negotiation presentation build by a group
- 1. Presented by - MANAGING ALTERNATIVES LEGITIMACY AND BUILDING COMMITMENT Parth Katyal Naman Raj Nikhil Gupta Parth Agarwal Mohit Giri Piyush Tilwani
- 2. WHAT IS NEGOTIATION? Negotiation is a structured dialogue where parties work together to find a win-win outcome. It involves clear communication, compromise, and flexibility. Used in business deals, conflict resolution, and even international relations, negotiation is a key skill for achieving goals and building strong relationships.
- 3. Key Components components Preparation is essential before negotiation: understand objectives, assess alternatives, gather information, and anticipate outcomes. Preparation Effective communication is key in negotiation: convey interests, listen, ask questions, and build rapport for mutual understanding and agreement. Communication Active listening in negotiation: understand others' perspectives, needs, and emotions to find mutual solutions. Listening BATNA is your Best Alternative to a Negotiated Agreement, serving as your fallback option if negotiations fail. BATNA
- 4. BATNA stands for Best Alternative To a Negotiated Agreement. In simpler terms, it's your "Plan B" if the negotiation doesn't go as planned. BATNA is your "walk-away option." This is the best course of action you'd take if you can't reach an agreement you're happy with. Think of BATNA as your "Plan B." It's what you'll do if the negotiation falls through. Imagine BATNA as your "safety net." It ensures you won't be stuck in a bad deal if things don't work out. B A T N A
- 5. footer STRATEGIC PLANNING: BATNA helps plan! Knowing your options lets you decide if a deal is worth it. Set smart goals & make good choices during negotiation. IMPORTANCE RISK MANAGEMENT BATNA acts as a risk management tool, helping assess potential outcomes and mitigate the risk of accepting unfavorable agreements or leaving negotiations empty-handed. CONFIDENCE BUILDING A strong BATNA boosts confidence, maintaining composure in negotiations, positively influencing dynamics, and leading to favorable outcomes.
- 6. ROAD MAP 01 Preparation: Define Goals & BATNA Research & Understand 02 Communication & Collaboration: Active Listening Clear & Persuasive Communication Focus on Interests, not Positions 03 Negotiation & Compromise Creative Problem Strategic Concessions Maintain Open Communication 04Agreement & Closure: Formalize the Agreement Build Relationships
- 7. Considering Other Parties' BATNAs (including Patry): Managing Your BATNA Leverage Information Enhance Alternatives Maintain Flexibility Managemant of one’s Alternatives and Other Parties Alternatives During Negotiation
- 9. Fairness and Mutual Benefit: When the agreement feels fair and offers value to both parties, addressing everyone's needs and interests. Ethical Alignment: The agreement aligns with your ethical principles and values, and can be seen as fair and transparent by all stakeholders. Clarity and Understanding All terms are clear, concise, and well- understood by both parties, leaving no room for misinterpretations. Long-Term Sustainability The agreement considers future needs and potential changes, ensuring its longevity and effectiveness.
- 10. Unfairness or Unequal Benefits: The agreement heavily favors one party or doesn't adequately address your core needs. Ethical Concerns: The agreement raises ethical red flags or could be seen as unfair or manipulative. Weak Commitment or Buy-in One or both parties feel hesitant or pressured to accept the agreement, with a low chance of successful implementation. Short-Term Focus The agreement focuses solely on immediate needs without considering future developments or potential risks.
- 11. Imagine you're buying lemonade at a stand. The price is a little high, but the seller throws in a free cookie! You get a yummy treat and they make a sale, so it's a win-win! That's why you say yes. Saying Yes Saying No EXAMPLE A company negotiates a contract with a contractor. The price is agreeable, but the final terms require cutting corners on safety measures. The leader, prioritizing employee safety, declines the contract and seeks another provider.
- 12. Legitimacy and Fairness: Clarity and Understanding Building Commitment Your Alternatives (BATNA)
- 13. Clear Communication and Understanding Objective Alignment Risk Management Long-Term Sustainability
- 14. LEADING ALL PARTIES TO COMMIT TO THE NEGOTIATED AGREEMENT Focus on Mutual Benefit Build Trust and Transparency Highlight the Alternatives Formalize the Agreement Managing Resistance
- 15. Preparation 1. 2. STEPS FROM PLAN TO EXECUTION Identify Objectives: Clearly define your goals and objectives for the negotiation. Research: Gather information about the other party, their interests, needs, and any relevant background information. Develop Strategy: Create a negotiation strategy that aligns with your objectives and considers potential obstacles. Establish Rapport: Build rapport with the other party through friendly conversation and active listening. Set Ground Rules: Establish ground rules for the negotiation process to ensure a fair and productive discussion. Clarify Objectives: Confirm mutual understanding of each party's objectives and desired outcomes. 3. Explore Interests: Ask open-ended questions to understand the other party's interests, priorities, and concerns. Present Solutions: Propose potential solutions or options that address both parties' interests. Listen Actively: Practice active listening to fully understand the other party's perspective and concerns. Engagement Discussion
- 16. Clarification of Goals 4. 5. Define SMART goals: Make your goals Specific, Measurable, Attainable, Relevant, and Time-bound. What do you want to achieve with this plan? Identify stakeholders: Who needs to be involved or impacted by this plan? Understanding their needs and perspectives helps build legitimacy. Communicate clearly: Share goals with stakeholders in a clear and concise manner. Highlight the purpose and benefits of the plan. Bargain and Compromise: Engage in constructive negotiation, offering concessions where necessary while advocating for your own interests. Maintain Flexibility: Remain flexible and open to alternative solutions or compromises that may arise during negotiation. Keep Focus: Stay focused on the end goal and avoid getting sidetracked by irrelevant issues or emotions. 6. Confirm Terms: Summarize and confirm the agreed-upon terms to ensure mutual understanding. Document Agreement: Formalize the agreement in writing, detailing the terms and conditions agreed upon by both parties. Gain Commitment: Obtain verbal or written commitment from all parties to adhere to the terms of the agreement. Negotiation Agreement STEPS FROM PLAN TO EXECUTION