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Embry Riddle Aeronautical University Negotiation Mapping Process Discussion

Embry Riddle Aeronautical University

Question Description

I’m studying for my Law class and don’t understand how to answer this. Can you help me study?

What's Next?

You and Sally are now ready for your final negotiations with the seller. Luckily, you have some tools that can help you come up with a final agreement.

Your Assignment

  • Read the Contract Negotiation Process (DOCX). This will help you in completing the Learning Canvas Matrix (PDF).
  • Download the Learning Canvas Matrix and follow the instructions for filling it out. Make assumptions where appropriate. Prepare a negotiation document based on Sally’s and your positions vs. the seller’s position.
  • Submit your matrix in this assignment.

Unformatted Attachment Preview

Contract negotiations Processes Strategies Techniques. The goal of a contract is that you reach a fair, reasonable, and beneficial written instrument that both parties have agreed to. Step 1 of Contract Negotiation Process: Prepare, Prepare, Prepare. The Contracting Process Negotiations A contract negotiation is not a race to win. Because even the most favorable agreement (Win – Win) can turn into a loose – win, or worst a loose – loose. The best negotiator is not the one who talks the fastest or has the most leverage. It’s the team who has properly prepared for every potential eventuality. Anticipation and foresight based on your preparation makes you prepared to enter into a win – win agreement. Negotiation is not a race to the finish line it’s a process that is aimed at bring both parties to the bottom line signature that mutually assures that the parties on both sides will receive the bargained for benefit they agreed to. Imagine having to negotiate a contract with your supplier and you have no clue about the price of the supplier and how that compares to the market. That means that you must have conducted a price/cost analysis, and you fairly know what it costs the supplier to deliver goods/services. This is just an example of being prepared. Below are some other things that you need to prepare: 1. Issue Identification Identify the issues you want to negotiate. For example read the suppliers offer, highlight important parts and jot down notes about part that you are not clear, or that you cannot accept. worldwide.erau.edu All rights are reserved. The material contained herein is the copyright property of Embry-Riddle Aeronautical University, Daytona Beach, Florida, 32114. No part of this material may be reproduced, stored in a retrieval system or transmitted in any form, electronic, mechanical, photocopying, recording or otherwise without the prior written consent of the University. 2. Issue Information Have good information about each issue that you want to negotiate (after all this is what preparing is all about). 3. Classify the Issues. Classify them according to: Negotiable – these are issues that you can negotiate and be flexible. State your maximum that you can negotiate on these points, so that at any point in time during negotiations you know your limit. (just in case you go over your limit and then you get that Donald Trump famous saying: “You’re Fired”). Non-Negotiable – these are issues that you will not negotiate and not budge. 4. Prepare the meeting agenda. When doing this you will outline your issues again, but more importantly you would want to give the supplier the first turn to highlight any issues they may have with your contract. When you have a prepared meeting agenda, you will work according to that, and will not forget any point. 5. Get ready to Negotiate Understand the most important thing before going to the negotiation table: Most issues can be negotiated. Yes, some “negotiation gurus” mention that ‘everything is negotiable’, but in real life it is not so. There are things that you or your supplier will not budge no matter what. With that in mind be positive and believe that it will go well. Most of the time it will. Step 2 of Contract Negotiation Process: Negotiation Meeting This is the meeting proper where you (and your team if there’s one) will sit down with the supplier. Important here is that this meeting most of the time is not called negotiation meeting – but any time you meet with a supplier to discuss their offer it means you are negotiating. Your negotiation outcome however is most likely achieved before the meeting ie during the preparation stage, so again do not set foot in a meeting without being prepared. If at any point during the negotiating meeting you find that you did not prepare for a certain issue, then simply mention that you would need to get back to the supplier on that issue. Then work out the other issues. Some meeting tips: • • • Be friendly but professional e.g. I’m glad we have a chance to sit down and discuss how we can work together. Be positive e.g. It’s good that I hear you have the same viewpoint on this. Do Not Get Angry or Emotional. Keep your cool & calm. It’s just business after all. How do you do that? First, pause for a few seconds before saying something Second, if you are thinking whether something that you may say would offend the supplier, then don’t say it. However, if