Harvard Business Essentials: Negotiation

by Harvard Business Review

• ISBN13: 9781591391111
• ISBN10: 1591391113
• Format: Paperback
• Copyright: 2003-07-01
• Publisher: Ingram Pub Services

Summary

Negotiation-whether hammering out a great job offer, settling a dispute with a client, drafting a contract, or making trade-offs between business units-is both a necessary and challenging aspect of business life. In the business world, confident negotiators are always in high demand. Bringing a difficult negotiation to a successful conclusion can be one of the most exhilarating-and valuable-aspects of business today. Packed with practical advice and handy tools,Negotiationwill help any manager sharpen skills and yield a sizable payoff. Contents include: Preparing the necessary information before a negotiation Managing multiparty negotiations Assessing the position of the opposing side Determining your sources of power and authority in a negotiation Recognizing the barriers to agreement and how to overcome them Plus, readers can access free interactive tools on the Harvard Business Essentials companion web site. Series Adviser: Michael Watkins Associate Professor Michael Watkins does research on negotiation and leadership. He is the coauthor ofRight From the Start: Taking Charge in a New Leadership Role(HBS Press, 1999) and the author ofTaking Charge in Your New Leadership Role: A Workbook(HBS Publishing, 2001), both of which examine how new leaders coming into senior management positions should spend their first six months on the job. Harvard Business Essentials The Reliable Source for Busy Managers The Harvard Business Essentials series is designed to provide comprehensive advice, personal coaching, background information, and guidance on the most relevant topics in business. Drawing on rich content from Harvard Business School Publishing and other sources, these concise guides are carefully crafted to provide a highly practical resource for readers with all levels of experience. To assure quality and accuracy, each volume is closely reviewed by a specialized content adviser from a world class business school. Whether you are a new manager interested in expanding your skills or an experienced executive looking for a personal resource, these solution-oriented books offer reliable answers at your fingertips.

Author Biography

Richard Luecke authored or developed over thirty books and dozens of articles on a wide range of business subjects. He has an M.B.A. from the University of St. Thomas

Table of Contents

Introduction	xi
1 Types of Negotiation	1	(12)
Many Paths to a Deal
Distributive Negotiation	2	(3)
Integrative Negotiation	5	(4)
Multiple Phases and Multiple Parties	9	(2)
Summing Up	11	(2)
2 Four Key Concepts	13	(16)
Your Starting Points
Know Your BATNA	15	(8)
Reservation Price	23	(1)
ZOPA	24	(2)
Value Creation Through Trades	26	(2)
Summing Up	28	(1)
3 Preparation	29	(16)
Nine Steps to a Deal
Step 1: Consider What a Good Outcome Would Be for You and the Other Side	31	(2)
Step 2: Identify Potential Value Creation Opportunities	33	(1)
Step 3: Identify Your BATNA and Reservation Price, and Do the Same for the Other Side	34	(1)
Step 4: Shore Up Your BATNA	35	(1)
Step 5:Anticipate the Authority Issue	36	(3)
Step 6: Learn All You Can About the Other Side's People and Culture, Their Goals, and How They've Framed the Issue	39	(1)
Step 7: Prepare for Flexibility in the Process Don't Lock Yourself into a Rigid Sequence	40	(1)
Step 8: Gather External Standards and Criteria Relevant to Fairness	40	(1)
Step 9: Alter the Process in Your Favor	41	(2)
Summing Up	43	(2)
4 Table Tactics	45	(24)
How to Play the Game Well
Getting the Other Side to the Table	46	(2)
Making a Good Start	48	(1)
Tactics for Win-Lose Negotiations	49	(8)
Tactics for Integrative Negotiations	57	(5)
General Tactics: Framing and Continual Evaluation	62	(5)
Summing Up	67	(2)
5 Frequently Asked Tactical Questions	69	(10)
Answers You Need
FAQs About Price	70	(2)
FAQs About Process	72	(2)
FAQs About People Problems	74	(5)
6 Barriers to Agreement	79	(16)
How to Recognize and Overcome Them
Die-Hard Bargainers	80	(3)
Lack of Trust	83	(1)
Informational Vacuums and the Negotiator's Dilemma	84	(2)
Structural Impediments	86	(1)
Spoilers	87	(2)
Differences in Gender and Culture	89	(2)
Difficulties in Communication	91	(1)
The Power of Dialogue	92	(1)
Summing Up	93	(2)
7 Mental Errors	95	(14)
How to Recognize and Avoid Them
Escalation	96	(2)
Partisan Perceptions	98	(2)
Irrational Expectations	100	(2)
Overconfidence	102	(2)
Unchecked Emotions	104	(2)
Summing Up	106	(3)
8 When Relationships Matter	109	(12)
A Different Notion of Winning
Why Relationships Matter	110	(2)
How Perceptions of Relationship Value Affect Negotiations	112	(3)
Doing It Right	115	(4)
Summing Up	119	(2)
9 Negotiating for Others	121	(8)
Whose Interests Come First?
Independent Agents	122	(1)
Non-Independent Agents	123	(1)
Agency Issues	124	(3)
Summing Up	127	(2)
10 Negotiation Skills	129	(14)
Building Organizational Competence
Continuous Improvement	130	(3)
Negotiating as an Organizational Capability	133	(5)
What Makes an Effective Negotiator?	138	(2)
Summing Up	140	(3)
Appendix: Useful Implementation Tools	143	(8)
Notes	151	(4)
Glossary	155	(4)
For Further Reading	159	(6)
Index	165	(4)
About the Subject Adviser	169	(1)
About the Writer	170