0% found this document useful (0 votes)
13 views

Negotiation Module Master

Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
13 views

Negotiation Module Master

Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 111

GABORONE UNIVERSITY COLLEGE OF LAW AND PROFESSIONAL STUDIES

ADVANCED DIPLOMA IN PURCHASING AND SUPPLY CHAIN MANAGEMENT

YEAR 1: SEMESTER 2

NG102: NEGOTIATION
TABLE OF CONTENTS

Chapter Content Page

1 Introduction to Negotiation 2

2 Planning and Preparation for Negotiation 30

3 Establishing Trust 45

4 Persuasion Laws and Techniques 61

5 Negotiation Strategies 75

6 Introduction to Negotiating Techniques 91

7 Negotiation Approaches 104

8 References and Further Reading 107

1
CHAPTER ONE
INTRODUCTION TO NEGOTIATION

Structure of Chapter

1.0 Introduction
1.1 The Nature of Negotiation
1.2 Defining Negotiation
1.3 Important Factors in Negotiation
1.4 The Use of Negotiation in Purchasing
1.5 Defining the Strategy Route Map
1.6 Two Common Mistakes Made in Negotiation
1.7 Objectives of Negotiation
1.8 Introduction to Negotiating Skills and Techniques
1.9 Characteristics of Good Negotiators
1.10 Introduction to Negotiating Strategy
1.11 Introduction to Negotiating Techniques

1.0 Introduction

To get what you want in life, in work, and in play, requires constant negotiation
with a variety of people. This involves basic communication skills, such as
active listening and attention to non-verbal cues, and a clear understanding of
your goals, as well as the objectives of your negotiating partner(s). To be truly
effective, however, you need to know more. You should be able to
communicate persuasively during the process of negotiation.

Many situations you’ll face will require you to effectively negotiate to a


mutually beneficial (win-win) solution, including:

2
1. Responding to staff members’ requests for promotions, salary increases, and
other employment perks (as well as negotiating your own)

2. Negotiating with vendors for their best possible products, services, and prices

3. Convincing your team to do what you would like them to do

4. Working with external and internal clients on contracts (such as Service


Level Agreements) that provide the quality services and equipment they need
but in a manner that allows you to use your resources optimally

5. Persuading supervisors to buy additional equipment, accept your budget


proposals, try a new idea, etc.

In order to be successful in these instances, you must master the persuasion


process, which will enable you to deliberately create the attitude change and
subsequent actions necessary for persuading others to your way of thinking. In
other words, you have to be able to “sell” your ideas in order to make changes
in your favor and, in a win-win situation, provide the other side with a fair deal.
This entails a process that can appeal to the intellect using logical and objective
criteria, as well as a methodology that positively engages the emotions of the
negotiators. The result of a successful negotiation is that all parties should
believe they got a good deal.

1.1The Nature of Negotiation

The world negotiate derive from the Latin infinitive negotiarimeaning “to trade
or do business.” This verb itself was derived from another, negare, meaning “to
deny” and a noun, otium, meaning “leisure”. Therefore, the ancient Roman
businessman would “deny leisure” until the deal had been settled (Curry, 1999).
Negotiation is any activity that influences another person. McCormack define
negotiation in his book McCormack on Negotiating (1995) as the process of
getting the best terms once the other side starts to act on their interest.

3
In otherwords negotiation is a process to get what is wanted. It is a process that
means to an end. The negotiating process involves balancing matters between
two parties so that the negotiator not only get what he wants but also get what
he wants in the best possible way (Forsyth, 2009). It is the journey of how to get
to the destination and not the destination itself. Companies should pay more
attention on how to get there but also at the same time should not lose the sight
of the destination. It is all about the process.

Negotiations in business are constantly changing which will create a sense of


something always happening. There is no one best way, no one best plan, no
single uncluttered system that best produces understanding about negotiation.
There are many factors that influence the negotiation flow. The most typical
factors that affect how a negotiation will play out are time, environment,
personalities, information, personal issues and hierarchy. Time has a huge role
in an effective international business negotiation. Because of the globalization
people are very busy and specific deadlines, a sense of urgency or even inaction
affect the success of negotiation. In international business negotiation
companies’ cultural and professional expectations have to be in the same level.
The physical environment where the negotiation is taking place is also very
important. The number of people in the setting and their behavior and
temperament influences the negotiation journey. For the negotiation to be
effective it is vital that both parties have the information needed in their own
field. Lack of information gives always unprofessional image to the opponent. It
is also important to have self-esteem that will reflect to counter side. The
negotiator should have the ability to command or demand performance.

Negotiation is not a compromise. Compromise means giving admissions or


settling upon an intermediate point between two positions. Compromise does
not mean getting what the negotiator wants. Whenever anyone on the other side
of the bargaining table offers the word compromise it means that they are

4
getting ready to lose. It means that nobody gets what they really want. Everyone
has to reach a compromise away from their stated position. This is not a
satisfactory way to control a negotiation, and yet most people think this is what
negotiation is all about (Harvey, 2008). In compromise situation both parties are
unhappy after a deal because one party had to spend more than he initially
planned and the other party received less than he wanted in the transaction.
Usually compromise is a lose-lose situation. Negotiation can be done without
compromise but compromise cannot be done without negotiation.

1.2 Defining Negotiation

Noted statesman and negotiator Henry Kissinger defined negotiation as, “a


process of combining conflicting positions into a common position, under a
decision rule of unanimity” (Kissinger, 1969). Elsewhere, theorists have
portrayed negotiations as events of diplomatic artistry, mechanical reflections of
relative power, weighted interactions between personality types or rational
decision-making processes. While formal definitions of negotiation vary,
theorists do accept certain basic tenets. Foremost among them is the assumption
that parties who negotiate agree in at least one fundamental respect; they share a
belief that their respective purposes will be better served by entering into
negotiation with the other party. Implicitly then, negotiating parties have come
to the conclusion, at least for a moment, that they may be able to satisfy their
individual goals or concerns more favourably by coming to an agreed upon
solution with the other side, than by attempting to meet their goals or concerns
unilaterally. It is this mutual perception that leads to the onset of negotiations
and betrays the dependence that exists (to whatever degree) between negotiating
parties. This common interest in a shared agreement is the starting point for
the“common interest and mutual dependence that can exist between participants
in a conflictwith which, Schelling writes, “negotiation is concerned” (Schelling,
1960)4.

5
Negotiation is a method where people come to an agreement about a price or
product. It is a process by which a compromise or an agreement is reached
while trying to avoid argument. Negotiations do not always end in an
agreement. Those making a decision by negotiation usually have the option of
choosing some other solution, or saying ‘no’ or walking away.

According to Sawyer and Guetzkow (1965) negotiation can be defined as a


process by which parties attempt to reach an accord that specifies how they will
act toward one another. Negotiation is a method where people come to an
agreement about a price or product. It is a process by which a compromise or an
agreement is reached while trying to avoid argument. Negotiations do not
always end in an agreement. Those making a decision by negotiation usually
have the option of choosing some other solution, or saying ‘no’ or walking
away.

1.3 Important Factors in Negotiating

Negotiating is one of the first steps in the trade process. It is necessary for the
buyer or the seller of the goods or services to get into contact and to negotiate
regarding the methods, the price of purchase/sale and regarding their
coordination. A good preparation reduces wasted efforts and time, identifies
gaps in the information needed to make decisions by trading, and establishing
the criteria for judging the merits of possible traded solutions. It allows to
anticipate likely stances and demand, and to focus the attention on the potential
for trade and potential for solution, which increases your effectiveness as
negotiator. For preparing a successful negotiation several factors need to be
taken in consideration: Which variables affect the outcomes of the negotiation
process? Which strategies support the execution of an agreement? Which
persons should be chosen for cooperation?

6
To answer this questions and before starting a negotiation next the following
steps need to be taken:

 Good preparation
 Gather information
 Choose a suitable strategy which can be used by the seller and the buyer
 Choose the sale and delivery methods
 The price of the goods or services
 The methods of payment
 Determinate the duration of the business relationship

For example a firm which intends to export, conducts the necessary


preparations, reeds business plans, does market research, and, initiates the
negotiations by contacting the potential buyers. The main interest of the buyer
and the seller is maximizing their profit. Therefore, both parties should meet at
an optimal point. In most cases the buyer is the party who sets the rules; but
except in oligopolistic sectors where the seller is the party who sets the rules.

The main condition for a successful outcome for any negotiation is obtaining
information. For this reason, it is very important to gather information through
desktop studies before making an offer. In most cases, this information can
mostly be obtained from the study of the research of various entities or from the
internet, as well as via telephone connections or correspondence. This will help
create a successful and sustainable negotiation. During this research, the below
mentioned matters should be evaluated:

 Evaluation of the political and economic stability of the target country


 Evaluation of the law system regarding trade of goods
 Research of the existence of a mutual agreement, which may affect your
future commercial activities, such as the membership of the target

7
country to the World Trade Organization, the free trade agreements
between countries, agreements to avoid double taxation etc.
 The economic development level, the leniencies of companies and their
business culture in the target area
 Research regarding the leniency of growth in the target area, the target
sector, the existence of competition
 Research regarding the administrative and financial capacity of the target
company, its place in the sector and research for reference regarding the
company
 Evaluation of the banking system and financing opportunities in the target
market and the presence of banks which have the ability to conduct
foreign transactions and their ability and power to act as correspondent
banks
 Information regarding accounting standards and evaluations
 Research for the transportation conditions to the target company

1.4 The Use of Negotiation in Purchasing

Good preparation and planning have a significant impact on the outcome


of a deal, explains Sue Preston.

Without adequately defining your objectives, preparing your case and planning
your strategy, your chances of achieving your ideal objectives in a negotiation
are minimal. If one party has spent time before a meeting defining the desired
outcome, planning how they will dictate the agenda, including how they will
open their case and tackle some tricky questions, they will always outperform
the person who has given no prior consideration to it.

The initial phase should incorporate objective setting, preparation and planning.
Preparation is about researching your own precise requirements and latitude for

8
movement, the market, the other party’s strengths and weaknesses, and making
some (educated) assumptions about their ideal and fall-back positions.

Research by NRI found too few people dedicate time to planning. Here are
some key planning and preparation steps to consider:

Manage your Time

A staggering two-thirds (62 per cent) of the people questioned spent one hour or
less preparing for a negotiation. Sixty-eight per cent admitted that better
preparation for their last deal would have produced a better outcome.

Negotiation is a performance; it is during the planning phase that the stage is set
and expectations managed. Effective negotiators envisage a far wider range of
potential variables, openings and outcomes than the average negotiator. They
also spend more time considering areas of common interest between the parties.

Average negotiators discuss item A then B, followed by C and D. If the


business is in any other order, they are thrown off balance. Effective negotiators
are able to discuss items in any order, enabling flexibility in their approach.

When preparing for a negotiation remember to:

 Consider the impact on the business.

 Consider how attractive this business is to the other party.

 Select the location for the negotiation.

 Plan the opening, testing and moving phases of the negotiation

 State assumptions.

 List questions to test the assumptions.

 Be creative – the longer and more creative the list of variables, the more
flexible your strategy will be.

9
Prepare Open Questions

Of those surveyed, only 1 per cent would typically prepare 20 ‘open’ questions
for a negotiation, with 44 per cent relying on only 0-5 planned questions.

Closed questions can be answered with “yes/no” or a short phrase, whereas


open questions demand more information – for example, “Will you innovate for
us?” versus “How will you innovate for us?”

If we ask open questions, it is difficult for the other party to evade and therefore
puts the asker in a position of control. Many people believe that talking gives
you control. In fact, it is the person asking the open questions and listening to
the responses who will be in control.

If you talk too much and are under-prepared, the other party will put you on the
spot with a well-chosen question. If you have planned properly, you will know
what information you require and what assumptions you have made concerning
you, your business and the other party. Proper use of questions allows you to
check out all of this preparation before you move into the next phase of the
negotiation.

1.5Designing a Strategy Route Map

A negotiation has clear phases and these must be planned. Avoid entering one
without having drawn up a careful map of the direction and destination of the
meeting and any subsequent events. The route may not be completely sequential
– you may have to backtrack – but at least you will be prepared.

Skilled negotiators will be in a better position to manage time more effectively,


which will result in delivery of a better deal.

10
A quarter thought that the other party was more prepared than the buyer, with
48 per cent saying that both parties were equally prepared. The research, which
was based on the responses of 90 delegates, would suggest that a lack of
preparation and planning is putting the buyer’s questions in a weaker
negotiation position before they even go in to do the deal.

Consider Style and Personality

Personality type, negotiating styles and interests are all key factors in building
rapport and managing behaviour during a negotiation. It is important these areas
are considered in the planning stage. The research found 43 per cent
‘sometimes’ consider these aspects, and 4 per cent ‘never’ consider it. It is
important to be unpredictable within a negotiation to prevent the other party
reading you too well. And if they are skilled, they will also be unpredictable.

You need to prepare and plan for a plethora of tactics, approaches and questions
because not all techniques will work all of the time on every one. So, when
you’re planning, consider the responses the other party is likely to give. Over
half the people interviewed ‘mostly to always’ consider the other party’s
response. This will put them in control and help them deal with the unexpected
that can sometimes arise during a negotiation.

Define your Targets

Another part of the strategy should be setting well-defined targets for each issue
or variable. The research showed that negotiators often lose sight of their
objectives. Keep these in mind and set well-defined goals from the outset. If we
don’t know where we are going, how will we know when we’ve arrived?
Setting objectives from ‘ideal’ and ‘realistic’ to ‘walk away’ is paramount. It

11
will help to control the extent to which you move from your ideal settlement
point and to understand the cost implications of any movement.

Skilled negotiators know the specific objectives for each variable: what must
they get? What might they achieve in an ideal world? And what is realistic?
Make sure that the ideal is a stretching objective and that you have clear targets
for each variable. The longer and more creative your give and take list of
variables, the more flexibility you will have in your negotiation.

The NRI study found 79 per cent either ‘always’ or ‘sometimes’ dedicated
preparation time to getting their objectives clear.

List your Tactics

There are more than 75 tactics that are used during negotiations. Some will
work on certain personality types, but not on others. Skilled negotiators are
unpredictable in their use of different approaches. If you continue to use a
pattern of the same tactics in each negotiation, the other party will prepare to
counter them next time. It is important, therefore, to list and carefully plan the
tactics you will use in each negotiation.

Rehearse your Opening Statement

A clear, well-defined and well-rehearsed opening statement is crucial. The first


thing you say should condition the other party and manage their
expectations.Skilled negotiators rehearse their opening statement several times
before entering the negotiating room. Rehearse and then ask yourself: “If I
heard this statement would it encourage me to walk towards or away from my
ideal objective?” This will help you check you’re managing the expectations of
the other party positively towards your ideal. The study showed that just 2.5 per

12
cent of people surveyed ‘always’ rehearsed their opening statement, with a huge
54 per cent ‘rarely’ or ‘never’ rehearsing.

Without doubt, what you do or don’t do in preparation and planning will


determine the outcome of all negotiations. The more you plan and prepare, the
more efficient you will be as a negotiator.

1.6 Two Common Mistakes Made by Negotiators

“Fail to plan, plan to fail”. A cliché, yes, but one with a strong correlation to
negotiation results regardless of culture, industry, title or job function. Putting it
another way, those who plan better do better.

Being overly competitive

You should never strive to win every single deal point. While you need
competitive drive, sometimes being too competitive in the short term leads to
unintended long-term negative consequences.

First, deals take a long time to complete if someone is holding out to win every
single point, which can often delay larger successes. Second, and most
importantly, if the supplier doesn’t feel they win anything other than the order,
they will be less inclined to provide extra value-added services once the contract
is in place. Worse yet, they can become adversarial once the deal is signed and
try to make it up in reduced services and price increases.

As a part of your planning process, try to identify a few deal points that are
important to the supplier, but not critical for your side – and plan to concede
them. Typically plan to give a supplier a long-term contract, which also helps
to be more efficient over time by not constantly bidding something out, so long
as you have a 30-day termination for convenience clause, of course.