you really thought about it coolly, and then you still want to say it, then just go ahead and do it. For example during a meeting that we had with a client he was discussing about the need of getting a lower price without committing to a long term contract or bigger volume. When probing he revealed that it was their policy that even after a contract was concluded, they would still be looking for other suppliers who may offer lower prices. We simply said: “It looks like your philosophy towards your suppliers is – I’ll screw the supplier at the moment that I get the chance. It is difficult to then offer you what you are asking.” The client kept his cool and then said that it was the direction from HQ. Thirdly, breath deeply. It relaxes you. You may even joke with the supplier that you are practicing your breathing so that you don’t get angry or upset with what he said. Step 3 of Contract Negotiation Process: Summarize all points This is very important, as you need to get the other party’s agreement to all the points that you discussed. You can simply divide this into 2 categories: a) Points that you have already agreed; and b) Points that you or the other side would need to get back to each other. Some of the points to summarise are: • • • • Payment terms Contract volume When the contract/work will start Price for the Contract Once you have written this down, simply shoot a quick email to the other party and ask for their acknowledgement/agreement to this. Mention that if they have anything to add, they can add it during their reply to your email. To write about the contract negotiation process, it may actually take much more that what is written here, but we trust that this simplifies you contract negotiation process to simply 3 steps. And that is key – simple. THE NEGOTIATION CANVAS Learning Version: New to the Negotiation Canvas? Start here! MY DESIRED OUTCOME MY KEY INTERESTS THEIR DESIRED OUTCOME MY BARGAINING CHIPS THEIR BARGAINING CHIPS THEIR KEY INTERESTS POSSIBLE SOLUTIONS MY WALKAWAY ALTERNATIVE AGREEMENT THEIR WALKAWAY ALTERNATIVE The Negotiation Canvas was created by Pablo Restrepo and Stephanie Wolcott, founders of Negotiation by Design. Learn more at negotiationbydesign.com NEGOTIATION by Learn more about the canvas watching our introductory video. NEGOTIATION CANVAS Title: Date: 1) MY DESIRED OUTCOME Version: 2) THEIR DESIRED OUTCOME What do I want? learn more learn more What do they want? We want 3) MY KEY INTERESTS 7) MY BARGAINING CHIPS Why? learn more learn more What do I have that they value? learn more 9) POSSIBLE SOLUTIONS 5) MY WALKAWAY ALTERNATIVE PS 1 PS 2 4) THEIR KEY INTERESTS Why? learn more 6) THEIR WALKAWAY ALTERNATIVE What solutions could work for both of us? learn more What will I do if we do not reach a deal? learn more 8) THEIR BARGAINING CHIPS What do they have that I value? What will they do if we do not reach a deal? learn more PS 3 10) AGREEMENT What did we agree to? learn more The Negotiation Canvas was created by Pablo Restrepo and Stephanie Wolcott, founders of Negotiation by Design. This work is licensed under the Creative Commons Attribution-NoDerivates 4.0 International License. To view a copy please visit: https://creativecommons.org/licenses/by-nd/4.0/ Learn more at negotiationbydesign.com NEGOTIATION by THE NEGOTIATION CANVAS The Negotiation Canvas is a one-page easy-to-use tool that helps you reach better deals on all your negotiations. Pablo Restrepo and Stephanie Wolcott created the Negotiation Canvas to provide you with the most efficient and effective way to prepare and conduct a negotiation. No time to prepare? This tool makes it simple and fast. Completing the canvas will help you to clarify what you want, understand your counterpart, identify and capture more value and improve your confidence in every negotiation. The Negotiation Canvas is built as an editable PDF to make it easy to fill out and save your work. You will notice a video icon in the header of the canvas, watch this video for a quick overview using the popular orange example. Select the ‘learn more’ option in each field for a short description on how to fill out that field. Then return back to the Canvas using the ‘To Canvas’ buttons in the lower left corner. Negotiation Canvas Elements Desired Outcomes: Steps 1-2 Go Key Interests: Steps 3-4 Go Walkaway Alternatives: Steps 5-6 Go Bargaining Chips: Steps 7-8 Go Possible Solutions: Step 9 Go Agreement: Step 10 Go Let’s get started! Watch our introductory video. TO CANVAS NEGOTIATION by DESIRED OUTCOMES: Steps 1-2 What do you want? The Desired Outcome is the beginning position of each side of the negotiation. Begin the canvas by writing down what you want from the negotiation and if you can, write down what you think your counterpart wants. Typically, people approach negotiation with a preconceived outcome in mind. They want a certain price, a certain place, a certain time, etc. It is important to identify your Desired Outcome in the beginning, but as we will see, this initial position is only a starting point. You might find later on that you can create even better solutions that are good for both parties. 1 2 ORANGE EXAMPLE 1) MY DESIRED OUTCOME - I want the orange. 