After completing this module, you will be able to:
(1) Decide if a negotiation is position-based or interest-based
(2) Decide if a negotiation is dispute-resolution or deal-making
(3) Complete a negotiation analysis, including: setting a reservation price and stretch goal,
identifying alternatives to a deal, and finding the zone of potential agreement
(4) Use a decision tree to determine your BATNA
(5) Conduct cross-cultural negotiations
(6) Resolve ethical issues in negotiations
(7) Decide if you should use an agent in a negotiation
Assessing Your Negotiating Style*
To assess your negotiation style while preparing for negotiations, complete the following
three steps:
1. Complete the attachment to assess and understand your negotiating style.
2. Use the assessment to assess the style of the other side. This is especially
important in cross-cultural negotiations. Remember that there can be
considerable variation in negotiation style within a culture.
3. Do a gap analysis. Locate the major gaps between your style and the style of the
other side. Focus on these gaps when preparing for the negotiation.
Additional tip: After completing the gap analysis, try a role reversal exercise where you use
the style of the other side. This will enable you to better understand the other side’s style.
Voluntary Ethical Standards and
Guidelines:
1. Organizational standards. (If your employer has a Code of Conduct, does
it provide standards for your negotiations?)
2. Someone you admire. (What would someone you admire do in your
situation?)
3. Family test. (How would you feel when describing to your family what you did
during a negotiation?)
4. Newspaper test. (How would you feel if a newspaper article in the local paper
described what you did during a negotiation?)
5. Golden Rule. (Treat others as you want to be treated. Keep in mind that
fairness is very important to the other side.)
[Link]
can-affect-your-negotiation/
The suggested reading for this module: Chapters 5 and 7 from Negotiating for Success:
Essential Strategies and Skills. Review again the Negotiation Planning Checklist (Appendix
A) and the example of the completed Checklist (Appendix B).
You can purchase the English version of the book at the following places, in the formats
noted, using the links included here:
Print Edition:
Amazon (Paperback)
Ebook Edition:
Amazon (MOBI / Kindle)
Apple (EPUB / iBook)
Barnes & Noble (EPUB / Nook)
Google Play (EPUB)
Smashwords (EPUB)
Other places where the EPUB version is available include: Kobo, Inktera, Baker &
Taylor, Txtr, OverDrive, Scribd, Gardners, Yuzu, Tolino, and Odilo.
If you want a Kindle version of the book but don't own a Kindle e-reader, you can
download a free Kindle e-reading program or app, or you can read the book from within
your Amazon [Link] can purchase translated versions of the book at the following
places, in the formats noted, using the links included here. (Or you can search for and
purchase the book at most of your country-specific Amazon sites.):
Developing Your Negotiating Power
Your Best Alternative to a Negotiated Agreement (BATNA) is your source of power during a
negotiation. Your BATNA gives you leverage to walk away if the other side doesn’t give you
a better deal than your best alternative. For additional information see Chapter 5,
“Develop Your Relationships and Your Power,” in Negotiating for Success:
[Link]
0990367193/ref=sr_1_1?s=boo....
[Link]
To develop your power, answer the following questions:
1. What is my BATNA? (This should be the first question that you ask yourself when
preparing for negotiations. If your BATNA is better than what the other side can
offer, walk away from the negotiation.)
2. Should I disclose my BATNA to the other side during negotiations? (As a general
rule, you will want to disclose a strong BATNA because that signals your strength
and you will want to hide a weak BATNA.)
3. If I have a weak BATNA, should I lie about my alternatives? (Lying is never
recommended and in this situation it is especially dangerous because courts have
held that lying about BATNAs can be considered fraud. See Chapter 4, “Decide How
to Answer Ethical Questions,” in Negotiating for Success.
4. Do I know what the other side’s BATNA is? How can I find their BATNA? (This is the
way that you will determine the strength of the other side. Decide what questions
to ask during the negotiation to find the other side’s BATNA.)
5. How can I weaken the other side’s BATNA? (In other words, how can you weaken
the other side’s power? Before the negotiation, try to predict their BATNA and think
about how you can weaken it.)
6. How can I strengthen my BATNA? (In other words, how can you strengthen your
power during the negotiation?)
Checklist of Psychological Tools
This checklist of psychological tools you can use during future negotiations is explained
(with many examples) in Chapter 7, “Use Psychological Tools—and Avoid Psychological
Traps,” in Negotiating for Success:
[Link]
0990367193/ref=sr_1_1?s=boo....
[Link]
Remember that these tools can become traps when the other side uses them.
1. Don’t assume that you are negotiating over a fixed pie (and avoid reactive
devaluation).
2. Use anchoring in developing a first offer strategy.
3. Avoid overconfidence when making negotiation decisions.
4. Frame the other side’s choices to your advantage.
5. Look beyond easily available information.
6. Look at all negotiations from the other side’s perspective.
7. Encourage reciprocity from the other side.
8. Use the contrast principle.
9. Don’t lose sight of the big picture—the gorilla in the room.
Contract Law Checklist
Negotiations take place within the “shadow of the law.” Even when hiring an attorney to
review your final contract, you should use the following checklist during negotiations to
ensure that you your agreement will be enforceable. For further information and
examples, see Chapter 8, “Use Contract Law to Complete Your Negotiation,” in
Negotiating for Success:
[Link]
0990367193/ref=sr_1_1?s=boo....
[Link]
1. Are you using a preliminary document? (If you are using a preliminary document—
often called a letter of intent, memorandum of understanding or agreement in
principle—state in the document that it is for negotiating purposes only and not a
final contract.)
2. Have you reached a final agreement? (After the other side makes an offer, be
careful when adding terms to your “acceptance.” A counteroffer can terminate
their offer.)
3. Have both sides given up something? (This is the consideration requirement. Be
especially careful to meet this requirement when you are amending a contract.)
4. Is the agreement legal? (Remember that legality requirements extend beyond
violation of criminal law and can include violations of public policy.)
5. Is the agreement in writing? (Even when not required by law, it is sound practice to
put all your agreements—including contract modifications—in writing.)
6. Does your written contract include all the terms that you negotiated? (Although
the law varies from country to country, there is a risk that courts will not enforce
agreements that are not part of the written contract.)
7. Are there any implied terms that are not part of the written contract? (In addition
to implied terms, courts might also review your past dealings with the other side
when interpreting the contract.)
