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Negotiation Genius: How to Overcome Obstacles and Achieve Brilliant Results at the Bargaining Table and Beyond
From two leaders in executive education at Harvard Business School, here are the mental habits and proven strategies you need to achieve outstanding results in any negotiation.
Whether you’ve “seen it all” or are just starting out, Negotiation Genius will dramatically improve your negotiating skills and confidence. Drawing on decades of behavioral research plus the experience of thousands of business clients, the authors take the mystery out of preparing for and executing negotiations—whether they involve multimillion-dollar deals or improving your next salary offer.
What sets negotiation geniuses apart? They are the men and women who know how
•Identify negotiation opportunities where others see no room for discussion
•Discover the truth even when the other side wants to conceal it
•Negotiate successfully from a position of weakness
•Defuse threats, ultimatums, lies, and other hardball tactics
•Overcome resistance and “sell” proposals using proven influence tactics
•Negotiate ethically and create trusting relationships—along with great deals
•Recognize when the best move is to walk away
•And much, much more
This book gets “down and dirty.” It gives you detailed strategies—including talking points—that work in the real world even when the other side is hostile, unethical, or more powerful. When you finish it, you will already have an action plan for your next negotiation. You will know what to do and why. You will also begin building your own reputation as a negotiation genius.
Whether you’ve “seen it all” or are just starting out, Negotiation Genius will dramatically improve your negotiating skills and confidence. Drawing on decades of behavioral research plus the experience of thousands of business clients, the authors take the mystery out of preparing for and executing negotiations—whether they involve multimillion-dollar deals or improving your next salary offer.
What sets negotiation geniuses apart? They are the men and women who know how
•Identify negotiation opportunities where others see no room for discussion
•Discover the truth even when the other side wants to conceal it
•Negotiate successfully from a position of weakness
•Defuse threats, ultimatums, lies, and other hardball tactics
•Overcome resistance and “sell” proposals using proven influence tactics
•Negotiate ethically and create trusting relationships—along with great deals
•Recognize when the best move is to walk away
•And much, much more
This book gets “down and dirty.” It gives you detailed strategies—including talking points—that work in the real world even when the other side is hostile, unethical, or more powerful. When you finish it, you will already have an action plan for your next negotiation. You will know what to do and why. You will also begin building your own reputation as a negotiation genius.
352 pages, Paperback
First published September 25, 2007
1036 people are currently reading
7804 people want to read
About the author
Deepak Malhotra
6 books124 followersDeepak Malhotra is a professor at the Harvard Business School. His teaching, research and advisory work is focused on negotiation, deal-making, conflict resolution and diplomacy. In 2020, Deepak was named MBA "Professor of the Year" by Poets & Quants. He has won numerous awards for his teaching & research, including the HBS Faculty Award, and has been twice selected by Harvard MBA students to give the end-of-year speech to the graduating class. In 2014, Deepak was listed as one of the "world's best business school professors" under the age of 40.
Deepak is also an award-winning and bestselling author. His latest book (and debut novel), The Peacemaker's Code, will be published in February 2021. His previous books include, Negotiating the Impossible, Negotiation Genius, and I Moved Your Cheese.
Outside HBS, Deepak is a trainer, consultant, and advisor to firms & CEOs across the globe, and an advisor to governments that are trying to negotiate an end to protracted & intractable armed conflicts.
You can follow Deepak on Twitter: www.twitter.com/Prof_Malhotra
Deepak is also an award-winning and bestselling author. His latest book (and debut novel), The Peacemaker's Code, will be published in February 2021. His previous books include, Negotiating the Impossible, Negotiation Genius, and I Moved Your Cheese.
Outside HBS, Deepak is a trainer, consultant, and advisor to firms & CEOs across the globe, and an advisor to governments that are trying to negotiate an end to protracted & intractable armed conflicts.
You can follow Deepak on Twitter: www.twitter.com/Prof_Malhotra
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Displaying 1 - 30 of 207 reviews
October 10, 2011
A "how-to" book for negotiating. The framework is so simple and easy to follow, it could be a cookbook. I hate conflict, I hate negotiating, but if I don't (for example in job-hunting), I could lose big-time. I'm planning to buy this book so I can do it with more confidence and enthusiasm.
Here are my notes:
Negotiation genius is about negotiating successful deals – consistently- while still maintaining integrity and strengthening relationships and reputation.
Claiming value in negotiation: the five step pre-negotiation framework.
Step 1: Assess your BATNA (best alternative to a negotiated deal)
Step 2: Calculate your reservation value (your walk away point). It is higher than your BATNA.
Step 3: Assess the other party’s BATNA
Step 4: Calculate the other party’s reservation value.
Step 5: Evaluate the ZOPA (zone of possible agreement)
Anchor aggressively (it has a huge effect). But don’t offend.
How to respond to their initial offer:
Strategies:
• Ignore their anchor
• Separate information from influence
• Avoid dwelling on their anchor. If you are surprised by their offer, probe a little deeper to find if there is substantive new info to obtain. If not, then quickly shift attention away be sharing your own perspective and defining the negotiation in your terms.
• Make an anchored counteroffer, then propose moderation. “Well, based on your offer, which was unexpected, it looks like we have a lot of work ahead of us. From our perspective, a fair price would be closer to $x. I will explain to you how we are valuing this deal, but it appears to me that if we are to reach any agreement, we will both have to work together to make it happen.”
• Give them time to moderate their offer without losing face.
What should my first offer be?
1. Keep the entire ZOPA in play.
2. Provide a justification for your offer. We think $88 million is a fair price because the land can be used for commercial development, which makes it worth as much as two times what it might be worth if used for residential development (which is $44 million)”
3. Set high, but realistic aspirations.
4. Consider the context and the relationship.
How far can I push them?
1. Exhaust all pre-negotiation sources of information.
2. Identify your assumptions prior to the negotiation.
3. Ask questions that challenge your assumptions. “If the land is used for commercial development, that will make it quite valuable. With that in mind, let’s discuss some specifics. What are your plans for this excellent piece of real estate?”
4. Ask indirect questions
a.How many hours do employees typically work each week?
b.What kinds of projects will I be working on?
c.Who will my clients be?
d.Whom does the firm typically hire?
e.With whom does the firm typically compete for hiring?
f.What, if any, are the formal constraints on compensation for new hires?
5. Protect yourself from lies and uncertainty with contingency contracts.
Making the first offer is best done when you feel you have good information about the other side, but is often a bad idea. The primary benefit of making a first offer in negotiation is that it establishes an anchor. Especially when the other party is uncertain, they are likely to gravitate toward any number that helps them focus. When made prematurely, a first offer can be extremely costly.
Those with high aspirations will be more likely to get better outcomes, but are more dissatisfied. So, focus on your target during negotiation; then when it is over, shift your focus to your reservation value.
Ch 2 CREATING VALUE IN NEGOTIATION.
Create value through log rolling. If the other party values something more than you do, let them have it – but don’t give it away, sell it.
Create value by adding issues. Some issues you might add:
• Delivery date
• Financing
• Quality
• Contract length
• Last-look provisions
• Arbitration clauses
• Exclusivity clauses
• Level of service support
• Warranties
• Future business
Identify everything that you are interested in and create a scoring system, to calculate your package reservation value. The goal is not to overwhelm the other party with demands, but to give them a lot of different ways to compensate you and make you happy. If they cannot increase your salary, but they can make you equally happy with a change in job description, both of you stand to gain. Identify the other party’s multiple interests.
Strategies for value creation:
1. Negotiate multiple issues simultaneously.
2. Make package offers. Thank you for providing me with a detailed list of services and signaling your preferences. This gives us a number of different options, here are two: 1 begin in july without premium services is $650,000; with premium is $700K. Option 2: begin March without premium is $635K, with premium is $680K.
3. Leverage differences of all types to create value.
Post settlement settlements steps.
Step 1: start by acknowledging the progress that was already made in reaching the initial agreement.
Step 2: Suggest that there are aspects of the deal that you wish could be improved; acknowledge that they probably feel similarly.
Step 3: Suggest that you may have already conceded everything that you can afford, but that you are willing to think “outside the box” if that will help the other party.
Step 4: State that it is important for both of you to realize that you are not looking for a new agreement, but for an improved agreement that both parties prefer to the current agreement.
Chapter 3: INVESTIGATIVE NEGOTIATION
Seven principles of investigative negotiation:
1. Don’t just ask what- ask why
2. Seek to reconcile interests, not demands
3. Create common ground with uncommon allies
4. Interpret demands as opportunities
5. Don’t dismiss anything as “their problem”
6. Don’t let negotiations end with a rejection of your offer
7. Understand the difference between selling and negotiating.
Ask questions, such as:
•What do you plan to do with the products you’re purchasing from us?
•Tell me about your customers.
•What do you plan to do if we can’t provide you with the services you need?
•How does this deal fit into your overall business strategy?
•Tell me more about your organization.
Negotiate multiple issues simultaneously to determine which issues are most important:
•Which issues does he want to return to constantly?
•Which issues make him the most emotional or tense?
•While discussing which issues is she most likely to talk rather than to listen?
•Which issues is she most obstinate about when you ask for a compromise?
Chapter 4: WHEN RATIONALITY FAILS: BIASES OF THE MIND
How can you avoid escalating in the heat of battle?
• Start your negotiation with a preplanned exit strategy.
• Assign and reward a “devil’s advocate” whose job it is to criticize your decisions and find faults in your logic.
• Anticipate and prepare for the escalation forces you are likely to encounter.
Chapter 6: NEGOTIATING RATIONALLY IN AN IRRATIONAL WORLD
Use “system 2” thinking.
Avoid negotiating under time pressure. “Is this a firm deadline”. “If, for personal reasons, I needed more time to make this decision, what would be the process for doing so?”
Here are my notes:
Negotiation genius is about negotiating successful deals – consistently- while still maintaining integrity and strengthening relationships and reputation.
Claiming value in negotiation: the five step pre-negotiation framework.
Step 1: Assess your BATNA (best alternative to a negotiated deal)
Step 2: Calculate your reservation value (your walk away point). It is higher than your BATNA.
Step 3: Assess the other party’s BATNA
Step 4: Calculate the other party’s reservation value.
Step 5: Evaluate the ZOPA (zone of possible agreement)
Anchor aggressively (it has a huge effect). But don’t offend.
How to respond to their initial offer:
Strategies:
• Ignore their anchor
• Separate information from influence
• Avoid dwelling on their anchor. If you are surprised by their offer, probe a little deeper to find if there is substantive new info to obtain. If not, then quickly shift attention away be sharing your own perspective and defining the negotiation in your terms.
• Make an anchored counteroffer, then propose moderation. “Well, based on your offer, which was unexpected, it looks like we have a lot of work ahead of us. From our perspective, a fair price would be closer to $x. I will explain to you how we are valuing this deal, but it appears to me that if we are to reach any agreement, we will both have to work together to make it happen.”
• Give them time to moderate their offer without losing face.
What should my first offer be?
1. Keep the entire ZOPA in play.
2. Provide a justification for your offer. We think $88 million is a fair price because the land can be used for commercial development, which makes it worth as much as two times what it might be worth if used for residential development (which is $44 million)”
3. Set high, but realistic aspirations.
4. Consider the context and the relationship.
How far can I push them?
1. Exhaust all pre-negotiation sources of information.
2. Identify your assumptions prior to the negotiation.
3. Ask questions that challenge your assumptions. “If the land is used for commercial development, that will make it quite valuable. With that in mind, let’s discuss some specifics. What are your plans for this excellent piece of real estate?”
4. Ask indirect questions
a.How many hours do employees typically work each week?
b.What kinds of projects will I be working on?
c.Who will my clients be?
d.Whom does the firm typically hire?
e.With whom does the firm typically compete for hiring?
f.What, if any, are the formal constraints on compensation for new hires?
5. Protect yourself from lies and uncertainty with contingency contracts.
Making the first offer is best done when you feel you have good information about the other side, but is often a bad idea. The primary benefit of making a first offer in negotiation is that it establishes an anchor. Especially when the other party is uncertain, they are likely to gravitate toward any number that helps them focus. When made prematurely, a first offer can be extremely costly.
Those with high aspirations will be more likely to get better outcomes, but are more dissatisfied. So, focus on your target during negotiation; then when it is over, shift your focus to your reservation value.
Ch 2 CREATING VALUE IN NEGOTIATION.
Create value through log rolling. If the other party values something more than you do, let them have it – but don’t give it away, sell it.
Create value by adding issues. Some issues you might add:
• Delivery date
• Financing
• Quality
• Contract length
• Last-look provisions
• Arbitration clauses
• Exclusivity clauses
• Level of service support
• Warranties
• Future business
Identify everything that you are interested in and create a scoring system, to calculate your package reservation value. The goal is not to overwhelm the other party with demands, but to give them a lot of different ways to compensate you and make you happy. If they cannot increase your salary, but they can make you equally happy with a change in job description, both of you stand to gain. Identify the other party’s multiple interests.
Strategies for value creation:
1. Negotiate multiple issues simultaneously.
2. Make package offers. Thank you for providing me with a detailed list of services and signaling your preferences. This gives us a number of different options, here are two: 1 begin in july without premium services is $650,000; with premium is $700K. Option 2: begin March without premium is $635K, with premium is $680K.
3. Leverage differences of all types to create value.
Post settlement settlements steps.
Step 1: start by acknowledging the progress that was already made in reaching the initial agreement.
Step 2: Suggest that there are aspects of the deal that you wish could be improved; acknowledge that they probably feel similarly.
Step 3: Suggest that you may have already conceded everything that you can afford, but that you are willing to think “outside the box” if that will help the other party.
Step 4: State that it is important for both of you to realize that you are not looking for a new agreement, but for an improved agreement that both parties prefer to the current agreement.
Chapter 3: INVESTIGATIVE NEGOTIATION
Seven principles of investigative negotiation:
1. Don’t just ask what- ask why
2. Seek to reconcile interests, not demands
3. Create common ground with uncommon allies
4. Interpret demands as opportunities
5. Don’t dismiss anything as “their problem”
6. Don’t let negotiations end with a rejection of your offer
7. Understand the difference between selling and negotiating.
Ask questions, such as:
•What do you plan to do with the products you’re purchasing from us?
•Tell me about your customers.
•What do you plan to do if we can’t provide you with the services you need?
•How does this deal fit into your overall business strategy?
•Tell me more about your organization.
Negotiate multiple issues simultaneously to determine which issues are most important:
•Which issues does he want to return to constantly?
•Which issues make him the most emotional or tense?
•While discussing which issues is she most likely to talk rather than to listen?
•Which issues is she most obstinate about when you ask for a compromise?
Chapter 4: WHEN RATIONALITY FAILS: BIASES OF THE MIND
How can you avoid escalating in the heat of battle?
• Start your negotiation with a preplanned exit strategy.
• Assign and reward a “devil’s advocate” whose job it is to criticize your decisions and find faults in your logic.
• Anticipate and prepare for the escalation forces you are likely to encounter.
Chapter 6: NEGOTIATING RATIONALLY IN AN IRRATIONAL WORLD
Use “system 2” thinking.
Avoid negotiating under time pressure. “Is this a firm deadline”. “If, for personal reasons, I needed more time to make this decision, what would be the process for doing so?”
December 11, 2011
Negotiation Genius: Take-Away Points
Introduction: Becoming a negotiation genius
Negotiation genius is a person who manages to negotiate successful deals-consistently- while still maintaining their integrity and strengthening their relationships and reputation.
Fight over exclusivity- supplier for multiple customers won’t budge
Diplomatic Impasse- UN wants the money the US owes
A last minute demand- the contract changes (major) at the last minute
A campaign catastrophe- Campaign manager prints all the pamphlets with a copy written photo.
Most business schools teach some sort of negotiation class because its important.
Chapter 1: Claiming Value in a Negotiation
Roosevelt’s campaign manager printed pamphlets with a photo he didn’t have rights to. Presented it as an opportunity to the photographer for publicity. 60 million dollar swing in fates.
Value is whatever people find useful or desirable
Can measure in many different ways ($, utility, happiness)
Hamilton real estate case
Batna: Best alternative to negotiated agreement
Reservation value: walk away point
Other parties BATNA: what would happen if the other side walked away
Other parties reservation value:
ZOPA: zone of possible agreement
It depends who makes the first offer (anchor)
Chapter 2: Creating Value in Negotiation
UN problem was solved using a time deadline and pushing it out past the fiscal year
Multi-issue negotiation: things are more complicated than a single price between 2 parties
Moms.com example negotiation episode prices for a sitcom
Effective negotiators look for opportunities to create value by making trades across multiple issues
more issues = more currency
Pareto improvement: one party improves from something the other party has no value for
Contingency contracts: control future outcomes and minimize risk
Always identify the reservation value of the overall package
There is a difference between value claiming and value creation
70% of two different pies gives a different number
Chapter 3: Investigative Negotiation
European supplier didn’t want to accept exclusivity rights. Chris asked “why”
Don’t just ask what- ask why. what only distracts people.