2) THEIR DESIRED OUTCOME - She wants the orange. TO CANVAS NEGOTIATION by KEY INTERESTS: Steps 3-4 Why do you want what you want? Key Interests are the motivations behind each parties' Desired Outcome. Asking 'Why?' will uncover Key Interests. Why?, is the magical question in negotiation. Why Why Why Why do do do do we want what we want? we want our Desired Outcome? they want what they want? they want their Desired Outcome? Try to ask yourself ‘Why?’ at least five times. Write down as many interests as you have related to the negotiation. Do the same with your counterpart. You can ask them why in person or if that is not possible, make your best guess based on the information you have. Identifying interests will allow you to expand the range of possible solutions that meet both parties’ needs and can create more value for each party. TO CANVAS 3 3 44 ORANGE EXAMPLE 3) MY KEY INTERESTS - Peel - Orange cake - Hungry for sweets 4) THEIR KEY INTERESTS - Pulp - Orange juice - Thirsty for orange juice NEGOTIATION by WALKAWAY ALTERNATIVES: Steps 5-6 What will you do if an agreement cannot be reached? Walkaway Alternatives are the options you have if you do not reach an agreement. Identifying your Walkaway Alternatives helps you to determine when to stay in the negotiation and when to walk away. There are three questions to answer in this section: 1. What will you do if you do not reach an agreement? 2. What are the consequences (both good and bad)? 3. Is there a way to improve your walkaway alternative? The more you can improve your Walkaway Alternative, the more power you will have to negotiate. Answer the same questions for your counterpart. Only this time, think of ways to weaken their alternative. Remember, you must do this legitimately and with care. Your reputation is at stake and future negotiations with this party need to be considered. TO CANVAS 5 6 ORANGE EXAMPLE 5-6) WALKAWAY ALTERNATIVES In this case, both girls have the same Walkaway Alternative: - Yield and lose the orange, setting up a bad precedent. - Fight, risk losing the orange, get punished by mom, set a difficult relationship for future negotiations. NEGOTIATION by BARGAINING CHIPS: Steps 7-8 What can each party offer to the other? Bargaining Chips are the items you can offer to the other party to get more of what you want. This step helps you to bring more value to the table for both parties. Looking at the other party’s desired outcome and interests, think of all the things you can offer them to meet their interests. You will notice each field has stars in it. When you list the bargaining chips, list them in order of priority. If you know something is very important to your counterpart, put that issue in the three-star category. If an issue is not that important, put it in the one-star category. Moving to the box on the right, what can your counterpart offer you that you value? Make sure to prioritize these issues as well. We prioritize chips because substantial value can be created if we can offer the other party something that they value highly but costs us little, for something we value highly and costs them little. TO CANVAS 7 8 ORANGE EXAMPLE 7) MY BARGAINING CHIPS Pulp Money Glass of water 8) THEIR BARGAINING CHIPS Peel Money Chocolate NEGOTIATION by POSSIBLE SOLUTIONS: Step 9 What solutions could work for both parties? Possible Solutions are proposals for an agreement that meet both parties interests. These are the proposals that you will present to your counterpart. Review the previous steps to help you create solutions. Pay special attention to the Key Interests and Bargaining Chips. Are there other options for meeting both parties’ interests? What Bargaining Chips can you exchange to create more value for both parties? Try to identify at least three solutions. Three forces you to be creative and might lead to a solution you would not have thought of otherwise. Three also shows flexibility and helps to build trust with your counterpart. 9 ORANGE EXAMPLE 9) POSSIBLE SOLUTIONS PS1 PS2 PS3 Water x Orange Money x Orange Pulp x Peel Offering three Possible Solutions helps you find out more about your counterpart's interests, priorities and preferences. You can ask which option they prefer and why. This is especially helpful when negotiating with people from less direct cultures. Even if you do not reach an agreement after this step, you will have more information to revise your proposals and try again. TO CANVAS NEGOTIATION by AGREEMENT: Step 10 What did we agree to? Congratulations! You’ve done it! Once an agreement is made, write down the important details. You will want a record of what is agreed to so that you can review past agreements and assess both success and progress. Make sure to include all relevant information, such as: - all Bargaining Chips agreed to roles and responsibilities for both parties timelines measurement and quality indemnities, contingencies and termination clauses confidentiality requirements process for settling disputes terms of payment 10 ORANGE EXAMPLE 10) AGREEMENT Optimal agreement: Emma got 100% of the peel and Sara got 100% of the pulp. Remember, an agreement is only successful if it is: - Better than your Walkaway Alternative - Acceptable for both parties - Implementable TO CANVAS NEGOTIATION by ...
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Final Answer

