DK - Negotiating

ESSENTIAL MANAG ERS

Produced for DK by D ynamo Ltd 1 Ca thedral Court , S outhernhay Eas t, Ex eter, EX 1 1 AF Written by Mi chael Benoliel and Wei H ua Senior Art Edi tor Helen Spencer Senior Editor Chauney D unford US Ed itor Kary n G erhard Jacket Design Devel opment Manager Sophia M TT Jacket Designers Akiko Ka to, Juhi Sheth Producer Nancy-Jane Maun Product ion Editor Gillian Reid Senior Managing Ar t Editor Lee G rif ths Managing Editor Gareth Jones Associat e Pu blishing Direct or Liz W heeler Art Direct or Karen Self Design Direct or Philip O rmerod Publishing Direct or Jonathan Metca lf This A merican Editi on, 2 First Am erican Edit ion, Published in th e Un ited Sta tes by DK Publ ishing 145 0 Broa dway, Suit e 80 1, Ne w Yo rk, NY 10 Copyright 8, 2 021 Do rling Kinders ley L imited DK, a Div ision of Pen guin R andom House LLC 21 22 23 24 25 1 0 9 8 7 6 5 4 3 2 1 001- 3231 23- Dec/2 All r ights reserv ed. W ithout limiti ng t he r ights under th e co pyright reserv ed above, no p art of t his publica tion may b e re produced, st ored in or int roduced into a ret rieval syst em, o r tr ansmitt ed, i n an y for m, o r by any m eans (el ect ronic, mechanical , pho tocopying, recording, or o therw ise) , wi thout the prior wr itte n permission of th e co pyright owner . Published in Gr eat B ritain by Do rling Kinde rsley Limit ed. A ca talog record for thi s bo ok i s ava ilable from th e Library of C ongress. ISBN 9 78- 0- 40-35 07- DK bo oks are a vailable at s pecial discounts whe n pu rchased in bu lk fo r sa les promotions, premiums, fu nd-raising, or e ducationa l us e. Fo r de tails, conta ct: DK Pub lishing Speci al Ma rkets , 14 50 Broa dway, Suit e 80 1, Ne w Yo rk, NY 10 or Spe cialSales@ dk.com Printed in Ch ina www. dk.com This b ook was made with Fore st Stewardship Council ce rti ed paper one s mall s tep in DK s co mmitment to a s ustai nable fut ure. For m ore information, go to ww w. dk.com /o ur- green-pledge

Introduct ion Chapter 1 Preparing to negoti ate Becoming a negotiato r Understanding negotiation d ilemmas Being prepar ed Designing t he stru cture Chapter 2 Setting y our sty le Dening neg otiation st yles Dening inte rest-ba sed negotiation Negotiating from the whole bra in Creating win- win deals Building re lationships 3 Developing mut ual trust Negotiating fairly Chapter 3 Conducting n egotiations Negotiating with power Making oe rs and countero ers Making conces sions Being per suasive Managing impass es 5 Avoiding decision tr aps Managing emotio ns Dealing wi th competiti ve tact ics Closing the d eal Chapter 4 Developing your te chnique 6 Negotiating as a team Dealing wit h many par tie s Negotiating internatio nally Using a coach 8 Being a m ediator Learning from the m asters Index Acknowledgments

6 / INTR ODUCTION

INTRODUCT ION / 7 Negotiation is challenging, compl ex, and exci ting, requir ing a blend of knowled ge, skills , experie nce, and intuition. Each negotiation is un ique and there is no sin gle technique for improving your su ccess. Th us, to be a succe ssful negot iator , you must use a mix ture of mov es and counterm oves, dri ven by the nature of the spe cic negotia ting situation. This boo k describes practice s and technique s that can make you a more successfu l negotiator in every situation, wheth er in-person or at a distance, at h ome or abroad, or aga inst a friendly o r hostile counte rpart . Negotiation distills negotiating theory and pract ice to give you pract ical advice on h ow to become a s uccessful negotiator . It addresses questions such as: Should I make the rst o er?, H ow should I pres ent and respond to oe rs? , How can I obtai n concessions fr om my counterpar t?, and How can I make con cessions eectivel y?. I t helps you underst and and put into p ractice ways to analyze your and your counterp art s power , and to increase your negotiating s trength by buil ding winning coalition s. However , negotiating succe ssfully g oes beyond ma stering tactics and strate gies. It i s also about havin g the right attitude and m indset, such as being diligent in yo ur preparation and planning; be ing resilient in th e face of multiple challenge s; being creati ve by inventing mut ually benecial opti ons; and being read y to walk away fro m bad deals. By mast ering thes e negotiatin g tactics and strategi es, and by develop ing the right attitude and mindset, you will achieve supe rior result s.

Negotiation is a skill that you can learn and develop t hrough practice an d experience. B y framing the process corr ectly and by searching in a dvance for creati ve options, you wi ll be able to nd solutions that satisfy the interests of all part ies.

BECOMING A NE GOTIAT OR BEING PREPA RED UNDERSTA NDING NEGOTIAT ION DILEMMAS DESIGNING THE S TRUCTURE

10 / PREPA RING TO NEGOTI AT E Becoming a negot iator Seeing the benets When you b ecome ski lled in ne gotiation, you can create r eal value fo r your org anization. Negotiation allows you, for example, to secure cost-e ective and reliabl e ows of suppl ies, enhan ce the nanc ial value of merg ers and a cquisitions, s ettle disagreements with govern ment ocial s or union rep s, or r esolve i nternal con ict construct ively. Increasingly recogniz ed as a core compe tency, it can ta ke plac e in a variety of ways: in -person; remotely by email, p hone, or video c hat; or vi a a mix. Many rms d evelop their o wn approach es and methodo logies, a nd oer t raining and mentoring p rograms f or negotia tors. Many people sh y away from neg otiation because they think it impl ies conict. I n fact, negotiation is w hat you make it . When u ndertake n with condence and und erstanding, negotiat ion is a creative interpersonal process in wh ich two par ties co llaborate to achieve superi or results. LEARN YO UR ART Developing th e skills needed to be a successful neg otiator can take time, so be p atient. T r y to learn from ever y negotiation you undert ake, bo th for you r organization, and in your life outs ide work. Tip of a negotiato rs eorts should go into preparation