Seek to reconcile interests, not demands. Focus on each parties underlying interests
Create common ground with uncommon allies: Republicans donated to Nader campaign to undermine Kerry
Interpret demands as opportunities: builder gets a bonus for early finish
Don’t dismiss anything as their problem: work together to find a better solution to the problems
Don’t let negotiations end with a rejection of your offer: always ask for an explanation and why
Difference between selling and negotiation: Listen to customer needs!
Overall, ask questions! ask why/how and probe deeper into motivations
More information the better
Chapter 4: When Rationality Fails: Biases of the Mind
Hockey example, everybody lost because they looked at as piece of the pie. But there was no pie left.
Advising people to be rational is sufficient because we aren’t predictable and systematic
Fixed pie: I win, you lose mindset
USSR proposals were instantly rejected by the US because what’s good for them is fundamentally bad for us
Vividness Bias: what stands out to others sometimes takes too much weight
You can give values to important aspects in a negotiation to avoid this
Non-rational escalation of commitment: once someone starts betting on the $100 they can’t stop even if it just digs the whole deeper.
Constantly re-evaluate your reference point like gamblers
Take an outsiders point of view
Watch out for framing, people are risk averse
Chapter 8: Blind Spots in Negotiation
Boston Scientific executed the second worst merger in history because they were focused on the small transaction not the big picture
Bounded awareness: ignoring information outside your scope
Parties away from the table can have a great effect on the current negotiation
United and American ran into this problem, united sent a public letter saying that it would meet any offer but it would be unwise. Nobody bid.
The other side can have rules which would trump the negotiation and any offer you provide. By understanding these you can win
Other sides information is also a blind spot
Bid zero on the exercise
Winner’s curse: we fail to recognize that the benefit to us of making an offer depends on the offer being accepted and acceptance is most likely to occur when we have offered too much.
People are more willing to bet on their likelihood of winning a competition than otherwise
Approach every negotiation as a mystery to be solved and make it a point to carefully identify your assumptions
Chapter 11: Negotiation from a position of weakness
Don’t reveal how weak you are
Overcome your weakness by leveraging their weakness, i.e. don’t forget to calculate their BATNA
Identify and Leverage your distinct value proposition DVP beyond what they are looking for what makes you stand out
Consider relinquishing what little power you have. Acknowledge their position but give all the upsides of yours
Strategize on the basis of your whole portfolio. Lose a couple contracts so you can keep your margin and it evens out
Increase your strength by building coalitions, unions
They may need you to survive (romania and communism)
Understand and attack the source of their power (planned parenthood has people make donations based on the number of protesters)
Give information away which could be used against you
being weak is unavoidable stick to your fundamentals of prep work and careful strategy planning
Chapter 12: When Negotiations Get Ugly: Dealing with Irrationality, Distrust, Anger, Threats and Ego
Cuban missile crisis, both sides desperately needed a way to save face publicly
Be very careful in labeling someone irrational. There is usually a hidden cause.
You are not stupid, you are just ignorant. Inform them
Hidden constraints or relationships that would be harmed can cause irrationality
Hidden interests can create irrationality. Investigate completely
Trust is essential in relationships; hence, it is critical ingredient in negotiation.
Trust and distrust scale is similar to reading for Tony
Dealing with anger: why are they angry?
Give voice to it, natural to cut them off and try to calm, but they need their voice to be heard. I really like this point and I’m going to use it going forward.
The best block is don’t be there
Ultimatums: ignore it completely
Neutralize any other threats ahead of time
If it’s not credible let them know
Help all parties save face in irrational decisions
Chapter 14: The Path to Genius
Experience is a dear teacher, but fools will learn no other
Don’t blame external factors for failures, look at internal and learn from it
Perfect is the enemy of good, try things make changes and don’t be paralyzed by perfection
Take aways for using the book, read it again, ID a key concept and try it, ID people to discuss it with
Look at constraints to improving negotiations (corporate structures or incentives)
EVERYTHING is negotiable
Negotiation is not about haggling over a price of a car, it is about understanding basic principles of human interaction
to become a genius its a combination of natural ability and lot of hard work
Introduction: Becoming a negotiation genius
Negotiation genius is a person who manages to negotiate successful deals-consistently- while still maintaining their integrity and strengthening their relationships and reputation.
Fight over exclusivity- supplier for multiple customers won’t budge
Diplomatic Impasse- UN wants the money the US owes
A last minute demand- the contract changes (major) at the last minute
A campaign catastrophe- Campaign manager prints all the pamphlets with a copy written photo.
Most business schools teach some sort of negotiation class because its important.
Chapter 1: Claiming Value in a Negotiation
Roosevelt’s campaign manager printed pamphlets with a photo he didn’t have rights to. Presented it as an opportunity to the photographer for publicity. 60 million dollar swing in fates.
Value is whatever people find useful or desirable
Can measure in many different ways ($, utility, happiness)
Hamilton real estate case
Batna: Best alternative to negotiated agreement
Reservation value: walk away point
Other parties BATNA: what would happen if the other side walked away
Other parties reservation value:
ZOPA: zone of possible agreement
It depends who makes the first offer (anchor)
Chapter 2: Creating Value in Negotiation
UN problem was solved using a time deadline and pushing it out past the fiscal year
Multi-issue negotiation: things are more complicated than a single price between 2 parties
Moms.com example negotiation episode prices for a sitcom
Effective negotiators look for opportunities to create value by making trades across multiple issues
more issues = more currency
Pareto improvement: one party improves from something the other party has no value for
Contingency contracts: control future outcomes and minimize risk
Always identify the reservation value of the overall package
There is a difference between value claiming and value creation
70% of two different pies gives a different number
Chapter 3: Investigative Negotiation
European supplier didn’t want to accept exclusivity rights. Chris asked “why”
Don’t just ask what- ask why. what only distracts people.
Seek to reconcile interests, not demands. Focus on each parties underlying interests
Create common ground with uncommon allies: Republicans donated to Nader campaign to undermine Kerry
Interpret demands as opportunities: builder gets a bonus for early finish
Don’t dismiss anything as their problem: work together to find a better solution to the problems
Don’t let negotiations end with a rejection of your offer: always ask for an explanation and why
Difference between selling and negotiation: Listen to customer needs!
Overall, ask questions! ask why/how and probe deeper into motivations
More information the better
Chapter 4: When Rationality Fails: Biases of the Mind
Hockey example, everybody lost because they looked at as piece of the pie. But there was no pie left.
Advising people to be rational is sufficient because we aren’t predictable and systematic
Fixed pie: I win, you lose mindset
USSR proposals were instantly rejected by the US because what’s good for them is fundamentally bad for us
Vividness Bias: what stands out to others sometimes takes too much weight
You can give values to important aspects in a negotiation to avoid this
Non-rational escalation of commitment: once someone starts betting on the $100 they can’t stop even if it just digs the whole deeper.
Constantly re-evaluate your reference point like gamblers
Take an outsiders point of view
Watch out for framing, people are risk averse
Chapter 8: Blind Spots in Negotiation
Boston Scientific executed the second worst merger in history because they were focused on the small transaction not the big picture
Bounded awareness: ignoring information outside your scope
Parties away from the table can have a great effect on the current negotiation
United and American ran into this problem, united sent a public letter saying that it would meet any offer but it would be unwise. Nobody bid.
The other side can have rules which would trump the negotiation and any offer you provide. By understanding these you can win
Other sides information is also a blind spot
Bid zero on the exercise
Winner’s curse: we fail to recognize that the benefit to us of making an offer depends on the offer being accepted and acceptance is most likely to occur when we have offered too much.
People are more willing to bet on their likelihood of winning a competition than otherwise
Approach every negotiation as a mystery to be solved and make it a point to carefully identify your assumptions
Chapter 11: Negotiation from a position of weakness
Don’t reveal how weak you are
Overcome your weakness by leveraging their weakness, i.e. don’t forget to calculate their BATNA
Identify and Leverage your distinct value proposition DVP beyond what they are looking for what makes you stand out
Consider relinquishing what little power you have. Acknowledge their position but give all the upsides of yours
Strategize on the basis of your whole portfolio. Lose a couple contracts so you can keep your margin and it evens out
Increase your strength by building coalitions, unions
They may need you to survive (romania and communism)
Understand and attack the source of their power (planned parenthood has people make donations based on the number of protesters)
Give information away which could be used against you
being weak is unavoidable stick to your fundamentals of prep work and careful strategy planning
Chapter 12: When Negotiations Get Ugly: Dealing with Irrationality, Distrust, Anger, Threats and Ego
Cuban missile crisis, both sides desperately needed a way to save face publicly
Be very careful in labeling someone irrational. There is usually a hidden cause.
You are not stupid, you are just ignorant. Inform them
Hidden constraints or relationships that would be harmed can cause irrationality
Hidden interests can create irrationality. Investigate completely
Trust is essential in relationships; hence, it is critical ingredient in negotiation.
Trust and distrust scale is similar to reading for Tony
Dealing with anger: why are they angry?
Give voice to it, natural to cut them off and try to calm, but they need their voice to be heard. I really like this point and I’m going to use it going forward.
The best block is don’t be there
Ultimatums: ignore it completely
Neutralize any other threats ahead of time
If it’s not credible let them know
Help all parties save face in irrational decisions
Chapter 14: The Path to Genius
Experience is a dear teacher, but fools will learn no other
Don’t blame external factors for failures, look at internal and learn from it
Perfect is the enemy of good, try things make changes and don’t be paralyzed by perfection
Take aways for using the book, read it again, ID a key concept and try it, ID people to discuss it with
Look at constraints to improving negotiations (corporate structures or incentives)
EVERYTHING is negotiable
Negotiation is not about haggling over a price of a car, it is about understanding basic principles of human interaction
to become a genius its a combination of natural ability and lot of hard work
February 3, 2018
Прекрасная книга, которую мне рекомендовал легендарный и мной очень любимый Барри Нелюбофф из Йельского Университета. Уже в процессе прочтения узнал от моего товарища Алексея Горячева, что эта книга как раз сейчас издается на русском языке. Книга настолько полезная, что я очень рад, что у русскоязычных читателей тоже будет возможность ознакомиться с этим хрестоматийным трудом по теме переговоров и пониманию друг друга.
Это из тех книг, к которой буду возвращаться не раз в силу моей профессии. Материал оказался настолько глубоким и хорошо проработанным, что это ревью оказалось у меня самым длинным из всех, которые когда-либо писал.
Традиционно, попытаюсь выделить несколько основных мыслей для тех, кто не сможет прочитать все ревью:
- Каким должно быть первое предложение? для достижения сбалансированной сделки переговоры нужно начинать вне зоны потенциальной договоренности (ZOPA) - иначе, ты думаешь за других (о чем обычно никто не просит:)
- Как принимать предложения? Даже предложения, которые тебя устраивают и нравятся сразу принимать нельзя, а есть целых 4 более правильных хода…Пример переговоров Принстона и Эйнштейна особенно прекрасен.
- Важность отношений. Все переговоры должны быть не только прибыльны, но и укреплять взаимоотношения. Второе намного важнее.
- Post settlement settlement - договоренности после договоренностей - великая вещь!
- Плохие новости сразу и одной суммой, а хорошие по капельке… иначе будет недопонимание и неадекватная оценка ситуации.
- и очень много еще, подробности ниже...
Однозначно пять баллов, рекомендую всем, кто хочет понять глубже, как договариваться с другими людьми и вообще сотрудничать.
Полная версия ревью, как всегда ниже и по ссылке https://www.evernote.com/l/ABaXRIXHWu...
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Книга разделена на 3 основных части:
Часть 1: Инструментарий переговорщика / Negotiator’s toolkit:
- Глава 1: Добиваться лучших условий / Claiming value
- Глава 2: Создание ценности / Creating value
- Глава 3: Исследовательский стиль переговоров / Investigative negotiation
Часть 2: Психология переговоров:
- Глава 4: Когда стороны перестают быть рациональными из-за логических ошибок
- Глава 5: Когда стороны перестают быть рациональными по зову сердца
- Глава 6: Рациональные переговоры в нерациональном мире
Часть 3: Переговоры в реальном мире:
- Глава 7: Приемы влияния / Strategies of influence
- Глава 8: Слепые пятна в переговорах
- Глава 9: Противодействие лжи и обману
- Глава 10: Распознавание и разрешение этических дилемм
- Глава 11: Переговоры с позиции слабости
- Глава 12: Когда переговоры становятся очень грязными, нерациональными и т.д.
- Глава 13: Когда нельзя переговариваться?
- Глава 14: Как стать гением переговоров?
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ЧАСТЬ 1: Инструментарий переговорщика / Negotiator’s toolkit:
- ГЛАВА 1: Добиваться лучших условий / Claiming value
Здесь приводится известный кейс по случаю из президентской кампании Рулвельта, когда по ошибке были напечатаны несколько миллионов листовок с нарушением авторских прав фотографа. Тогда, руководитель штаба позвонил фотографу и вместо того, чтобы договаривать об отступных, пошел в “атаку”: спросил, сколько тот готов заплатить, если в президентской кампании будут использованы его снимки. Тот скромно сказал, что не более $250, что позволило не только не платить штраф, но и заработать. Мораль - важно не только видеть свои слабые стороны (свои альтернативу, если не будет сделки, т.е. BATNA), но и четко представлять слабости и ценности оппонента и суметь взглянуть на ситуацию с его точки зрения, т.е. увидеть альтернативы (BATNA) другой стороны.
Здесь авторы выделяют на примере кейса с недвижимостью 5-этапный процесс:
Этап 1: Анализ своей лучше альтернативы / Assess your BATNA (best alternative to negotiated agreement):
Здесь нужно ответить на вопрос - Что я сделаю, если эти переговоры закончатся без сделки? / What will I do if the current negotiation ends in no deal?
Этап 2: Рассчитай свою граничную сумму/условия / Calculate your reservation value (walk-away point)
Этап 3: Оценка граничных условий другой стороны / Assess the other party’s BATNA
Этап 4: Рассчитай граничные условия другой стороны / Calculate the other party’s reservation value
Этап 5: Оцени “зону потенциальной договоренности” / Evaluate ZOPA (zone of potential agreement)
Во всем этом процессе, конечно, много информации нам не будет доступно, но по этому поводу очень хорошо говорят авторы:
"Negotiation geniuses know how to act on information they have, acquire information they do not have, and protect themselves from information they cannot obtain.”
Авторы выделяют 7 самых распространенных переговорных ошибок:
1/ Делать первое предложение, когда ты не в сильной позиции для этого;
2/ Делать первое пассивное (недостаточно агрессивное) предложение;
3/ Говорить и не слушать;
4/ Делать приемы влияния на оппонента и упускать возможность понять его;
5/ Не перепроверять и не ставить под сомнения допущения, которые сделаны относительно другой стороны;
6/ Неверно посчитать зону потенциального соглашения (ZOPA) и/или не пересчитать ее во время переговоров;
7/ Делать больше уступок, чем другая сторона.
Нужно ли делать предложение первым? - многим кажется, что нет, многим - что да… но верный ответ - зависит…
В этом контексте важную роль играет “якорение”… Если Вы хорошо осведомлены (хорошо знает ZOPA) и занимаете сильную позицию, конечно, имеет смысл делать предложение первым и “якорить” то, что находится на Вашей стороне зоны соглашения.
Как нужно реагировать на первое предложение?
Стратегия 1: игнорировать “якорь”.
Хорошим ответом может быть: "Judging by your offer, I think we might be looking at this deal in very different ways. Let’s try to bridge that gap by discussing…”
Стратегия 2: отделять информацию от манипуляции
Стратегия 3: избегайте вникать в их “якорь” уточнениями…
“...the more an anchor is discussed in a negotiation, the more powerful it becomes.”
Стратегия 4: сделай “якорное” контрпредложение и предложи его рассмотреть вместе, насколько это работает
Стратегия 5: дайте время другой стороне пересмотреть свое изначальное предложение без потери лица.
Каким должно быть мое первое предложение?
Нужно принять во внимание 4 фактора:
1/ Сохранить всю зону потенциальной договоренности в игре (Keep the entire ZOPA in play)
Идея в том, чтобы заставить другую стороны побороться за вход в зону потенциальной договоренности (ZOPA).
2/ Предоставлять обоснование своему предложению.
Здесь, чтобы понять, до какой степени предложение должно быть агрессивным, нужно ответить на вопрос: “What is the most aggressive offer that I can justify?
3/ Ставь высокие, но реалистичные ожидания.
