowwhatyou want,andwhat the othersidewants.From the onset,make sure youknowwhat youwant. Ifyouproceedonlybased on assumptions as towhatyouwant,youmaynegotiatefor thewrongreason,and the wrong cause.Have a detailed plan of what you want. Also ask the other party to clarifyitswishes.Provideaplan,andasktheothersideforaplaninresponse.Negotiationsarelikelytobreakdown,stall,orendindeadlockifissuesoffundamentalconcerntotheothersideareleftout.Ifyourownfundamental issues areleftout,stall thenegotiationscallforabreak.Sometimes youropponents will
So, which negotiation style should you adopt—hard or soft bargaining? The answer is neither. A third negotiation style called principled or win-win negotiation is suggested. The main idea behind principled negotiation is that both sides explore the interests of both parties and discover a creative solution that makes both sides feel like winners. Principled negotiation is based on the following four points: 1. Focus on the interests of all parties, not their positions. 2. Separate the people from the issue. 3. Make a list of creative options that meet the interests of both parties. 4. Base the end result on an objective standard. Reading 5 How to Negotiate: The Strategies Once the framework is set, you must be clear on your strategies. While you will often change your tactics, depending on how things evolve, you should stick to your strategies. Focus on the objective. This is the first rule and principle. You must avoid emotions such as anger while you are in the negotiating group. The other side would like to provoke you to anger, to make you lose control. Remember the objective you want to achieve, and do not lose sight of it. Never let yourself be diverted from it. It does not matter if you do not like the other party – you have to respect them. You are not negotiating with your friend; you are negotiating with your adversary. Look to the future, not at the past. We often look at the past. But the past is only good for reference. It is what you want to establish in the future that is important. You have identified a problem with your adversary, and when you have identified it, you ask them: What is your goal? What do you want to achieve? Be bold in asking the other party what they want to resolve in the dispute you both have identified. In most cases, where the conflict is complex, you need a mediator or a facilitator, simply as a referee. Do not spend time on trivial matters. In order to avoid the trap of trivia, you should always check where you are. On a scale from 1 to 10, check the priority of the issue you are negotiating. You should always be above the halfway mark on this scale. If you are coming near the middle, check your prioritie s. If the negotiations produce answers to them, close the deal. Negotiations can be simple, complex, or even very complicated, so do not waste time on trivia. What is trivia? In my view, the question of “who is going to sign this agreement” is trivial. Another trivial matter is determining who will gain which appointment in the future, as you are not in the future yet. Do not negotiate an agreement with personal interests in mind. These matters are trivia. Establish institutions (e.g., “there shall be a state legislature”), but one should not focus on personal positions in the institutions that are to be set up. Know what you want, and what the other side wants. From the onset, make sure you know what you want. If you proceed only based on assumptions as to what you want, you may negotiate for the wrong reason, and the wrong cause. Have a detailed plan of what you want. Also ask the other party to clarify its wishes. Provide a plan, and ask the other side for a plan in response. Negotiations are likely to break down, stall, or end in deadlock if issues of fundamental concern to the other side are left out. If your own fundamental issues are left out, stall the negotiations, call for a break. Sometimes your opponents will