Negotiation Class

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Chapter 1 :
Négotiation the mind and heart

First book in negotiation: 1991

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Why should negotiation be a core management competency?

1. Dynamic nature of business
2. Interdependence Power is the extend to which person A is dependant on person B. Who have the power? Depends on the needs
* Unsubstituable
* Important
* Scarce: rare
3. Economic forces  Because of the economic crisis and the problem of unemployment it’s important to know how to negotiate more than before. 4. Information technology we are connected al the time

5. Globalization
* We negotiate everyday with everybody
* Dynamic nature of business: we move position all of the time that’s why we always need to negotiate salary, position… Origin of the world Salary: salt

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The traps of negotiation:
1. Leaving money on the table (lose-lose negotiation)
2. Setting for too little: faire trop de concessions, se contenter de trop peu 3. Walking away from the table
4. Settling for terms worse than your alternative (the agreement bias) céder pour des conditions moins bonnes que son alternative

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Why are people ineffective negotiators?
* Egocentrism
* Confirmation bias selective perception: people look for information that agree with their point of view * Satisficing
* Self-reinforcing incompetence

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Debunking negotiation myths: démistification des mytes de la négo 1. Negotiations are fixed-sum
2. You need to be either tough or soft: être soit dur soit mou 3. Good negotiators are born
4. Life experience is a great teacher
5. Good negotiators take risks
6. Good negotiators rely on intuition : se fient a leur intuition

IMPORTANT RULES:
1. Always start with an extreme offer
2. Never accept the first offer

Negotiation is always based on concessions.

“Horse” limbic system: based on emotions, instinct
“Rider” neo-cortex: rational

Research: there is a moment of power when someone say “no” to you door in the face DITF: The door in the face techniques

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The mind and heart of the negotiator: learning objectives:
* Improve your ability to negotiate a successfully: déveloper sa capacité à négocier avec success * General strategy for successful negotiation: avoir une stratégie générale pour réussir * Enlightened model of negotiation (fraternal twin model)

A lot of time you gonna negotiate with person who don’t know the techniques Majority of negotiation is win win

Case study:
* what do you think of the car
* have them sit on the car
* qualities of the car, advantages
* offer

Solution:
* Understanding the changing dynamics
the competitive deler released negative information which adversely affected frank’s previously- favourable thinking towards the luxury car. And you?

Was your competitor correct?
Who knows? But your Hot Prospect, Frank, though he was probably right as his apparence….

Understand the other person’s thinking
Frank’s new emotion is FEAR of future financial loss. In his current state of mind he will not buy your prestigious nax car- thuh is, he won’t buy anything from you until you overcome his fear. Counter his fear with it’s opposite- CONFIDENCE. Reasure him that he will not suffer financial loss. One possibility is guaranteed buy-back proce, a contract from your company guaranteeing to purchase the car at an agreed proce at a future date. Doing so will grive frank the confidence to by from you.

Here’ the smart answer:
I won’t let you buy this car until your company protects your investment. Let’s frst agree on a guaranteed buy-back price to be repaid to you in the future.

Chapter 2: Preparation : what to do before...
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