This simple advice—“Always reach for the stars!”—is nonetheless often ignored by negotiators; few set explicit targets prior to negotiation. But targets that are inspired by high aspirations and yet grounded in reality (i.e., in your assessment of the ZOPA) are effective because they motivate behavior and minimize your susceptibility to influence tactics.
4/ Учитывай контекст и отношения.
"For example, you might have evaluated the ZOPA perfectly and justified your offer brilliantly, but if you lose sight of the fact that your tactics could affect the relationship, you might lose the deal - or worse, lose the deal, damage the relationship, and ruin your reputation al at the same time."
Насколько далеко я могу их продавить?
1/ Полностью изучи все релевантные источники информации до переговоров.
2/ Определи свои предположения до переговоров.
Socrates is believed to have said: “I am likely to be wiser to this small extent, that I do not think I know what I do not know.”
"Wise negotiators create a comprehensive list of what they are assuming and what they do not know prior to negotiation."
3/ Спрашивайте вопросы, которые позволят перепроверить Ваши предположения.
4/ Спрашивайте недирективные вопросы
5/ Защищай себя от обмана и неопределенности условными контрактами.
“Contingency contracts are agreements that leave certain elements of the deal unresolved until uncertainty is resolved in the future”
Эффективные стратегии торговли
Торговля является неизбежным элементом переговоров, т.к. ни одна сторона, как правило, не хочет уступать и наоборот, хочет взять по-максимуму.
Стратегия 1: Фокусируйся на альтернативах и крайней цене противоположной стороны. (пример предложения фотографу со стороны штаба Рузвельта)
Стратегия 2: Избегайте делать односторонние уступки.
Стратегия 3: Чувствуйте комфорт при долгих паузах и тишине.
Очень часто, вместо отказа от предложения, просто нужно подождать и помолчать.
Стратегия 4: Четко именуйте те уступки, которые вы делаете.
"Instead of simply giving something away or moderating your demands, make it clear that your action is costly to you. Because labeled concessions are hard to ignore, it becomes difficult for recipients to justify nonreciprocity.”
Стратегия 5: Определите, что значит взаимность.
Четко говорите, что Вы ожидаете получить взамен при тех или иных своих уступках.
Стратегия 6: Делайте уступки под условиям.
“Я могу заплатить выше цену, если Вы обещаете раннюю доставку”
Стратегия 7: Имейте в виду убывающую ценность уступок.
(здесь речь идет о том, что нужно учитывать, что обычно уступки в начале больше, чем в конце)
Переговоры по поводу взаимоотношений.
Одна из самых интересных тем, поднятых в книге.
Здесь речь идет о том, что многие люди думают, что либо договориться о хорошей сделке для себя, либо быть любезным и сделать другого человека радостным. Но это не так работает… Либо нужно усиливать отношения, либо ослаблять, либо терять в процессе переговоров и это зависит от того, в какой степени стороны удовлетворены исходом переговоров. С учетом этого, гении переговоров не только управляют результатами переговоров со своей точки зрения, но и заботятся об удовлетворенности другой стороны. Проще говоря - вы переговариваетесь не только по поводу сделки, но и по поводу отношений. Всегда.
"What we want you to keep in mind is that you always have two distinct goals in any negotiation: to get a good deal and to strengthen your relationship.”
Вот стратегии, которые могут помочь усилить отношения:
1/ Ответ на предложение, которое Вам нравится - подход один. Даже если Вам нравится предложение - чуть обдумайте, только потом примите, чтобы не разочаровать другую сторону.
2/ Ответ на предложение, которое Вам нравится - другой подход. Даже если Вам нравится предложение и Вы его готовы принять, сделайте небольшие запросы по улучшения, и скорее всего, другая сторона будет либо готова дать вам, либо получить больше удовлетворения при отказе от этих мелких уступок и принятии основного предложения.
3/ Ответ на предложение, которое Вам нравится - еще один подход. Здесь прекрасная история о том, как Принстон нанимал Альберта Эйнштейна. Глава института написал Эйнштейну вопрос о его ожиданиях по компенсации. Альберт написал: “$3000 (annually), unless you think I can get by with less”… и ответ из Принстона был следующим: “We’ll pay you $15,000 a year”. И Эйнштейн согласился и сделка была закрыта.
Здесь мораль состоит в том, что руководители Принстона поняли, что Эйнштейн может не осознавать, какую ценность он представляет для Принстона, а это он все равно узнает, рано или поздно, когда приедет в университет. Именно поэтому, чтобы сохранить и укрепить отношения, а также обозначить свою честность и высокие моральные стандарты, было сделано это предложение.
4/ Ответ на предложение, которое Вам нравится - примечание. If you are surprised by the offer, don’t celebrate - think! Здесь речь о том, что нужно задуматься о корректности оценки своей пограничной цены и необходимости анализировать то, что было упущено.
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- ГЛАВА 2: Создание стоимости.
- Добавление параметров сделки является важным способом создания стоимости. Чем больше параметров, тем больше валют для обмена.
- Процесс по добавлению ценности одной стороне без снижения ценности для другой стороны называет Pareto Improvement. Максимизация ценности для каждой стороны называется Pareto efficiency. Это означает, что стороны не оставили за пределами сделки ценности.
"If you leave the negotiation table without knowing very much about their interests and priorities, you have probably left value on the table."
- Добавление стоимости через условные контракты. Применим, если результат можно измерить объективно. Могут быть опасны, если противоположная сторона намного более осведомлена, чем вы. “...make sure your contingency contracts are incentive compatible. That is, the clause you negotiate should provide incentives for the other party to behave in ways that are compatible with the spirit of your agreement.”
Стратегии по подготовке к созданию стоимости:
Стратегия 1: Определи чем больше своих интересов, тем лучше (множество своих интересов).
Стратегия 2: Создай шкалу по оценке/приоретизации интересов
Стратегия 3: Рассчитай конечную цену уступки по всему пакету интересов
Стратегия 4: Определи чем больше интересов другой стороны, тем лучше (множество интересов партнера)
Стратегии по реализации процесса создания стоимости:
Стратегия 1: Веди переговоры по нескольким пунктам одновременно
Стратегия 2: Делай пакетированные предложения
Стратегия 3: Используй всякого рода разницы, чтобы создать стоимость. Например, если кто-то более оптимистичен про будущее, то ему можно предложить что-то большое в будущем, а себе оставить что-то маленькое в настоящем…
Стратегии после переговоров для создания стоимости:
Post settlement settlement. Тут идея в то, что даже после договоренности искать возможности по достижению Парето Эффективности, т.е. улучшения позиции двух сторон.
“...state this ground rule explicitly at the outset: either we both benefit, or we stick with what we have agreed to already…”
Процесс по введению новых договоренностей (PSS - post settlement settlement):
Шаг 1: Start by acknowledging the progress that was already made in reaching the initial agreement;
Шаг 2: Suggest that there are aspects of the deal that you wish could be improved; acknowledge that hey probably feel similarly;
Шаг 3: Suggest that you may have already conceded everything that you can afford, but that you are willing to try to think “outside the box” if that will help the other party.
Шаг 4: State that it is important for both of you to realize that you are not looking for a new agreement, but for an improved agreement that both parties prefer to the current agreement.
Глава 3: Исследовательский стиль переговоров / Investigative negotiation
Принцип 1: Не спрашивай просто “что?”, а узнай “зачем/почему?”
Принцип 2: Ищи возможности совместить интересы, не требования
Принцип 3: Ищи стандартные договоренности с нестандартными сторонами
Принцип 4: Воспринимай требования как возможности
Принцип 5: Никогда не прикрывайся словами “это их проблемы”…
иначе быстро их проблемы станут твоими….
Принцип 6: Не позволяй переговорам закончиться отказом от твоего предложения… либо они должны принять предложение, либо дать объяснение “почему нет”…
Принцип 7: Четко осознавай разницу между “продажей” и “переговорами”. Важно больше внимания уделять не достоинствам продукта, а интересам и потребностям покупателя…
5 стратегий по ведению переговоров с трудными и скрытными переговорщиками:
Стратегия 1: Создавай доверие и делись информацией
- понимай и говори на их языке
- создавай и укрепляй личные связи
- создавай доверие вне переговорного процесса
Стратегия 2: Задавай вопросы, особенно когда ты удивлен или скептичен
Стратегия 3: Предоставляй некоторую информацию
Стратегия 4: Переговаривайся по нескольким пунктам одновременно - это позволяет понять относительную важность и приоритетность интересов стороны
Стратегия 5: Делай много предложений единовременно (типа 2.5% комиссия, 3-месячный контракт, 3.5% комиссия, 2-месячный контракт)
Если ни тот, ни другой оффер не принимается, можно спросить: “Which offer is closer to something you could accept?”
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ЧАСТЬ 2: Психология переговоров
- ГЛАВА 4: Когда стороны перестают быть рациональными из-за логических ошибок:
Здесь основная идея в том, что многие ошибки очень компетентных людей систематичны и предсказуемы, вот основные 4:
а) уверенность, что размер “пирога” нельзя увеличить (он фиксированный) - чтобы не попадать в эту ловушку, рекомендуется пользоваться теми стратегиями, которые были раскрыты в разделе “Создание стоимости” - глава 2;
б) переоценка внешнего блеск (недооценка сути) - чтобы не попадать в ловушку “внешнего блеска” рекомендуется - создать систему скоринга переговариваемых параметров, а также разделять информацию от эмоций/влияния;
в) нерациональная эскалация своих обязательств (вопреки чему-то…) - здесь показательны примеры, когда спорят за “овчину, которая не стоит и выделки”… т.е. когда начинают поднимать ставки, даже когда понятно, что выигрыш не покроет затраты… пример с экспериментом в аудитории с 100 долларами тоже показателен… когда профессор предлагает купить у него 100-долларовую купюру и начинает торги с 20 долларов с одним условием - что, кто будет вторым перед победителем аукциона, тот платит свою заявленную сумму профессору. Обычно, эти аукционы заканчиваются где-то между 200 - 1000 долларами, что по сути подтверждает, что двое финалистов после того, как ставки поднялись выше 100 долларов, уже “нерационально” боролись друг против друга, а не за 100 долларов… Как этого можно избежать? Вот несколько рекомендаций: 1) определить ту предельную сумму выхода из переговоров; 2) привлеките для важных переговоров “адвоката дьявола”, с которым советуйтесь по ходу; 3) заранее определи аспекты, которые могут быть особенно раздражительны для тебя и приведут к неразумной эскалации;
г) разница в восприятии позитивных и негативных формулировок - при прочих равных люди предпочитают выбирать варианты с позитивными формулировками, нежели негативными… при равных математических ожиданиях мы пытаемся избегать рисков относительно положительных исходов и проявляем больше аппетита к риску относительно негативных исходов, т.е. мы хотим выгоду наверняка или идем “все или ничего”, если у нас есть что терять. То же самое можно наблюдать, когда ведутся переговоры про распределение доходов - люди более оптимистичны и охотливее принимают риск, а когда речь идет о распределении затрат/убытков - тов восприятие рисков бывает очень резким и они переоцениваются.
"What is news is that, in the context of decision-making and negotiation, many of the mistakes people make are systematic and predictable. In fact, even the brightest of executives fall victim to four critical, systematic errors on a regular basis: the fixed-pie bias, the vividness bias, nonrational escalation of commitment, and susceptibility to framing.”
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продолжение в полной версии ревью https://www.evernote.com/l/ABaXRIXHWu...
Это из тех книг, к которой буду возвращаться не раз в силу моей профессии. Материал оказался настолько глубоким и хорошо проработанным, что это ревью оказалось у меня самым длинным из всех, которые когда-либо писал.
Традиционно, попытаюсь выделить несколько основных мыслей для тех, кто не сможет прочитать все ревью:
- Каким должно быть первое предложение? для достижения сбалансированной сделки переговоры нужно начинать вне зоны потенциальной договоренности (ZOPA) - иначе, ты думаешь за других (о чем обычно никто не просит:)
- Как принимать предложения? Даже предложения, которые тебя устраивают и нравятся сразу принимать нельзя, а есть целых 4 более правильных хода…Пример переговоров Принстона и Эйнштейна особенно прекрасен.
- Важность отношений. Все переговоры должны быть не только прибыльны, но и укреплять взаимоотношения. Второе намного важнее.
- Post settlement settlement - договоренности после договоренностей - великая вещь!
- Плохие новости сразу и одной суммой, а хорошие по капельке… иначе будет недопонимание и неадекватная оценка ситуации.
- и очень много еще, подробности ниже...
Однозначно пять баллов, рекомендую всем, кто хочет понять глубже, как договариваться с другими людьми и вообще сотрудничать.
Полная версия ревью, как всегда ниже и по ссылке https://www.evernote.com/l/ABaXRIXHWu...
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Книга разделена на 3 основных части:
Часть 1: Инструментарий переговорщика / Negotiator’s toolkit:
- Глава 1: Добиваться лучших условий / Claiming value
- Глава 2: Создание ценности / Creating value
- Глава 3: Исследовательский стиль переговоров / Investigative negotiation
Часть 2: Психология переговоров:
- Глава 4: Когда стороны перестают быть рациональными из-за логических ошибок
- Глава 5: Когда стороны перестают быть рациональными по зову сердца
- Глава 6: Рациональные переговоры в нерациональном мире
Часть 3: Переговоры в реальном мире:
- Глава 7: Приемы влияния / Strategies of influence
- Глава 8: Слепые пятна в переговорах
- Глава 9: Противодействие лжи и обману
- Глава 10: Распознавание и разрешение этических дилемм
- Глава 11: Переговоры с позиции слабости
- Глава 12: Когда переговоры становятся очень грязными, нерациональными и т.д.
- Глава 13: Когда нельзя переговариваться?
- Глава 14: Как стать гением переговоров?
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ЧАСТЬ 1: Инструментарий переговорщика / Negotiator’s toolkit:
- ГЛАВА 1: Добиваться лучших условий / Claiming value
Здесь приводится известный кейс по случаю из президентской кампании Рулвельта, когда по ошибке были напечатаны несколько миллионов листовок с нарушением авторских прав фотографа. Тогда, руководитель штаба позвонил фотографу и вместо того, чтобы договаривать об отступных, пошел в “атаку”: спросил, сколько тот готов заплатить, если в президентской кампании будут использованы его снимки. Тот скромно сказал, что не более $250, что позволило не только не платить штраф, но и заработать. Мораль - важно не только видеть свои слабые стороны (свои альтернативу, если не будет сделки, т.е. BATNA), но и четко представлять слабости и ценности оппонента и суметь взглянуть на ситуацию с его точки зрения, т.е. увидеть альтернативы (BATNA) другой стороны.
Здесь авторы выделяют на примере кейса с недвижимостью 5-этапный процесс:
Этап 1: Анализ своей лучше альтернативы / Assess your BATNA (best alternative to negotiated agreement):
Здесь нужно ответить на вопрос - Что я сделаю, если эти переговоры закончатся без сделки? / What will I do if the current negotiation ends in no deal?
Этап 2: Рассчитай свою граничную сумму/условия / Calculate your reservation value (walk-away point)
Этап 3: Оценка граничных условий другой стороны / Assess the other party’s BATNA
Этап 4: Рассчитай граничные условия другой стороны / Calculate the other party’s reservation value
Этап 5: Оцени “зону потенциальной договоренности” / Evaluate ZOPA (zone of potential agreement)
Во всем этом процессе, конечно, много информации нам не будет доступно, но по этому поводу очень хорошо говорят авторы:
"Negotiation geniuses know how to act on information they have, acquire information they do not have, and protect themselves from information they cannot obtain.”
Авторы выделяют 7 самых распространенных переговорных ошибок:
1/ Делать первое предложение, когда ты не в сильной позиции для этого;
2/ Делать первое пассивное (недостаточно агрессивное) предложение;
3/ Говорить и не слушать;
4/ Делать приемы влияния на оппонента и упускать возможность понять его;
5/ Не перепроверять и не ставить под сомнения допущения, которые сделаны относительно другой стороны;
6/ Неверно посчитать зону потенциального соглашения (ZOPA) и/или не пересчитать ее во время переговоров;
7/ Делать больше уступок, чем другая сторона.
Нужно ли делать предложение первым? - многим кажется, что нет, многим - что да… но верный ответ - зависит…
В этом контексте важную роль играет “якорение”… Если Вы хорошо осведомлены (хорошо знает ZOPA) и занимаете сильную позицию, конечно, имеет смысл делать предложение первым и “якорить” то, что находится на Вашей стороне зоны соглашения.
Как нужно реагировать на первое предложение?
Стратегия 1: игнорировать “якорь”.
Хорошим ответом может быть: "Judging by your offer, I think we might be looking at this deal in very different ways. Let’s try to bridge that gap by discussing…”
Стратегия 2: отделять информацию от манипуляции
Стратегия 3: избегайте вникать в их “якорь” уточнениями…
“...the more an anchor is discussed in a negotiation, the more powerful it becomes.”