Focusing on Price and/or Margin

13
Several negotiators say “why should you (the supplier) be allowed to have a
higher profit margin than me (the customer)?”. It sounds reasonable, but
negotiating using relative profit margins has nothing to do with financial reality.
The supplier is competing with the market for the maximum amount of revenue
their product or service commands and their own internal costs drive the margin
calculation. Notice the customer’s profit margin doesn’t factor in at all. Still,
many negotiators get off track by clinging to this issue if the supplier doesn’t
concede right away.

Suppliers should also make a healthy margin on your account so that you can
command a great service. How do you do this if your success is measured by
the savings you achieve? Here’s an example: we were negotiating with a well-
known marketing company to support a sustainability programme. They wanted
us to pay for them to spend hours interviewing several executives and then
report back with a list of potential names. The total projected cost was
US$30,000 (£19,207), which included a 25 per cent margin and it would take
three weeks for the results. The first negotiator spent a week focusing on the
margin and got the supplier to reduce it to 20 per cent. Upon further review, we
didn’t believe the interview process added value to the quality of the
brainstorming results and didn’t like adding three weeks (four weeks when you
include the negotiation time) to our project plan. We offered them a deal. We
would pay them US$10,000 (£6,402) to show us the lists of names they
provided for their last three Fortune 500 clients. Their margin would be much
higher while our costs would be much lower and we could save time. This win-
win was possible because we began negotiating based on total cost instead of
supplier margin.

Good negotiators are made, not born. Although some people have a natural
instinct for negotiation, most of us can find it difficult, scary and something that

14
requires great planning. It is easy to worry about failing, especially if we think
our opponent is better than we are.

Negotiation is a skill that demands the knowledge and application of effective


negotiation theory and the use of the right tactics and techniques to deliver the
best possible outcomes – all within the context of an often unpredictable
environment where interactions can take unexpected turns

1.7 Objectives of Negotiation

Negotiation is essentially relating to quality, date of delivery, prices etc. so that


a satisfactory settlement is reached. As a result of negotiation, the supplier
reduces the price. In case of repeat orders, prices negotiation may take place
even before receiving the quotation if there is an increase in price.

The following are the areas of negotiation.

(a) Reduction in price.

(b) Higher trade discount on bulk purchases.

(c) Reduction in packing charges.

(d) Free delivery up to buyers end.

(e) Cash discount which can be claimed for prompt payment to the supplier.

Negotiation refers to trading deliberations which generally lead to lowering of


prices by the vendors. However, it would not be proper to think that negotiation
supply refers to bargaining for lower prices. In a broad sense, negotiation aims
at obtaining the maximum value of money spent on purchasing. The purchase
manager must be skillful and well informed. His skill of negotiation improves
with every fresh purchase.

15
The dictionary meaning of negotiation is “conferring/ discussing” or bargaining
to reach agreement in business transactions.” Negotiation can be defined as a
process of planning, reviewing and analyzing used by a buyer and seller to
reach acceptable agreements or compromises. Negotiation covers all aspects of
business and not just price. It is a decision making process.

The following are the objectives of negotiation:

(a) To settle a fair and reasonable price.

(b) To ensure that the contract is performed on time.

(c) To remove obstacles this may be there in future.

(d) To exercise control over the manner in which the contract is performed.

(e) To persuade the supplier to give maximum co-operation to the buyer’s


company.

(f) To develop cordial relations with competent suppliers.

Negotiation is essential in the following scenarios

 When competitive bidding is missing.


 When quality and service are important in addition to price.
 When business risks can’t be accurately determined, the seller
unnecessarily increases the price which can be reduced only by
negotiation.
 When time required to produce an item is very long.
 When production schedule is frequently affected by new orders as a result
of changed technology. It requires changes in drawings, designs and
specifications.
 Decisions relating to make or buy require great deal of negotiation.

16
 Terms and prices must be thoroughly negotiated to prevent unreasonable
dictation by the seller.

1.7 Introduction to Negotiation Skills and Techniques

Organise the Issues:

An agreement should be reached as a result of negotiation. An experienced


negotiator seldom allows the negotiation to break down. For this purpose, all
issues have to be organised effectively.

Learning from Unions:

Unions develop skills of highest order for negotiation and we can learn a lot
from unions in this regard. Labour leaders make themselves fully equipped
before entering into talks with management.

Be sure of Opponent’s Authority:

The authority of the vendor to sign the contract is much superior. The buyer
should make sure that the seller’s representation has authority to conclude the
contract.

Negotiate on Home Grounds:

The buyer should hold the negotiations at its own office. It has a number of
advantages.

Determine Concessions:

The buyer should determine in advance the concessions he is prepared to make


to the seller.

The Buyer Should not be on Defensive:

The best bargain is to ask the supplier to justify this price, quality, quantity etc.
A good offense is the best defense.

17
Use Diversions:

During negotiations, if tempers go very high, it is better to ease the tension by


cracking a joke or a coffee break.

Miscellaneous:

The other techniques of negotiation include:

 Use of positive statements.


 Listen to the seller with full attention.
 Be considerate to the seller.
 The successful negotiator makes fewer concessions.

Interpersonal Skills

Good interpersonal skills are essential for effective negotiations, both in formal
situations and in less formal or one-to-one negotiations.

These skills include:

 Effective verbal communication.


 Listening.
 Reducing misunderstandings is a key part of effective negotiation.
 Rapport Building.
 Build stronger working relationships based on mutual respect.
 Problem Solving.
 Decision Making.
 Assertiveness: Assertiveness is an essential skill for successful
negotiation.

Problem Analysis

18
Effective negotiators must have the skills to analyze a problem to determine the
interests of each party in the negotiation. A detailed problem analysis identifies
the issue, the interested parties and the outcome goals. For example, in an
employer and employee contract negotiation, the problem or area where the
parties disagree may be in salary or benefits. Identifying the issues for both
sides can help to find a compromise for all parties.

Preparation

Before entering a bargaining meeting, the skilled negotiator prepares for the
meeting. Preparation includes determining goals, areas for trade and alternatives
to the stated goals. In addition, negotiators study the history of the relationship
between the two parties and past negotiations to find areas of agreement and
common goals. Past precedents and outcomes can set the tone for current
negotiations.

Active Listening

Negotiators have the skills to listen actively to the other party during the debate.
Active listening involves the ability to read body language as well as verbal
communication. It is important to listen to the other party to find areas for
compromise during the meeting. Instead of spending the bulk of the time in
negotiation expounding the virtues of his viewpoint, the skilled negotiator will
spend more time listening to the other party.

Emotional Control

It is vital that a negotiator have the ability to keep his emotions in check during
the negotiation. While a negotiation on contentious issues can be frustrating,
allowing emotions to take control during the meeting can lead to unfavourable
results. For example, a manager frustrated with the lack of progress during a

19
salary negotiation may concede more than is acceptable to the organization in
an attempt to end the frustration. On the other hand, employees negotiating a
pay raise may become too emotionally involved to accept a compromise with
management and take an all or nothing approach, which breaks down the
communication between the two parties.

Verbal Communication

Negotiators must have the ability to communicate clearly and effectively to the
other side during the negotiation. Misunderstandings can occur if the negotiator
does not state his case clearly. During a bargaining meeting, an effective
negotiator must have the skills to state his desired outcome as well as his
reasoning.

Collaboration and Teamwork

Negotiation is not necessarily a one side against another arrangement. Effective


negotiators must have the skills to work together as a team and foster a
collaborative atmosphere during negotiations. Those involved in a negotiation
on both sides of the issue must work together to reach an agreeable solution.

Problem Solving

Individuals with negotiation skills have the ability to seek a variety of solutions
to problems. Instead of focusing on his ultimate goal for the negotiation, the
individual with skills can focus on solving the problem, which may be a
breakdown in communication, to benefit both sides of the issue.

Decision Making Ability

Leaders with negotiation skills have the ability to act decisively during a
negotiation. It may be necessary during a bargaining arrangement to agree to a
compromise quickly to end a stalemate.

Interpersonal Skills

20
Effective negotiators have the interpersonal skills to maintain a good working
relationship with those involved in the negotiation. Negotiators with patience
and the ability to persuade others without using manipulation can maintain a
positive atmosphere during a difficult negotiation.

Ethics and Reliability

Ethical standards and reliability in an effective negotiator promote a trusting


environment for negotiations. Both sides in a negotiation must trust that the
other party will follow through on promises and agreements. A negotiator must
have the skills to execute on his promises after bargaining ends.

1.9 Characteristics of Good Negotiators

Understanding of the Negotiating Process. Highly effective negotiators


recognize that negotiating is a process, not just something that is done when
discussing the terms and conditions of a solution. Negotiating is much more
than haggling about price. It requires an understanding of the dynamics that
affect the process and influence the behavior of people. Great negotiators invest
time learning different tactics and strategies and how each technique contributes
to the overall outcome.

Focus on Win-Win. Win-win means that both parties feel good about the
outcome of the negotiating process. Some books that state win-win solutions are
not possible in business negotiating; the authors write that someone usually
gives away more than they should and the outcome becomes a win-lose
situation. Great negotiators don't believe that. They help their customer try and
solve problems and look for opportunities to give as much value as possible.
They also know how and when to limit their concessions, give-aways, and
discounts so they can work out an agreement that is equitable for both parties.

21
Patience. Too many people search for the quick fix try to close the sale as fast
as possible so they can move on the next prospect. Great sales negotiators
recognize that patience is a virtue and that rushing the process often leads to an
undesirable outcome. They don't hurry to reach an agreement. Instead, they take
time to gather the necessary information. They think carefully about possible
solutions. They take their time during the entire process. This is critical because
major mistakes are made when we try to reach an agreement too quickly. We
rush through the process, not giving the other person's offer ample attention, and
often end up with an outcome that is win-lose. Simply because we were in a
hurry.

1.10 Introduction to Negotiating Strategy

Persuasion Techniques

When it comes to negotiation strategies, the first thing that needs to be done is
defining the value of the product and after that start the negotiation if needed.
As mentioned before, a very important condition is gathering information about
the other party and the product or service.

Another condition which can contribute to a successful negotiation is the use of


persuasion techniques. After gathering the information, the next step is a critical
part of the preparation, namely to determine how to persuade the other party in
order to achieve the goals you have set.

There are many techniques to persuade the other party, but there is no single
technique that is appropriate in all situations, this asks for flexibility and being
able to estimate which technique can be used in which situation.

One of the most important persuasion techniques is the use of language.


However there are a few more techniques which can influence the negotiation.
The use of body language, facial expression, tone and even silence are
important techniques which are used in a negotiation process.

22
The manner in which a person sits, the tone used while speaking can
communicate the way the person is feeling or maybe what he/she might think.

Self-expression is a combination of language and demeanour, it is another


persuasion technique which can be affective to convince the other party to see
things your way. This could help you see if the other party might be
disappointed, frustrated or just satisfied during the negotiation process. The way
a party is expressing itself during the negotiation, should be carefully designed
to ensure that it has the intended effect.

Another technique for persuasion is the use of storytelling. This includes the
way you speak but also the use of visuals. In order to convince the other party
more easily it is important to use vivid language. Present your message in the
context of a story that explains your expectations, problems and goals and
demonstrate what your proposal is to reach that. To achieve the maximum effect
during a negotiation it is critical to use factual details. These details can be
demonstrated by using media like, presentations, pictures, graphs and video’s.

For convincing the other party, having good arguments can have a significant
persuasive effect. It is most effective to present your stronger argument first and
reserve arguments to use throughout the negotiations. There are general rules
which can be applied for every argument:

 build your argument based on facts


 draw your overall conclusions based on facts
 it may be important to begin with broad statements to define your scope
of the arguments before proceeding with the specific items of your
argument. Present specific subparts of the overall conclusions based on
examples.

23
 Be aware that often the first and the last arguments are those that are best
remembered by the other parties. So make sure that you start with a
strong argument and finish with a strong argument.
 To gain an advantage in a negotiation make use of different ways of
asking questions. Ask open-ended questions to find out more about the
other parties’ position. This manner of asking questions can engage the
other party and make them feel more comfortable.
 It is advised to start asking questions which begin with “Who, What,
Where, How, Why, Explain and Describe” rather than immediately
challenging the other party’s position. This gives you the opportunity to
discover what is motivating the other party during the negotiation.
 To get more information, the following questions could be asked to the
other party: “What are their main concerns” and/or “Why are those
concerns important to you?”
 If you have assumptions about something you might ask questions such
as “ Have you thought about….”

All these ways of asking questions could provide you with more information
and make the cooperation more effective and makes the negotiating process run
smoothly.

There are many ways to respond to the other parties’ position or actions, one of
those is emotion. If you decide to use any kind of emotion, through speaking,
body language, facial expression or tone make sure that those emotions are
showed intentionally. You need to estimate when to use which emotion. For
example: by reacting unemotional in particular difficult times of a negotiation
the other party might think that the only thing what matters to you or to your
party is “success”. This might cause difficulties and misunderstandings in a
negotiation.

24
Another persuasion technique is making the decision to extend or not to extend
courtesy.

 To create open communication, the most effective way is to maintain the


proper courtesies.
 Having appropriate courtesies will encourage the negotiation process and
as will maintain a long-term relationship with other parties.
 Extending courtesies does not mean that your delegation has to accede to
the other parties demands.
 Establishing agreements on certain points can serve as an effective
starting point in persuading the other parties and help building trust
between each other.
 During a negotiation it is important to recognize or not to recognize a
compromise by the other party this could lead to a easier and quicker
negotiation process.
 In any negotiation is crucial to recognize when the other party has made a
compromise.
 When a party makes a compromise, you might expect immediately
something back. You might decide and estimate at that moment if you
want or if it helps you to reward the compromise or not.
 A common mistake is to over-emphasize the other side’s concession, this
could cause for more demands from the other party.

Introduction to Negotiation Techniques

One of the most important values during negotiation is a proper preparation and
a good planning. It is of big importance to understand what the goals and
interests of the other party are, this can be accomplished by:

1. Encouraging dialogue

25
 Ask open-ended questions – this encourages the other side to provide
unsolicited information
 Give the opportunity to the other party to speak openly, especially if they
are emotional or emphatically, this could give you important and useful
information.
 Give the opportunity to other parties to express their position
 Avoid making non-negotiable statements, because the other party might
avoid addressing important topics

2. Active listening

 Focus on the speaker and what is being said


 Respond to the speaker and not only to already prepared remarks
beforehand
 Use body language to show the speaker that you are actively
listening and understand what he is saying. This can be done by
nodding and sometimes orally expressing understanding
 Do not interrupt, let the speaker finish his statement
 Repeat, summarize what the speaker has said, to show that you
understand what is being said

3. Eye contact

- Maintain eye contact with the other parties while talking, this will show that
you are interested in what is being said and shows trust in each other. Be
informed about the cultural differences, because in some cultures it is
inappropriate or could even send the wrong message when you make to much
eye contact

26
4. Silence

- Often silence is seen as a bad thing, but do not speak just for the purpose to fill
an uncomfortable silence. When silence is used properly it can encourage other
parties to talk in an unguarded manner.

The Use of Documents

Documents play an important role in negotiations. Negotiations are typically


managed through the use of various documents, including agendas, position
papers and settlement agreements. Documents are also useful to both persuade
and illustrate your position, which may include photographs.

An important part of your strategy is knowing when and how one uses a
document and for what purposes. Below are a few advises regarding how to
deal with the documents:

 The initial draft of any operative document should be over-inclusive. It is


more difficult to seek to add terms than it is to remove them.
 When using documents as a persuasive tool, try to use documents created
by the other party or by a neutral party to minimize questions about the
authenticity of such documents.
 When using documents to illustrate a complex point, try to keep them
simple.
 Always fully explain the illustration when the delegation presents it.

For a strategic advantage the negotiation process can be conducted through a


mediator. A mediator may facilitate the provision of responses to questions that
have thus far been refused or ignored in the negotiation process or to better
define the interests and goals of each side to the other.

