EBC Interest Based Negotiation Summary Slides

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2 4/22/16 ARM EXERCISE §  Find a partner
§  No talking
§  Your goal: Win as many points for yourself as
possible
§  You win a point when the back of their hand
touches the table
§  30 seconds
§  No punching, kicking, etc.
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THIS IS HOW MANY PEOPLE PICTURE “NEGOTIATION”: Opening (extreme) offer
(extreme) counteroffer
Small concession
Small concession
(series of grudging concessions)
(each taking longer and longer)
Final offer
Final counteroffer
Final-final offer
Final-final counter
Deal
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TIP #1: CHECK YOUR ASSUMPTIONS Nego2a2on is any process of interac.on designed to influence decision making Use a beAer way than “I won, you lost” to measure negoNaNon success: § Meets your Interests (and theirs) § Best among many Op2ons § BeGer than your BATNA § Based on Criteria © COPYRIGHT 2016 X SQUARED CONSULTING, INC. ALL RIGHTS RESERVED.
3 4/22/16 TIP #2: FOCUS ON INTERESTS Posi2on: what I want Interest: why I want it © COPYRIGHT 2016 X SQUARED CONSULTING, INC. ALL RIGHTS RESERVED.
SALES EXERCISE TAKEAWAYS Most people try to persuade by talking § We think we already know everything we need to § Especially true for smart, educated people § Especially true when under pressure Talking, by itself, is less persuasive than you would think Asking quesNons (first) helps you understand their interests What does talking about interests sound like? “What would ge7ng X do for you?” “Help me understand why that’s important.” “Here’s why I’m concerned about Y…” © COPYRIGHT 2016 X SQUARED CONSULTING, INC. ALL RIGHTS RESERVED.
TIP #3: THINK OF MANY OPTIONS © COPYRIGHT 2016 X SQUARED CONSULTING, INC. ALL RIGHTS RESERVED.
4 4/22/16 BRAINSTORMING EXERCISE In groups of 3-­‐4: Come up with as many unique uses of a paperclip as you can 2 minutes What does talking about op2ons sound like? “What else could we do to address our respec.ve needs?” “That’s certainly one possibility…let’s explore others.” “One way forward could be to…” © COPYRIGHT 2016 X SQUARED CONSULTING, INC. ALL RIGHTS RESERVED.
TIP #4: KNOW AND BEAT YOUR BATNA Best Alterna2ve To a Nego2ated Agreement Never enter a nego2a2on without first knowing your BATNA Try to improve your BATNA beforehand Reject offers that are worse than your BATNA
What does talking about BATNA sound like? “Help me understand what makes going with our compe.tor aHrac.ve to you?” “Sounds like we each have alterna.ves, and it may or may not make sense to work together …” © COPYRIGHT 2016 X SQUARED CONSULTING, INC. ALL RIGHTS RESERVED.
ULTIMATUM TAKEAWAYS Most people are not economically raNonal § They compare themselves to others § They care about fairness § Really don’t want to be treated badly § Also want to be fair (but not as much) We make decisions emoNonally © COPYRIGHT 2016 X SQUARED CONSULTING, INC. ALL RIGHTS RESERVED.
5 4/22/16 TIP #5: USE CRITERIA §  Research external sources such as: §  Established policies & procedures §  Past prac2ce & precedents §  What other leaders / departments / companies have done §  Market value / market rate §  Industry benchmarks §  Etc. §  Think about how they will be thinking about fairness – what will be compelling to them? What does talking about criteria sound like? “Where does that number come from?” “What would market value suggest?” “My research indicates that the industry standard is…” © COPYRIGHT 2016 X SQUARED CONSULTING, INC. ALL RIGHTS RESERVED.
TO RECAP… 1.  Check your assump2ons 2.  Focus on Interests 3.  Think of many Op2ons 4.  Know and beat your BATNA 5.  Use external Criteria © COPYRIGHT 2016 X SQUARED CONSULTING, INC. ALL RIGHTS RESERVED.
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