Стратегия 4: сделай “якорное” контрпредложение и предложи его рассмотреть вместе, насколько это работает
Стратегия 5: дайте время другой стороне пересмотреть свое изначальное предложение без потери лица.
Каким должно быть мое первое предложение?
Нужно принять во внимание 4 фактора:
1/ Сохранить всю зону потенциальной договоренности в игре (Keep the entire ZOPA in play)
Идея в том, чтобы заставить другую стороны побороться за вход в зону потенциальной договоренности (ZOPA).
2/ Предоставлять обоснование своему предложению.
Здесь, чтобы понять, до какой степени предложение должно быть агрессивным, нужно ответить на вопрос: “What is the most aggressive offer that I can justify?
3/ Ставь высокие, но реалистичные ожидания.
This simple advice—“Always reach for the stars!”—is nonetheless often ignored by negotiators; few set explicit targets prior to negotiation. But targets that are inspired by high aspirations and yet grounded in reality (i.e., in your assessment of the ZOPA) are effective because they motivate behavior and minimize your susceptibility to influence tactics.
4/ Учитывай контекст и отношения.
"For example, you might have evaluated the ZOPA perfectly and justified your offer brilliantly, but if you lose sight of the fact that your tactics could affect the relationship, you might lose the deal - or worse, lose the deal, damage the relationship, and ruin your reputation al at the same time."
Насколько далеко я могу их продавить?
1/ Полностью изучи все релевантные источники информации до переговоров.
2/ Определи свои предположения до переговоров.
Socrates is believed to have said: “I am likely to be wiser to this small extent, that I do not think I know what I do not know.”
"Wise negotiators create a comprehensive list of what they are assuming and what they do not know prior to negotiation."
3/ Спрашивайте вопросы, которые позволят перепроверить Ваши предположения.
4/ Спрашивайте недирективные вопросы
5/ Защищай себя от обмана и неопределенности условными контрактами.
“Contingency contracts are agreements that leave certain elements of the deal unresolved until uncertainty is resolved in the future”
Эффективные стратегии торговли
Торговля является неизбежным элементом переговоров, т.к. ни одна сторона, как правило, не хочет уступать и наоборот, хочет взять по-максимуму.
Стратегия 1: Фокусируйся на альтернативах и крайней цене противоположной стороны. (пример предложения фотографу со стороны штаба Рузвельта)
Стратегия 2: Избегайте делать односторонние уступки.
Стратегия 3: Чувствуйте комфорт при долгих паузах и тишине.
Очень часто, вместо отказа от предложения, просто нужно подождать и помолчать.
Стратегия 4: Четко именуйте те уступки, которые вы делаете.
"Instead of simply giving something away or moderating your demands, make it clear that your action is costly to you. Because labeled concessions are hard to ignore, it becomes difficult for recipients to justify nonreciprocity.”
Стратегия 5: Определите, что значит взаимность.
Четко говорите, что Вы ожидаете получить взамен при тех или иных своих уступках.
Стратегия 6: Делайте уступки под условиям.
“Я могу заплатить выше цену, если Вы обещаете раннюю доставку”
Стратегия 7: Имейте в виду убывающую ценность уступок.
(здесь речь идет о том, что нужно учитывать, что обычно уступки в начале больше, чем в конце)
Переговоры по поводу взаимоотношений.
Одна из самых интересных тем, поднятых в книге.
Здесь речь идет о том, что многие люди думают, что либо договориться о хорошей сделке для себя, либо быть любезным и сделать другого человека радостным. Но это не так работает… Либо нужно усиливать отношения, либо ослаблять, либо терять в процессе переговоров и это зависит от того, в какой степени стороны удовлетворены исходом переговоров. С учетом этого, гении переговоров не только управляют результатами переговоров со своей точки зрения, но и заботятся об удовлетворенности другой стороны. Проще говоря - вы переговариваетесь не только по поводу сделки, но и по поводу отношений. Всегда.
"What we want you to keep in mind is that you always have two distinct goals in any negotiation: to get a good deal and to strengthen your relationship.”
Вот стратегии, которые могут помочь усилить отношения:
1/ Ответ на предложение, которое Вам нравится - подход один. Даже если Вам нравится предложение - чуть обдумайте, только потом примите, чтобы не разочаровать другую сторону.
2/ Ответ на предложение, которое Вам нравится - другой подход. Даже если Вам нравится предложение и Вы его готовы принять, сделайте небольшие запросы по улучшения, и скорее всего, другая сторона будет либо готова дать вам, либо получить больше удовлетворения при отказе от этих мелких уступок и принятии основного предложения.
3/ Ответ на предложение, которое Вам нравится - еще один подход. Здесь прекрасная история о том, как Принстон нанимал Альберта Эйнштейна. Глава института написал Эйнштейну вопрос о его ожиданиях по компенсации. Альберт написал: “$3000 (annually), unless you think I can get by with less”… и ответ из Принстона был следующим: “We’ll pay you $15,000 a year”. И Эйнштейн согласился и сделка была закрыта.
Здесь мораль состоит в том, что руководители Принстона поняли, что Эйнштейн может не осознавать, какую ценность он представляет для Принстона, а это он все равно узнает, рано или поздно, когда приедет в университет. Именно поэтому, чтобы сохранить и укрепить отношения, а также обозначить свою честность и высокие моральные стандарты, было сделано это предложение.
4/ Ответ на предложение, которое Вам нравится - примечание. If you are surprised by the offer, don’t celebrate - think! Здесь речь о том, что нужно задуматься о корректности оценки своей пограничной цены и необходимости анализировать то, что было упущено.
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- ГЛАВА 2: Создание стоимости.
- Добавление параметров сделки является важным способом создания стоимости. Чем больше параметров, тем больше валют для обмена.
- Процесс по добавлению ценности одной стороне без снижения ценности для другой стороны называет Pareto Improvement. Максимизация ценности для каждой стороны называется Pareto efficiency. Это означает, что стороны не оставили за пределами сделки ценности.
"If you leave the negotiation table without knowing very much about their interests and priorities, you have probably left value on the table."
- Добавление стоимости через условные контракты. Применим, если результат можно измерить объективно. Могут быть опасны, если противоположная сторона намного более осведомлена, чем вы. “...make sure your contingency contracts are incentive compatible. That is, the clause you negotiate should provide incentives for the other party to behave in ways that are compatible with the spirit of your agreement.”
Стратегии по подготовке к созданию стоимости:
Стратегия 1: Определи чем больше своих интересов, тем лучше (множество своих интересов).
Стратегия 2: Создай шкалу по оценке/приоретизации интересов
Стратегия 3: Рассчитай конечную цену уступки по всему пакету интересов
Стратегия 4: Определи чем больше интересов другой стороны, тем лучше (множество интересов партнера)
Стратегии по реализации процесса создания стоимости:
Стратегия 1: Веди переговоры по нескольким пунктам одновременно
Стратегия 2: Делай пакетированные предложения
Стратегия 3: Используй всякого рода разницы, чтобы создать стоимость. Например, если кто-то более оптимистичен про будущее, то ему можно предложить что-то большое в будущем, а себе оставить что-то маленькое в настоящем…
Стратегии после переговоров для создания стоимости:
Post settlement settlement. Тут идея в то, что даже после договоренности искать возможности по достижению Парето Эффективности, т.е. улучшения позиции двух сторон.
“...state this ground rule explicitly at the outset: either we both benefit, or we stick with what we have agreed to already…”
Процесс по введению новых договоренностей (PSS - post settlement settlement):
Шаг 1: Start by acknowledging the progress that was already made in reaching the initial agreement;
Шаг 2: Suggest that there are aspects of the deal that you wish could be improved; acknowledge that hey probably feel similarly;
Шаг 3: Suggest that you may have already conceded everything that you can afford, but that you are willing to try to think “outside the box” if that will help the other party.
Шаг 4: State that it is important for both of you to realize that you are not looking for a new agreement, but for an improved agreement that both parties prefer to the current agreement.
Глава 3: Исследовательский стиль переговоров / Investigative negotiation
Принцип 1: Не спрашивай просто “что?”, а узнай “зачем/почему?”
Принцип 2: Ищи возможности совместить интересы, не требования
Принцип 3: Ищи стандартные договоренности с нестандартными сторонами
Принцип 4: Воспринимай требования как возможности
Принцип 5: Никогда не прикрывайся словами “это их проблемы”…
иначе быстро их проблемы станут твоими….
Принцип 6: Не позволяй переговорам закончиться отказом от твоего предложения… либо они должны принять предложение, либо дать объяснение “почему нет”…
Принцип 7: Четко осознавай разницу между “продажей” и “переговорами”. Важно больше внимания уделять не достоинствам продукта, а интересам и потребностям покупателя…
5 стратегий по ведению переговоров с трудными и скрытными переговорщиками:
Стратегия 1: Создавай доверие и делись информацией
- понимай и говори на их языке
- создавай и укрепляй личные связи
- создавай доверие вне переговорного процесса
Стратегия 2: Задавай вопросы, особенно когда ты удивлен или скептичен
Стратегия 3: Предоставляй некоторую информацию
Стратегия 4: Переговаривайся по нескольким пунктам одновременно - это позволяет понять относительную важность и приоритетность интересов стороны
Стратегия 5: Делай много предложений единовременно (типа 2.5% комиссия, 3-месячный контракт, 3.5% комиссия, 2-месячный контракт)
Если ни тот, ни другой оффер не принимается, можно спросить: “Which offer is closer to something you could accept?”
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ЧАСТЬ 2: Психология переговоров
- ГЛАВА 4: Когда стороны перестают быть рациональными из-за логических ошибок:
Здесь основная идея в том, что многие ошибки очень компетентных людей систематичны и предсказуемы, вот основные 4:
а) уверенность, что размер “пирога” нельзя увеличить (он фиксированный) - чтобы не попадать в эту ловушку, рекомендуется пользоваться теми стратегиями, которые были раскрыты в разделе “Создание стоимости” - глава 2;
б) переоценка внешнего блеск (недооценка сути) - чтобы не попадать в ловушку “внешнего блеска” рекомендуется - создать систему скоринга переговариваемых параметров, а также разделять информацию от эмоций/влияния;
в) нерациональная эскалация своих обязательств (вопреки чему-то…) - здесь показательны примеры, когда спорят за “овчину, которая не стоит и выделки”… т.е. когда начинают поднимать ставки, даже когда понятно, что выигрыш не покроет затраты… пример с экспериментом в аудитории с 100 долларами тоже показателен… когда профессор предлагает купить у него 100-долларовую купюру и начинает торги с 20 долларов с одним условием - что, кто будет вторым перед победителем аукциона, тот платит свою заявленную сумму профессору. Обычно, эти аукционы заканчиваются где-то между 200 - 1000 долларами, что по сути подтверждает, что двое финалистов после того, как ставки поднялись выше 100 долларов, уже “нерационально” боролись друг против друга, а не за 100 долларов… Как этого можно избежать? Вот несколько рекомендаций: 1) определить ту предельную сумму выхода из переговоров; 2) привлеките для важных переговоров “адвоката дьявола”, с которым советуйтесь по ходу; 3) заранее определи аспекты, которые могут быть особенно раздражительны для тебя и приведут к неразумной эскалации;
г) разница в восприятии позитивных и негативных формулировок - при прочих равных люди предпочитают выбирать варианты с позитивными формулировками, нежели негативными… при равных математических ожиданиях мы пытаемся избегать рисков относительно положительных исходов и проявляем больше аппетита к риску относительно негативных исходов, т.е. мы хотим выгоду наверняка или идем “все или ничего”, если у нас есть что терять. То же самое можно наблюдать, когда ведутся переговоры про распределение доходов - люди более оптимистичны и охотливее принимают риск, а когда речь идет о распределении затрат/убытков - тов восприятие рисков бывает очень резким и они переоцениваются.
"What is news is that, in the context of decision-making and negotiation, many of the mistakes people make are systematic and predictable. In fact, even the brightest of executives fall victim to four critical, systematic errors on a regular basis: the fixed-pie bias, the vividness bias, nonrational escalation of commitment, and susceptibility to framing.”
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продолжение в полной версии ревью https://www.evernote.com/l/ABaXRIXHWu...
January 21, 2019
7.5/10
Negotiation Genius starts off slow and it's pretty tough to get through early on. I'm glad I persisted. Around chapter 6 the book becomes a lot better. The book offers some theoretical negotiation in the beginning and then changes to practical negotiation strategies after. It's very clear that the authors are extremely intelligent. The book is highly academic and it reads like a Harvard class. Compare this to "Never Split The Difference" and it's very different. This book is very thorough and it covers all angles of negotiation including when not to negotiate. If you like negotiation than this is a must read but if you're looking for a book that will help you buy a car, I don't think you'll get enough practical or specific haggling action advice from it. This would be a good book for C-Suite professionals.
Negotiation Genius starts off slow and it's pretty tough to get through early on. I'm glad I persisted. Around chapter 6 the book becomes a lot better. The book offers some theoretical negotiation in the beginning and then changes to practical negotiation strategies after. It's very clear that the authors are extremely intelligent. The book is highly academic and it reads like a Harvard class. Compare this to "Never Split The Difference" and it's very different. This book is very thorough and it covers all angles of negotiation including when not to negotiate. If you like negotiation than this is a must read but if you're looking for a book that will help you buy a car, I don't think you'll get enough practical or specific haggling action advice from it. This would be a good book for C-Suite professionals.
Read
February 28, 2020Meh. School stuff.
July 30, 2020
These are my key takeaways from the book:
-Preparation for negotiations (checklist):
--Assess your BATNA (best alternative to the agreement currently under negotiation, Best Alternative to Negotiated Agreement) by identifying and valuing all alternative options. (p. 20)
--Identify all of your interests (not only price). (p. 72)
--Create a scoring system for these interests to trade them off against each other. (p. 72)
--Calculate a reservation value from your BATNA (this will be better than your BATNA because usually you can improve on your BATNA after the negotiation) (p. 20)
--Identify the other party’s multiple interests. (p. 74)
--Assess the other party’s BATNA and calculate their reservation value. (p. 21)
--Evaluate the ZOPA (zone of possible agreement). (p. 23) Make sure to anchor OUTSIDE of the ZOPA! Always anchor as aggressively as you can justify: “I think a price of … is appropriate because…” (pp. 34, 35)
--Make sure that you understand their decision rules. (pp. 183-184)
-Responding to a first offer: (pp. 31-34):
--Ignore anchor (and also threats, pp. 274-275)
--Separate information from influence. (also see p. 174)
--If an anchor surprises you, ask some questions around the deal that challenge your assumptions. Then shift attention away from the anchor and define the negotiation in your own terms.
--If the situation could become heated: Identify and neutralize (by naming) any threats that the other party could make. Only do this if they already know your weak spots. (pp. 275-276)
-Protect yourself from lies and uncertainty (=differences in how the parties see the probability of outcomes) with contingency contracts. (p. 41)
-It can make sense to hint at a specific assumption that you are making, e.g., “I think the land will be used to construct commercial real estate. This would make the land very valuable. What are your plans with the land?” Questions like these make it hard for the other party to lie. (p. 40)
-If you are surprised by a good offer, don’t celebrate - think! (p. 48)
-When you have closed a deal, show willingness to improve the deal if both parties can be made better off (post-settlement settlement, PSS). (p. 79)
--Acknowledge the progress that was already made. (p. 81)
--Suggest that there may be aspects that can be improved and that they probably feel the same. (p. 81)
--Say that you have conceded everything possible, but that you are willing to think “outside the box”. (p. 81)
--State that you are now looking for a new agreement, but for an improved agreement that both prefer. (p. 81)
-Ask the other party why they are interested in certain aspects of the deal. Don’t just ask in what they are interested. (p. 85)
-See demands as opportunities. If the other party insists on demanding certain clauses, then they may be willing to pay a lot for it. Maybe their demands create more room for the overall negotiation success. (pp. 90-91)
-Logrolling: (p. 61)
--Make package offers to show how you trade off different parameters of a deal and to see if your preferences diverge from the other party’s preferences. (pp. 100-102) Consider package deals especially when you are making proposals! This way, you not only compete on price. (p. 242)
--Negotiate multiple issues simultaneously. (p. 100)
--Creating value is about creating Pareto efficiency. But claiming value is purely about how value is distributed. (p. 65)
-Various behavioral advice:
--Focus on other party’s BATNA and reservation value. (p. 42)
--Be comfortable with silence. (p. 43)
--Label your concessions. (p. 43)
-Common negotiation mistakes (p. 27):
--Making a first offer without sufficient information.
--Weak first offer.
--Didn’t listen enough.
--Only tried to influence the other party without trying to learn.
