Negotiation and Reservation Value
Chapter 1
Claiming Value in Negotiation
5-Step pre-negotiation framework: 1. Assess your BATNA 2. Calculate your reservation value 3. Assess the other party’s BATNA 4. Calculate other party’s reservation value 5. Evaluate the ZOPA
Responding to their initial offer (Strategies): 1. Ignore the Anchor 2. Separate information from influence 3. Avoid dwelling on their anchor 4. Make an anchored counter offer, then propose moderation 5. Give them time to moderate their offer without losing face
My first offer: 1. Keep the entire ZOPA in play 2. Provide a justification for your offer 3. Set high but realistic aspirations 4. Consider the context and the relationship
How far can I push? 1. Exhaust all pre-negotiation sources of information 2. Identify your assumptions prior to the negotiation 3. Ask Questions that challenge your assumptions 4. Ask indirect questions 5. Protect yourself from lies and uncertainty with contingency contracts
Effective Haggling Strategies: 1. Focus on other party’s BATNA and reservation value. 2. Avoid making unilateral concessions 3. Be comfortable with silence 4. Label your concessions 5. Define what it means to reciprocate 6. Make contingent concessions 7. Be aware of the effects of diminishing rates of concession
Negotiating the relationship: 1. Responding to the offer you love – 3 approaches 2. Responding to the offer you love – 1 caveat
Chapter 2
Creating Value in Negotiation
A multi-issue negotiation 1. Creating value through logrolling 2. Creating value by adding issues 3. Your goal should be to maximize value 4. Creating value through contingency contracts
Preparation strategies for value creation 1. Identify your multiple interests 2. Create a scoring system 3. Calculate a package reservation value 4. Identify the other party’s multiple interests
Execution strategies for value
Claiming Value in Negotiation
5-Step pre-negotiation framework: 1. Assess your BATNA 2. Calculate your reservation value 3. Assess the other party’s BATNA 4. Calculate other party’s reservation value 5. Evaluate the ZOPA
Responding to their initial offer (Strategies): 1. Ignore the Anchor 2. Separate information from influence 3. Avoid dwelling on their anchor 4. Make an anchored counter offer, then propose moderation 5. Give them time to moderate their offer without losing face
My first offer: 1. Keep the entire ZOPA in play 2. Provide a justification for your offer 3. Set high but realistic aspirations 4. Consider the context and the relationship
How far can I push? 1. Exhaust all pre-negotiation sources of information 2. Identify your assumptions prior to the negotiation 3. Ask Questions that challenge your assumptions 4. Ask indirect questions 5. Protect yourself from lies and uncertainty with contingency contracts
Effective Haggling Strategies: 1. Focus on other party’s BATNA and reservation value. 2. Avoid making unilateral concessions 3. Be comfortable with silence 4. Label your concessions 5. Define what it means to reciprocate 6. Make contingent concessions 7. Be aware of the effects of diminishing rates of concession
Negotiating the relationship: 1. Responding to the offer you love – 3 approaches 2. Responding to the offer you love – 1 caveat
Chapter 2
Creating Value in Negotiation
A multi-issue negotiation 1. Creating value through logrolling 2. Creating value by adding issues 3. Your goal should be to maximize value 4. Creating value through contingency contracts
Preparation strategies for value creation 1. Identify your multiple interests 2. Create a scoring system 3. Calculate a package reservation value 4. Identify the other party’s multiple interests
Execution strategies for value