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Unit 12 :
Negotiation tips Part 2
Repeat these sentences with your teacher first.
1. negotiating (v.)
to have formal discussions with someone in order to reach an agreement with them
2. adversarial (adj.)
involving people opposing or disagreeing with each other
3. sympathize (v.)
to understand and care about someone’s problems
4. walk away (phr.)
to stop being involved in a situation because it is difficult to deal with or does not give you any advantages
5. finger-pointing (n.)
a situation in which someone is blamed for something that goes wrong
6. collaborative (adj.)
involving two or more people working together for a special purpose
Read the dialogue aloud with your teacher.
Hey Taylor, I have a business deal coming up and could use some help with negotiating.
Sure. The biggest thing I’d say is that negotiations don’t have to be adversarial. Try to sympathize with them and know what their goals are.
Okay, I’ll do my homework. But what if things do go south during negotiation?
You need to figure out the minimum outcome you’ll accept, and if that isn’t met, you need a BATNA ready.
Yep, best alternative to a negotiated agreement. Knowing you can walk away is your best friend in a negotiation.
Got it. And what about keeping it non-confrontational?
First off, no finger-pointing. Getting emotional will cloud your judgment.
Okay, so should I just be like a robot?
Not at all. Building rapport is essential. A little small talk will make them more collaborative.
Thanks. I’ll try to remember that.
Read the article with your teacher.
A complete guide to BATNA
1. Coinage of the term BATNA
Negotiation researchers Roger Fischer and William Ury, of the Harvard Program on Negotiation (PON), are the pioneers of BATNA. They introduced it in their best-selling 1981 book, Getting to Yes: Negotiating Agreement Without Giving In. BATNA—Best Alternative To a Negotiated Agreement—is your trump card when the negotiation starts to turn unfavorable. It focuses on the psychology of negotiators. BATNA does not necessarily guarantee an agreement in your favor, but it prevents the agreement from going against your terms.
2. Process of BATNA
Clearly Define your Purpose. You need to understand what you are trying to get from the negotiation.
Brainstorming. You cannot begin without brainstorming all the possible alternatives you can use during the negotiation. Evaluation. Assess each of the options very carefully. Do some research about the options you have.
Setting the Reservation Point. A reservation point is the breaking point of the negotiation. At this point the deal will no longer be profitable for you. Great negotiators never reveal their reservation point.
3. Importance of BATNA
At times it is better to turn down the negotiation and look for another one. It can be nerve-wracking to walk away from the table if you only have one option. Having a strong alternative to the current negotiation will help you walk away from a bad deal. Additionally, when the other side sees that you are ready to walk away, it can lead to them agreeing to your terms.
Source: PIN Consulting, “The Most Powerful Technique for High-stakes Negotiations”
Answer the following questions to your teacher.
1. What do you think is the best way to reach a decision in a group discussion? Why do you think so?
2. What do you think is the optimal group size for decision making? Why do you think so?
Choose the correct answer.
1. A BATNA is often used if ____ .
A. two sides can already reach an agreement.
B. you want to hide your real thoughts
C. the negotiation is going too slow
D. an agreement cannot be reached
2. I know what it’s like to lose, so I do ____ with you.
3. If a situation goes ____, it doesn’t go well although it was once good.
4. Which of the following is an example of finger-pointing?
A. I don’t think that’s such a good idea.
B. Why didn’t you explain this point before?
C. I think we can proceed to the next stage now.
D. I think we should wait until a better opportunity comes along.