01.10.2018 - Negotiation Analysis : an introduction

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When you starting a negotiation process, you have to analyze different issues and define the core elements of that transaction.

Indeed, information such as time, the deal, the managers and relationships should always be taken into account. Moreover, circumstances can change for better or worse and so affect a negotiation, and that is why you should always be prepared before starting a negotiation process. You should be ready to react to any issue that can happen which means exploring new opportunities and deals. So, you always have to define many important things that are the BATNA (yours and your opponent’s one), the known parties and the unknown parties (outside parties that could be influential players), the interests (yours and your opponent’s one), the value that already exists and the value you can create, the barriers and the solutions you can find to overcome them, the power you have and the power your opponent has, and the ethic, so where are your limits. 

Then, even if during the last class we saw that find a value for your BATNA is good to be prepared, it is important to understand that the monetary value is not the only thing to consider and that the BATNA is not the solution at all. You have to consider the relationship you have with the other party and with your partners. You also have to consider how long and how hard the negotiation process will be. 


That is why it is important to define your interests before the negotiation process, but also to be ready to revise them during the negotiation in case you have to adopt a new strategy. A good negotiator can adapt and evolve considering the situation, he or she has to be creative and strategic because sometimes an opportunity is worth more than money and power. Reaching the « Pareto optimal » is the best situation you could aim for, because sometimes the best deal consists on capitalizing on differences and take advantages from the other side, from an institutional, strategical or economic point of view, and not just make money and take the power.

Commentaires

  1. Mme Dutriaux15 octobre 2018 à 00:42

    Careful "when you start" not "when you starting" + "the best deal consists IN" (not on)
    Good post but try to make it more personal and link it with the negotiations you practice in class.

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