--Not challenging assumptions about the other party.
--Miscalculated ZOPA, did not reevaluate it during the negotiation.
--Made disproportionate concessions.
-Long-term considerations for strategic negotiations: (p. 191)
--Changes in laws
--What precedent does this deal create?
--How to gain information about key personnel (when buying a company)?
--How will competitors react? How much power do they have and where does their power come from?
--What assumptions do you make?
-Psychology and trust:
--People often attribute the other party’s concessions to external factors instead of thanking the other party and allowing them to gain your trust. (p. 136)
--Highlight their potential losses rather than their potential gains. (p. 160)
--Disaggregate their gains and aggregate their losses. The more often something occurs, the higher the perceived relevance. Don’t say “I have completed earlier and under budget”. Say “I have completed earlier” and a couple days later “I have completed under budget”. (pp. 162-163)
--Keep them saying “yes”. (pp. 163-165)
--Make them justify their past decisions. (foot in the door strategy) (pp. 165-166)
--Make small (token) unilateral concessions to create reciprocity. (pp. 170-171)
--Look prepared to avoid being deceived. If you look prepared, the other side will be less likely to try to deceive you. (pp. 199-200)
--Most people, instead of lying, will try not to answer critical questions. If you notice that you did not get a direct response, take this as a sign that the statement is not to be taken at face value. (p. 206)
--When designing contracts, make sure that they don’t contain constraints that tempt the parties to lie. Budget allocations between departments often lead to overstatements of expected costs (lying). One should identify which positions lead department heads to experience uncertainty about the predictability of their budgets and make sure that exceptions are possible in the budget planning. (p. 217)
--Bounded ethicality: People often contradict their own sense of ethicality without knowing. (p. 220) Conflicts of interest make the agent believe that the conflict of interest is not actually there. People that are paid by the hour often engage in lengthy work and actually believe that this serves their clients. Upton Sinclair: “It is difficult to get a man to understand something when his salary depends upon his not understanding it.” People often actually believe that their products are the best, even when they are not. (pp. 221-222)
--Let the other party know when you think that a threat is not credible. (pp. 276-277)
-Preparation for negotiations (checklist):
--Assess your BATNA (best alternative to the agreement currently under negotiation, Best Alternative to Negotiated Agreement) by identifying and valuing all alternative options. (p. 20)
--Identify all of your interests (not only price). (p. 72)
--Create a scoring system for these interests to trade them off against each other. (p. 72)
--Calculate a reservation value from your BATNA (this will be better than your BATNA because usually you can improve on your BATNA after the negotiation) (p. 20)
--Identify the other party’s multiple interests. (p. 74)
--Assess the other party’s BATNA and calculate their reservation value. (p. 21)
--Evaluate the ZOPA (zone of possible agreement). (p. 23) Make sure to anchor OUTSIDE of the ZOPA! Always anchor as aggressively as you can justify: “I think a price of … is appropriate because…” (pp. 34, 35)
--Make sure that you understand their decision rules. (pp. 183-184)
-Responding to a first offer: (pp. 31-34):
--Ignore anchor (and also threats, pp. 274-275)
--Separate information from influence. (also see p. 174)
--If an anchor surprises you, ask some questions around the deal that challenge your assumptions. Then shift attention away from the anchor and define the negotiation in your own terms.
--If the situation could become heated: Identify and neutralize (by naming) any threats that the other party could make. Only do this if they already know your weak spots. (pp. 275-276)
-Protect yourself from lies and uncertainty (=differences in how the parties see the probability of outcomes) with contingency contracts. (p. 41)
-It can make sense to hint at a specific assumption that you are making, e.g., “I think the land will be used to construct commercial real estate. This would make the land very valuable. What are your plans with the land?” Questions like these make it hard for the other party to lie. (p. 40)
-If you are surprised by a good offer, don’t celebrate - think! (p. 48)
-When you have closed a deal, show willingness to improve the deal if both parties can be made better off (post-settlement settlement, PSS). (p. 79)
--Acknowledge the progress that was already made. (p. 81)
--Suggest that there may be aspects that can be improved and that they probably feel the same. (p. 81)
--Say that you have conceded everything possible, but that you are willing to think “outside the box”. (p. 81)
--State that you are now looking for a new agreement, but for an improved agreement that both prefer. (p. 81)
-Ask the other party why they are interested in certain aspects of the deal. Don’t just ask in what they are interested. (p. 85)
-See demands as opportunities. If the other party insists on demanding certain clauses, then they may be willing to pay a lot for it. Maybe their demands create more room for the overall negotiation success. (pp. 90-91)
-Logrolling: (p. 61)
--Make package offers to show how you trade off different parameters of a deal and to see if your preferences diverge from the other party’s preferences. (pp. 100-102) Consider package deals especially when you are making proposals! This way, you not only compete on price. (p. 242)
--Negotiate multiple issues simultaneously. (p. 100)
--Creating value is about creating Pareto efficiency. But claiming value is purely about how value is distributed. (p. 65)
-Various behavioral advice:
--Focus on other party’s BATNA and reservation value. (p. 42)
--Be comfortable with silence. (p. 43)
--Label your concessions. (p. 43)
-Common negotiation mistakes (p. 27):
--Making a first offer without sufficient information.
--Weak first offer.
--Didn’t listen enough.
--Only tried to influence the other party without trying to learn.
--Not challenging assumptions about the other party.
--Miscalculated ZOPA, did not reevaluate it during the negotiation.
--Made disproportionate concessions.
-Long-term considerations for strategic negotiations: (p. 191)
--Changes in laws
--What precedent does this deal create?
--How to gain information about key personnel (when buying a company)?
--How will competitors react? How much power do they have and where does their power come from?
--What assumptions do you make?
-Psychology and trust:
--People often attribute the other party’s concessions to external factors instead of thanking the other party and allowing them to gain your trust. (p. 136)
--Highlight their potential losses rather than their potential gains. (p. 160)
--Disaggregate their gains and aggregate their losses. The more often something occurs, the higher the perceived relevance. Don’t say “I have completed earlier and under budget”. Say “I have completed earlier” and a couple days later “I have completed under budget”. (pp. 162-163)
--Keep them saying “yes”. (pp. 163-165)
--Make them justify their past decisions. (foot in the door strategy) (pp. 165-166)
--Make small (token) unilateral concessions to create reciprocity. (pp. 170-171)
--Look prepared to avoid being deceived. If you look prepared, the other side will be less likely to try to deceive you. (pp. 199-200)
--Most people, instead of lying, will try not to answer critical questions. If you notice that you did not get a direct response, take this as a sign that the statement is not to be taken at face value. (p. 206)
--When designing contracts, make sure that they don’t contain constraints that tempt the parties to lie. Budget allocations between departments often lead to overstatements of expected costs (lying). One should identify which positions lead department heads to experience uncertainty about the predictability of their budgets and make sure that exceptions are possible in the budget planning. (p. 217)
--Bounded ethicality: People often contradict their own sense of ethicality without knowing. (p. 220) Conflicts of interest make the agent believe that the conflict of interest is not actually there. People that are paid by the hour often engage in lengthy work and actually believe that this serves their clients. Upton Sinclair: “It is difficult to get a man to understand something when his salary depends upon his not understanding it.” People often actually believe that their products are the best, even when they are not. (pp. 221-222)
--Let the other party know when you think that a threat is not credible. (pp. 276-277)
August 4, 2008
“Negotiation Genius” is another book on the subject in a long line of similar books. It is not surprising that the authors, Malhotra and Bazerman are both professors at Harvard Business School, genesis of the most famous book ever on the subject “Getting to Yes” by Roger Fisher, Bruce M. Patton, and William L. Ury
Like “Getting to Yes”, this book is simplicity itself. Full of case studies that explain and demonstrate “how to” it provides the reader with five clear principles to apply in any negotiation. The authors use a nice analogy of the crime detective to emphasise their main point – that the best and often the only way to get what you want from a negotiation is to approach the negotiation from an investigative viewpoint rather than assuming you know what the motivation is behind the other party’s wants. They argue that most negotiators assume they understand the other party’s motivations and therefore don’t explore them further. And so, they often get stuck in trying to bargain around their own position rather than looking at the reasons “why?” the other party wants what they want.
Simple, but effective. Like so many good books of its type, it’s a shame that the people who really need to apply the principles outlined by Malhotra and Bazerman in “Negotiation Genius” (e.g. our politicians, international trade negotiators and the like) will not be reading and applying their investigative approach. Never mind, you and I will become all the better for applying our investigative skills to our future negotiations.
Like “Getting to Yes”, this book is simplicity itself. Full of case studies that explain and demonstrate “how to” it provides the reader with five clear principles to apply in any negotiation. The authors use a nice analogy of the crime detective to emphasise their main point – that the best and often the only way to get what you want from a negotiation is to approach the negotiation from an investigative viewpoint rather than assuming you know what the motivation is behind the other party’s wants. They argue that most negotiators assume they understand the other party’s motivations and therefore don’t explore them further. And so, they often get stuck in trying to bargain around their own position rather than looking at the reasons “why?” the other party wants what they want.
Simple, but effective. Like so many good books of its type, it’s a shame that the people who really need to apply the principles outlined by Malhotra and Bazerman in “Negotiation Genius” (e.g. our politicians, international trade negotiators and the like) will not be reading and applying their investigative approach. Never mind, you and I will become all the better for applying our investigative skills to our future negotiations.
December 14, 2023
4,5 stars; Excellent philosophy and advice on negotiation tactics; always strive to create value, search for the 'zopa' (zone of possible agreement) and never part with a 'no'; always seek the 'yes' or 'no with justification' (what would've taken it to make the deal work); only reason this wasn't a 5 star book; it could benefit from some further editing; cutting the size and trim back the number of examples.
February 12, 2022
I picked up this book afther reading "Never split the difference", so that is my frame of reference.
Negotiation genius is more comprehensive which makes it in turn tougher to fully grasp the explained concepts. In my opinion the book stays too much on the surface and is too high-level/vague. Not all explanations and examples made sense. Some sounded too good/easy to be true. Lastly, it was not always easy to keep reading.
If you want to read your first negotiation book I would recommend "Never split the difference" by Chris Voss. It is a blast to read with ready to use, simple and effective concepts.
Negotiation genius is more comprehensive which makes it in turn tougher to fully grasp the explained concepts. In my opinion the book stays too much on the surface and is too high-level/vague. Not all explanations and examples made sense. Some sounded too good/easy to be true. Lastly, it was not always easy to keep reading.
If you want to read your first negotiation book I would recommend "Never split the difference" by Chris Voss. It is a blast to read with ready to use, simple and effective concepts.
December 26, 2013
How to negotiate from the legendary Bazerman.
Overconfidence is good when implementing decisions. It provides with motivation
and inspiration to improve performance. Overconfidence is not good for making decisions. See future prospects as better than they are.
Less likely to succeed if you do not trust your opponent. Do not suspect all their motivations
Avoid negotiating under time pressure.
Fixed pie bias. Sometimes negotiations are not a zero sum game.
Prepare for negotiation;
What are top priorities
What is initial proposal
How to influence
Highlight potential losses rather than gains
Why is opponent angry?
Give voice to anger
Sidestep emotion
Focus on true interests
Overconfidence is good when implementing decisions. It provides with motivation
and inspiration to improve performance. Overconfidence is not good for making decisions. See future prospects as better than they are.
Less likely to succeed if you do not trust your opponent. Do not suspect all their motivations
Avoid negotiating under time pressure.
Fixed pie bias. Sometimes negotiations are not a zero sum game.
Prepare for negotiation;
What are top priorities
What is initial proposal
How to influence
Highlight potential losses rather than gains
Why is opponent angry?
Give voice to anger
Sidestep emotion
Focus on true interests
November 18, 2021
Pre-negotiation
- Exhaust all pre-negotiation sources of information.
- Identify your assumptions as well as what you do not know.
- Create a scoring system so that you can quickly and objectively compare the value of offers spanning your multiple interests
- Evaluate the zone of possible agreement (ZOPA) as the range between the reservation value of your best alternative to a negotiated agreement (BATNA) and your counterpart’s BATNA. In other words, this is the range between the least value the seller will accept and the most value the buyer will give.
- Determine & write down your aspiration value, the most value the seller can justifiably expect to accept or the least value the buyer can justifiably expect to give.
- Formulate a pre-planned exit strategy in the event you cannot reach an agreement. Decide, in advance, how much money and time each was willing to spend to try to win.
- Know when not to negotiate – when your BATNA stinks ( and everyone knows it ), when negotiation would send the wrong signal to the other party, when the potential harm to the relationship exceeds the expected value from the negotiation, when negotiating is culturally inappropriate, or when your BATNA beats the other side’s best possible offer.
During negotiation
- Only if you have objectively superior information, make the first offer of your aspiration value so that you can establish an anchor. Share your justification and dwell on the anchor to make it more powerful. Your first offer should be outside of the ZOPA – one that you know the other side will not accept.
- If the other side makes the first offer, first separate information from influence, then counteroffer with your original (or even more aggressive) aspiration value. Avoid dwelling on their anchor. If their offer is not even a basis for starting the discussion, then give them time to moderate their offer without losing face.
- If your counterpart makes an offer you love or are positively surprised by, you should still take some time to ponder it (What do they know that you don’t?) or even ask for additional concessions. - Satisfaction has less to do with how well someone actually negotiated and much more to do with how well they think they negotiated.
- Focus on your aspiration value and their reservation value
- Seize every opportunity to create value by ‘logrolling’ – the act of making trades across multiple issues. If the other party values something more than you do, let them have it — but don’t give it away, sell it.
- Negotiate multiple issues simultaneously with package offers.
- Make multiple offers simultaneously – esp. in the likely event that you do not know their true interests and needs. If they do not accept either, then ask, “Which offer is closer to something you might accept?”
- Be comfortable with silence in general and especially after making each offer or counteroffer.
- Ask questions, esp. “why” questions, to test your assumptions and to identify their interests and priorities.
- Seek to identify and reconcile differences (not demands). Demands are opportunities to learn about the other party’s interests and needs to that you can create and capture value.
- Avoid making unilateral concessions. ‘Label’ your concessions as costly to trigger reciprocity. - - - Even better, specify what you expect in return. You can also make contingent concessions, for example, “I can pay a higher price if you can promise me early delivery.”
- Protect yourself with contingency contracts – agreements that leave certain elements of the deal unresolved until a future event (ex: on-time bonus paid to the seller or over-time penalty paid by the seller).
– Here are a few of the negotiable issues that you can introduce into the discussion the next time the other side appears entirely focused on price: delivery date; financing; quality; contract length; last look provisions; arbitration clauses; exclusivity clauses; the level of service support; warranties; future business.
– Build trust by sharing information regarding your priorities across different issues (though don’t necessarily say which ones you don’t care about since you can use those for concessions). This will trigger reciprocal information sharing. However, you should rarely give away your reservation value, and certainly not early in the negotiation.
– Avoid negotiating under time pressure. Partition the negotiation across multiple sessions. Similarly, give others time to think and prepare since that will facilitate value creation.
Post-negotiation
– When the negotiation is over, shift your focus to your reservation value so that you feel better about the outcome
– Realize that your negotiation should not end when the deal is signed — it should end when you feel that you have exhausted all options for value creation.
– Don’t let negotiations end with a rejection of your offer. At the very least, ask “What would it have taken for us to reach an agreement?”
– Debrief multiple negotiations simultaneously. Negotiation geniuses make it a habit to review important negotiations after they are completed.
Bias & Influence
– Fixed-pie bias: It is always better to first try to enlarge the pie. In the process, do not denigrate or devalue the other party’s concessions.
– Vividness bias: Avoid overweighting vivid information that comes up during the course of the negotiation by falling back on your pre-negotiation scoring system and by separating information from influence.
– Non-rational escalation of commitment: Anticipate and prepare for the escalation forces you are likely to encounter.
– Susceptibility to framing: We are risk-averse when thinking about gains and risk-seeking with thinking about losses. Hence, use loss-framing against your counterpart – for example, “You will miss out on the opportunity to have X if you do not increase your bid.” But, process their offers in your mind by gain-framing.
– Biases of the heart: Try to imagine what you would believe to be fair if you did not know your role in a given negotiation or dispute
– Disaggregate their gains (ex. Space out your concessions) and aggregate their losses (ex: make comprehensive demands)
– Door-in-the-face technique: Make an extreme demand you expect will be rejected so your counterpart accepts a moderate one that you make soon after.
– Foot-in-the-door: Make a moderate demand you expect will be accepted then after time has passed, a more extreme one. This takes advantage of consistency bias.
– Leverage the power of justification (I am asking for X because …)
– Leverage the power of social proof
– Take the Implicit Association Test (IAT) on Harvard University’s website http://implicit.harvard.edu
Mindset / Other
– Consider the context of the relationship – your goal is to get the best possible package deal while strengthening the relationship and your reputation.