27
Another strategic advantage can be provided by using an expert. Experts can be
very useful in negotiations involving complex or technical issues. When
choosing an expert, all involved parties need to have confidence in his neutrality
and the usefulness of his opinion. But, be aware that no expert can be truly
neutral. Every expert brings his or her own biases, individual and cultural, to the
negotiation. Examples of experts are: interpreters, scientists, economists and
lawyers. These experts can advise you on complex issues and offer solutions for
it.

Using time effectively is another important negotiating technique. As a


negotiating party you should know what your priorities are and recognize
whether the settled appointments and issues may be resolved in the time
planned. Be realistic about the time needed to accomplish your goals. Very few
negotiations are open-ended, but if there are no external time constraints, your
delegation may want to set a time limit on the negotiations to keep the parties
focused and the negotiations efficient and effective.

One of the keys to a successful negotiation is to maintain an active dialogue.


Occasionally an issue may arise that falls outside the scope of the negotiations,
is too big to resolve, or is simply unanticipated by one or all of the parties.
Realize the position of every party on this kind of issues and agree with other
parties that this issue will be set aside for future negotiations.

During a negotiation, make use of breaks. This gives the opportunity to parties
to step away from a complicated discussion, to refocus on the topic and to
discuss new information learned with your own party and apply this to your
strategy. When the discussion will restart after a break, a useful technique is to
summarize where the negotiations were before the break.

As stated throughout this chapter, it is important to be fully aware and


understand the culture and customs of all parties at the negotiation table

28
including the use of ultimatums. In some cultures, ultimatums are considered a
regular part of negotiations. However, ultimatums generally are quite risky and
are a drastic measure in any negotiation. If the other party rejects your
delegation’s ultimatum, then your delegation may be faced with a difficult
decision to either end the negotiation or withdraw the ultimatum and risk losing
credibility. However, should the negotiations reach a point where no progress is
being made and only a few issues remain, issuing an ultimatum may encourage
the other parties to make a better offer.

During a negotiation it may happen that the negotiations fail and one of the
parties might leave. It is important to understand and being able to explain why
the negotiations failed. If you decide to come back and restart the negotiation, it
is important to show the other party that you are interested to resolve the dispute
and able to make compromises so that every party could reach its goals.

29
CHAPTER TWO
PLANNING AND PREPARATION FOR NEGOTIATION

Structure of Chapter
2.0 Introduction
2.1 Designing a Negotiating Plan
2.2 Knowing the Other Parties
2.3 Setting the Setting
2.4 Choosing Who to Negotiate
2.5 Defining Roles
2.6 Choosing a Negotiating Style
2.7 Fact and Issue Expert
2.8 Four Phase Pre- Negotiating Framework
2.9 Pre- Negotiating Planning Literature Review
2.10 Additional Pre Negotiating Planning Process Activities

2.0 Introduction

One of the most important aspects of a successful negotiation is preparation.A


negotiation can be won or lost in the preparation phase. Inadequate preparation
can cause irreparable damage to relationships and thepossibility of future
negotiations with the parties involved. Adequate preparationallows you the
opportunity to clarify your goals, to familiarize your key members with the key
issues and parties involved, and to identify weaknesses in your strategy before
the negotiation takes place. By adequatelypreparing for the negotiation, you are
one step closer to achieving success.

30
Effective preparation can be accomplished only through in-person meetings
among the team members. The preparation should be done in a location where
the team can be free from distractions and confidentiality maintained. Do not
underestimatethe amount of time that must be dedicated to preparation. As a
general rule, the team should spend at least one day in preparation for every
anticipated day of negotiation.

Proper preparation requires idea sessions with the group writingeach idea
down on a board, consultation with outside technical experts (lawyers for
example),and “red teaming.”

2.1 Designing a Negotiation Plan

A well-designed negotiation plan and an overall strategy are at the heart of


adequatepreparation. Designing a plan requires the team to consider the issues,
interestsand parties involved in light of the team’s goals, and give the team
theopportunity to develop the strategy based on achieving those goals.

• Design a plan that addresses any aspect of the negotiation that could affect the
team’s ability to achieve the team’s goals.

• An integral aspect of designing an effective plan is the knowledge and


understandingof the issues, parties and interests involved (from the team’s
perspectiveas well as the perspective of the other parties).

• The team’s negotiation plan should include:

 A clear understanding of the team’s goals.


 The team’s strategy to achieve those goals, i.e., a clearly written and
defined path for the delegation to achieve its desired outcome. (As
always, this written strategy must be kept confidential, and not made
inadvertently available to the other parties or the media.)

31
 The structure of the negotiation(s) including: setting, timing and
sequence.
 Built-in flexibility in the form of alternative plans (in the event there is a
change of goals, interests, parties, circumstances, etc.).

The team’s negotiation plan should not be too rigid and can (and should)be
subject to change up until, and even during, the negotiation itself. The plan
should,however, continue to be a point of reference throughout the preparation
phase,allowing the delegation to stay focused on not just the delegation’s
ultimate goal, butthe steps and means necessary for the delegation to get there.
As circumstanceschange and evolve, the delegation must be prepared to alter its
strategy andnegotiation plan accordingly.

2.2 Knowing the Other Parties

The importance of knowing the other parties to the negotiation cannot be


overstated.Be careful not to make assumptions in this phase. While your
delegation may be veryfamiliar with the other parties, making assumptions
about the other parties’ interestsand goals can hide the issues, impede the
delegation’s ability to successfully negotiatewith the parties and prevent the
delegation from achieving success. Rememberknowing the mediator is often as
important as knowing the other delegation(s).

• Learn as much as the delegation can about the other parties before
thenegotiations commence, based on the timing and circumstances.

• Knowing the other parties includes researching the individuals, organizations


andcountries involved.

 Look at each party’s history and the behaviors of the specific


delegationrepresenting the other party so that the delegation may try to
anticipate theirstyle and how they may approach the negotiation.

32
• Identify the objectives, interests, priorities and goals of the other parties.

 Financial interests, political interests, reputational interests, liberty


interests,other.

In order to learn as much as possible about the other parties, the delegation
should utilize itspersonal and professional relationships for information, in
addition to using standardresearch techniques such as the internet and other
media. These relationships include localand international agencies, special
interest groups, non-governmental organizations,outside technical experts, and
the media.As part of this research, it is important to develop an understanding
of how the otherparties are perceived by and among these various persons.

In order to have any real value, this must be accomplished in advance of your
preparationsessions.

• Understand the mediator’s role.

– Prior to the commencement of any negotiation process, it is importantthat the


mediator’s role be understood. Your delegation should have a fulland complete
understanding of the mediator’s interests and expectations.

• Remember that the mediator has its own interests, biases and agenda.

• One of the benefits of hiring a lawyer experienced in negotiationsis that he or


she will typically be familiar with the mediation party.

– There are several degrees of mediator’s roles, ranging from merely providinga
neutral site for the purposes of conducting the negotiation (a host) to
oneimposing a resolution on the delegations (a United Nations sanctioned
arbitrator).

• Avoid making assumptions.

33
– Ask the other side to identify their objectives, interests, priorities and goals.

Listen.

– Do not assume that the other side will speak the delegation’s language.

• Sometimes it may be useful for the delegation to have its own interpretereven
though the other parties believe that none is required – i.e., theybelieve their
language skills are sufficient. Though it is important to besensitive to the other
parties’ wishes, ensure an interpreter is present ifthe delegation believes that the
communication process will be hamperedby the lack of a competent interpreter,

• If possible, your delegation’s interpreter should be experienced in international


negotiations. At a minimum, the interpreter should bean experienced translator.

• The interpreter is a technical expert that should be hired to be a partof your


delegation. The interpreter must recognize that they are actingon behalf of, and
at the direction of, your delegation.

• Assess the legal rights and positions of all parties involved.

• Evaluate the respective power, as well as the constraints of all parties.

– Political, cultural, economic, social, intellectual.

• Understand the cultures, customs and formalities of the other parties,and the
relative importance of adhering to such formalities.

– Formalities can include when, and in what form, the delegation set outthe
delegation’s “demands.”

– Formalities may include the custom of communication in negotiation.

• Know and respect the other delegation’s sensitivity points and “breaking
points.”

34
– The delegation may be able to get a sense of the other party’s deal breakersby
forwarding an agenda in advance of the meeting for their comments.If the other
delegation simply refuses to speak about certain agenda items,that is a good
indication that those items are breaking points.

– The other delegation may have legitimate breaking points. It is worthwhileto


put some effort into finding a way to accommodate their breaking points,if
reasonable.

Although thoroughly researching the parties involved is essential, the


importanceof communicating with the other parties and looking at the
negotiation from theirperspective cannot be overstated. Sometimes, important
information can be gleanedfrom informal conversations. If timing allows,
consider having preliminaryconversations before the actual negotiation to
become familiar with all aspectsdescribed above. The delegation should ensure
thatone is present.

2.3 Setting the Setting: Where To Conduct The Negotiation

In preparing for a negotiation, the setting can make a difference. Using


physicalityand logistics strategically and understanding how the setting can
affect the partiesinvolved and the negotiation itself is an integral part of
preparation. By makingdecisions based on those understandings, the delegation
should be able to choosea setting strategically that will help the delegation meet
the delegation’s goals.

• What setting would help achieve the delegation’s interests?

– Determine which aspects of the setting the delegation is willing to


compromise,and which the delegation is not.

• Evaluate various aspects of the setting and ask how each aspect can help
thedelegation to achieve a successful negotiation.

35
– Geographic setting.

• Home location vs. other parties’ location vs. neutral location – weigh
theimportance of having all parties feel comfortable against the advantageof
gaining or losing a subtle psychological advantage (and potentially leavingthe
other party at a slight psychological disadvantage).

• Ask whether the location allows for the safety, security and confidentialityof
all parties involved.

– Accessibility.

• Remote location vs. easily accessible.

– Ask whether the delegation wants the negotiation to be free fromdistractions


and whether the delegation wants the media to have access.

– Does the setting allow each party the ability to confer privatelyin comfortable
surroundings?

• Does the delegation want access to the media, or to avoid media scrutiny?

• Would the delegation benefit from access to external assistance, such


asembassies, consulates, etc.?

• Consider whether the proposed location allows equal access to


necessaryresources, such as communications, as well as equal rights to
travel(such as visa requirements).

– Means of communication.

• Identify secure means of communication, includingcell phones and “private”


meeting areas.

• If translators are required, attempt to ensure that the facility has equipmentfor
simultaneous translation.

36
• While keeping in mind what aspects of the setting will help the delegation to
achievethe delegation’s goals, consider the setting from each party’s perspective
to ensurethat the setting chosen will not ultimately impede the negotiation.

– The delegation never wants easily-identifiable and easily-avoidable


practicalissues to hinder the delegation’s “success.”

• Determine the most appropriate party to choose the setting.After considering


the setting from each party’s perspective, would another settingbe more
conducive to the delegation’s overall negotiation strategy? Once the settinghas
been chosen make sure the necessary logistics discussed above are arranged.

2.4 Choosing Who Is In the Room

Determining who the delegation places “in the room” during the negotiation and
atwhat phase of the negotiation the delegation has them there can affect the
successand ultimate outcome of the negotiation. As part of the delegation’s
negotiationplan, consider not only who will be in the room during the actual
negotiation, butalso who should participate in other aspects of the negotiation,
including preparation,communications (internal or external) advising the team,
etc. Learning about theother parties in the room is crucial in assembling the
delegation’s negotiation team.

• What individuals will help our team attain its goals and ultimately
achievesuccess, at every phase of the negotiation?

• Evaluate the status of who should be in the room.

– The people in the room, from both parties, should be of equal status.

– The delegation does not want the delegation’s “decision makers” in the roomif
the other party’s decision makers will not be there.

• Evaluate at what stage the delegation is in the negotiations.

37
– Preliminary stages or the “deal-making” stages.

• When selecting individuals for the negotiation team, consider choosing


people:

(i) experienced in negotiations; (ii) who are (or can become)


knowledgeableabout the issues, parties and interests involved; and (iii) who
have the desireand means to be involved.

• Are there other individuals the delegation should have on the team based
onother considerations?

– Internal politics, to get “buy-in” from the delegation’s side/from their side.

– Are there particular factions of the delegation’s constituency that the


delegationwants to have represented on the delegation’s negotiating team in
order toease the process for obtaining approval for any agreements that are
reached?

– Flexibility and ability to adapt their own beliefs and interests to the needsof
the negotiating team.

• Consider whom the other side may bring to the room.

– Be aware of internal constraints on the other side – i.e., political, cultural.

– Determine who on their side has the authority to make deals and/or is
theultimate decision maker.

• Recognize any potential or actual personality conflicts among parties.

• Establishing personal trust and rapport can have a substantially beneficial


impacton the outcome of the negotiations.

• Be sensitive to cultural considerations or other issues related to whom


thedelegation chooses to be in the room.

38
• Never be afraid to re-evaluate the delegation’s representing decisions.
Differentstyles of negotiations may call for different talent, experience and
expertise.

After considering the above issues, including the stage of negotiation,


comparableauthority, and the personality and cultures of the parties involved,
determine if thedelegation wants to reconsider whom the delegation has chosen
to be in the room.

2.5 Defining Roles

It is imperative during the preparation stage that the delegation establishes its
rolesand responsibilities, which may be influenced by the delegation’s goals.
There areseveral different approaches to the way in which delegations can be
structured, froma purely egalitarian structure to a hierarchical structure. States
have found that themost effective delegations are those structured in the
hierarchical manner. Oncethe structure is decided upon, determining what roles
each member will play withinthat structure, adequately defining those roles, and
explaining to the delegation howthe roles fit together will allow the delegation
to work together effectively andtowards a common goal.

It is important that each member of the delegation, including its technical


experts,know their role on the delegation and understand their individual
responsibilitiesin the process. The following persons are recommended:

• Decision maker.

– The member of the delegation who will be responsible for ensuring that
thestrategy is implemented and each of the other delegation members fulfil their
responsibilities as planned.

• Spokesperson.

39
– Generally, there should be one person delegated to speak on behalf of
thedelegation so as to ensure that a consistent message is being delivered
andthat the pre-determined negotiation strategy is preserved.

– If the other parties or media speak with multiple delegation members,the


message and strategy must remain consistent.

– The choice of spokesperson may also influence the delegate with whomthe
mediator communicates on the other side.

• Technical person who fully understands the key issues.

• Person of influence.

• Antagonist (i.e. military or religious figure) if necessary.

• Designated member responsible for anticipating the other delegation’s


strengthsand strategies (“red team” member).

• Interpreter / language facilitator.

• Scribe to document everything being said and to note down any physical
responsesbeing exhibited by the various representatives of the opposing party.

In each case, the size and composition of the delegation should be carefully
consideredas the delegation may wish to have these people at the negotiation
table or thedelegation may need to keep them away to meet the delegation’s
objectives. Eachof these roles should be taken by a member of the delegation,
though one membermay have several roles. Most states have found that the
scribe and interpretershould not hold any additional roles. The delegation
should know in advance whothe other delegation is bringing to the negotiation
so that the appropriate peoplefrom each delegation are present and that the
delegations are properly balanced.

40
It is important to plan in advance for the possibility that there could be a
breakdown in roles, where someone fails to “obey their role.” To avoid this,
develop a means of communication among the delegation. For example, in the
event of a breakdown during a negotiation session, the decision maker may use
this as an opportunity to take a break from the negotiation and discuss the
matter with the delegation. This way, the delegation may be able to return to its
original strategic plan with minimal negative effects.

2.6 Choosing a Style

Choosing a negotiation style will help set the tone as well as influence the
ultimate outcome of the delegation’s negotiation. Choose a style that the
delegation believes is the most effective means to achieving the delegation’s
goals. At the same time, only adopt a style that is both natural and credible.

• Based on the type of negotiation, the timing and the parties involved, evaluate
what style would be most effective in achieving the delegation’s goals.

