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Bargaining for Advantage by G. Richard Shell

Introduction: Itís your move

Part 1: The Six Foundations of Effective Negotiation

Chapter 1: The First Foundation: Your Bargaining Style

Chapter 2: The Second Foundation: Your Goals and Expectations

Chapter 3: The Third Foundation: Authoritative Standards and Norms

Chapter 4: The Fourth Foundation: Relationships

Chapter 5: The Fifth Foundation: The Other Partyís Interests

Chapter 6: The Sixth Foundation: Leverage

Part 2: The Negotiation Process

Chapter 7: Step 1: Preparing Your Strategy

Chapter 8: Step 2: Exchanging Information

Chapter 9: Step 3: Opening and Making Concessions

Chapter 10: Steps 4: Closing and Gaining Commitment

Chapter 11: Bargaining with the Devil Without Losing your Soul: Ethics in Negoiation

Chapter 12: Conclusion: On Becoming an Effective Negotiator

Appendix A: A Note on Your Personal Negotiation Style

Appendix B: Information-Based Bargaining Plan

 

 

  1. Your Bargaining Style
  1. Your Goals and Expectations
  1. Authoritative Standards and Norms
  1. Relationships
  2. The Other Partyís Interests
  3. Leverage

Situational Matrix

Perceived Conflict over Stakes

Perceived

Importance

Of Future

Relationship

Between Parties

 

High

Low

High

I: Balanced Concerns

(Business partnership, joint venture, or merger)

II: Relationships

(Marriage, friendship, or work team)

Low

III: Transactions

(Divorce, house sale, or market transaction)

IV: Tacit Coordination

(Highway intersection or airplane seating)

 

Signaling Leverage

Your Actual Leverage Situation (As You See it)

How

You

Want

To

Act

 

Strong

Weak

Firm

Make confident demands and credible threats.

Display your alternatives and leave the decision up to the other party.

Emphasize the uncertain future.

Bluff (act strong when you are not).

Flexible

Show the other party you are investing in the relationship.

Be generous.

Acknowledge the other partyís power and stress the potential gains from future cooperation.

Appeal to the other partyís sympathy. What would they do in your position?

 

Perceived Conflict over Stakes

Perceived

Importance

Of Future

Relationship

Between Parties

 

High

Low

High

I: Balanced Concerns

(Business partnership, joint venture, or merger)

Best Strategies:

Problem Solving or compromise

II: Relationships

(Marriage, friendship, or work team)

Best Strategies:

Accommodation, problem solving, or compromise

Low

III: Transactions

(Divorce, house sale, or market transaction)

Best strategies:

Competition, problem solving, or compromise

IV: Tacit Coordination

(Highway intersection or airplane seating)

Best strategies:

Avoidance, accommodation, or compromise

Bargaining and Closing Summary

   

Tactical Decision

   

Should I Open?

How to Open?

Concession Strategy

Closing Strategy

 

Situation

Transactions

When in double, donít. But OK if you have good information.

Optimistically (highest or lowest figure supported by presentable argument).

Firmness. Concede slowly in diminishing amounts toward expectation level.

Deadlines; walkouts; final offer; split the difference; appraisal.

Balanced Concerns

Same as above.

Fairly (highest or lowest figure supported by solid argument).

Big moves on little issues, little moves on big issues; brainstorm options, present several packages at once.

All of the above postsettlement settlement.

Relationships

Yes.

Generously.

Accommodation or fair compromise.

Split the difference; accommodation.

Tacit Coordination

Yes, but avoid conflict if possible.

Do whatever it takes to solve the problem.

Accommodation.

Accommodation.

 

Alternatives to Lying

Instead of Lying About

Try This

1. Bottom line

Blocking maneuvers:

  • Ask about their bottom line.
  • Say, "Itís not your business."
  • Say, "Iím not free to disclose that."
  • Tell the truth about your goal.
  • Focus on your problems/needs.

2. Lack of authority

Obtain only limited authority in the first place.

Require ratification by your group.

3. Availability of alternatives

Initiate efforts to improve alternatives.

Stress opportunities and uncertainties.

Be satisfied with the status quo.

4. Commitment to positions

Commit to general goals.

Commit to standards.

Commit to addressing the other sideís interests.

5. Phony issues

Inject new issues with real value or make a true wish list.

6. Threats

Use cooling-off periods.

Suggest third-party help.

Discuss use of a formula.

7. Intentions

Make only promises you can and will keep.

8. Facts

Focus on uncertainty regarding the facts.

Use language carefully.

Express your opinion.

 

Information-Based Bargaining Plan

I. The Problem

Define the problem you are trying to solve:

.

.

.

.

II. Your Specific Goals

What is your specific, optimistic goal?

.

.

.

Target decision maker:

.

.

The decision makerís negotiation style (if known):

.

.

What is your bottom line?

.

.

.

Relationship background:

.

.

III. The Other Partyís Interests

How might it serve the other partyís interests to help you achieve your goal (i.e, shared interests)?

.

.

.

.

What might they say "no" (i.e., conflicting and ancillary interest)?

.

.

.

IV. Possible Proposals

Build on shared interests/bridge conflicting interests:

.

.

.

V. Leverage

As of this moment, what do they stand to lose from no deal?

.

.

.

.

What do you stand to lose?

.

.

.

.

Can you affect the other partyís alternatives?

.

.

.

.

How can you improve your own alternatives?

.

.

.

VI. Authoritative Standards and Norms

Mine:

.

.

.

.

Theirs:

.

.

.

My counterarguments:

.

.

VII. Situation and Strategy Analysis

Situation as you see it:

___ Transaction

___ Relationship

___ Balanced Concern

___ Tacit Coordination

My basic style is _______________________

So I need to be more _______________________

In this situation.

Situation as they see it:

___ Transaction

___ Relationship

___ Balanced Concern

___ Tacit Coordination

Their expected strategy:

____ Competitive

____Problem solving

____Compromise

____Avoiding

____Accommodating

VIII. Your Overall Positioning Theme

.

.