Negotiation tutorial - Distributive bargaining tactics (Pie slicing strategies)
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This negotiation techniques tutorial introduces the core strategies in distributive bargaining.
Hope you will enjoy the video! Here's a link to the full course on Udemy:
https://www.udemy.com/course/mba-in-a-box-business-lessons-from-a-ceo/?referralCode=F6026A89249995D1...
This tutorial is part of a series of short movies on how to be an effective negotiator. The complete module can be found on Udemy, as a core part of the MBA in a Box course by CEO Valentina Bogdanova and 365 Careers.
Among business strategy and marketing insights, the course delivers repeatable tactics and bargaining strategies that can be widely applied across professional and personal settings.
Negotiation module table of contents:
1. Negotiation: An Introduction
Intro to Negotiation
Why is negotiation a core managerial skill?
Why are people bad negotiators?
2. Negotiation: The negotiation toolbox
Understanding BATNA
Reservation point and the Bargaining range
3. Negotiation: The importance of preparation
Assessing yourself
Assessing your opponent
Assessing the situation
3. Negotiation: Types of negotiation
Distributive negotiations (Slicing the pie)
Distributive strategies (Pie-slicing strategies)
Interest-based bargaining
Interest-based negotiation strategies
Claiming
Choosing the correct negotiation strategy
4. Negotiation: Subtleties that will help you in the long run
Adverse tactics and protecting yourself from them
Conflict resolution
Establishing trust
Broken trust and how to repair it
Mediums of negotiation
5. Negotiation: A Complete Negotiation Case Study
The negotiation between Disney and Lucasfilm
-----------------------------
When you are entering into negotiations with the perception that it is a win-lose situation, obviously, you need to do everything in your power to maximize your chances to be the winning side. The pie is on the table, and you want the bigger slice. One of the most basic ways to tip scales in your favor is to revisit your BATNA, reassess, and improve it.
Having a strong alternative to the negotiated agreement will reduce the power your counter-negotiator has over setting the anchor, or determining the bargaining range.
While you’re thinking about your BATNA, revisit or define your reservation point. Make sure you do not uncover it during the negotiations.
There are only two circumstances under which you can openly declare your reservation point.
One is when the clock is running out and you’re nearing the deadline for an outcome. In this situation, walking out with a deal, even at your reservation point, is still better than resorting to your BATNA.
And the other is if you have an amazing BATNA and can afford being aggressive, and you would be happy if either the other side walked, or they offered you something that exceeds your reservation point.
Strategy tip number four has to do with your opponent’s BATNA, and we cannot stress this enough – try and learn it. This will minimize their leverage and increase yours.
When you are in a win-lose situation, one of the most advantageous things you can do to secure a good chuck of the pie is to make the first offer.
If you manage to be the one who makes the first offer, this will serve as an anchor point, and it would ensure that you come out of the negotiations with the better deal.
If you are not ready to make the first offer and instead your bargaining partner opens first, you need to counter-offer immediately. This accomplishes two things: it reduces the importance of the initial anchor, and makes it known that you are open to bargain.
Let’s say you have already opened or counter-offered, and you are somewhere in the bargaining range. Because these are distributive negotiations, each party will want to maximize their own share of the pie, which means that both you and they will end up making certain concessions.
The best approach you can have to conceding is the GRID model, or the Gradual Reduction in Tension model. According to its framework, the optimal strategy is to begin negotiating with a hard stance, then make several small concessions, and finish up with some larger ones.
Finally, be careful not to be tricked by the “even split” ploy.
Hope you will enjoy the video! Here's a link to the full course on Udemy:
https://www.udemy.com/course/mba-in-a-box-business-lessons-from-a-ceo/?referralCode=F6026A89249995D1...
This tutorial is part of a series of short movies on how to be an effective negotiator. The complete module can be found on Udemy, as a core part of the MBA in a Box course by CEO Valentina Bogdanova and 365 Careers.
Among business strategy and marketing insights, the course delivers repeatable tactics and bargaining strategies that can be widely applied across professional and personal settings.
Negotiation module table of contents:
1. Negotiation: An Introduction
Intro to Negotiation
Why is negotiation a core managerial skill?
Why are people bad negotiators?
2. Negotiation: The negotiation toolbox
Understanding BATNA
Reservation point and the Bargaining range
3. Negotiation: The importance of preparation
Assessing yourself
Assessing your opponent
Assessing the situation
3. Negotiation: Types of negotiation
Distributive negotiations (Slicing the pie)
Distributive strategies (Pie-slicing strategies)
Interest-based bargaining
Interest-based negotiation strategies
Claiming
Choosing the correct negotiation strategy
4. Negotiation: Subtleties that will help you in the long run
Adverse tactics and protecting yourself from them
Conflict resolution
Establishing trust
Broken trust and how to repair it
Mediums of negotiation
5. Negotiation: A Complete Negotiation Case Study
The negotiation between Disney and Lucasfilm
-----------------------------
When you are entering into negotiations with the perception that it is a win-lose situation, obviously, you need to do everything in your power to maximize your chances to be the winning side. The pie is on the table, and you want the bigger slice. One of the most basic ways to tip scales in your favor is to revisit your BATNA, reassess, and improve it.
Having a strong alternative to the negotiated agreement will reduce the power your counter-negotiator has over setting the anchor, or determining the bargaining range.
While you’re thinking about your BATNA, revisit or define your reservation point. Make sure you do not uncover it during the negotiations.
There are only two circumstances under which you can openly declare your reservation point.
One is when the clock is running out and you’re nearing the deadline for an outcome. In this situation, walking out with a deal, even at your reservation point, is still better than resorting to your BATNA.
And the other is if you have an amazing BATNA and can afford being aggressive, and you would be happy if either the other side walked, or they offered you something that exceeds your reservation point.
Strategy tip number four has to do with your opponent’s BATNA, and we cannot stress this enough – try and learn it. This will minimize their leverage and increase yours.
When you are in a win-lose situation, one of the most advantageous things you can do to secure a good chuck of the pie is to make the first offer.
If you manage to be the one who makes the first offer, this will serve as an anchor point, and it would ensure that you come out of the negotiations with the better deal.
If you are not ready to make the first offer and instead your bargaining partner opens first, you need to counter-offer immediately. This accomplishes two things: it reduces the importance of the initial anchor, and makes it known that you are open to bargain.
Let’s say you have already opened or counter-offered, and you are somewhere in the bargaining range. Because these are distributive negotiations, each party will want to maximize their own share of the pie, which means that both you and they will end up making certain concessions.
The best approach you can have to conceding is the GRID model, or the Gradual Reduction in Tension model. According to its framework, the optimal strategy is to begin negotiating with a hard stance, then make several small concessions, and finish up with some larger ones.
Finally, be careful not to be tricked by the “even split” ploy.
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