Banta

Review Questions: * The principle negotiation approach is recommended because it emphasizes developing win/win solutions while protecting yourself against those who would take advantage of your forth- rightness. Their approach is called principled negotiation and is based on four key points: * Separate the people from the problem * Focus on interests, not positions * Invent options for mutual gain * When possible, use objective criteria. * BATNA stand for best alternative to a negotiated agreement. Your BATNA reflects how dependent you are on the other party. If you are negotiating price and delivery dates and can choose from a number of reputable suppliers, then you have a strong BATNA. If on the other hand there is only one vendor who can supply you with specific, critical material on time, then you have a weak BATNA. Under these circumstances you may be forced to concede to the vendor’s demands. At the same time, you should begin to explore ways of increasing your BATNA for future negotiations, reducing your dependency on that supplier can do this. Begin to find substitutable material or negotiate better lead times with other vendors. People try to reach an agreement to produce something better than the result of not negotiating with that person. What those results would be the true benchmark for determining whether you should accept an agreement. A strong BATNA gives you the power to walk away and say, “No deal unless we work toward a win/win scenario.” * A project manager starts to influence customer expectations and perceptions in the preliminary project approval phase. Managers need to work closely with clients to: * Develop a well-defined project scope statement that clearly states the objectives, parameters, and limits of the project work, keeping customers abreast of project progress * Keep customers