[SOUND] Hi, I'm Susan Lee, welcome to this lesson on strategies of negotiation. By the end of this lesson, you will be able to use four key negotiation strategies, and manage negotiation tactics used by the other party. In the last video, we have identified the principles of negotiation. Now is the time to start exploring the strategies for negotiation in your next opportunity to negotiate with a counterpart or stakeholder. I'm putting in this negotiator's toolkit four strategies you can use and three tactics you should watch out when negotiating with your counterpart. Let's get started. The first strategy is reciprocating. Reciprocating refers to the act of giving and taking during a negotiation. These include giving concessions and asking for concessions in turn. Reciprocity can start with simple acts like bringing coffee and snacks to the meeting. Research shows that such acts of consideration makes the other party feel compelled to reciprocate even in small ways. Doing the preparation stage, you would have considered how much you're willing to give in terms of concessions or a compromise. Know what your ideal offer is by making offer that is above that inviting the counterpart to negotiate. In response, you can then make your actual offer. For instance, you are organizing the company's family day, and you are negotiating to the management to provide dining, and shopping vouchers for staff. Your management finds this too expensive, and your response, you propose to give only dining vouchers. Because you started with an expensive and overly generous proposal, your more conservative proposal, giving of dining vouchers, now sounds fair and reasonable to the management, and giving of dining vouchers is what you have intended to offer. Asking for something higher gives you room or concession for negotiation. Here's another example, when requesting for an extension of deadline for five days you may start by asking for an extension of seven days, and be prepared to be given four days instead of five. Besides starting higher it is good to be prepared to compromise at a slightly lower offer as in this case of four day extension. When negotiating on behalf of your team and management, always discuss and decide on the range and limits internally before going to the negotiation table. Let's talk about your BATNA, or your best alternative to a negotiated agreement. This refers to an actual assisting alternative you have outside of the negotiation. Inform your counterpart about your BATNA at a suitable time to motivate him to make an offer that is favorable to you. For instance, you are proposing to include a colleague in your project's team, because of his expertise. When negotiating, prepare your partner by having a second choice in mind, in case of rejection. This allows your counterpart to know how prepared you are and what alternative you have in mind. In this case, your counterpart will have to consider man power delegation should he allow your proposed colleague to join the team or delegate your second choice instead. In view of all the other commitments both staff are managing. In another example, while negotiating the price for a material with a supplier you can show your partner after one to two unattractive offers were made to you. Let your supplier know the name of another supplier who can offer you the material at your preferred price. By making note that you have a real competitor in mind, your supplier can consider between losing a customer and adjusting the profits margin. Sharing your BATSNA at a suitable time leads the negotiation into another level and narrows down the scope of your counterpart's decision making process. Next, refer to prior commitments. What are prior commitments? These refer to agreements and stands that have been made by your counter part to you or others. This also refers to principals and standards that your counter partner is known to uphold For instance, in the case of organizing a family day, you may need to remind a management that company is committed to enhancing staff welfare and rewarding staff for their hard work. The provisions at events should therefore be generous. There are tactics that your counterpart may use, for which you want to immunize or protect yourself from being pressured to make a quick compromise. The first is the use of social proof. This strategy is commonly used in product promotions where big numbers of consumers are cited as argumentative support to motivate potential consumers to buy a product. Is popularity the proof of quality and suitability? I don't think so. The strategy relies on the principle that when something is good for many others, it has to be good for you. In workplace negotiation, these may be presented as a reason to urge staff to comply or accept preceding practices instead of negotiating for a change. When presented with this reasoning strategy, always objectively consider how the case cited is applicable to your needs and goals in a negotiation. Are the concerns valid for you and what you represent? Like any consumer product, what is suitable for most other people may not be suitable for you. Test the proposition, ask for facts, and compare this with what you need in the negotiation outcome. Time is commonly used as a pressurizing force in negotiations. Again, in the context of the retail scene, a special promotion, limited offer of fresh sale often drives consumers to make quick and at times, impulsive purchases. Yes, sometimes there are good buys, but there are better ones too. At the negotiation table, a timeline may be tacked to decision making. However, this should not be constantly cited as the reason to compromise quickly without evaluating all the important facts and factors. Sometimes it is necessary to negotiate with an extended dateline to facilitate the decision making process. Like you, your counterpart share his BATNA. Is there a feeling the pressure to concede for fear of competition. Treat these as a revealed card in a card game. Consider, or calibrate your willingness and limits for compromise again, using the BATNA as a clear indication of your counterpart's ultimate offer. Knowing the counterpart's BATNA can provide insightful information at this stage of the negotiation process. Remember, do your homework well so that you can face ever step at the negotiation table confidently without wavering. I am Susan Lee, thank you for joining me in this lesson of strategies for negotiation in the work place. I hope you found something helpful here for your next negotiation. See, you in the next lesson where we will look into the language of negotiation, goodbye.