• Think about how and whether the delegation should adjust the delegation’s
style to account for differences of culture, gender, personality, etc.

• Learn the mediator’s culture, including rituals, styles and customs and
consider choosing a style that can accommodate or exploit such customs.

• Appreciate the other delegation’s culture, including rituals, styles and customs
and consider choosing a style that can accommodate or exploit such customs.

– Some styles that can be effective include those that are conciliatory in tone,
those that are more aggressive and harsh in tone, and those that are more
neutral. It is sometimes effective to have certain delegation
memberspurposefully assume different styles.

• Balance being flexible with the importance of keeping a consistent style in


order to gain credibility and trust.

41
• Recognize the needs and constraints within the delegation’s own organization,
as well as those of the other side.

2.7 Be the Fact and Issue “Expert” In the Room

Regardless of how much time and effort the delegation spends while getting
ready for the negotiation, unless the delegation’s members have thoroughly
researched and familiarized themselves with all of the key facts and issues
involved, the delegation is not prepared. Understanding all of the facts and
issues involved in the negotiation is the most critical aspect of being prepared.
Do not rely on others to know the key facts and issues involved.

• If the delegation’s team has sub-groups, make sure that at least the team leader
understands all of the key facts and issues, as well as short- and long-term goals.

• Understand what is at stake. Make a checklist of the key issues and facts
involved so that in the middle of negotiations, the delegation does not lose sight
of important issues on the way to achieving the delegation’s end goal.

• Consider internal factors such as: the relationships of the parties and
organizational and social structure.

• Consider external factors such as: political and economic policies, the
international marketplace, geographic locations, resources.

• Evaluate other considerations, including: legal factors and moral or ethical


concerns.

• Remember that third-party experts, and mediators, have their own


views,interests and biases

Four-Phase Pre-Negotiation Framework Suggested by Peterson and Lucas


(2001)

Intelligence Gathering Act of collecting, processing, analyzing, and


evaluating available data concerning the other party

42
and relevant environmental factors.
Formulation Entails developing goals, specific objectives, and setting
the parameters for each issue to be negotiated.

Strategy Development Strategy is a plan that integrates a person’s goals and


action sequences into a cohesive whole.
Preparation Involves rehearsing verbal communication,
arranging/creating support materials, and attending to
logistical concerns.

Pre- Negotiation Planning Literature Review

Information Gathering
Activities 1. Collect primary data (consult with others in your firm, client’s firm, 3rd
party firms)
2. Collect secondary data (industry, government, trade publications, Internet,
annual reports, 10k, etc.)
3. Gather data on market conditions, future trends, and how they may affect
each party
4. Understand other party (general profile, personality profiles, and
communication patterns of
others involved)
5. Knowledge of the competitive alternatives the client may be pursuing
6. Review history of the relationship form internal sources/data
7. Review the previous strategies used by both you and the client
8. Knowledge of client’s anticipated preparation
9. Understand the other’s decision-making unit (structure and process)
Formulation Activities 1. Set negotiation objectives
2. Define your interests
3. Define issues to be deliberated
4. Define the bargaining mix (what is no the table and what is not)
5. Set limit levels on issue(s) (optimistic, realistic, pessimistic)
6. Contrive BATNA (Best Alternative to a Negotiated Agreement, point
where you agree not to
do business)
7. Create an agenda for negotiation
8. Incorporate potential plans of the other party
9. Create a negotiating team assign responsibilities, role, and deadlines)
10. Outline the role you will assume (if part of a team)
11. Consult with others regarding your plan/strategy

43
Strategy Development 1. Develop team strategy (who will speak, who will introduce demands,
Activities concessions, solutions)
2. Develop trade-off strategy on the issues (what you will give for what in
return)
3. Devise collaborative strategies (cooperative ideas and options)
4. Devise competitive attacking strategies (options to be highly aggressive)
5. Devise competitive defending strategies (options to defend against attacks)
6. Devise concession strategy (slow, but planned concessions to appease
client)
7. Develop strategy(ies) that use a 3rd party to influence client actions
(friendly/coercive influence asserted from 3rd party)
Preparation 1. Role Play
2. Script opening ceremonies (formal opening statement)
3. Prepare questions from client (questions that are in need of answers)
4. Prepare for anticipated questions from client (answers to questions or
objections)
5. Prepare a mutual interest business topic (topic both parties find relevant to
business concerns)
6. Prepare visual and other aids (charts, graphs, presentation aids)
7. Logistical concerns (seating arrangements, food, drink, room availability)

Additional Pre-Negotiation Process Activities

1. Knowledge of the competitive alternatives the client may be pursuing

2. Review history of the relationship form internal sources/data

3. Review the previous strategies used by both you and the client

4. Knowledge of client’s anticipated preparation

5. Understand the other’s decision-making unit (structure and process)

6. Create an agenda for negotiation

7. Define your interests

44
8. Outline the role you will assume (if part of a team)

9. Prepare questions from client (questions that are in need of answers)

10. Prepare for anticipated questions from client (answers to questions or


objections)

11. Prepare a mutual interest business topic (topic both parties find relevant to
business concerns)

12. Prepare visual and other aids (charts, graphs, presentation aids)

13. Logistical concerns (seating arrangements, food, drink, room availability)

CHAPTER THREE

ESTABLISHING TRUST

Structure of Chapter

3.0 Introduction
3.1 Establishing Trust
3.2 Before the Negotiation
3.3 Embracing Opportunities
3.4 Setting the Scene
3.5 Establishing Parity
3.6 Greetings and Initial Impressions
3.7 The Use of Interpreters
3.8 Becoming Acquainted
3.9 Confidentiality

3.0 Introduction

45
In a negotiation setting, trust must be established by developing trust
in the negotiatingprocess and each party must be seen as a good faith
negotiator. This trust can bedeveloped through where the negotiations
are held, how the negotiations begin,and how the parties communicate
through the sessions.

3.1 Establishing Trust

Trust is the underpinning of the negotiation: without it the negotiation


will fail.Therefore all parties must be mindful of trust and its
importance throughoutthe negotiations.With respect to establishing
trust in the process, it is important to demonstrate thatyour delegation
trusts that the negotiation process can be successful to resolve
theconflict. Your delegation must communicate a belief that the
negotiation processcan lead to a good resolution of the dispute for all
parties involved. Your delegationmust demonstrate its willingness to
negotiate a resolution of the dispute and thatthe negotiated resolution
will be implemented and adopted by your delegation andyour
delegation’s constituents.

Establishing trust in your delegation as the negotiator is equally


important. Yourdelegation must demonstrate to the other parties
involved that your delegation isworthy of their trust. It is important
that the other side believes what your delegationsays and believes that
your delegation can deliver on any promise or concession
yourdelegation makes in the negotiation. Establishing personal trust
between the partiesmay be very difficult but every effort should be

46
made to “humanize” the delegation’smembers by demonstrating that
each individual in the negotiation process sharesa common desire to
try to resolve the dispute.

Your delegation must keep in mind that it must maintain the trust that
yourdelegation’s constituents have in it. In the end, any resolution
obtained in thenegotiations must have the constituents’ support before
it will be successfullyimplemented - remember your delegation’s
constituents will not have the benefitof the personal relationship with
the other negotiators.

Some methods to develop this trust include:

• Be attentive to the physical comfort of all the parties in the


negotiation.

• Be polite, courteous and receptive to the statements, ideas and


positions takenby the other parties from the outset.

• Engage in some casual discussion prior to starting the day’s


negotiations andduring the breaks, if appropriate, to establish a
rapport with the other parties.

• Observe the culture and customs of the other parties where


appropriate.

• Demonstrate the delegation’s trustworthiness by substantiating what


thedelegation says with substance (i.e., documents, video, or
statements froma neutral third party who is trusted by the other
parties).

47
• Do not mislead or otherwise exaggerate claims when the facts and
claims arewell known to the other parties – lying will not establish
trust and continuedexaggeration will only harm the delegation’s
credibility.

Whatever methods your delegation uses, they must always be part of


a thoughtfuland purposeful choice selected to achieve the delegation’s
overall goals.

3.2 Before The Negotiation

The negotiation process begins long before the delegation and the
other partiesarrive at the negotiation location on the scheduled date.
Early decisions, seeminglyroutine and simple (including selecting a
date and location, determining who shouldand will participate (on the
delegation’s side and theirs), and structuring the agenda),can be as
important as the negotiation itself. These decisions will set the stage
forand define the scope of the negotiation, establish power and control
and, ultimately,position the delegation for success.

3.3 Embrace every opportunity to definethe negotiation


parameters.

• Any delegation, regardless of relative strength or positions of power,


can (andshould) be prepared to take the initiative.

• By some manner of preliminary communication (phone call, letter or


otherwise),take the initiative to begin the negotiation process on your
delegation’s terms.

48
– Establish basic rules.

– Create the agenda (i.e. define what the delegation wants to


accomplish andset expectations).

– Suggest who should attend on each side. Insist that someone with
authorityattend. Insist that the participants be evenly matched in
stature and power.

– Define the location and duration of the negotiation.

• This is the delegation’s first opportunity to take control and convey


the importanttenets of the delegation’s position. Set the appropriate
tone.

• Consider whether the delegation might benefit from an


“information-gathering”meeting before the negotiation. The
delegation will be able to learn about theother party, but might not be
able to accomplish the delegation’s goals duringsuch meeting.
Negotiation can be a process—not just a one-time meeting.

3.4 Setting the Scene

The location of the negotiation, the physical setting and the manner in
which thedelegation’s team fills the space, will affect the delegation’s
ability to accomplish thedelegation’s negotiation goals. Maximize the
delegation’s opportunities to set thestage in a way that makes the
delegation feel most comfortable and in control.

• Physical Space/Location

49
– If the delegation is in a position to select the location, invite the
other partyto the delegation’s home location. The delegation will have
a certain “homefield”advantage and will be able to control many
aspects of the negotiationfrom the beginning.

– A neutral location is an acceptable second choice, and preferable to


negotiatingin the other party’s chosen location.

• If the delegation’s negotiation must be held in a neutral or adverse


location,make sure the delegation is the first one to arrive.

– Always be mindful of security when selecting (or agreeing to) a


physicallocation for the negotiation. Will the delegation be safe? Will
the delegationhave a secure space for private and confidential
caucusing if needed (i.e. is thereroom to sequester the delegation in a
location free from surveillance)?

• Setting up the space

– Be there early. Aim to be the first to arrive. This will allow the
delegationto claim ownership of the space.

– Things to consider in any space:

• Are there windows in the room? If so, the delegation’s members


maywish to sit with their backs to the window (this will require the
otherparty to look into the light, often silhouetting the delegation and
makingthe delegation’s expressions harder to read). In this position,
the delegationwill also be able to resist any outside distractions and
remain focused onthe discussions).

50
• Inspect the chairs to make sure the delegation selects ones that are
ofappropriate height. The delegation’s members do not want to be
sittingat a lower height than the other party.

• Seat the delegation’s members on one side of a


rectangular/square/oval/circulartable so that the delegation can face
the other party.

• Position the delegation’s spokesperson near the neutral mediator.

– Things to consider if your delegation is host:

• How comfortable does the delegation want the other party to be


(thinkabout whether the delegation wants to serve food or drinks and
what thetemperature should be).

• Does the delegation want to create opportunities to interrupt theother


parties?

Creating Opportunities To Interrupt

The benefit as the host is that your delegation can take advantage of
the fact that it isyour delegation’s space by, for example, timing when
breaks are scheduled, when food orbeverages are brought into the
room, when people join the meeting. This enables yourdelegation to
continually stay in control of the pace and even the overall mood of
thenegotiation.

When your delegation is not the host party it may still take advantage
of these opportunitiesor reduce the host’s advantage by, for example,

51
proposing an agenda that establishes whenbreaks are to be had,
beverages brought into the room, or people join the meeting.

• The delegation’s presence in the space

– Think about the number of people in the delegation’s group and the
messagethe quantity conveys.

– If the delegation is not worried about having too many participants,


considerhaving enough to take on the following roles: spokesperson,
note-taker,decision-maker, substantive/technical expert, observer,
interpreter.

– If it is preferable to have fewer participants on the delegation’s


team, makesure the delegation has identified one clear spokesperson
who will lead andbe in charge.

– Make sure all members of the delegation’s group understand the


delegation’sgoals and are embodying the image that will best help the
delegation achievethe delegation’s goals. Discuss and plan a
collective team image (one of controland ease). Remember –
whichever group appears more anxious to settlewill likely lose.

3.5 Establishing Parity

In any negotiation, it is imperative that the delegation choose the best


peopleto participate. The delegation’s ability to communicate
effectively can be hamperedif people with appropriate power and
decision-making authority are not there.

52
• Establish the identities and titles of each person the delegation wants
to participate.

• It is important that participants on all sides of the negotiation are of


comparablestature and that there is equality for all members of all
teams.

• Choose appropriate technical experts to advise the delegation in the


negotiationroom. Ideally this would be people respected by all parties
as experts in theirrespective fields.

• Ensure that the other parties are bringing appropriate members to the
negotiationsas well (perhaps by confirmation during the delegation’s
preliminary communication).

Greetings/Initial Impressions ofthe Parties

The delegation that is first in the room is in a position to greet people


as they arrive.This is the first opportunity to set the tone for the entire
negotiation and establishthe delegation’s control and authority. The
delegation’s greeting may be casual,formal, respectful, friendly or
accommodating. In all cases the delegation shouldset the appropriate
tone by:

(a) Choice of words;

(b) Volume;

(c) Manner ofspeaking;

(d) Cadence of words;

53
(e) Expression; and

(f) Body movement. The greetingshould be consistent with the


delegation’s personality while expressing the best toneto achieve the
delegation’s objectives.

• Carefully consider the delegation’s choice of greeting.

– Decide manner of greeting while being aware of cultural


expectations.

• Does your delegation want to greet in the other parties’ cultural


manneror its own?

– Greeting in the custom of the other parties can generate good


willand create an opportunity to foster a positive personal
relationship.

– Greeting in the custom of your delegation may communicate a


moreformal and less conciliatory tone.

– Careful consideration should be given to all approaches,


consistentwith the delegation’s strategy and goals.

– To convey confidence and serious purpose, the delegation may


choosea more formal style.

– During greetings, observe and study the other parties. Its reaction
andresponse will provide indicia of its mood, receptiveness and
expectation.

54
• Part of a greeting may include reminding parties of the agenda and
groundrules. Your delegation is now leading the negotiation.

• Use the greeting as an opportunity to define the delegation’s issues.


Alternatively,use the greeting to encourage each party to express their
own goals and issuesto begin the negotiations.

Do not make judgments about the other parties based solely on their
outward appearances.Physical appearance, such as gender,
height,weight, personal style, communicates an incompletemessage.
Decide what image the delegation wants/ needs to project. If your
delegation makesassumptions based on physical appearance it might
underestimate the other parties as a result,which puts your delegation
at a significant disadvantage. The same may be true of thejudgments
the other parties make about your delegation, which can provide your
delegationwith an advantage.

3.7 Interpreters

Interpreters are often necessary in negotiations between people from


differentcultures. If at all possible, it is useful to have sufficient
interpreters and equipmentto perform simultaneous translation if
translation into more than one languageis required. For example, if
the speaker is speaking English, and the two listenersspeak Arabic
and Hungarian, then there should be two separate translators that
cantranslate from English to Arabic and English to Hungarian as the
English speaker isspeaking. Performing translations seriatim is time
consuming and can generate evengreater confusion.

55
• Position the delegation’s interpreter so that s/he can see and hear the
speaker(s).

The interpreter should not be a member of your delegation, but should


recognizethat its primary obligation is to serve your delegation.

• If the other party is using an interpreter, make sure the delegation is


positionedto watch the other party’s speaker, not the interpreter.

– Be aware that by using an interpreter your delegation may be


sending a culturalor strategic message.

• Would the other delegation prefer to see your delegation trying to


speakthat delegation’s language?

