Class 13 SEVEN ELEMENTS OF NEGOTIATION

4

BARRIERS

SEVEN ELEMENTS OF NEGOTIATION

5

3

2

1

VALUE

INTERESTS

PARTIES

BATNA

6

7

POWER

ETHICS

What will the respective parties do if they don´t come to agreement?

Who are the real parties in the negotiation

What are their fundamental needs and priorities?

How can value be created – and who is likely to get it?

What obstacles might prevent agreement (or the maximization of joint venture) and how can they be overcome?

How can the various parties influence the negotiation process and its outcome?

What is the right thing to do?

What will the respective parties do if they don´t come to agreement?

Map all the parties involved. The obvious ones but also the indirect parties influencing the negotiation

Think in every detail of your own interest as well as in others. You are not only interest on getting the best profit out of a company sale; you might have to analyze how you can make the arrangement to pay less taxes for the sale; if you would like a long term relationship with the other company or not; if the other company woulod like you to be in charge for another 6 months for a smoother transition or not; if you would like to obtain shares on the new company and get something for your short-term liquidity; etc.

Negotiators “Manage the tension between creating and claiming value” FIND DIFFERENCES

1. Strategic behavior
2. Psychological or interpersonal (Emotions)
3. Institutional

How much can the parties influence the negotiation process and its outcome.

• Prisoners Dilemma
• Think on people who are not in the negotiaiton tabl