Negotiation : key terms…
While studying my MBA, I got the opportunity to understand technical
side of negotiation and learned different perspectives of negotiation
process. There were some KEY TERMS
struck in my mind..for forever. I am sharing with you the same; hope this will
provide you some key learning and help you to be a better negotiator.
Let us define it first:
v
Negotiation is a way of getting what you want
from others.
v
Negotiation is the process we use to satisfy our
needs when some one else controls what we want.
1. BATNA: Best Alternative to a Negotiated Agreement.
It is the alternative action that will be
taken should your proposed agreement with another party result in unsatisfactory
agreement or failed to materialized. Prior to start negotiation each party
should ascertain their own individual BATNA.
2. WATNA: Worst Alternative to Negotiated Agreement.
It is the worst alternative possibility in
case if the negotiation fails. This serves the ground to handle worst case scenarios.
3. ZOPA: Zone of Possible Agreement.
It is the range in which an agreement is satisfactory
to both parties. In order to achieve a
successful negotiation, ZOPA of both parities shall have overlap else its
impossible to conclude it successfully. It is possible to increase the ZOPA by
presenting the hidden key attributes.
4. Due Diligence.
A successful negotiator is expected to analyze
all possible scenarios and go through the SWOT analysis for all possible
outcomes. It is important to go through due diligence process to pave the way for a successful negotiation.
5. Impact of personalities in negotiations.
Different personalities follow the different
negotiation tactics. These could be soft, hard, Avoid or collaborate (win-win).
6. Pareto Principle. : Also known as 20-80 rule:
20% reasons are the cause of 80% Problems. Remaining
80% reasons cause only 20% problems. Therefore, its important to focus and
attack those main 20% reasons.
Hope above could add some value to your time spend. Share your
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Our Negotiation teacher would be so proud to see your post.
ReplyDeleteThanks Rubin, I have noticed the impact of these words..trying to use them in the best way possible to make the negotiations more successful & IT WORKS.. All Thanks to Prof Ujair Hassan.
ReplyDeleteI agree with your views on Negotiation, nevertheless it is a very generic term and I would like to add few words in it. It is utmost important for both the parties that they should take initiative to come forward to the conciliation stage. Otherwise it would be meaningless if it is initiated from one side. It is also very important for both the parties to understand others’ point of view and then to arrive on an amicable situation. The negotiations fail if either of the party has vested interest in their deeds. Business Negotiations are different where both parties try to extract maximum from each other. Eventually leads to win-win situation, which is possible only when both are realistic in their offerings. However in case negotiation has not able to reach either party’s expectation, than it should be terminated with a positive note for future consideration. Many times it has happen that both parties have come on the negotiation table after their first or subsequent talks are failed. There is always a change of mind or change in the circumstances which compels them to enter into amicably agreed bargains of mutual interest.
ReplyDeleteVery true Deepak, Negotiation is between the two parties having common interests. Negotiations with positional bottlenecks often fails. there has to be flexibility in both sides. Appreciate your comment. Your comment has added value to the post. this is the mutual learning.. appreciate feedback / comments from other readers too. good day !!
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