hey famhere you go kindly check it out and feel free to invite me for more

THE NEGOTIATION CANVAS
Learning Version: New to the Negotiation Canvas? Start here!
MY DESIRED
OUTCOME

MY KEY
INTERESTS

THEIR DESIRED
OUTCOME

MY
BARGAINING
CHIPS

THEIR
BARGAINING
CHIPS

THEIR KEY
INTERESTS

POSSIBLE
SOLUTIONS
MY
WALKAWAY
ALTERNATIVE

AGREEMENT

THEIR
WALKAWAY
ALTERNATIVE

The Negotiation Canvas was created by Pablo Restrepo and Stephanie Wolcott, founders of Negotiation by Design.
Learn more at negotiationbydesign.com

NEGOTIATION
by

Learn more about the
canvas watching our
introductory video.

NEGOTIATION CANVAS

Title:

Date:

1) MY DESIRED OUTCOME

Version:

2) THEIR DESIRED OUTCOME

What do I want? learn more

learn more

What do they want?

We want

3) MY KEY INTERESTS

7) MY BARGAINING CHIPS

Why? learn more

learn more

What do I have that they value?

learn more

9) POSSIBLE SOLUTIONS

5) MY WALKAWAY ALTERNATIVE
PS 1

PS 2

4) THEIR KEY INTERESTS
Why?
learn more

6) THEIR WALKAWAY ALTERNATIVE

What solutions could work for both of us? learn more

What will I do if we do not reach a deal?
learn more

8) THEIR BARGAINING CHIPS

What do they have that I value?

What will they do if we do not reach a deal?
learn more

PS 3

10) AGREEMENT

What did we agree to? learn more

The Negotiation Canvas was created by Pablo Restrepo and Stephanie Wolcott, founders of Negotiation by Design.
This work is licensed under the Creative Commons Attribution-NoDerivates 4.0 International License.
To view a copy please visit: https://creativecommons.org/licenses/by-nd/4.0/
Learn more at negotiationbydesign.com

NEGOTIATION
by

THE NEGOTIATION CANVAS
The Negotiation Canvas is a one-page easy-to-use tool that helps
you reach better deals on all your negotiations. Pablo Restrepo
a...

Nelnomap (12410)
UCLA

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