• Is it more respectful to have someone on your delegation who


speaks theother delegation’s language, despite the advantage to your
delegation?

 Do not overestimate your interpreter’s proficiency. Make sure


the delegationhas carefully selected an interpreter that
understands the other party’s specificlanguage, dialect, culture
and slang.
 Recognize that many concepts or words do not translate well.
Instruct thedelegation’s interpreter to alert the delegation when
the other party usesa word or concept for which there is no
equivalent in the delegation’s language.
 Do not assume that the other parties cannot understand your
delegationbecause they speak a different language.

56
 Make sure that everything that your delegation says is able to be
clearlyheard and understood by the other parties.
 Do not attempt to have private discussions among your
delegation in thepresence of the other parties. Even if the other
parties cannot understandyour delegation’s words, they will be
able to observe the manner by whichyour delegation is
communicating through gestures, tone, tempo and volume.

• Have your delegation’s private discussions in a private secure room


awayfrom the other parties.

3.8 Becoming Acquainted

As the negotiation begins, it is often useful to make the participants


comfortableand to find initial areas where the parties agree. A way to
achieve this is by knowing,understanding and respecting the other
parties and their cultures. Each party willhave its own preferences
with regard to formalities, rituals and social customs.

Know the other parties’ preferences, and incorporate all of these into
your delegation’snegotiation plan. At this beginning stage of the
negotiation it is imperative that yourdelegation implement its
strategies based on principled strategies and not on emotion.

• The following should be considered if your delegation is invited to


an informalsocial gathering preceding the negotiation:

– Always use good judgment and care.

57
– The consumption of alcohol is often used as part of a social
gathering,but it can also be used to a parties’ advantage.

– Prepare for social obligations by eating and hydrating before.

– Make sure any social interaction is even-handed so that the


delegation is notoverly indebted to the other parties.

• Once the delegation is at the negotiation:

– Use the delegation’s greeting (and the tone of the delegation’s


greeting) tobecome acquainted.

– Observe and adapt to the personalities, tempo and goals of the other
parties.Be sure to pursue the delegation’s overall strategy or tone,
established in thepre-negotiation planning sessions with your
technical experts, counsel.

• Once the negotiation has started, be prepared to adjust if new


informationis presented. However, any alteration of the prepared
strategy should bedone with a similar amount of planning and
consideration.

– The delegation’s spokesperson should lead the negotiation by


reminding theparticipants of the rules and goals. By taking charge of
the discussion, yourdelegation will maintain its control.

– Make some strategy decisions before delving into substantive


issues:

58
• Does the delegation want to invite the other party to talk
substantivelyfirst (so that your delegation can learn before having to
present its positions)?

• Does the delegation want to start with easy substantive issues or


areasof agreement (so that the delegation will have success early on
and creategood momentum)?

• Does the delegation want to present its most important issues first?

– If the other parties are in control of the discussion, your delegation


can tryto regain, or establish, control without educating the other
parties aboutyour delegation’s strategies:

• Say very little and let the other parties express themselves to help
yourdelegation learn about the other parties.

• Answer questions and use the opportunity to direct the


conversationtowards issues that your delegation deems more
important (or areaswhere your delegation has more confidence).
Know your delegation’sstrengths and weakness and move the
conversation away from its weaknesses.

3.9 Considering Confidentiality

In any negotiation, all parties will have confidential information that


will both helpand hurt their causes. Consider in advance what
information needs to remainconfidential and what can be used to
bargain with later. Also think about whatconfidential information

59
your delegation believes is in the other party’s possession,and how the
delegation might get it.

• If the delegation does not trust the other parties or is concerned that
confidentialinformation disclosed at the negotiation may be divulged,
test the other partiesbefore the negotiation by passing along non-
confidential (or benign) informationand see if it is shared with others
(“leaked”).

• Assume that anything your delegation says to the other parties will
not remainconfidential – no matter what assurances are given.

• Never conduct your delegation’s private discussions in the other


parties’presence. The only absolute way to make sure that your
delegation’sconfidential conversations remain confidential is to have
them in a privatesecure room away from the other parties.

• Once your delegation decides to disclose some confidential


information:

 Do not disclose it all at once. Sharing information should be


used ina strategic way and can be very effective. Reserve some
informationto release throughout the day at strategic times (i.e.
when it can helpreach agreement on an issue).
 Consider releasing information when the other parties disclose
informationto your delegation (reciprocity).

60
CHAPTER FOUR

PERSUATION LAWS AND TECHNIQUES

Structure of Chapter

4.0The Six Laws of Persuasion


4.1 Using the Laws of Persuasion
4.2 Summary
4.3 Persuasion Techniques
4.4 Organising for Persuasion
4.5 Using Questions to Gain an Advantage
4.6 Deciding on the Emotion to Convey
4.7 Courtesy
4.8 Using Themes in Communication
4.9 Establishing Common Ground
4.10Changing a Conflict into a Mutual Problem Solving Process
4.11 Recognising and Rewarding Compromises

61
4.0 The Six Laws of Persuasion: an Overview

Persuasion is the ability to influence people’s thoughts and actions through


specific strategies. To becomeadept at this skill, you must first understand some
basic principles, called the Laws of Persuasion. These sixlaws by themselves
are neither good nor bad, but describe how most people respond to certain
circumstances.

Psychologist Robert Cialdini wrote the seminal book on the Laws of Persuasion,
titled:Influence:The Psychology of Persuasion, in which he discusses the
prevalent methods of marketing. Even though you may not wish tobelieve it, a
great deal of psychological research indicates that human beings are quite
predictable in terms ofbehavior in response to certain stimuli, such as ads. This
is why marketing and advertising are highly successfulenterprises—by and
large, consumers respond to most ads and commercials by buying the products
and servicesthey promote. By understanding persuasion laws, you can control
how much others unduly influence you,as well as how to use them to your
benefit during negotiations.

The laws work because they provide shortcuts to making the countless decisions
people face every day as theylook for information to reduce the complexity of
life. If you can apply these laws in specific situations to yourbenefit, then your
influence over others increases significantly. Some of the best masters of the art
of persuasionin negotiation are highly successful salespeople who do their best
not only to make the sale, but alsoto meet the needs of their buyers.

Here are Cialdini’s Six Laws of Persuasion:

Law of Reciprocity

Human beings, in general, try to repay in kind what another person has provided
to them. If someone givesyou something you want (or perhaps didn’t “realize”
you wanted), then you will wish to reciprocate becauseyou now feel obligated.

62
Examples of this Law include the address labels you receive in the mail from
variousnon-profits requesting charitable contributions. Even though they are a
minor, unsolicited “gift,”sending themhas increased contributions for non-
profits many-fold, because people feel compelled to “return the favor.”Giving
free samples to potential customers is another way in which this Law is used by
successful salespeople.

Law of Commitment and Consistency

People like to be (or at least appear to be) consistent in their thoughts, feelings,
and actions. Once they havemade a stand, they tend to stick to it and behave in
ways that justify their earlier decisions, even if they areerroneous. If you make a
commitment to a cause or product, however small, it then becomes easier to be
convincedto increase it. This is especially true if the commitment changes your
view of yourself in a favourable way. This is why salespersons attempt to get
customers to agree with them multiple times. After saying “yes”so often, it is
almost impossible to say “no” when it comes time for the close or direct request
for the sale.

Law of Liking

When you like someone, or believe that they are “just like you,” you are more
inclined to want to please themand, therefore, purchase whatever they are
selling. This is how successful salespeople operate; they establishrapport by
demonstrating how similar they are to their potential buyers. For example, they
note that they arefrom a comparable background as you, or even better, they are
people you know—your friends. As for thosein-home sales parties, the kicker
comes when your neighbors provide the testimonials for the product. Youdon’t
want to disappoint them by not purchasing, do you?

Law of Scarcity

63
If you are not sure you want to buy something, the minute it becomes “the last
one available” you tend tohave second thoughts. After all, this must indicate
that others are purchasing it, and you might not be able toget another one
quickly, or at all, if you decide you want it later. So you take the bait to buy a
popular itemthat others won’t be able to get. At least that’s what you think.

Law of Authority

This is the law that uses celebrity endorsements or “expert” testimonials. When
people you admire promote aproduct or service, if it’s good enough for them,
then it’s good enough for you. And if you use it, then youmight even develop
similar characteristics to your heroes, such as good looks, wealth, or fame.
That’s what theadvertisers are counting on.

Law of Social Proof

Why have TV sitcoms used canned laugh tracks for years? Producers wouldn’t
employ them unless they actuallyare successful in eliciting audience laughter
and, subsequently, higher ratings. Part of the reason you laughalong anyway in
spite of your annoyance lies in how you decide what is socially “correct”
behavior. If youdon’t know exactly what to do, you rely on others around you
(or the virtual TV audience) to help you find theway to properly react. You
think if others are engaging in a specific behavior, it must be the proper thing to
do.

Hence, you laugh in spite of yourself, or if you’re told that “everyone is buying
this product or service,” evenwithout evidence, you may think you’re missing
out if you don’t comply or conform and get it for yourself.

4.1 Using the Laws of Persuasion

As mentioned, in any negotiation, all parties should arrive at a conclusion that


makes them feel like they got agood deal, especially if an on-going relationship

64
is involved. (Note: a “good deal” is not always the same foreveryone;
negotiators often have different criteria by which they judge the success of their
bargaining outcomes.)

Often when dealing with “tough” or “hard” negotiators, you encounter


manipulative tactics that usethe preceding Laws of Persuasion. So how do you
successfully negotiate around these ploys?First, you can discuss the rules of the
game. When you recognize that the other side is using one or more ofthe Laws
of Persuasion, you can either directly note it, or simply steer the conversation to
a more objectivesolution. And for the ultimate in law prevention, you can set
preconditions ahead of time that will precludesuch strategies by using only
logical principles as a standard process in the negotiation.

Negotiation strategies using the Six Laws of Persuasion include the following:

Law of Reciprocity

Limited disclosure/confession of the real reason for a negotiation stance, such as


“this is all the money wehave,” can provoke a concession from the other party.
(This is often seen in salary/promotion negotiations.)Concessions in general
follow this “tit-for-tat” rule (the lower the “value” of the concession on your
part, ofcourse, the better).

You can also use this law to appeal to fairness. For example, if the other party
manipulates the physical environmentby requiring that your team sits facing the
sun, at the next meeting they should reciprocate.

Law of Commitment and Consistency

An example of this tactic would be using a series of questions to conduct the


step by-step close. DaleCarnegie, in How to Win Friends and Influence People,
called this, “Get the other person saying ‘yes, yes’immediately.” This occurs
when one party asks the other side to make a number of “small” decisions that

65
leadto only one obvious conclusion: to accept the general concession. You
could employ this principle by asking apotential client if she values quality in
your product or service. Of course the only answer would be “yes.” Thenyou
could follow with a question that begs the obvious: “We’d love to provide you
with this product/service,but if we don’t get the resources we need from you (i.
e. sufficient money) and quality suffers as a result,would you still want it?”
How can the prospect say “yes” to poor quality? This tactic makes it easier for
you toask for additional funds.You might also see an example of this ploy when
lowballing (intentional last-minute additions to what wasoriginally a low price)
occurs. Unscrupulous vendors might attempt to make you psychologically
“invest” in aproduct that you initially believe costs less.

Law of Liking

This law is often seen in the strategy of “good cop, bad cop,” where one person
in the other negotiating partyis clearly opposed to your objectives, but it appears
that another of their team members is “on your side.” Thiscauses you to identify
with and trust the “good” team member, so you may find yourself agreeing to
the otherteam’s concessions and goals instead of your own. You can see this in
situations where a salesperson “battles”their supervisor to get you a “better”
deal (of course this was the result they wanted in the first place).You might also
apply this law to establish rapport up front when you are negotiating with your
own superiorsor teams.

Law of Scarcity

The more time you spend with a salesperson, the more commitment he or she
has to make the deal. If you areunder no time pressure and the other side is, you
have the upper hand.

Law of Authority

66
Vendors often quote vague authorities to sell their wares, “Experts say our
product is the best.“ But who arethese experts? What are their qualifications to
make these claims? Do they have a vested interest in sellingthe company’s
products or services? In addition, use this Law to establish your own
credentials/credibility earlyin the negotiation.

Law of Social Proof

This law works when you draw on testimonials from satisfied customers or
clients (unscripted ones are best)to encourage new prospects to buy your
services and products.The law also can be used to convince your supervisors or
staff that their counterparts in other divisions orcompanies are following similar
suggestions to yours. People want to feel like they are part of an
establishedcommunity that already knows where it is going.

Ethical Issues

Persuasion can be used for good or ill. In an environment that seeks to follow
ethical rules, it should only beused to make lives better. Manipulation occurs
when you exploit or deceive others solely for your own gain.This does not result
in a win-win situation.

4.2Summary

Being adept at persuasion is often the missing key to success in the workplace
and your personal life. If yougive people what they want via the Six Laws of
Persuasion, they’ll most likely return the favor. And when yourecognize that
you are being manipulated, you can call the other side on their tactics and
counter with anappropriate strategy. This will lead to a more effective way of
achieving the goals of all negotiating parties.

4.3Persuasion Techniques

67
Once the delegation has determined the delegation’s goals (both long-term
andshort-term), a critical part of the delegation’s preparation is to determine
how topersuade the other party in order to achieve these goals. “Persuasion”
refers to themanner by which the delegation approaches a specific point in the
overall negotiationprocess. Determining the delegation’s persuasion technique
is a critical part ofpreparing for a negotiation. There are many techniques that
can be used to persuadethe other side. There is no single technique that is
appropriate in all situations.

Therefore, it may be appropriate to utilize more than one technique at any given
time.

If one technique is not working, it is best to be flexible and adopt another


technique.In assessing and developing these persuasion techniques, it is
important to recognizewhat persuasion techniques the other parties (particularly
the mediator) are intentionallyor unintentionally utilizing as well.

Communicating Persuasively

The use of language is the principal means of persuasion. Persuasion,


however,includes not only the spoken word, but also body language, facial
expression, tone,and even silence. All are tools to be used in the negotiation
process. Due to thevolatility that can result from the spoken word, when
possible, the delegation’sstatements should be well thought out, clear, and
precise.

• Even the manner in which a person sits can communicate the way the personis
feeling.

– Leaning forward in the seat as someone else is speaking can convey


intenseinterest, or an aggressive attitude.

68
– Leaning back in the seat as someone else is speaking can convey a calm
andreceptive listener, or that the listener is not paying attention to the speaker.

• Raising or lowering your voice, as well has emphasizing or


deemphasizingdifferent words, can give be interpreted in entirely different
ways.

– “You can sit over here.” Depending on how the tone and emphasis,
thissentence can be taken as a command, and invitation, or a direction.

No matter how your delegation chooses to communicate, the key is to do


sopurposefully in all respects. Each of these techniques may be effective in one
case,and not effective in another. It is important to learn to recognize when the
useof one of these techniques would assist your delegation in the
communicationof a particular message.In addition, the delegation should ensure
that its members observe the otherdelegations’ actions (body language, facial
expressions, particularly) for insight intotheir unspoken support or opposition to
what your delegation is communicating.

Self-Expression: Aligning Intent And Impact

Self-expression, the combination of language and demeanor, is another


persuasiontechnique that can be effective in persuading the other party. This can
be relevant,whether the delegation intends to express outrage, disappointment,
frustration,or cooperation, or if the delegation intends to diffuse a hostile
environment. Theway the delegation expresses itself during the negotiations
should be carefullydesigned to ensure that it has the intended effect. Examples
of strategic useof self-expression include:

• The delegation may choose to use calm or reasoned language and demeanorto
diffuse a hostile situation.

69
• Using expressive body language and more aggressive tones can express
outrage;but simply saying the delegation is “outraged” is not an effective tool.

• Eye contact and facial expressions can convey significant messages.