– Don’t dismiss anything as “their problem” since their problem quickly becomes your problem.
– Build trust when you’re not negotiating. Your greatest opportunity to build trust comes when your cooperative, benevolent, or ethical behavior cannot be interpreted as self-serving.
– Before & during negotiation, assign and reward a “devil’s advocate” who has no stake in the outcome and whose job it is to criticize your decisions and find faults in your logic.
– Consider the impact of their actions on others and to think through the competitive dynamics that will result from their strategy. Competitors often fail to assess the strength of their competition when deciding whether to enter a market — an extremely costly mistake.
– We need to think through the decision rules, constraints, and politics of the other side.
– To eliminate the motivation for your counterpart to lie, (a) look prepared (b) signal your ability to obtain information, (c) ask less threatening, indirect questions, (d) don’t lie. To detect a lie, look out for responses that do not (completely) answer the question you asked – when misleading others, people still strive to technically tell the truth. If you catch someone in a lie, give them a face-saving way out.
– It is best to give the other side the benefit of the doubt — but to also be more careful as you move forward
– When negotiating from a position of weakness: (a) don’t reveal that you are weak (b) leverage their weaknesses (c) leverage your distinct value proposition = your strength (d) consider relinquishing what little power you have and simply ask them to help you – ex: “I gratefully and unconditionally accept your job offer but ask that you look at comparable salaries from our career services offers and consider an adjustment” (e) build coalitions with other weak parties (f) attack the sources of their power – ex: ‘Pledge-a-picket’ program where clinic asks supporters to pledge donations on a per-protester basis
– Be very careful labeling someone as “irrational;” instead, strive to understand their information gaps, interests, needs, constraints, and perspectives. If you do not give an angry negotiator the opportunity to voice his frustration, he will likely become even angrier — or, at the very least, resentful. When the other side is angry, do not allow yourself to be the target by taking it personally.
– To deal with threats and ultimatums, you can either (a) ignore the threat (b) neutralize the threat by being the first to voice their concern (c) let them know if you don’t find the threat credible in a way that helps them save face.
Negotiation examples/exercises mentioned in the book
– Hamilton Real Estate case
Mom’s Inc.
– Auction off this $100 bill where the 2nd highest bidder must also pay the amount he or she bids
– Pledge-a-picket program
https://sellingsherpa.com/index.php/2...
- Exhaust all pre-negotiation sources of information.
- Identify your assumptions as well as what you do not know.
- Create a scoring system so that you can quickly and objectively compare the value of offers spanning your multiple interests
- Evaluate the zone of possible agreement (ZOPA) as the range between the reservation value of your best alternative to a negotiated agreement (BATNA) and your counterpart’s BATNA. In other words, this is the range between the least value the seller will accept and the most value the buyer will give.
- Determine & write down your aspiration value, the most value the seller can justifiably expect to accept or the least value the buyer can justifiably expect to give.
- Formulate a pre-planned exit strategy in the event you cannot reach an agreement. Decide, in advance, how much money and time each was willing to spend to try to win.
- Know when not to negotiate – when your BATNA stinks ( and everyone knows it ), when negotiation would send the wrong signal to the other party, when the potential harm to the relationship exceeds the expected value from the negotiation, when negotiating is culturally inappropriate, or when your BATNA beats the other side’s best possible offer.
During negotiation
- Only if you have objectively superior information, make the first offer of your aspiration value so that you can establish an anchor. Share your justification and dwell on the anchor to make it more powerful. Your first offer should be outside of the ZOPA – one that you know the other side will not accept.
- If the other side makes the first offer, first separate information from influence, then counteroffer with your original (or even more aggressive) aspiration value. Avoid dwelling on their anchor. If their offer is not even a basis for starting the discussion, then give them time to moderate their offer without losing face.
- If your counterpart makes an offer you love or are positively surprised by, you should still take some time to ponder it (What do they know that you don’t?) or even ask for additional concessions. - Satisfaction has less to do with how well someone actually negotiated and much more to do with how well they think they negotiated.
- Focus on your aspiration value and their reservation value
- Seize every opportunity to create value by ‘logrolling’ – the act of making trades across multiple issues. If the other party values something more than you do, let them have it — but don’t give it away, sell it.
- Negotiate multiple issues simultaneously with package offers.
- Make multiple offers simultaneously – esp. in the likely event that you do not know their true interests and needs. If they do not accept either, then ask, “Which offer is closer to something you might accept?”
- Be comfortable with silence in general and especially after making each offer or counteroffer.
- Ask questions, esp. “why” questions, to test your assumptions and to identify their interests and priorities.
- Seek to identify and reconcile differences (not demands). Demands are opportunities to learn about the other party’s interests and needs to that you can create and capture value.
- Avoid making unilateral concessions. ‘Label’ your concessions as costly to trigger reciprocity. - - - Even better, specify what you expect in return. You can also make contingent concessions, for example, “I can pay a higher price if you can promise me early delivery.”
- Protect yourself with contingency contracts – agreements that leave certain elements of the deal unresolved until a future event (ex: on-time bonus paid to the seller or over-time penalty paid by the seller).
– Here are a few of the negotiable issues that you can introduce into the discussion the next time the other side appears entirely focused on price: delivery date; financing; quality; contract length; last look provisions; arbitration clauses; exclusivity clauses; the level of service support; warranties; future business.
– Build trust by sharing information regarding your priorities across different issues (though don’t necessarily say which ones you don’t care about since you can use those for concessions). This will trigger reciprocal information sharing. However, you should rarely give away your reservation value, and certainly not early in the negotiation.
– Avoid negotiating under time pressure. Partition the negotiation across multiple sessions. Similarly, give others time to think and prepare since that will facilitate value creation.
Post-negotiation
– When the negotiation is over, shift your focus to your reservation value so that you feel better about the outcome
– Realize that your negotiation should not end when the deal is signed — it should end when you feel that you have exhausted all options for value creation.
– Don’t let negotiations end with a rejection of your offer. At the very least, ask “What would it have taken for us to reach an agreement?”
– Debrief multiple negotiations simultaneously. Negotiation geniuses make it a habit to review important negotiations after they are completed.
Bias & Influence
– Fixed-pie bias: It is always better to first try to enlarge the pie. In the process, do not denigrate or devalue the other party’s concessions.
– Vividness bias: Avoid overweighting vivid information that comes up during the course of the negotiation by falling back on your pre-negotiation scoring system and by separating information from influence.
– Non-rational escalation of commitment: Anticipate and prepare for the escalation forces you are likely to encounter.
– Susceptibility to framing: We are risk-averse when thinking about gains and risk-seeking with thinking about losses. Hence, use loss-framing against your counterpart – for example, “You will miss out on the opportunity to have X if you do not increase your bid.” But, process their offers in your mind by gain-framing.
– Biases of the heart: Try to imagine what you would believe to be fair if you did not know your role in a given negotiation or dispute
– Disaggregate their gains (ex. Space out your concessions) and aggregate their losses (ex: make comprehensive demands)
– Door-in-the-face technique: Make an extreme demand you expect will be rejected so your counterpart accepts a moderate one that you make soon after.
– Foot-in-the-door: Make a moderate demand you expect will be accepted then after time has passed, a more extreme one. This takes advantage of consistency bias.
– Leverage the power of justification (I am asking for X because …)
– Leverage the power of social proof
– Take the Implicit Association Test (IAT) on Harvard University’s website http://implicit.harvard.edu
Mindset / Other
– Consider the context of the relationship – your goal is to get the best possible package deal while strengthening the relationship and your reputation.
– Don’t dismiss anything as “their problem” since their problem quickly becomes your problem.
– Build trust when you’re not negotiating. Your greatest opportunity to build trust comes when your cooperative, benevolent, or ethical behavior cannot be interpreted as self-serving.
– Before & during negotiation, assign and reward a “devil’s advocate” who has no stake in the outcome and whose job it is to criticize your decisions and find faults in your logic.
– Consider the impact of their actions on others and to think through the competitive dynamics that will result from their strategy. Competitors often fail to assess the strength of their competition when deciding whether to enter a market — an extremely costly mistake.
– We need to think through the decision rules, constraints, and politics of the other side.
– To eliminate the motivation for your counterpart to lie, (a) look prepared (b) signal your ability to obtain information, (c) ask less threatening, indirect questions, (d) don’t lie. To detect a lie, look out for responses that do not (completely) answer the question you asked – when misleading others, people still strive to technically tell the truth. If you catch someone in a lie, give them a face-saving way out.
– It is best to give the other side the benefit of the doubt — but to also be more careful as you move forward
– When negotiating from a position of weakness: (a) don’t reveal that you are weak (b) leverage their weaknesses (c) leverage your distinct value proposition = your strength (d) consider relinquishing what little power you have and simply ask them to help you – ex: “I gratefully and unconditionally accept your job offer but ask that you look at comparable salaries from our career services offers and consider an adjustment” (e) build coalitions with other weak parties (f) attack the sources of their power – ex: ‘Pledge-a-picket’ program where clinic asks supporters to pledge donations on a per-protester basis
– Be very careful labeling someone as “irrational;” instead, strive to understand their information gaps, interests, needs, constraints, and perspectives. If you do not give an angry negotiator the opportunity to voice his frustration, he will likely become even angrier — or, at the very least, resentful. When the other side is angry, do not allow yourself to be the target by taking it personally.
– To deal with threats and ultimatums, you can either (a) ignore the threat (b) neutralize the threat by being the first to voice their concern (c) let them know if you don’t find the threat credible in a way that helps them save face.
Negotiation examples/exercises mentioned in the book
– Hamilton Real Estate case
Mom’s Inc.
– Auction off this $100 bill where the 2nd highest bidder must also pay the amount he or she bids
– Pledge-a-picket program
https://sellingsherpa.com/index.php/2...
This entire review has been hidden because of spoilers.
January 28, 2022
Deeply wonderful book, mainly because the take-away is not to negotiate everything everywhere but that negotiations are options for creating value for both parties involved. It's not about claiming the highest price and taking advantage of the other side. If done well, you can apply these concepts in conversations with people in general - figuring out what they want through listening, understanding and empathizing, and then finding a way to create value for both you and them. Often we think we must compromise and self-sacrifice, especially in relationships/marriage, but if we approach these conversations with value-building in mind, we end up in better and more sustainable relationships overall.
They book inevitably makes you want to jump into the world and negotiate *everywhere*, so it's super fitting that they end it with reminders of times and places where negotiations are inappropriate. The main take-away is still that the soft skills - listening, understanding, and empathizing - are the ones you should go apply everywhere, and the rest of the negotiation tips you should apply in actual negotiations that matter.
They book inevitably makes you want to jump into the world and negotiate *everywhere*, so it's super fitting that they end it with reminders of times and places where negotiations are inappropriate. The main take-away is still that the soft skills - listening, understanding, and empathizing - are the ones you should go apply everywhere, and the rest of the negotiation tips you should apply in actual negotiations that matter.
August 10, 2018
Aprender a ser un negociador genial, a partir de las lecciones de este magnífico libro, será mi nuevo objetivo. Es muy valiosa la información explicada en este libro y será un gran reto lograr aplicarla. Para un negociador novato como yo, este libro es la guía perfecta para empezar porque enmarca todos los aspectos y además narra con ejemplos cómo aplicarlos.
Mi calificación ideal sería de 4,5 pero no existe está alternativa en Goodreads.
Mi calificación ideal sería de 4,5 pero no existe está alternativa en Goodreads.
August 28, 2021
One of the best books I have ever read about negotiation.
February 4, 2022
Got this because my compensation review is coming up at work and I was nervous about asking for more money. Now I'm nervous and I have a lot more things to think about going wrong
Pretty solid! A lot of great ideas
Pretty solid! A lot of great ideas
March 17, 2020
It started rather slowly, gets better second part of the book. This is a good reference for negotiation, sounds every bits the MBA material on the subject (Harvard Business School).
The book brings us through the structure of negotiation : figure out the ZOPA (zone of possible agreement), assess your BATNA (best alternative to negotiated agreement) etc. The writers discussed the biases (theirs and ours); they five good advice on handling situations where you are negotiating from a position of weakness, handling irrational party and ethical issues (never lie!). I thought examples / sample scripts provided were very good (hence the 3 stars). I will recommend this to those who wants a good reference to the subject.
“Why are possible illusions useful for quarterbacks and salespeople? Because unlike negotiators, they are not making decisions so much they are implementing decisions that have already been made. Overconfident and irrational optimism may provide them with motivation to improve their performance at relatively low cost. But such illusions are extremely costly for negotiations, who must make decisions constantly - before, during and after the negotiation.”
The book brings us through the structure of negotiation : figure out the ZOPA (zone of possible agreement), assess your BATNA (best alternative to negotiated agreement) etc. The writers discussed the biases (theirs and ours); they five good advice on handling situations where you are negotiating from a position of weakness, handling irrational party and ethical issues (never lie!). I thought examples / sample scripts provided were very good (hence the 3 stars). I will recommend this to those who wants a good reference to the subject.
“Why are possible illusions useful for quarterbacks and salespeople? Because unlike negotiators, they are not making decisions so much they are implementing decisions that have already been made. Overconfident and irrational optimism may provide them with motivation to improve their performance at relatively low cost. But such illusions are extremely costly for negotiations, who must make decisions constantly - before, during and after the negotiation.”
July 9, 2008
I'd like to give the book 3.5 stars. I think this book provides excellent real-world examples of negotiating value-creating solutions for all parties to an agreement. While this is a business book, the principles discussed are applicable more generally to how we 'negotiate' the world.
Negotiation Genius is doggedly practical, and that's both its greatest strength, and greatest weakness. I arrived at this book through the earlier work of Max Bazerman on cognitive biases, "Judgment in Managerial Decision-Making," a slim yet dense text that delved deeply into the theory that underlines much of Negotiation Genius, which provides relatively few glimpses of the more interesting (to me) cognitive subtext.
In sum, this is not a great book, but its not meant to be -- it's a useful book. If you want to figure out how to get that raise on a personal level, or make the 'big deal' on the business level, this book will provide you with productive habits of thought to improve how you negotiate your way through the real world.
Negotiation Genius is doggedly practical, and that's both its greatest strength, and greatest weakness. I arrived at this book through the earlier work of Max Bazerman on cognitive biases, "Judgment in Managerial Decision-Making," a slim yet dense text that delved deeply into the theory that underlines much of Negotiation Genius, which provides relatively few glimpses of the more interesting (to me) cognitive subtext.
In sum, this is not a great book, but its not meant to be -- it's a useful book. If you want to figure out how to get that raise on a personal level, or make the 'big deal' on the business level, this book will provide you with productive habits of thought to improve how you negotiate your way through the real world.
March 15, 2013
The reality is, you don't know what you don't know about negotiating. What you don't know can cost you a lot of money and frustration. And not just in the business world. In your personal life, as well.
For instance, if you don't know what "logrolling" means, you would be well-advised to read this book.
Is this the best book to read on negotiating? Well, I haven't read any others. But I can tell you that my negotiation instructor at one of the top universities in the country assigned this book as the one and only text for his negotiation class. In fact, the class was built around this book.
It is written in a highly accessible style and it is liberally sprinkled with anecdotes and examples, including a quite memorable story from Teddy Roosevelt's 1912 presidential campaign. And the authors make use of some of the best research in the behavioral sciences.
Even if you've done a lot of negotiating, you'll probably pick us some valuable ideas and insights from this book.
For instance, if you don't know what "logrolling" means, you would be well-advised to read this book.
Is this the best book to read on negotiating? Well, I haven't read any others. But I can tell you that my negotiation instructor at one of the top universities in the country assigned this book as the one and only text for his negotiation class. In fact, the class was built around this book.
It is written in a highly accessible style and it is liberally sprinkled with anecdotes and examples, including a quite memorable story from Teddy Roosevelt's 1912 presidential campaign. And the authors make use of some of the best research in the behavioral sciences.
Even if you've done a lot of negotiating, you'll probably pick us some valuable ideas and insights from this book.
November 21, 2019
A obra de Malhotra e Bazerman aborda os passos necessários para a criação de gênios da negociação. E com os autores denominam um gênio da negociação? Nas palavras dos autores conhecemos um gênio da negociação, exatamente, quando vemos um, observando à maneira com que ele pensa, prepara e executa uma estratégia de negociação.
Bons negociadores são metódicos, portanto, não é surpresa que este livro tenha uma abordagem metódica. Por exemplo, é escrito em três partes que são naturalmente sequenciais. Cada parte consiste de capítulos em ordem progressiva. Esta estrutura ajuda ao leitor absorver o material rapidamente. Nem todo mundo se sente confortável com uma abordagem metódica ou uma maneira estruturada de pensar. Mas pensamentos não estruturados e a abordagem randômica estabelecem uma meta muito baixa no desempenho de negociações e em muitas outras disciplinas. O livro, propriamente, exala a abordagem metódica e pensamento estruturado que é a chave para a boa negociação. Os autores certamente tomaram do próprio remédio.
