Preparing a Negotiation
Objectives
- Identify interests, positions and BATNA
- Prepare an opening statement
- Plan concessions
Explanation
Distinguish positions (what parties say they want) from interests (why they want it). Know your BATNA (Best Alternative to a Negotiated Agreement) and your walk-away point. Plan concessions in exchange for something: 'We could accept X if your client agrees to Y.'
position
What a party demands.
“Their position is a 10% discount.”
interest
The underlying need behind a position.
“Their real interest is cash flow.”
BATNA
Best Alternative to a Negotiated Agreement.
“Our BATNA is arbitration.”
walk-away point
The limit beyond which you will not agree.
“Our walk-away point is US$90,000.”
concession
Something given up in negotiation (different from a land concession).
“We made a concession on timing.”
Flashcards
Match terms and definitions
position
interest
BATNA
walk-away point
concession
Complete the sentences
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