Storytelling And Painting Pictures

Another technique for persuasion is the use of storytelling. This includes not
onlythe spoken word, but also the use of visuals. One of the most effective ways
toaccomplish this is to place the other parties in your delegation’s
circumstances.

• Use vivid language to convey your delegation’s message. Present your


delegation’smessage in the context of a story that explains your delegation’s
perceived problemand demonstrates how your delegation’s proposed action will
solve the problem.

– For example, tell the story from the standpoint of an individual, family
orcommunity that has been or will be affected by the conflict at issue.
Factualdetails are critical in the delegation’s descriptions in order to
achievemaximum effect.

• Consider presenting the delegation’s problem visually by using words to


painta dramatic picture that incorporates the other parties’ own experiences,
thisay help them begin to empathize with your delegation’s position.

– For example, if unification is your delegation’s goal, describe a peaceful


andunified country.

• These techniques can be particularly effective when using the media


tocommunicate your message.

4.4Organizing For Persuasion

70
In addition to the substance of an argument, the organization of an argument
canhave a significant persuasive effect. Therefore, your delegation will benefit
fromgiving extensive consideration to organizing your delegation’s points
effectively.

Typically, it is most effective to present your delegation’s stronger argument


first,and reserve arguments to use throughout the negotiations. For each
argument, thefollowing general rules apply:

• Build your delegation’s argument up from a strong factual foundation.

• Draw the overall conclusion of your delegation’s argument from the facts.

• It may be important to begin with broad statements to define the scope ofyour
delegation’s arguments before proceeding with the specific items of
yourdelegation’s argument. Present specific subparts of the overall conclusions
basedon examples.

• It is often the case that the first and last arguments made are those that are
bestremembered by the other parties.

4.5Using Questions to Gain an Advantage

There are several ways to use questions to gain an advantage in a


negotiation.Ask open-ended questions to find out more about the other parties’
positions.

• Open-ended questions can engage the other parties and make them feel
morecomfortable.

– Asking questions that begin with “Who,What,When,Where, How and Why”

Explain and Describe” rather than immediately challenging the other


party’sposition. This can allow the delegation to discover what is motivating
theother party during the negotiation.

71
– More probing questions can gain the delegation more important
informationsuch as, “What are the delegation’s main concerns” and/or “Why
are thoseconcerns important to you.”

• Consider asking a series of non-confrontational questions to establish


certainfacts and to better define where the disagreement really is. This is
effectivein establishing an environment of cooperation.

• The delegation can use questions to challenge assumptions, such as “has


thedelegation thought about . . . .”

4.6Deciding On the Emotion to Convey: Sharing Concernsv. Making


Accusations

There is always more than one way to respond to the other parties’ position
orEmotion, just like the spoken word, body language, facial expression andtone
should be used thoughtfully and in accordance with your delegation’s
overallstrategic goal. The decision to use emotion and how should be one that is
carefullyconsidered and should be reached by relying on principled analysis.
The delegationshould never show an emotion unintentionally.

• Your delegation can act aggressively by accusing the other delegation of


wrongfulconduct or your delegation can tell the other delegation why their
actions concernyour delegation. Either may be the appropriate way to begin the
negotiation,depending on the factual circumstances.

– Be aware that accusing the other delegation of wrongful conduct may putthe
other delegation on the defensive and make it more difficult to persuadethe
other delegation.

• Your delegation can react emotionally as the victim of the other


delegation’sactions, and share why they concern your delegation.

72
• By responding unemotionally in particularly difficult times of a
negotiationyour delegation can convey that only the “success” of the negotiation
mattersto your delegation.

4.7Courtesy

The decision to either extend or not extend courtesy may be an


effectivepersuasion technique.

• Generally, maintaining the proper courtesies will be the most effective wayto
open communications.

• The extension of appropriate courtesies not only encourages


cooperativenegotiations, but also typically results in a more sustainable long-
termrelationship between the parties.

• Extending courtesies does not mean that your delegation has to accede to
theother parties demands.

• Regardless of whether your delegation intends to be courteous, it is


necessaryto understand the cultural expectations of the other parties to ensure
that yourdelegation’s actions will bring about their intended results.

4.8Using Themes in Communications

It is often helpful in a negotiation to present your delegation’s position with a


commontheme throughout. It is more difficult for the other parties to disagree
with a themethat has universal appeal. For example, one theme might be: “We
need to do thisfor the next generation of citizens.”

• A theme or slogan will make it easy for the other parties to remember
yourdelegation’s priorities and convey them to their constituencies.

• A theme may demonstrate a strong commitment and passion for your


delegation’scause and to an outcome that serves the delegation’s interests.

73
• A theme may show that your delegation has thoroughly considered and
preparedfor the negotiation session.

4.9Establishing “Common Ground”

Establishing agreements on certain points, even minor points, can serve as an


effectivestarting point in persuading the other parties. Even small areas of
common groundbuild trust between and among disagreeable parties.

• Be careful not to narrow the arguments to such a degree that it will be hardto
have the necessary exchanges and compromises that are imperative fora
successful negotiation.

• That said, recognize that identifying agreed points can help your delegationbe
more efficient at the negotiating table by focusing on points of true
andsignificant contention.

4.10Changing a Conflict intoa Mutual Problem-Solving Process

Nearly every conflict can be characterized as a common problem that needs to


besolved by two or more parties who differ on the solution. Reframing a
conflict inthese terms can set a positive tone for negotiation - a tool that may
allow agreementto be discovered where it might not otherwise be found.

• Sometimes during the course of negotiations, merely “reframing” the


disagreementas a mutual problem can make the other parties feel that they are
part of a teamthat shares the common goal of solving the problem.

• If presented as a conflict, other parties may be more likely to become


defensive.

– For example, phrase the issue as, “We both have a problem that needs tobe
resolved,” rather than “The delegation caused the problem.” This maybe more
persuasive and result in shaping the conflict in a manner thatis less adversarial.

74
4.11 Recognizingand Rewarding Compromises bythe Other Party

Recognizing or choosing not to recognize a compromise by the other party


dependson the circumstances and can be an effective technique in persuading
the other party.

• In any negotiation it is critical to recognize when the other party has madea
concession or compromise.

• When a party makes a compromise, it rightly may expect something in


return.Whether the delegation chooses to reward the compromise is
dependent,in part, on the value the delegation places upon the concession.

• The delegation may choose to recognize the compromise openly or recognizeit


only within the delegation’s team.

• It is typically a mistake to over-emphasize the other side’s concession as it


maycause them to demand additional or more significant demands.

75
CHAPTER FIVE

NEGOTIATING STRATEGIES

Structure of Chapter

5.0 Introduction
5.1 Preparation and Planning
5.2 Adopt a Win – Win Approach
5.3 Maintaining High Aspirations
5.4 The Use of Language
5.5 The Use of Questions and Listening
5.6 Building Solid Relationships
5.7 Dos and Don’ts in Negotiating

5.0 Introduction

An effective process includes managing the negotiation’s overall strategy or


approach, its stages, and the specific tactics used (Adler, 2002). Developing
negotiation skills is an essential part of moving up the career ladder (Black,
2009). What makes a Good International Business Negotiator?

Franck Acuff (2008, 39) suggests the following 10 negotiation strategies that
will work anywhere:

1. Plan the negotiation

2. Adopt a win-win approach

3. Maintain high aspirations

4. Use language that is simple and accessible

5. Ask lots of questions, then listen with your eyes and ears

76
6. Build solid relationships

7. Maintain personal integrity

8. Converse concessions

9. Be patient

10. Be culturally literate and adapt to the negotiating strategies of the host
country environment

5.1 Prepare and Plan

Planning is bringing the future into the present so that you can do something
about it now. Negotiation is a process we undertake in everyday activities to
manage our relationships. In some personal negotiation, stakes are not that high
and thereis no need to pre-plan the process and the outcome but in cases like
business relationships, the stakes are high and there is need to prepare, plan and
negotiate more carefully (Ghauri and Usunier, 2003). How to negotiate
effectively? Before entering a negotiation it is vital to plan it beforehand. The
negotiators need to decide what it is they want to achieve and why the other
party should negotiate with them. They should also think why they should
negotiate with the other party (Etherington, 2008). Organizations need to
understand that they must spend time for planning. There is a saying; Well-
prepared is half the battle. If a person has not prepared a negotiation carefully
and his counterpart has, the person is at disadvantage immediately. Not being
prepared makes a person feel unprofessional and it will nearly always cost him
money.

Commitment to the negotiation process is needed. A half-hearted approach can


never be effective in negotiation. There must be a serious commitment to
achieving the result a negotiator wants. “If you are serious then you will be

77
taken seriously; if you are casual then you will be taken casually” (Oliver, 2010,
9). After having the commitment to the negotiation process there must be clear
objectives and goals. Without the objective the negotiator will automatically
settle for less that need to. A common reason for getting poor negotiated results
is not being sure what we want. Overall objective should state company’s profit
levels, the type of business or supply that they want, the type of product or
service they want and the levels where the company want to buy and sell
(Oliver, 2010). Once the planners have clear objectives for their company, they
must put a strategy in place. Strategy will tell to the companies what to do,
when to do it and how, in order to achieve what they have set themselves. In
preparation stage company should consider whether an individual negotiator or
team is better for that negotiation. They need to define which person or people
are responsible for the negotiation process.

When planning and preparing to any negotiation it is wise for the planner to ask
himself questions about the other person. It will give a general view of the
whole negotiation-situation-to-be. The answers of those questions will form a
judgmentabout what may or may not be important to that other person. Oliver
(2010, 26) advises that people should ask these questions themselves when
preparing to an effective negotiation:

 What is important to them in making their decision?


 Where will they seek to negotiate?
 What combination of factors is likely to be important: cost, price,
quantities, delivery, exclusive terms, credit, stock-holding, training,
confidentiality, after-sales, maintenance, guarantees, contract length?

Planners should concentrate on the issues and categorize them as major or


minor concerns. Maddux (1995, 31) have gathered factors to consider in the
analysis of the issues. These factors should be considered for both sides, own
and the other side:

78
1. Economic impact on the parties

2. Supply and demand

3. Past precedent and standard practices

4. Time constraints

5. Legal implications and considerations

6. Long and short term advantages and disadvantages

Self-confidence has a major role in effective negotiation and good planning can
reinforce the feeling of confidence before getting to the table. A very beneficial
basic work-tool that is used in so many project management training programs
is S.W.O.T analysis (Etherington, 2008). S.W.O.T stands for Strengths,
Weaknesses, Opportunities and Threats. It is a strategic planning method to
identify company’s internal strengths and weaknesses, as well as its external
opportunities and threats.

The planner should sit down and draw a matrix of not just his own S.W.O.T but
also the other party’s S.W.O.T. The person will be nicely surprised at how
many weaknesses he can think of in the other side’s position.

79
Smart negotiators always consider the other party’s BATNA. Mills (2005)
reminds that the better their BATNA, the stronger their bargaining position. If
the other party’s offers are better than his BATNA, he should take them. If the
offers are worse, he should bargain to improve them. It is important for
negotiator not to confront the other side with their BATNA too early. If the
negotiation is going badly, negotiator should not hesitate to reveal his BATNA
because it canincrease his authority. If the BATNA is worse than the other side
already imagines it would be wise not to reveal it because it will only weaken
his case. A negotiator has to put himself into the counterpart shoes which is
really hard because it is impossible to know what is that they want exactly.

5.2 Adopt a Win-Win Approach


80
The ideal outcome for a negotiation is almost always a win-win situation from
which everybody goes away satisfied. In most negotiations, it is in the
negotiator’s best interest to foster a co-operative atmosphere to increase the
chances of a win-win outcome (Stark, 2003).

A negotiator cannot go to a negotiation table with the attitude that he is happy


with win-lose outcome, as long as he is not the loser. With a win-win outcome
there is a greater chance to create beneficial long-term relationships. It is
important to avoid narrowing the negotiation down to one issue. Negotiators
have to see the overall picture of the deal. The most common example is
arguing over the price of a product or service (Stark, 2003). Price is not the only
issue to be considered. For instance timing and quality are also very important
to be considered in a negotiation. The overall price of a product consists of
many things, such as delivery date, financing and the amount and quality of the
product. People do not always select the cheapest option when they buy
something because the money value of a product or service is not the most
important factor. If a negotiator brings multiple issues to the negotiation table it
will provide the opportunity to create a win-win outcome. People negotiate with
each other because the other one have something he wants and he has
something the other person wants. People need to keep in mind when
negotiating that their counterpart does not have the same needs and wants they
have. It is also important not to assume to know counterpart’s needs. It is very
common for negotiators to assume they know exactly what their counterpart
wants (Stark, 2003). Forsyth (2009, 75) advices: “Never ass/u/me anything – it
makes an ass out of you and me”. Each counterpart in a negotiation usually has
implicit and explicit needs. Explicit needs include items such as price and
termsof a product or service. Implicit needs implicate the negotiator personally
such as reputation and credibility. A counterpart generally tells his explicit
needs to the other side but it is hard to read implicit needs. In a win-win

81
situation each party may have wished for more but at least they are both
satisfied and will be willing to negotiate again later. To be effective, both
parties must feel they have won (Oliver, 2010).

5.3 Maintain High Aspirations

The level of expectation has a direct relationship to what a person achieve in a


negotiation (Maddux, 1995). That is to say, ask for more and you will get more,
ask for less and you will get less. It is important to aim high because there is
always the possibility to trade down. It is more difficult to trade up after having
stated the intentions (Forsyth, 2009).

5.4 Use language that is simple and accessible

Negotiation is a form of communication which means that it is an interactive


process. There is no single right approach for negotiation because every
situation is different in its own way. Negotiation must work in communications
terms before it can achieve its specific objectives. People need to really
understand before they can agree to something. To be a successful negotiator
the main key factor is to communicate clearly. It is not good to start a sentence
or even include negative parts in a sentence, such as “No but…” because it will
give a hint to the counterpart that the negotiator do not have any self-esteem and
he does not know what he wants and aim for. In other words the negotiator does
not know what he is doing. Etherington (2008) state that human beings self-
esteem comes mainly from the constant conversations going on in their head
and using positive tone when speaking, for example by changing “No but…” to
“Yes and…” will make a huge difference.

It is true that communication can lead to complex problem or brilliant solution.


To achieve effective communication the participants should ask questions both
open and closed ones to make sure that the message is received. People should
use tools such as paraphrasing and restatement to clarify issues that they might

82
be uncertain about, for example, they should express the saying in other words.
It is not always a good thing in communication to go straight to the point but it
is better to talk about general issues and then go to details. In some cultures, it
would sound rude if a business meeting would start with cost issues instead of
going smoothly.

A negotiator should think beforehand whether he should make the opening of


the negotiated issue or should he first listen what the opponent has to say and
gather as much information as he can. When people reveal information too early
it may be disadvantage for them because the counterpart knows something
about them but they do not know anything about their counterpart. The saying,
“Knowledge is power,” is never more true than in the early stages of the
negotiation process (Acuff, 2008).

As mentioned before is it good to repeat things so that the counterpart really


understands the message. The repeating means to say the same thing in different
ways and in a way that is easily understandable. Especially negative comments
should be expressed with a positive tune because it is not advisable to sound
rude or bossy. For example, if a counterpart comes late to almost all of the
meeting they have had and they still would like to do business together in the
future, they should think how they can prevent that it would not happen again.
For instance by not blaming the counterpart for being late every time but asking
them if the timing is okay for them or about how is their workload. It is good to
know the reasons of the delays because they can be something irrespective of
the will. Remembering that win-win outcome is achieved when both parties
think themselves as a team, it is important to bring that thought into the
sentences, for example not using You and I but using We instead. It will create
warmer atmosphere. Small changes can make a huge difference.

In international business negotiation cultures encounters. Because people from


different cultures perceive, interpret, and evaluate the world differently,

83
accurately communicating needs and interest in ways that people from other
cultures will understand becomes more challenging, and so does fully
understanding their words and meanings (Adler, 2002).