O livro como dissemos antes consiste de três partes.
Parte I: A Caixa de Ferramentas do Negociador, consistindo de três capítulos. Aqui aprendemos sobre reclamar e criar valor. Os autores iniciam com um exemplo do mercado imobiliário com uma negociação na qual apenas uma questão está em jogo. Este exemplo simples é utilizado para introduzir conceitos importantes, que se situam na fase de preparação da negociação. Assim, somos apresentados à BATNA, Preço de Reserva, Zona de Acordos Possíveis (ZOPA), Implementação do Acordo, o Monitoramento e uma excelente discussão sobre estratégia na Ancoragem. No segundo capítulo desta Parte I somos apresentados a um exemplo um pouco mais complexo de negociação, com muitas questões em jogo e por conseguinte maior capacidade de criação de valor para as partes. Ficam bem claras no exemplo, as estratégias de criação de valor. O terceiro capítulo nos explica porque essas ferramentas coletivamente nos conferem habilidades para atuar no que os autores denominam de "negociações investigativas". Negociadores devem abordar as negociações da mesma maneira que um detetive se aproxima de uma cena de crime. A meta é aprender o máximo possível sobre a situação e as pessoas envolvidas.
Parte II: A Psicologia da Negociação também em três capítulos. A essência da Parte II é a óbvia constatação de que somos todos humanos. Cometemos erros e temos vieses cognitivos. O revelador é que os vieses são sistemáticos e previsíveis. Os autores se baseiam nas últimas pesquisas para oferecer aos leitores as formas de evitar esses vieses, não só os nossos próprios, mas principalmente os do outro lado, fato que nos confere alguma vantagem na negociação.
Part III: Negociando no Mundo Real toma praticamente metade do livro. Consiste de oito capítulos e vamos nos deter em três deles embora os demais cinco sejam também leitura absorvente e valiosa. Na verdade, os oito capítulos transformam o livro em um manual de treinamento de negociação, aquele que deve ficar na sua cabeceira, para pronto uso no mundo real.
Os três capítulos desta parte III sobre os quais vamos nos estender um pouco mais são os seguintes:
Capítulo 9: Confrontando Mentiras e Decepções. A maioria das estratégias apresentadas em livros de negociação, seminários, workshops e cursos em geral funcionam muito bem se a outra parte está negociando de boa fé e tentando trabalhar com você. Mas mesmo pequenas decepções não intencionadas podem minar estratégias brilhantes. Um bom negociador não usa nenhuma estratégia particular isoladamente. O Negociador gênio vai um passo adiante, através do uso de estratégias, especialmente, orientadas para por às claras mentiras e decepções e a partir dai usar outras estratégias para superá-las tendo em mente o melhor resultado. Este livro mostra essas estrategias.
Capítulo 11: Negociando a partir de uma Posição de Fraqueza. Todos temos alguma ocasião que negociar de uma posição de fraqueza. Situações como barganha salarial, lidando com o governo sobre taxas e impostos cobrados indevidamente, negociações em balcões de empresas áreas quando seu voo foi cancelado no último momento ou solucionando um problema com um cliente que parece ter todas as cartas ao mesmo tempo que se mostra pouco razoável. Todos nós podemos, sem muito esforço, engrossar esta lista. Então, o que fazer nestas situações? Se você não tem realmente nada a oferecer à outra parte não pode exercer a reciprocidade ou qualquer tipo de barganha. As respostas a estas questões e outras relacionadas estão neste capítulo.
Capítulo 12: Quando a Negociação Fica Feia: Lidando com a Irracionalidade, Grosserias, Raivas, Ameaças e Ego. As coisas podem sair fora do controle, simplesmente porque alguém assume um insulto que você não fez ou interpreta mal suas intenções. As pessoas olham para as situações através de suas próprias lentes, baseando-se em situações vividas, suas culturas, suas experiências. Emoções negativas podem causar com que ambos os lados se engajem em destruição mútua. O livro usa a crise dos mísseis de Cuba, dos anos 60, para ilustrar vários cenários e estratégias de como desmontar uma situação e ter a situação de volta aos eixos.
O Gênio da Negociação é consistente com a literatura estabelecida. O princípio básico do livro é que se você trabalhar para superar sua ignorância, você será capaz de trabalhar a partir de uma posição informada onde o seu poder real vai emergir. Os detalhes de como e porque fazer isto, junto com outras coisas que você não deve fazer é o que você ganhará com o estudo deste livro. Segundo os próprio autores este é um livro não apenas para ser lido, mas para ser estudado, permitindo então que se tire o melhor proveito dele. Conscientemente estudando e aplicando estes princípios no seu sempre crescente círculo de negociações você não só obterá recompensas para si, como para outros ao seu redor.
Bons negociadores são metódicos, portanto, não é surpresa que este livro tenha uma abordagem metódica. Por exemplo, é escrito em três partes que são naturalmente sequenciais. Cada parte consiste de capítulos em ordem progressiva. Esta estrutura ajuda ao leitor absorver o material rapidamente. Nem todo mundo se sente confortável com uma abordagem metódica ou uma maneira estruturada de pensar. Mas pensamentos não estruturados e a abordagem randômica estabelecem uma meta muito baixa no desempenho de negociações e em muitas outras disciplinas. O livro, propriamente, exala a abordagem metódica e pensamento estruturado que é a chave para a boa negociação. Os autores certamente tomaram do próprio remédio.
O livro como dissemos antes consiste de três partes.
Parte I: A Caixa de Ferramentas do Negociador, consistindo de três capítulos. Aqui aprendemos sobre reclamar e criar valor. Os autores iniciam com um exemplo do mercado imobiliário com uma negociação na qual apenas uma questão está em jogo. Este exemplo simples é utilizado para introduzir conceitos importantes, que se situam na fase de preparação da negociação. Assim, somos apresentados à BATNA, Preço de Reserva, Zona de Acordos Possíveis (ZOPA), Implementação do Acordo, o Monitoramento e uma excelente discussão sobre estratégia na Ancoragem. No segundo capítulo desta Parte I somos apresentados a um exemplo um pouco mais complexo de negociação, com muitas questões em jogo e por conseguinte maior capacidade de criação de valor para as partes. Ficam bem claras no exemplo, as estratégias de criação de valor. O terceiro capítulo nos explica porque essas ferramentas coletivamente nos conferem habilidades para atuar no que os autores denominam de "negociações investigativas". Negociadores devem abordar as negociações da mesma maneira que um detetive se aproxima de uma cena de crime. A meta é aprender o máximo possível sobre a situação e as pessoas envolvidas.
Parte II: A Psicologia da Negociação também em três capítulos. A essência da Parte II é a óbvia constatação de que somos todos humanos. Cometemos erros e temos vieses cognitivos. O revelador é que os vieses são sistemáticos e previsíveis. Os autores se baseiam nas últimas pesquisas para oferecer aos leitores as formas de evitar esses vieses, não só os nossos próprios, mas principalmente os do outro lado, fato que nos confere alguma vantagem na negociação.
Part III: Negociando no Mundo Real toma praticamente metade do livro. Consiste de oito capítulos e vamos nos deter em três deles embora os demais cinco sejam também leitura absorvente e valiosa. Na verdade, os oito capítulos transformam o livro em um manual de treinamento de negociação, aquele que deve ficar na sua cabeceira, para pronto uso no mundo real.
Os três capítulos desta parte III sobre os quais vamos nos estender um pouco mais são os seguintes:
Capítulo 9: Confrontando Mentiras e Decepções. A maioria das estratégias apresentadas em livros de negociação, seminários, workshops e cursos em geral funcionam muito bem se a outra parte está negociando de boa fé e tentando trabalhar com você. Mas mesmo pequenas decepções não intencionadas podem minar estratégias brilhantes. Um bom negociador não usa nenhuma estratégia particular isoladamente. O Negociador gênio vai um passo adiante, através do uso de estratégias, especialmente, orientadas para por às claras mentiras e decepções e a partir dai usar outras estratégias para superá-las tendo em mente o melhor resultado. Este livro mostra essas estrategias.
Capítulo 11: Negociando a partir de uma Posição de Fraqueza. Todos temos alguma ocasião que negociar de uma posição de fraqueza. Situações como barganha salarial, lidando com o governo sobre taxas e impostos cobrados indevidamente, negociações em balcões de empresas áreas quando seu voo foi cancelado no último momento ou solucionando um problema com um cliente que parece ter todas as cartas ao mesmo tempo que se mostra pouco razoável. Todos nós podemos, sem muito esforço, engrossar esta lista. Então, o que fazer nestas situações? Se você não tem realmente nada a oferecer à outra parte não pode exercer a reciprocidade ou qualquer tipo de barganha. As respostas a estas questões e outras relacionadas estão neste capítulo.
Capítulo 12: Quando a Negociação Fica Feia: Lidando com a Irracionalidade, Grosserias, Raivas, Ameaças e Ego. As coisas podem sair fora do controle, simplesmente porque alguém assume um insulto que você não fez ou interpreta mal suas intenções. As pessoas olham para as situações através de suas próprias lentes, baseando-se em situações vividas, suas culturas, suas experiências. Emoções negativas podem causar com que ambos os lados se engajem em destruição mútua. O livro usa a crise dos mísseis de Cuba, dos anos 60, para ilustrar vários cenários e estratégias de como desmontar uma situação e ter a situação de volta aos eixos.
O Gênio da Negociação é consistente com a literatura estabelecida. O princípio básico do livro é que se você trabalhar para superar sua ignorância, você será capaz de trabalhar a partir de uma posição informada onde o seu poder real vai emergir. Os detalhes de como e porque fazer isto, junto com outras coisas que você não deve fazer é o que você ganhará com o estudo deste livro. Segundo os próprio autores este é um livro não apenas para ser lido, mas para ser estudado, permitindo então que se tire o melhor proveito dele. Conscientemente estudando e aplicando estes princípios no seu sempre crescente círculo de negociações você não só obterá recompensas para si, como para outros ao seu redor.
April 26, 2012
"Can be useful"
Overall
Performance
Story
I really wanted to like this book. I got this one because i plan on getting a car soon and i wanted an edge.
This book is more for people who negotiate for a living, and was not very helpful at all for what i was looking to do.
Although i did find two things useful, "anchoring" (the reason car dealers use MSRP), and contingency clause (not useful for the car but possibly useful for other negotiations)
The book is a little dry and i could only take it down in bite sizes (30 min here and there).
Overall there is some useful info for those Negotiation pros out there, but not really for the beginner or novice.
I would suggest 'Getting More' by Stuart Diamond
Overall
Performance
Story
I really wanted to like this book. I got this one because i plan on getting a car soon and i wanted an edge.
This book is more for people who negotiate for a living, and was not very helpful at all for what i was looking to do.
Although i did find two things useful, "anchoring" (the reason car dealers use MSRP), and contingency clause (not useful for the car but possibly useful for other negotiations)
The book is a little dry and i could only take it down in bite sizes (30 min here and there).
Overall there is some useful info for those Negotiation pros out there, but not really for the beginner or novice.
I would suggest 'Getting More' by Stuart Diamond
October 24, 2019
I heard the audiobook version and the book had many fresh perspectives along with case studies on multiple aspects of negotiation. Except for one part of an Organizational Behavior course in the b-school, I haven't read any book or attended any course, so this was an eye-opener. The authors have also integrated some of the cutting edge research on behavioral sciences in this book. This book contains a lot of valuable ideas and insights and I would definitely like to re-read it to increase my retention %.
In summary, the reality is, you don't know what you don't know about negotiating. What you don't know can cost you a lot of money and frustration. And not just in the business world. In your personal life, as well.
Definitely a recommended read!
In summary, the reality is, you don't know what you don't know about negotiating. What you don't know can cost you a lot of money and frustration. And not just in the business world. In your personal life, as well.
Definitely a recommended read!
May 24, 2016
Interesting perspectives negotiation tactics and how to develop a great deal. It's not always a win/lose. Really enjoyed the part about how to make the pot bigger and get away from negotiated for a specific result. Can definitely see using some of the teachings here for many conversations.
February 1, 2022
Simply superb.If you are interested in understanding Negotiations and how to go about it then this will serve as your go to reference book.
July 8, 2014
A "how-to" book for negotiating. The framework is so simple and easy to follow, it could be a cookbook. I hate conflict, I hate negotiating, but if I don't (for example in job-hunting), I could lose big-time. I'm planning to buy this book so I can do it with more confidence and enthusiasm.
Here are my notes:
Negotiation genius is about negotiating successful deals ��� consistently- while still maintaining integrity and strengthening relationships and reputation.
Claiming value in negotiation: the five step pre-negotiation framework.
Step 1: Assess your BATNA (best alternative to a negotiated deal)
Step 2: Calculate your reservation value (your walk away point). It is higher than your BATNA.
Step 3: Assess the other party���s BATNA
Step 4: Calculate the other party���s reservation value.
Step 5: Evaluate the ZOPA (zone of possible agreement)
Anchor aggressively (it has a huge effect). But don���t offend.
How to respond to their initial offer:
Strategies:
��� Ignore their anchor
��� Separate information from influence
��� Avoid dwelling on their anchor. If you are surprised by their offer, probe a little deeper to find if there is substantive new info to obtain. If not, then quickly shift attention away be sharing your own perspective and defining the negotiation in your terms.
��� Make an anchored counteroffer, then propose moderation. ���Well, based on your offer, which was unexpected, it looks like we have a lot of work ahead of us. From our perspective, a fair price would be closer to $x. I will explain to you how we are valuing this deal, but it appears to me that if we are to reach any agreement, we will both have to work together to make it happen.���
��� Give them time to moderate their offer without losing face.
What should my first offer be?
1. Keep the entire ZOPA in play.
2. Provide a justification for your offer. We think $88 million is a fair price because the land can be used for commercial development, which makes it worth as much as two times what it might be worth if used for residential development (which is $44 million)���
3. Set high, but realistic aspirations.
4. Consider the context and the relationship.
How far can I push them?
1. Exhaust all pre-negotiation sources of information.
2. Identify your assumptions prior to the negotiation.
3. Ask questions that challenge your assumptions. ���If the land is used for commercial development, that will make it quite valuable. With that in mind, let���s discuss some specifics. What are your plans for this excellent piece of real estate?���
4. Ask indirect questions
a.How many hours do employees typically work each week?
b.What kinds of projects will I be working on?
c.Who will my clients be?
d.Whom does the firm typically hire?
e.With whom does the firm typically compete for hiring?
f.What, if any, are the formal constraints on compensation for new hires?
5. Protect yourself from lies and uncertainty with contingency contracts.
Making the first offer is best done when you feel you have good information about the other side, but is often a bad idea. The primary benefit of making a first offer in negotiation is that it establishes an anchor. Especially when the other party is uncertain, they are likely to gravitate toward any number that helps them focus. When made prematurely, a first offer can be extremely costly.
Those with high aspirations will be more likely to get better outcomes, but are more dissatisfied. So, focus on your target during negotiation; then when it is over, shift your focus to your reservation value.
Ch 2 CREATING VALUE IN NEGOTIATION.
Create value through log rolling. If the other party values something more than you do, let them have it ��� but don���t give it away, sell it.
Create value by adding issues. Some issues you might add:
��� Delivery date
��� Financing
��� Quality
��� Contract length
��� Last-look provisions
��� Arbitration clauses
��� Exclusivity clauses
��� Level of service support
��� Warranties
��� Future business
Identify everything that you are interested in and create a scoring system, to calculate your package reservation value. The goal is not to overwhelm the other party with demands, but to give them a lot of different ways to compensate you and make you happy. If they cannot increase your salary, but they can make you equally happy with a change in job description, both of you stand to gain. Identify the other party���s multiple interests.
Strategies for value creation:
1. Negotiate multiple issues simultaneously.
2. Make package offers. Thank you for providing me with a detailed list of services and signaling your preferences. This gives us a number of different options, here are two: 1 begin in july without premium services is $650,000; with premium is $700K. Option 2: begin March without premium is $635K, with premium is $680K.
3. Leverage differences of all types to create value.
Post settlement settlements steps.
Step 1: start by acknowledging the progress that was already made in reaching the initial agreement.
Step 2: Suggest that there are aspects of the deal that you wish could be improved; acknowledge that they probably feel similarly.
Step 3: Suggest that you may have already conceded everything that you can afford, but that you are willing to think ���outside the box��� if that will help the other party.
Step 4: State that it is important for both of you to realize that you are not looking for a new agreement, but for an improved agreement that both parties prefer to the current agreement.
