The Art of Negotiation

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The Art of Negotiation: Best Practices for Success
April 2010

© 2010 Denali Group

Introduction
This whitepaper closely examines techniques that are key to In-Flight Negotiations. Specifically, we will address critical components of successful negotiations, including: 1. 2. 3. 4. 5. 6. The Negotiation Process Key Principles Strategy and Tactics Best Practices Lessons Learned Conclusion

2. The Negotiation Process
There are two distinct phases and four critical steps to a successful negotiation process, as illustrated below. Preparation is key to the process to ensure that you are negotiating from a position of strength. The old adage “knowledge is power” certainly holds true when it comes to leveraging timely market intelligence to achieve cost reductions in negotiations.

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© 2010 Denali Group

2. Key Principles
There are several key principles to consider when engaging in successful negotiations. Understanding these principles beforehand, and knowing the concessions you are and are not willing to make, can provide clear parameters during the process. • It is important to define clear negotiation targets, such as: • LAA – Least Acceptable Agreement • MDO – Most Desired Outcome • BATNA – Best Alternative to a Negotiated Agreement Start LOW! No “presents”, give concessions only with something in return Look for multiple creative concessions to enlarge the pie

• • • • •

Make small and decreasing concessions over time Stay calm and polite Negotiating is a team approach Never agree under time pressure – take as many rounds as needed Always remember and underline your organization’s strengths

3. Strategy and Tactics
Hand in hand with key principles are negotiation strategy and tactics. Denali Group has developed worksheets to outline best…...

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