Negotiating is about finding solutions so it is very important in effective


negotiation not to argue on things. Arguing is about trying to prove the other
person wrong. Do not waste time on arguing. If a person disagrees with
something, he should state the disagreement in a gentle assertive way which
might help to find a solution with the other party.

5.5 Ask lots of questions, then listen with your eyes and ears

It is important to always ask. This tip is simple but very powerful. As Beasor
(2006, 120) put it; “If you don’t ask…you won’t get”. Negotiator should not be
afraid to ask. He should be confident and realize that the other party would not
offer anything unless it is asked. Ask a lot of questions. Asking open questions
instead of closed ones a negotiator will get more precise information.
Remember that talking all the time and not letting the counterpart to say
anything is likely to cause fatal. A negotiator has to also listen not only with his
ears but also with his eyes. People send a lot of messages, positive and negative,
non-verbally with their body. To interpret the other person is a very useful skill
to master.

Non-verbal communication is sending and receiving wordless messages. Most


communication is wordless. According a famous sentence; “What is often not
said is more important that what is said”. People communicate in terms of
physique, clothing, quality of voices (which includes tone, accent, and loud or
soft), facial expressions, posture and emotions (Buchanan and Huczynski,
2004). Non-verbal communication includes also body language. When a
personis talking his body is talking at the same time. People use their face and
eyes to send messages. Most people also use their hands to emphasize verbal

84
communication. Hand gestures can be positive or negative depending on how
they are used. In some cultures hand gestures have a different meaning and to
avoid conflicts it is good for negotiators to get to know different cultures and
the way people are communicating with others. Negotiators should also know
when is appropriate to maintain eye contact and to know the “space bubble” in
different cultures. These are some of the main barriers to effective
communication.

Also visual communication has impact on effective communication. Visual


communication includes clothing and the environment where the
communication takes place. Clothing and grooming send visual messages about
the speaker. It is said that clothes make the man. If there is an important
meeting coming it is wise to remove or at least minimize any background or
non-essential noises. Some disturbing noises may lead to a situation where the
listener does not hear clearly what the speaker is saying and it may cause a
misunderstanding. The speaker has to make sure that everybody in the
conversation understands what he is trying to say. He should speak loud enough
so the person the furthest from the speaker can hear everything. Good speakers
know how to use volume and pace. How people say something conveys more
meaning than what they say. If the person is angry but speaks with a low tone
the message is not clear. As mention earlier that most of the communication is
wordless, it is important to see the body language of the other parties. It will
sign whether they understood what was said and their reaction on the sayings.
People can also send messages to their audience when they laugh, cry, yawn or
sigh.

5.6 Build solid relationships, maintain personal integrity and converse


concessions

In the negotiation table the first phase is getting to know the other party and
helping them to feel comfortable. Relationships matter and it is important to

85
understand the reason why they are so important to the business. Good business
relationships offer more value in the long term. It is hard if not impossible to
build solid relationship in competitive negotiation situations. During
relationship building, parties develop respect and trust for members of the other
team (Adler, 2002). One of the biggest barriers for negotiation is lack of trust
(Harvard Business Essentials). To maintain solid relationships creditability is
very important. Trust is built through deeds, not words (Stark, 2003). A
negotiator has to do what he promised he will do and maintain the professional
appearance. Trust is also developed with honesty. The negotiator should be
honest also about things that may not be at his best. Business negotiators should
converse concessions. For example, if providing something in short delivery
time the negotiator may insist larger fee.

Be patient

Being in a good mood before entering the negotiation table the negotiator have
more confidence and is likely to be patient during the negotiation. All parties
are investing a lot of time, energy, personal and spiritual commitment, and other
resources to ensure the best possible outcome (Hamilten, 2008). International
business negotiation process is not a short process. It takes time and to achieve
win-win outcome negotiator must be patient.

Be culturally literate and adapt to the negotiating strategies of the host


country environment

Biggest barriers for negotiations are lack of trust, cultural and gender
differences, communication problems and power of dialogue. A useful tip for
business negotiators is that they should never assume anything and also avoid
stereotyping. Negotiators need to adapt the negotiating strategies of the host
country by doing some research. They should plan ahead how they would
starttheir negotiation, for example, would they want to first talk about sport or

86
climate and how to proceed from there to the real topic. Negotiators should be
aware not to talk about politics or religions which are taboo in most of the
countries and cultures.

When negotiating as a team it is important to determine what types of expertise


are needed to support their side in the negotiation. The team should consist of
people who are good and confident communicators and who work well as a
team. The team should hold planning meetings before the negotiation to agree
on team goals, strategies and tactics. They should assign roles and
responsibilities for each team member and select a lead negotiator or team
captain (Stark, 2003). The most vital tip for team negotiation is practice. It is
important that the team will rehearse on their own with another team within the
organization. The dry run will lift their confidence level and it gives foretaste of
the negotiation situation.

As mention earlier in this chapter that the most typical factors that affects how a
negotiation will play out are time, environment, personalities, information,
personal issues and hierarchy. Time has a crucial impact on effective
international business negotiations. The duration of a negotiation can vary
across cultures, for example Americans expect negotiations to take a minimum
amount of time and Vietnamese want to go forward slowly (Adler, 2002).
Everything is negotiable including deadlines. There is no need to panic if the
deadlines come near because they can be changed. But it does not mean that
there is no need to work hard. No pressure but remember that time is money.

Environment impact the effectiveness of international business negotiation. The


location of the meeting should be considered carefully. Should the meeting be
held in your office, in counterpart’s office or at a neutral location? When the
meeting is in another country it will not only cost but also reduces access to
information. When hosting, it allows controlling the situation more easily. Adler
(2002) states that many negotiators select neutral locations. Business negotiators

87
often select locations that are geographically placed somewhere between each
company’s headquarters. When the meeting is in neutral locationboth sides
travel, both sides have reduced access to information and both sides want to
conclude the negotiation as quickly as possible to minimize costs.

Being prepared and gathered as much information as possible will impact on the
effectiveness of international business negotiation. Information is power.
Negotiator needs to know the answers for possible questions their counterparts
might ask. It is also important to leave the personal issues outside the
negotiation room. In the negotiations emotions need to be concealed and make
decisions based on the rational reasons and not on emotional reasons.
Negotiator must understand the balance of power in negotiation (Black, 2009).
The negotiator has power when he has something the other party wants.

5.7 Dos and Don’ts in Negotiation

Do conceal your emotions and don’t show triumph

“The more you express emotions, the more you give away” (Oliver, 2010, 148).
In reserved cultures, such as those of Asia, visible emotional expressions are
considered signs of immaturity (Fatehi, 2008). Good negotiator does not show
triumph because it will create bitterness. It will imply that he won and the
counterpart lost. In these situations there is a chance that the counterpart will
regret the deal and look for a way out.

Do use experts

In situations where stakes are high it can be beneficial to use other people who
have particular skills (Oliver, 2010). It will not only save time but also money.
There is a chance getting a greater deal when there is an expert of a certain area
in the negotiation team.

Do always maintain the initiative

88
It is important to maintain the initiative because according to Oliver (2010)
without maintaining it a negotiator will lose three things. First, he will lose
money. He has spent money to be in the situation he is at that moment. When
the initiative is thrown away money is also wasted. Second, he will lose control.
A negotiator has to have control so that the negotiation in moving in his
direction. The third and most damaging thing he will lose is business. If a
negotiator is not initiative his negotiations may not be concluded and he will
lose the business. A negotiator has to maintain the initiative and predetermine
the next point of the contract and take responsibility for it.

Do put things in writing

When a person write things down it will help him to keep authority and control.
Having writing in black and white people will avoid all kinds of embarrassing
mistakes. It is hard to remember all details but it is easy to look out from reports
and agreements to fresh up the memory.

Do learn to use high authority

Understand the balance of power in the negotiation (Black, 2009). Power at the
negotiating table is not something anyone can give. Power and confidence is
something that comes from the inside of a person (Etherington, 2008).

Do ask for discount when paying cash

Every time when paying with credit card it will cost for the seller. Seller needs
to pay surcharge. Ask for discount when paying cash. This may not work all the
time because some people find electronic money safer than cash, but if you do
not ask, you will not get.

Do not expect to win them all

89
A negotiator has to be sharp all the time in negotiations because some silly
mistakes or some unnecessary comments can create a lose-situation. Business
people need to keep positive; they will not always get what they want.

Do not be afraid to break off negotiation

Call a break if needed (Black, 2009). If the negotiation is proving to be complex


or aggressive than expected it may be a good thing to have a short 15 minutes
break. The break will give everyone a chance to cool down and they may return
to the table with some better ideas. A break could be a good thing even then
when things are going well during the negotiation. For example, in Islam
Muslims need to pray five times during the day and praying times depend on the
movement of the sun. It would be polite to give a short break for the Muslim
counterpart to go to pray if necessary. While the Muslim is praying the other
party may recharge their batteries and also think how they could continue the
negotiation process.

Do not attack your counterpart – attack the problem

Separate the People from the Problem (Fisher and Ury, 1991). Usually
negotiating parties become emotional and instead of attacking the problem they
attack each other. To improve the chances of success people need to
concealtheir emotions and build good working relationships. People need also
express emotions without taking them personally. It is wise for people not to try
to find out who caused the problem. Instead of using the energy investigating
who to blame people should come up with an idea how to solve the problem.

Do not deal with round numbers

Negotiators are often drawn towards large round numbers. They take ownership
of a number and for some strange reason will not move from it (Beasor, 2006).
Good advice is to use real numbers. A number like 26.351 is a real number. It
looks like it was calculated and has an authenticity about it.

90
Do not dig your heels in

It is important to remember to focus on the overall interest and not to dig the
heels in on one particular issue. Effective negotiators keep the whole proposal
in mind all the time which includes the product or service itself, delivery, prices,
profit and the future plan of the company.

Do not be afraid of risk

Negotiation is risky because no one can ever foretell the outcome. To success in
business and in personal life people cannot be afraid of risks. When a person is
willing to take risks in negotiations it implies confidence and will often pay off
(Oliver, 2010).

Do not succumb to dangerous phrases

In negotiations parties are strangers for each other and for them to reach an
agreement, they must communicate well (Fatehi, 2008). Use a language that is
easily understandable and do not throw the flap because jokes vary across
cultures and they may insult the counterpart.

Do not be afraid to go back and try again

Practice, practice, practice. Becoming a better negotiator requires practice.


Effective negotiator is confidence and he has developed it by
practicingwherever he had the chance. If one negotiation did not work out as it
was planned there are no excuses not to try again because only practice makes it
better.

91
CHAPTER SIX

NEGOTIATING TECHNIQUES

Structure of Chapter

6.0 Introduction
6.1Gathering Information
6.2 Communicating with Your Delegation
6.3 Using Documents
6.4 The Mediator
6.5 Using Experts
6.6 Using Time Effectively
6.7 Re-directing the Topic
6.8 Holding a Topic for Future Discussion
6.9 Using Breaks
6.10 Changing the Players
6.11The Use of Ultimatums
6.12 Leaving Negotiations and How to Return

6.0 Introduction

No technique or negotiation “trick” can replace the value of proper


preparationand planning for the delegation’s negotiation. The delegation must

92
be prepared toeffectively negotiate a successful outcome and the best way to do
so is to go throughthe steps set forth in the previous chapters. If the delegation
has prepared carefullyfor the delegation’s negotiation, the techniques set forth
in this chapter should assistthe delegation in obtaining a successful outcome in
the delegation’s negotiation in avariety of negotiation settings. Some techniques
are reserved for unusual situationsthe delegation may not encounter and
therefore the delegation should avoid usingthem. Some techniques will seem
obvious to the delegation and others may seemcounter-intuitive, but all have
proven to be effective in different settings. Formalnegotiations may seem
daunting to you, but the delegation should be comfortedby the fact that the
delegation already possess many of the skills that are requiredfor a successful
negotiation – these skills are the communication skills that thedelegation uses
every day. Accordingly, the following sections will help the delegationdevelop
and hone these skills in a manner that will assist the delegation in being
aneffective negotiator.

6.1 Gathering Information

Knowing as much as the delegation can about the other parties to the
negotiationand their interests is essential to achieving a favorable outcome. The
delegationmust fully understand the delegation’s goals and interests and
develop an understandingof what the other parties think the delegation’s goals
and interests are. During thecourse of the negotiation the delegation should
strive to update the delegation’sinformation about the other parties, their
interests and goals, and what they perceiveas the delegation’s interests. This can
be accomplished by:

1. Encouraging Dialogue

• Ask open-ended questions – this encourages the other side to provide


unsolicitedinformation to you.

93
• Let the other parties speak openly, especially if they are emotionally or
emphaticallystating a position – such behavior provides the delegation with
valuable informationabout where their interests truly lie.

• Refrain from making speeches, even on an emotionally charged topic –


rememberthat letting the other parties express their positions and keeping an
open dialogueis far more important than the delegation “lecturing” the other
parties.

• Generally avoid making non-negotiable statements that may force the other
partiesto avoid addressing important topics.

• If the delegation has prepared for the negotiation, the delegation can use
thepre-gathered information to ask pointed questions both to demonstrate
thedelegation’s understanding of the other parties’ positions and to focus
thenegotiations.

2. Active Listening

• Focus on the speaker and what is being said.

• Respond to the speaker’s views; do not rely exclusively on prepared remarks.

• Use body language to encourage the speaker and signal interest.


Examplesinclude leaning into the speaker, nodding and occasionally orally
expressingunderstanding.

• Do not interrupt, let the speaker finish.

• Ask non-threatening questions to confirm the delegation’s understanding.

• Repeat, in the delegation’s own words (“summarize”), what the speaker saidto
demonstrate the delegation understood.

94
• Include in the delegation’s summary a recognition of the emotion
demonstratedby the speaker. Empathy will show the delegation understood and
acknowledgedthe concerns of the speaker.

• Permit the speaker to clarify or confirm the delegation’s understanding.

3. Eye Contact

• Maintain eye contact with the other parties as it shows the delegation is
payingattention and listening to them. Caution - be aware of cultural differences
inwhich eye contact may be inappropriate or may even send the wrong message.

4. Using Silence

• The delegation does not speak just to fill an uncomfortable silence. Silence
isnot a bad thing – if used properly it can encourage other parties to talk in
anunguarded manner.

6.2 Communicating With Your Delegation: Signals andOther Strategies

If the delegation chooses carefully who is in the room and have designed the
delegation’snegotiation plan, the need for signaling the delegation’s team
members during thenegotiations should be minimal.

• Refrain from using overt signals for intra-team communications as doing so


willundercut the trust that the delegation should work hard to maintain.

• Remember that all communications made during the negotiations, even


thosefrom the delegation to the delegation’s team, will have an effect on the
negotiations,and could affect, positively or negatively, the delegation’s position
or thedelegation’s credibility.

95
• The delegation’s team leader should appear to be in control of the
delegation’steam’s negotiations at all times and should strive to maintain the
credibility andvalue of all team members.

6.3 Using Documents

Documents play an important role in negotiations. Negotiations are


typicallymanaged through the use of various documents, including agendas,
position papersand settlement agreements. Documents are also useful to both
persuade andillustrate your delegation’s position, which may include
photographs. Documentswill also be helpful in establishing and maintaining
your delegation’s credibility bysupporting a position your delegation is taking.
Documents can also provide a clearillustration for a complex position or
argument your delegation is making. Whenand how one uses a document and
for what purpose is an important part of yourdelegation’s strategy.

• Recognize that the initial draft of any operative document, such as an agenda
orsettlement agreement, will often remain largely unchanged, with only the
mostsignificant points being negotiated. There is a distinct advantage to
submittingyour delegation’s draft first, because your delegation’s draft may then
define thewords and issues to be used throughout the negotiation.

– The initial draft of any operative document should be over-inclusive. It ismore


difficult to seek to add terms than it is to remove them.

• When using documents as a persuasive tool, try to use documents created


bythe other party or by a neutral party to minimize questions about the
authenticityof such documents.

• When using documents to illustrate a complex point, try to keep them simple.

