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1、CHAPTER 2Preparation: What to Do Before Negotiation,Planning,“.planning is the most important activity in negotiation.” Excellent preparation for a negotiation encompasses three general abilities 1.Self-assessment 2.Assessment of the other party 3.Assessment of the situation,The Fixed-Pie Perception

2、,1.Most negotiators view negotiation as a fixed-pie (fixed-sum) enterprise, in that they believe whatever is good for one person must be bad for the other party. 2.Common assumption is that concessions are necessary by one or both parties to reach agreement,The Fixed-Pie Perception,Most negotiators

3、usually take one of three suboptimal approaches when preparing for negotiation: 1. Resignation to capitulating to the other side (soft bargaining) 2. Preparation for attack (hard bargaining) 3. Compromise,Self-Assessment,A. What do I want?: Target or aspiration 1. Under-aspiring negotiator (winners

4、curse) 2. Over-aspiring or positional negotiator 3. Grass-is-greener negotiator (reactive devaluation),Self-Assessment,B. What is my alternative to reaching agreement in this situation? 1. Best alternative to a negotiated agreement (BATNA) 2. BATNAs and reality 3. Your BATNA is not a passive concept

5、 4. Do not let the other party manipulate your BATNA,Self-Assessment,C. Determine your reservation point Step 1. Brainstorm alternatives Target point: 275,000 Step 2. Assess each alternative Step 3. Try to improve your BATNA Step 4. Determine your reservation point 265,000 Psale=60% 250,000 Psale=35

6、% Please=5%,Self-Assessment,265,000 60%=159,000 250,000 35%=87,500 100,000 5%=5,000 159,000 +87,500 +5,000=251,500,Self-Assessment,D. Be aware of focal points E. Beware of sunk costs F. Do not confuse your target point with your reservation point G. Identify the issues in the negotiation H. Identify

7、 the alternatives for each issue J.Assess your risk propensity 1. Risk aversion 2. Reference points define what people consider gains or losses,Self-Assessment,J. Assess your risk propensity 1. Risk aversion 2. Reference points define what people consider gains or losses K. Am I going to live to reg

8、ret this? Counterfactual thinking L. Violations of the sure thing principle,Topic Goes Here,Subtopic goes here.,TRANSITIONPAGE,Subtitle Goes Here,TRANSITIONPAGE,Subtitle Goes Here,Topic Goes Here,Subtopic goes here.,Backdrops: - These are full sized backdrops, just scale them up! - Can be Copy-Pasted out of Templates for use anywhere!,Title Backdrop,Slide Backdrop,Transitional Backdrop,Print Backdrop,Additional Graphics: Scale them up or down! .GIF clipart is

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