Notes Negotiation Genius - Deepak Malhotra & Max H. Bazerman
Negotiation Genius – Deepak Malhotra & Max H. Bazerman Chap 1 = Claiming Value in Negotiation Strategies for “Claiming Value” 1) Assess your BATNA a. Identify all plausible alternatives b. Estimate the value of each alternative c. Select the best alternative; this is your BATNA 2) Calculate your RP 3) Assess the other party’s BATNA 4) Calculate the other party’s reservation value 5) Evaluate the ZOPA
Common Negotiator Mistakes [pg. 27] * Making 1st offer when in a weak position * Making a nonaggressive 1st offer * Talking but not listening * Tried to influence, but not learn from the other party * Did not challenge own assumptions about other party * Miscalculated the ZOPA and did not reevaluate it during the negotiation * You made greater concessions than the other party did How should you Respond to their Initial Offer? * Ignore the anchor * Separate information from influence * Avoid dwelling on the anchor * Make an anchored counteroffer, then propose moderation * Give them time to moderate their offer without losing face What should my first offer be? * Keep entire ZOPA in play * Make offer outside of ZOPA, negotiate their way into the ZOPA * Most aggressive offer I can justify * Set high, but realistic aspirations * Consider the context and the relationship * Goal is to get the best deal, while strengthening the relationship and your reputation. How far can I push them? 1) Exhaust all pre-negotiation sources of information 2) Identify your assumptions prior to the negotiation make list 3) Ask questions that challenge your assumptions 4) Ask indirect questions 5) Protect yourself from lies and uncertainty with contingency contracts a. Contingency Contracts = agreements that leave certain elements of the deal unresolved until uncertainty is resolved in the future. Strategies
Common Negotiator Mistakes [pg. 27] * Making 1st offer when in a weak position * Making a nonaggressive 1st offer * Talking but not listening * Tried to influence, but not learn from the other party * Did not challenge own assumptions about other party * Miscalculated the ZOPA and did not reevaluate it during the negotiation * You made greater concessions than the other party did How should you Respond to their Initial Offer? * Ignore the anchor * Separate information from influence * Avoid dwelling on the anchor * Make an anchored counteroffer, then propose moderation * Give them time to moderate their offer without losing face What should my first offer be? * Keep entire ZOPA in play * Make offer outside of ZOPA, negotiate their way into the ZOPA * Most aggressive offer I can justify * Set high, but realistic aspirations * Consider the context and the relationship * Goal is to get the best deal, while strengthening the relationship and your reputation. How far can I push them? 1) Exhaust all pre-negotiation sources of information 2) Identify your assumptions prior to the negotiation make list 3) Ask questions that challenge your assumptions 4) Ask indirect questions 5) Protect yourself from lies and uncertainty with contingency contracts a. Contingency Contracts = agreements that leave certain elements of the deal unresolved until uncertainty is resolved in the future. Strategies