Chapter 3: INVESTIGATIVE NEGOTIATION
Seven principles of investigative negotiation:
1. Don���t just ask what- ask why
2. Seek to reconcile interests, not demands
3. Create common ground with uncommon allies
4. Interpret demands as opportunities
5. Don���t dismiss anything as ���their problem���
6. Don���t let negotiations end with a rejection of your offer
7. Understand the difference between selling and negotiating.
Ask questions, such as:
���What do you plan to do with the products you���re purchasing from us?
���Tell me about your customers.
���What do you plan to do if we can���t provide you with the services you need?
���How does this deal fit into your overall business strategy?
���Tell me more about your organization.
Negotiate multiple issues simultaneously to determine which issues are most important:
���Which issues does he want to return to constantly?
���Which issues make him the most emotional or tense?
���While discussing which issues is she most likely to talk rather than to listen?
���Which issues is she most obstinate about when you ask for a compromise?
Chapter 4: WHEN RATIONALITY FAILS: BIASES OF THE MIND
How can you avoid escalating in the heat of battle?
��� Start your negotiation with a preplanned exit strategy.
��� Assign and reward a ���devil���s advocate��� whose job it is to criticize your decisions and find faults in your logic.
��� Anticipate and prepare for the escalation forces you are likely to encounter.
Chapter 6: NEGOTIATING RATIONALLY IN AN IRRATIONAL WORLD
Use ���system 2��� thinking.
Avoid negotiating under time pressure. ���Is this a firm deadline���. ���If, for personal reasons, I needed more time to make this decision, what would be the process for doing so?���
Here are my notes:
Negotiation genius is about negotiating successful deals ��� consistently- while still maintaining integrity and strengthening relationships and reputation.
Claiming value in negotiation: the five step pre-negotiation framework.
Step 1: Assess your BATNA (best alternative to a negotiated deal)
Step 2: Calculate your reservation value (your walk away point). It is higher than your BATNA.
Step 3: Assess the other party���s BATNA
Step 4: Calculate the other party���s reservation value.
Step 5: Evaluate the ZOPA (zone of possible agreement)
Anchor aggressively (it has a huge effect). But don���t offend.
How to respond to their initial offer:
Strategies:
��� Ignore their anchor
��� Separate information from influence
��� Avoid dwelling on their anchor. If you are surprised by their offer, probe a little deeper to find if there is substantive new info to obtain. If not, then quickly shift attention away be sharing your own perspective and defining the negotiation in your terms.
��� Make an anchored counteroffer, then propose moderation. ���Well, based on your offer, which was unexpected, it looks like we have a lot of work ahead of us. From our perspective, a fair price would be closer to $x. I will explain to you how we are valuing this deal, but it appears to me that if we are to reach any agreement, we will both have to work together to make it happen.���
��� Give them time to moderate their offer without losing face.
What should my first offer be?
1. Keep the entire ZOPA in play.
2. Provide a justification for your offer. We think $88 million is a fair price because the land can be used for commercial development, which makes it worth as much as two times what it might be worth if used for residential development (which is $44 million)���
3. Set high, but realistic aspirations.
4. Consider the context and the relationship.
How far can I push them?
1. Exhaust all pre-negotiation sources of information.
2. Identify your assumptions prior to the negotiation.
3. Ask questions that challenge your assumptions. ���If the land is used for commercial development, that will make it quite valuable. With that in mind, let���s discuss some specifics. What are your plans for this excellent piece of real estate?���
4. Ask indirect questions
a.How many hours do employees typically work each week?
b.What kinds of projects will I be working on?
c.Who will my clients be?
d.Whom does the firm typically hire?
e.With whom does the firm typically compete for hiring?
f.What, if any, are the formal constraints on compensation for new hires?
5. Protect yourself from lies and uncertainty with contingency contracts.
Making the first offer is best done when you feel you have good information about the other side, but is often a bad idea. The primary benefit of making a first offer in negotiation is that it establishes an anchor. Especially when the other party is uncertain, they are likely to gravitate toward any number that helps them focus. When made prematurely, a first offer can be extremely costly.
Those with high aspirations will be more likely to get better outcomes, but are more dissatisfied. So, focus on your target during negotiation; then when it is over, shift your focus to your reservation value.
Ch 2 CREATING VALUE IN NEGOTIATION.
Create value through log rolling. If the other party values something more than you do, let them have it ��� but don���t give it away, sell it.
Create value by adding issues. Some issues you might add:
��� Delivery date
��� Financing
��� Quality
��� Contract length
��� Last-look provisions
��� Arbitration clauses
��� Exclusivity clauses
��� Level of service support
��� Warranties
��� Future business
Identify everything that you are interested in and create a scoring system, to calculate your package reservation value. The goal is not to overwhelm the other party with demands, but to give them a lot of different ways to compensate you and make you happy. If they cannot increase your salary, but they can make you equally happy with a change in job description, both of you stand to gain. Identify the other party���s multiple interests.
Strategies for value creation:
1. Negotiate multiple issues simultaneously.
2. Make package offers. Thank you for providing me with a detailed list of services and signaling your preferences. This gives us a number of different options, here are two: 1 begin in july without premium services is $650,000; with premium is $700K. Option 2: begin March without premium is $635K, with premium is $680K.
3. Leverage differences of all types to create value.
Post settlement settlements steps.
Step 1: start by acknowledging the progress that was already made in reaching the initial agreement.
Step 2: Suggest that there are aspects of the deal that you wish could be improved; acknowledge that they probably feel similarly.
Step 3: Suggest that you may have already conceded everything that you can afford, but that you are willing to think ���outside the box��� if that will help the other party.
Step 4: State that it is important for both of you to realize that you are not looking for a new agreement, but for an improved agreement that both parties prefer to the current agreement.
Chapter 3: INVESTIGATIVE NEGOTIATION
Seven principles of investigative negotiation:
1. Don���t just ask what- ask why
2. Seek to reconcile interests, not demands
3. Create common ground with uncommon allies
4. Interpret demands as opportunities
5. Don���t dismiss anything as ���their problem���
6. Don���t let negotiations end with a rejection of your offer
7. Understand the difference between selling and negotiating.
Ask questions, such as:
���What do you plan to do with the products you���re purchasing from us?
���Tell me about your customers.
���What do you plan to do if we can���t provide you with the services you need?
���How does this deal fit into your overall business strategy?
���Tell me more about your organization.
Negotiate multiple issues simultaneously to determine which issues are most important:
���Which issues does he want to return to constantly?
���Which issues make him the most emotional or tense?
���While discussing which issues is she most likely to talk rather than to listen?
���Which issues is she most obstinate about when you ask for a compromise?
Chapter 4: WHEN RATIONALITY FAILS: BIASES OF THE MIND
How can you avoid escalating in the heat of battle?
��� Start your negotiation with a preplanned exit strategy.
��� Assign and reward a ���devil���s advocate��� whose job it is to criticize your decisions and find faults in your logic.
��� Anticipate and prepare for the escalation forces you are likely to encounter.
Chapter 6: NEGOTIATING RATIONALLY IN AN IRRATIONAL WORLD
Use ���system 2��� thinking.
Avoid negotiating under time pressure. ���Is this a firm deadline���. ���If, for personal reasons, I needed more time to make this decision, what would be the process for doing so?���
Read
March 9, 2021"In other words, when reacting to very extreme offers, your foremost goal should be to re-anchor successfully, nor to convey your outrage. And re-anchoring successfully often means helping the other side find a way to retract earlier demands and arguments" (34).
"Investigative negotiators move beyond demands and instead focus on each side's underlying interests" (86).
"The key insight: negotiation geniuses are not discouraged when the demands of each party seem incompatible. Instead, they probe deeper to find out each side's real underlying interests. This strategy allows them to think more broadly and creatively about agreements that might satisfy the interests of both sides" (86).
Investigative negotiators confront demands the same way they confront any other statement from the other party: 'What can I learn from this demand? What does it tell me about the other party's needs and interests? How can I use this information to create and capture value?'" (91).
To determine which issues are most important to the other party, look for the following signs:
+Which issue does he want to return to constantly?
+Which issues make him the most emotional or tense?
+While discussing which issues is she most likely to talk rather than to listen?
+Which issues is she most obstinate about when you ask for a compromise?" (100).
"Negotiation is an information game" (102).
"Most people doe not like to lie, but they are usually very comfortable with you being deceived" (206).
"If you can't outmuscle the other side in a negotiation, you may want to stop flexing your muscles and, instead, simply ask them to help you" (247).
"If you can distinguish between those negotiations who will accept a higher margin and those who will not--and if you can justify charging different prices to different customers--you may be in a position to increase profits even further by charging higher margins only to those who can stomach it" (248).
"The key is to audit the implicit assumptions you make when formulating your negotiation strategy. You may perceive yourself as being 'weak' if you measure strength only as the ability to push hard in any given negotiation without losing the deal. But you may discosvoer that you are actually quite 'strong' once you begin to think about your ability to withstand losing some deals because you are maximizing the value of your entire negotiation portfolio. When you consider your entire portfolio, it is far easier to imagine taking bigger risks, keeping the clients for whom you can add the most value, and becoming more profitable" (248).
"Investigative negotiators move beyond demands and instead focus on each side's underlying interests" (86).
"The key insight: negotiation geniuses are not discouraged when the demands of each party seem incompatible. Instead, they probe deeper to find out each side's real underlying interests. This strategy allows them to think more broadly and creatively about agreements that might satisfy the interests of both sides" (86).
Investigative negotiators confront demands the same way they confront any other statement from the other party: 'What can I learn from this demand? What does it tell me about the other party's needs and interests? How can I use this information to create and capture value?'" (91).
To determine which issues are most important to the other party, look for the following signs:
+Which issue does he want to return to constantly?
+Which issues make him the most emotional or tense?
+While discussing which issues is she most likely to talk rather than to listen?
+Which issues is she most obstinate about when you ask for a compromise?" (100).
"Negotiation is an information game" (102).
"Most people doe not like to lie, but they are usually very comfortable with you being deceived" (206).
"If you can't outmuscle the other side in a negotiation, you may want to stop flexing your muscles and, instead, simply ask them to help you" (247).
"If you can distinguish between those negotiations who will accept a higher margin and those who will not--and if you can justify charging different prices to different customers--you may be in a position to increase profits even further by charging higher margins only to those who can stomach it" (248).
"The key is to audit the implicit assumptions you make when formulating your negotiation strategy. You may perceive yourself as being 'weak' if you measure strength only as the ability to push hard in any given negotiation without losing the deal. But you may discosvoer that you are actually quite 'strong' once you begin to think about your ability to withstand losing some deals because you are maximizing the value of your entire negotiation portfolio. When you consider your entire portfolio, it is far easier to imagine taking bigger risks, keeping the clients for whom you can add the most value, and becoming more profitable" (248).
July 2, 2019
Here are a couple of things that I have learned from the book :
- always create a value from whatever the other are interested in. Just sell it smartly.
- never lie about the thing you are negotiating.
- investigate more in the deal, ask questions, and don't just accept/ignore it. Asking how and why could just Change everything.
- study the situation well before sitting on the bargening table. Your alternatives and your zoba( range of benefit) should be ready in your mind.
- don't reveal the weakness specially if the deal was your only option. For example while accepting your very only job offer, negotiate and maximize your benefit with very confident way.
- opponents ain't irrational. They could be uninformed.
- time is such a crucial resource.
- sometimes no deal is the best deal.
- negotiation is a strategy that requires a lot of undernding and planing.
- self awareness is a must in order to change for The better.
.....
I've been listening to it in the transportation. I liked that it was a kinda stories based. Was enjoying the stories while riding or siting anywhere. Now after finishing most of this book, the most important thing I believe is the ability to read the opponents minds. And to speak do rehortically with confident. which is something that comes after getting yourself better and understanding how the brain really works. Now off to read a neurology related book that is a man who mistook his wife by Oliver sacks.
- always create a value from whatever the other are interested in. Just sell it smartly.
- never lie about the thing you are negotiating.
- investigate more in the deal, ask questions, and don't just accept/ignore it. Asking how and why could just Change everything.
- study the situation well before sitting on the bargening table. Your alternatives and your zoba( range of benefit) should be ready in your mind.
- don't reveal the weakness specially if the deal was your only option. For example while accepting your very only job offer, negotiate and maximize your benefit with very confident way.
- opponents ain't irrational. They could be uninformed.
- time is such a crucial resource.
- sometimes no deal is the best deal.
- negotiation is a strategy that requires a lot of undernding and planing.
- self awareness is a must in order to change for The better.
.....
I've been listening to it in the transportation. I liked that it was a kinda stories based. Was enjoying the stories while riding or siting anywhere. Now after finishing most of this book, the most important thing I believe is the ability to read the opponents minds. And to speak do rehortically with confident. which is something that comes after getting yourself better and understanding how the brain really works. Now off to read a neurology related book that is a man who mistook his wife by Oliver sacks.
This entire review has been hidden because of spoilers.
March 23, 2023
"Negotiation Genius" is a self-help book written by Deepak Malhotra and Max Bazerman that provides practical advice on how to negotiate effectively and achieve brilliant results in both business and personal situations.
The book presents several key principles for becoming a successful negotiator, including:
Prepare Thoroughly: Do your research and gather as much information as possible about the other party and the situation.
Focus on Interests, Not Positions: Look for common interests and work towards finding a mutually beneficial solution.
Build Relationships: Focus on building trust and rapport with the other party to create a more positive and productive negotiation environment.
Manage Emotions: Learn to manage your own emotions and to understand and influence the emotions of the other party.
Be Creative: Be open to creative solutions and think outside the box to find new ways of creating value.
The book also provides practical tools and techniques for applying these principles in a variety of negotiation situations, including salary negotiations, business deals, and personal conflicts.
Overall, "Negotiation Genius" offers a practical and insightful approach to negotiation that emphasizes preparation, focus on interests, relationship building, emotional management, and creativity. It is a great resource for anyone looking to improve their negotiation skills and achieve better results in their personal and professional life.
The book presents several key principles for becoming a successful negotiator, including:
Prepare Thoroughly: Do your research and gather as much information as possible about the other party and the situation.
Focus on Interests, Not Positions: Look for common interests and work towards finding a mutually beneficial solution.
Build Relationships: Focus on building trust and rapport with the other party to create a more positive and productive negotiation environment.
Manage Emotions: Learn to manage your own emotions and to understand and influence the emotions of the other party.
Be Creative: Be open to creative solutions and think outside the box to find new ways of creating value.
The book also provides practical tools and techniques for applying these principles in a variety of negotiation situations, including salary negotiations, business deals, and personal conflicts.
Overall, "Negotiation Genius" offers a practical and insightful approach to negotiation that emphasizes preparation, focus on interests, relationship building, emotional management, and creativity. It is a great resource for anyone looking to improve their negotiation skills and achieve better results in their personal and professional life.
April 27, 2024
We learn how to claim and create value in negotiation by calculating your and your counterpart BATNA (best alternative to negotiated agreement). That also by default sets the ZOPA, zone of possible agreement. The authors also go through the biases of the mind, for example the Fixed-Pie Bias, the bias which leads negotiators to focus solely on capturing value for themselves, neglecting the potential for mutual gains and the vividness bias, when negotiators may overweight vivid information presented during negotiations, potentially leading to suboptimal decisions and anchoring, relying too heavily on the first piece of information encountered when making decisions. There are a few words about how to negotiate rationally in an irrational world, but the bulk of the book is about negotiation in real world. The authors use real life business examples to highlight diffrent strategies of influence, how to recognize and avoid blind spots in negotiations, how to confront lies and deceptive practices, how to negotatiate from a position of weakness, when not to negotiate and how to solve any potential ethical dilemmas you might have. Overall, the intention is more than the delivery, the form much more ambitious than the content. But a great effort nevertheless and we keep the BATNA calculations and the ZOPA as hard take-aways from this otherwise quite average book.
February 24, 2019
Negotiation is often perceived as a “zero-sum” game - whatever one party gains would result in an equivalent loss to other. The authors start off by dislodging this notion and make the case that the objective of any negotiation should be to maximize the value created for both parties. Getting a good deal in a negotiation is not only about claiming as much value as one can, but is also about creating more value and increasing the size of the pie by understanding the other party’s interests, concerns, and constraints. In other words, the goal is not simply to reach an agreement that both parties consider to be “win-win”; instead, it should be to create more value and to capture much of what is up for grabs. This could be achieved only by going beyond one divisive issue (such as price) and by looking at other issues that might be of interest to both parties, thus broadening the scope of negotiation. Such an “investigative” approach would also help strengthen the relationship between both sides and make future negotiations less effortful. Furthermore, the authors expose some of the psychological hurdles that are to be overcome to embrace such a mindset and suggest ways to keep mental obstacles at bay while negotiating.
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