Chapters 1-7: Negotiation 3D

1. Tactics2. Deal Design3.

Setup

the third dimension, focuses on architecture of negotiation, involves moves "away from the table" to set up the most promising situation once you're at the table.

ensure the right parties have been involved, in the right sequence, to deal with the right issues that engage the right set of interests, at the right table or tables, at the right time, under the right expectations, and facing the right consequences of walking away if there is no deal.

the parties, interests, no deal-options

different potential parties are involved in order to create the most promising possible setup.

Should be to create and claim value for the long term by crafting and implementing a deal that is satisfactory for both (or all) parties.

the first dimension of negotiation. focuses on people processes "at the table"1. for pure value claiming deals, accurately asses and favorably shape the ZOPA and set aggressive targets with attractive fairness principles. 2. create and claim value by getting behind incompatible positions to understand deeper interests, build trust, improve communication, etc.3.

Listen, learn, and adopt a persuasive style that both empathetic and assertive. 4. Foster an appealing and productive negotiation process and atmosphere. 5.

Take steps to productively manage the tension between the cooperative moves that are necessary to create value jointly and individually moves that are needed to claim value unilaterally.

second dimension of negotiation. focuses on "the drawing board" and value, substance, outcomes.

an accurate barriers assessment, with a systematic assessment of the situation. -Are all setup barriers assessed with all parties, mapped, their full set of interests, ad best no-deal options.

-Are all deal-design barriers assessed meeting all the objectives and create the maximum possible value. -Are all tactical and interpersonal barriers communicated, trusted, personalities understood, style, or cultural issues.

"no deal" looks better than "yes" for one or more of the parties. Reveal both internal and external blocking coalitions.

really understanding "who" the full set of interested parties are and including those now in the picture. Think expansively to get the right all party map: take a look beyond the usual suspects to figure out what really matters.

deal/no deal balance. On one side you have a proposed deal, the other has a "walk away option"

a problem encountered in one dimension can often push into other dimensions for a solution

1. Scan widely for potentially advantageous elements.

2. Envision the most promising scope, sequence, and basic process choices3. Find the best path to this promising setup, map backward from the ideal to the current setup. 4. Involve issues and parties with the potential to create value. 5.

Ensure that the elements of a potential winning coalition are present. Eliminate potential blockers.

1. Focus on maximizing the total net pie that can be created through agreement. 2. Seek issues that are relatively easy for one party to give and valuable for the other party to get.

3. Design deals that are robust and sustainable. 4. Negotiate the "Spirit of the Deal", align the social/economic contract.

an aligned combination of setup, deal design, and tactical moves to overcome barriers to agreement. Enables you to "let them have their way in 3D"

a necessity to getting the setup right, whatever you care about that is potentially at stake in the negotiation.

the Prime Directive. Should be a central priority, early and often. Should be asked directly and indirectly, can use standard public sources, internal sources, but aware of skewed perceptions: the mythical fixed pie, self serving role biases, and partisan perceptions.

1. Understand theirs2. Understand yours

when price bulldozes a potentially richer set of interests including perceived fairness, self image, reputation, relationships, the social contract, the negotiation process itself and ethics. Dont mistake bargaining positions for the richer set of underlying interests.

Critical Threshold that answers "compared to what" Helps determine ZOPA and should be protected. "He who cares least, wins."

in order to be effective you must scan widely to map the range of potential parties as well as their existing relationships, the cost and benefits of the agreement.1. the "right order of approach" to the parties a).

scanning widely to map the range of potential parties and their internal relationships b). Mapping backward from the target to the current situation. 2. The most productive "staging of the negotiation" a). determine which part of the process should be "separated or combined" with all/few players of information. b).

Determine how stages should be "framed" and "managed"

start from the key players who are critical to the deal. With respect to a target player, or which prior agreements might help persuade the target to say yes. Do this for the penultimate player and "go back" until you have found the most promising path.

1.

the Rules of Engagement2. Negotiation Characteristics/Elements

Get the Sequence/Process RightProcess: the right "rules of engagement" and negotiation characteristics

practices followed or behavior displayed by the participants (players) in situations of opposing interests/conflicts such as negotiations.

Unwritten or written rules of engagement between the parties that determine what information is given, at what time, to whom, and in what manner, and what concession is granted and what is demanded in return. -During the negotiation: affects the behavior at the table.

-After Settlement is Reached: affects the way in which the agreement is announced and/or implemented

Setup the right negotiation: Get the Sequence/Process right Process: The right rules of engagement" and negotiation characteristics1. Decide/Announce/Defend2. Full Consensus3. Hybrid

an alternative process choice; outcome oriented.

-decision is made, terms negotiated, deal announced, defend deal if opposed-contractually, legally binding agreement

an alternative process choice; relationship oriented-full agreement amongst all stakeholders.-term sheet oriented: major terms agreed, but open to detailed definition and possible renegotiation.

an alternative process choice that is in between relationship oriented and outcome oriented

Explicit or Implicit:1. Auspices2. Mandate3.

Participation4. Decisions rules and procedures5. Agenda6. Staging of the process7. External Communications8.

Process Support9. Post Deal Arrangements

a negotiation characteristic/element: who hosts and guides the negotiation

a negotiation characteristic/element:who has what authority as a participant

a negotiation characteristic/element:who participates and who decides

a negotiation characteristic/element:how are decisions made

a negotiation characteristic/element: who sets the agenda and what is its form

a negotiation characteristic/element: ad hoc or formulated

a negotiation characteristic/element: who can say "what" to whom

a negotiation characteristic/element: which external parties should be brought into the negotiation

a negotiation characteristic/element: how is the deal implemented