• Always fully explain the illustration when the delegation presents it.

96
6.4 Conducting Negotiations throughthe Mediator

There are many ways to use the mediator to your delegation’s strategic
advantage inthe negotiation process. Most frequently, parties use a mediator as
an informationconduit to express their views or position on the matters in issue
to the other party.There are other ways to effectively use the presence of a
mediator in internationalnegotiations; for instance, the mediator may facilitate
the provision of responses toquestions that have thus far been refused or ignored
in the negotiation process orto better define the interests and goals of each side
to the other.

• “Opening” statements can be an effective tool to persuade the mediator and


thedecision maker from the other party of the delegation’s understanding and
positionon the matters in issue. In the process, the delegation may take the
opportunityto persuade the mediator of the moral or legal righteousness of the
delegation’sposition. This will often influence the manner in which the
mediation processis conducted.

• It may be necessary to adjust the manner in which the process is being


conductedas it is underway. The mediator may have all parties in one room until
it is nolonger productive. At that time, the mediator will typically break the
partiesapart into separate rooms for further “shuttle” negotiations.

• It is important to use caution when providing confidential information tothe


mediator.

6.5 Using Experts

Experts can be useful in negotiations involving complex or technical issues.


Thereare two distinct ways to effectively use experts in negotiations:

• Use an expert that is not perceived to be affiliated with any party to


providepersuasive arguments and solutions for complex issues. For such an

97
expert tobe effective all parties must have confidence in the expert’s neutrality
and in theusefulness of such expert’s opinions.

– Such an expert will be more effective if perceived by the other parties tobe
neutral

– Your delegation should recognize that no expert is truly neutral. Each


expertbrings his or her own biases, individual and cultural, to the negotiation.

• Use an expert as a member of your delegation’s negotiation team. Such an


expertcan advise the delegation on complex issues and offer creative solutions
thatwould be unavailable absent their expertise. Such an expert can quickly
andeffectively address technical concerns raised by the other parties if required.

– Interpreters, scientists, economists and lawyers are an example of the typeof


technical experts that delegations typically utilize.

– Your delegation can expect that the other delegations and the mediator
willhave a lawyer as part of their negotiation team.

6.6 Using Time Effectively

To negotiate effectively, the delegation must appreciate fully the effect time has
on the negotiation process. The delegation must be able to recognize whether
some issues may be resolved in the time constraints of the scheduled
negotiations.

• Know your delegation’s priorities and be able to focus on those within the
time constraints of the negotiations. Be realistic about the time needed to
accomplish your delegation’s goals.

• Your delegation must also know if any party is under any time constraints that
will affect their negotiation strategy or position.

98
– If a quick resolution is important to another party, your delegation may be
able to gain concessions by acknowledging this pressure and quickly
makingconcessions in non-essential areas.

• It is important to evaluate who is under the greatest time constraints at the


outset, as this can have a fundamental impact on strategic issues.

• Very few negotiations are open-ended, but if there are no external time
constraints, your delegation may want to set a time limit on the negotiations to
keep the parties focused and the negotiations efficient and effective.

6.7 Redirecting the Topic

During a negotiation your delegation must always be aware of the direction that
the discussion is headed and, if applicable, redirect the discussion back to the
topic at hand.

• Be vigilant to ensure that your delegation does not lose sight of your
delegation’s (or the other parties’ perceived) goals while discussing the details
of a particular topic.

• It may be necessary to redirect the discussion to a different topic, either a new


one or an old one, to both cool down the discussion and take some of the
emotion out of the room or to simply refocus the parties to negotiating a
resolution.

• Redirecting the topic can also be used to effectively focus the discussion away
from a problem area to one that can more easily be resolved in the negotiation.

– Doing so will permit the delegation and the other parties to focus on and
resolve the easier topics before taking on the more difficult ones.

– This technique builds the momentum, trust and confidence necessary to


resolve the difficult issues.

99
• Redirecting the topic can also shift the discussion away from a problem areato
one of strength.

– Remember that it is always easier to negotiate from a position of strength than


weakness.

6.8 Holding a Topic for Future Discussion

One of the keys to a successful negotiation is to maintain an active dialogue.


Occasionally an issue may arise that falls outside the scope of the negotiations,
is too big to resolve, or is simply unanticipated by one or all of the parties.

• Record and acknowledge each party’s positions on such issues, including what
concessions were made, and agree with the other parties that this issue will be
set aside for future negotiations.

– It is important to set a date for a future negotiation on all such issues that have
been set aside.

• Once the impasse is removed or eliminated, try to refocus the group and
continue toward resolving other issues.

6.9 Using Breaks

Intermittent breaks during the negotiation session can be used to effectively


alter the tenor of the negotiations. A break can be used to ease tension in the
room, by permitting parties to step away from an emotional charged discussion.
Breaks can also be used to re-focus your delegation and review and incorporate
any new information your delegation has learned during the negotiations into
your delegation’s overall strategy.

• Caution should be used when suggesting or taking breaks as they can interfere
with the dialogue that is taking place between the parties.

100
• Parties may use breaks to refocus their strategy (as suggested above) and
concessions which could have obtained prior to the break will no longer be
possible.

– To avoid this problem, try to conclude the discussion on a particular topic and
summarize where the parties are on the issues before taking a break.

• When restarting after a break, a useful technique is to summarize where the


negotiations were before the break.

• Consider using the breaks as an opportunity to continue the discussions.

– A break may present an opportunity for the parties’ inside advocates to


discuss matters.

– It is sometimes beneficial to use the breaks as an opportunity for the


mediation party to meet separately with each delegation with the purpose of
making progress towards resolution of particularly difficult issues.

– It may be useful create smaller negotiating teams to meet during these times.

6.10 Changing The Players

It may be beneficial or even necessary for the parties to change the members of
their negotiating teams during the negotiations.

• This step may be required to overcome a stalemate caused either by an


irreconcilable conflict of personalities or when a team member loses credibility
and is no longer an effective representative for a party.

• Keeping the dialogue moving is vital to successfully concluding the


negotiations.

So, if a change in negotiations appears necessary, do not hesitate suggesting or


implementing it.

101
Your delegation may also want to change the roles of your delegation’s
members in the negotiation. Doing so can permit your delegation to bring a new
perspective and voice to the table which could alter the dynamic in your
delegation’s favor.

• Having a new team member take the lead on a particular topic can be a
planned strategy that can be effective in either emphasizing or deemphasizing
the importance of a particular topic in the negotiations.

• A decision to change roles can also be made when the negotiations stall on a
topic.

The change can reinvigorate the discussion or change the focus enough to
permit the parties to reach a resolution.

• Making a change that was not planned in your delegation’s initial strategy is a
drastic step and should be well thought out and discussed with all members of
the delegation’s team. But, if the negotiations have stalled, then such a change
may be necessary to keep the dialogue moving to resolution.

6.11 Using Ultimatums

As stated throughout this chapter, it is important to be fully aware and


understand the culture and customs of all parties at the negotiation table
including the use of ultimatums (“take it or leave it” declarations). In some
cultures, ultimatums are considered a regular part of negotiations. However,
ultimatums generally are quite risky and are a drastic measure in any
negotiation. If the other party rejects your delegation’s ultimatum, then your
delegation may be faced with a difficult decision to either end the negotiation or
withdraw the ultimatum and risk losing credibility.

102
However, should the negotiations reach a point where no progress is being
made and only a few issues remain, issuing an ultimatum may encourage the
other partiesto make a better offer.

• In responding to an ultimatum, it is best to do so, if possible, in a manner that


does not end the dialogue.

• Be creative and offer a counter to the ultimatum with an idea or solution that
has not been discussed.

• This may be an appropriate time to re-direct the discussion to a topic where a


negotiated solution may be reached.

• It also may be appropriate to counter an ultimatum with an ultimatum of the


delegation’s own – this is particularly appropriate when dealing with non-
essential issues.

• In most cases, your delegation can only use one ultimatum per negotiating
session and still maintain the delegation’s credibility.

6.12 Leaving Negotiations and How to Return

Leaving a negotiation is an extreme step that should only be taken after your
delegation has exhausted all reasonable avenues of resolving the dispute. As
with every aspect of the negotiation, understanding the culture and customs of
the other parties is essential.

• In some cultures, leaving the negotiation table may be a routine occurrence;


but, in other cultures, it is a drastic step that usually signals that negotiations are
over.

• Remember that, if your delegation does leave, your delegation will have to
answer to its constituents and explain why the negotiations failed.

103
• If your delegation publicly criticizes the other parties’ behavior as the cause
for the breakdown in negotiations, future negotiations are likely to be more
difficult.

• If your delegation leaves the negotiation and attempts to return, credibility and
trust may be lost, and the delegation may re-enter the negotiations in a weaker
position than that from which it began.

Should your delegation decide to leave the negotiation and wish to return, it is
important that it reassure the other parties that your delegation is interested in
resolving the dispute at the negotiation table.

• Be cognizant that your delegation will have likely lost some credibility with
the other parties and offer them reassurance that it is and will continue to
negotiate reasonably.

• If the reason your delegation left the negotiations was because it was faced
with an issue that could not be resolved during the previous session,
acknowledge that an impasse was reached on that issue and suggest that other
issues be resolved and that one be reserved for a separate negotiation if possible.

• If the impasse was resolved while your delegation was away from the
negotiation, share that with the other parties and resolve that issue before
moving onto other issues.

If your delegation remains committed to continuing the negotiations after the


other party leaves, consideration should be given as to the best means of getting
the other party to return. This could include attempts at persuasion, granting
concessions, going to the media, and the use of outside and inside advocates.
Remember that all of these options will have an effect on the parties
relationships should the negotiations continue.

104
• In the event that the other party returns, then your delegation should do
everything possible to ensure that the returning party does not feel embarrassed.

• Remind the returning party that all parties are present to work toward a mutual
resolution of the dispute and that resolution can only be reached through
continued dialogue.

• Do not be overly critical of the returning party.

CHAPTER SEVEN

NEGOTIATING APPROACHES

Structure of Chapter

7.1 Acceptance

7.2 Bargaining

7.3 Compromising

7.4 Logic

7.5 Emotion

7.6 Relationships

105
There are many styles and approaches to negotiation and some of the most
popular styles are:

7.1 Acceptance

This is an approach where the negotiator does not engage in constructive


discussion but just accepts the status quo. This style is generally regarded as
“weak” but it can be a useful tactic when a compromise can be used as a
bargaining tool.

7.2 Bargaining

This approach requires that both negotiating parties have something on offer
worth the exchange. It extracts value through the exchange of variables.

7.3Compromise

This is where the middle ground is sought between the stance you take and the
stance of the other party. Prior to negotiations it is always advisable to identify
the areas where you will and will not consider compromise within the deal, so
that you are clear where you can consider compromise. This necessitates being
aware of the areas where compromise is likely.

7.4 Logic

This is a common approach when trying to persuade the other party to


compromise. Logical reasoning is utilised frequently within business
negotiations to persuade the other party of the logic of their position. Each party
will prepare evidence in support of their argument in the hope that the other
party will be persuaded to move their position.

7.5 Emotion

This is the ability to identify the emotions of the main participants. This will be
influenced by the relationship (especially if there is an existing one) and/or the

106
experience of the people involved. Emotions may be hidden or openly shared
depending on the personalities involved and the nature of the relationship.
Emotions can have both positive and negative effects and it is important to be
able to separate the substantive and relational is-sues as these will produce
different emotions.

Irrespective of the approach or style adopted, the preparation of questions is a


key point of negotiation and is vital to the realisation of good outcomes. Some
of the questions that should be considered prior to any negotiation are:

7.6 Relationships

What is the history of the relationship? Could or should this history impact the
negotiation? Will there be any hidden issues that may influence the negotiation?
How will you handle these?

• Power: Who has what power in the relationship? Who controls resources?
Who stands to lose the most if agreement isn't reached? What power does the
other person have to deliver what you hope for?

• Goals: What do you want to get out of the negotiation? What do you think the
other per-son wants?

• Trades: What do you and the other person have that you can trade? What do
you each have that the other wants? What are you each comfortable giving
away?

• Alternatives: If you don't reach agreement with the other person, what
alternatives do you have? Are these good or bad? How much does it matter if
you do not reach agreement? Does failure to reach an agreement cut you out of
future opportunities? And what alternatives might the other person have?

107
• Expected outcomes: What outcome will people be expecting from this
negotiation? What has the outcome been in the past, and what precedents have
been set?

• The consequences: What are the consequences for you of winning or losing
this negotiation? What are the consequences for the other person?

• Possible solutions: Based on all of the considerations, what possible


compromises might there be?

REFERENCES AND FURTHER READING

Axelrod, R., 1984. The Evolution of Cooperation. USA: Basic Books.

Bacharach, S. and Lawler E., 1981. Power and Tactics in Bargaining. Industrial
& LabourRelations Review,.34(2):219-233.

Bazerman, M. H., Magliozzi, T. and Neale, M. A., 1985. Integrative Bargaining


in aCompetitive Market. Organisational Behaviour and Human Decision
Processes,35:294-313.

Campbell, B. and Melvin M., 2006. Toward More Effective Stakeholder


Dialogue:Applying Theories of Negotiation to Policy and Programme
Evaluation”. Journal ofApplied Social Psychology, 36: 2834-2863.

Druckman, D., 1997. Negotiating in the International Context, in Peacemaking


inInternational Conflict: Methods and Techniques, I. Zartman, W. and
Rasmussen, J. L.(eds.), Washington DC: United States Institute of Peace Press,
pp. 81-124.

108
Fisher, R. and Ury, W., 1981. Getting to Yes: Negotiating Agreement Without
Giving In.Penguin Books, New York:, USA

Fisher, R., Ury, W. and Patton, B., 1991. Getting to Yes: Negotiating Agreement
WithoutGiving In. Revised 2nd edition. Penguin Books, New York, USA.

Habeeb, W. M., 1988. Power and Tactics in International Negotiation: How


Weak NationsBargain with Strong Nations. Johns Hopkins University Press,
Baltimore, USA.

Landau, A. and Pfetsch, F.R., 2000. Symmetry and Asymmetry in International

Negotiations. International Negotiations, 5: 21-42.

Lax, D.A. and Sebenius, J.K., 1986. The Manager as Negotiator. Free Press,
New York,USA.

Lewicki, R.J., Barry, B., Saunders, D.M. and John, M.W., 2003. Negotiation,
4th edition,McGraw-Hill/Irwin.

Paulson, D.D. and Chamberlin, K.M., 1998. Guidelines and issues to consider
in planning acollaborative process. Institute for Environment and Natural
Resources, USA

Raiffa, H., 1982. The Art and Science of Negotiations. Belknap Press of
Harvard University Press Cambridge, Mass., USA.

Raiffa, H., 2002. Negotiation Analysis. The Belknap Press of Harvard


University Press.Cambridge & London, UK.

Ramirez, R., 1999. Stakeholder Analysis and Conflict Management. In Buckles,


D. (ed.) Cultivating Peace: Conflict and Collaboration in Natural Resource
Management.Canada, International Development Research Centre and World
Bank. Ottawa,Ontario, Canada.

109
Sebenius, J. K., 1992. Negotiation Analyis: A Characterization and Review,
ManagementScience, 38: 18-38.

Saner, R., 2000. The Expert Negotiator. Klumer Law International, The Hague,
The Netherlands.

Schelling, T. C., 1960. The Strategy of Conflict, Harvard University Press,


Cambridge, MA, USA.

Wondwosen, M., 2006. Negotiation: A Concept Note,.mimeo, August 2006,


FAO, Rome,Italy.

Zartman, W. I., 1988. Negotiation Journal. Vol. 4, Number 1 (January, 1988).

Zartman, W. I., 1978. The Negotiation Process: Theories and Applications.


Sage

Publications, Beverly Hills, California, USA.

Zartman, W. I. and Berman, M. R., 1982. The Practical Negotiator,Yale


University Press.New Haven, CT, USA.

110

You might also like