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• The first chapter describes the purpose and framework of the NBOK™ Guide
and provides an introduction to the key concepts of negotiation.
• Negotiation can take place in various situations and forms, but the basic concepts
of negotiation as defined in the NBOK™ Guide are valid for any negotiation and
can be customized to any business or personal negotiation for either an individual
or organization in any country.
• Every negotiation will have two or more parties each believing they can influence
the other party and get the best deal possible for themselves.
• A multi-party negotiation involves more than two parties and is more complex than
a two-party negotiation.
• The NBOK™ Guide treats negotiation as a science and defines each term
specifically. Thus, the NBOK™ Guide provides a common language of negotiation
that you can use when negotiating within your organization and with other external
organizations.
• The Aspects of Negotiation are the seven main facets that help you understand
negotiation in principle.
• The NBOK™ Guide can be used as a reference and knowledge guide by all
negotiators, be they a professional or an amateur.
• The concepts defined in the NBOK™ Guide are applicable to all types of
negotiations.
• In order to facilitate the best application of the negotiation process, the NBOK™
Guide has clearly differentiated the mandatory inputs, tools, and outputs from the
non-mandatory.
• The Aspects of Negotiation are the seven main facets that help you understand
negotiation in principle.
• They are the fundamental features that must be understood in order to relate and
compare the different forms of negotiation.
• Distributive Negotiation
Distributive, or win-lose negotiation, is a strategy directed toward the
distribution of a fixed resource between two or more parties. In this type of
negotiation, a gain for one party is a loss for the other.
• Most integrative negotiations have two elements: creating value and claiming
value.
• However, a negotiation may involve more than two parties, multiple issues, and
multiple phases.
• The unpredictable nature of a negotiation is primarily due to the fact that various
events or changes may take place during the course of a negotiation.
• Organization for negotiation considers who will be negotiating and what their
authority level will be during the negotiation.
• You can negotiate on your own or hire another individual or company to negotiate
on your behalf.
• You can also have a team of negotiators rather than an individual negotiator.
• Ethics are social standards that define what is right or wrong in a particular
situation.
• While the first four processes deal with single-issue negotiations, the next four
processes cover multiple-issue negotiations, which are more complex.
• This chapter discusses the theoretical concepts involved in preparing for single-
issue negotiation. The two processes in this chapter deal with understanding your
own negotiation situation and understanding the negotiation situation of the other
party.
• Fig 1-1 provides an overview of the processes associated with this chapter. They
are as follows:
3.1 Understand your negotiation situation
3.2 Understand negotiation situation of the other party
INPUTS INPUTS
1. Issue for Negotiation* 1. Issue for Negotiation*
2. Your Negotiation Capabilities 2. Your Negotiation Capabilities
3. Past Negotiation Results 3. Past Negotiation Results
TOOLS 4. Other Party Negotiation Capabilities
1. Aspects for Negotiation* 5. Your Resource Availability for Negotiation
2. Analysis of Alternatives* 6. Your Walk Away Point*
3. Primary Research 7. Your Alternatives*
4. Secondary Research 8. Your BATNA*
5. Meetings and Discussions 9. Your Negotiation Reference Frame
OUTPUTS 10. Your Negotiation Aspects
1. Your Resource Availability for Negotiation* 11. Your Outcome Preferences
2. Your Walk Away Point* TOOLS
3. Your Alternatives* 1. Aspects for Negotiation*
4. Your BATNA* 2. Analysis of Alternatives for the Other Party*
5. Your Negotiation Reference Frame 3. Primary Research
6. Your Negotiation Aspects 4. Secondary Research
7. Your Outcome Preferences 5. Meetings and Discussions
OUTPUTS
1. Resource Availability for the Other Party
2. Expected Other Party Walk Away Point*
3. Expected Other Party Alternatives*
4. Expected Other Party BATNA*
5. Expected Other Party Negotiation Reference
Frame
6. Expected Other Party Negotiation Aspects
7. Expected Other Party Outcome Preferences
Figure 1-1: Prepare for Single Issue Negotiation—Inputs, Tools, and Outputs
• After preparing for negotiation by understanding the negotiation situation, the next
step is to conduct the negotiation.
• Fig 1-2 provides an overview of the processes associated with this chapter. They
are as follows:
4.1 Plan for Negotiation
4.2 Conduct the Negotiation
INPUTS INPUTS
1. Your Resource Availability for Negotiation* 1. Logistics for Negotiation*
2. Your Walk Away Point* 2. Calibration of outcomes
3. Your Alternatives* 3. Expected Negotiation Paths
4. Your BATNA* 4. Your Negotiators*
5. Your Negotiation Reference Frame 5. Other party Negotiators*
6. Your Negotiation Aspects 6. Potential Bottlenecks
7. Your Outcome Preferences 7. Your BATNA
8. Expected Resource Availability for the Other 8. Your Walk Away Point
Party 9. Expected BATNA of Other Party
9. Expected Other Party Walk Away Point* 10. Expected Walk Away Point of Other Party
10. Expected Other Party Alternatives* 11. Your Negotiation Reference Frame
11. Expected Other Party BATNA* 12. Expected Other Party Negotiation Reference
12. Expected Other Party Negotiation Reference Frame
Frame TOOLS
13. Expected Other Party Negotiation Aspects 1. First Offer*
14. Expected Other Party Outcome Preferences 2. Second Offer*
TOOLS 3. Subsequent Offers*
1. External Expertise 4. Tactics for Negotiation
2. Negotiation Planning Session* 5. Managing Agents
3. Negotiation Research OUTPUTS
4. Negotiation Leverage 1. Negotiated Deal*
OUTPUTS 2. Negotiated Deal Terms and Conditions
1. Logistics for Negotiation* 3. Satisfied Parties
2. Calibration of Outcomes 4. Potential for Future Deals
3. Expected Negotiation Paths
4. Your Negotiators*
5. Other Party Negotiators*
6. Potential Bottlenecks
• This chapter discusses the theoretical concepts involved in preparing for multi-
issue negotiation. The two processes in this chapter deal with understanding your
own negotiation situation and understanding the negotiation situation of the other
party.
• Fig 1-3 provides an overview of the processes associated with this chapter. They
are as follows:
5.1 Understand your negotiation situation
5.2 Understand negotiation situation of the other party
INPUTS INPUTS
1. Existing Understanding of Issues* 1. Defined Issues for Negotiation*
2. Your Negotiation Capabilities 2. Your Negotiation Capabilities
3. Past Negotiation Results 3. Past Negotiation Results
TOOLS 4. Other Party Negotiation Capabilities
1. Define Issues* 5. Your Resource Availability for Negotiation
2. Aspects for Negotiation* 6. Your Walk Away Point*
3. Analysis of Alternatives* 7. Your Alternatives*
4. Primary Research 8. Your BATNA*
5. Secondary Research 9. Your Negotiation Reference Frame
6. Meetings and Discussions 10. Your Negotiation Aspects
7. Framing 11. Your Outcome Preferences
OUTPUTS TOOLS
1. Defined Issues for Negotiation* 1. Analysis of Issues for Other Party
2. Your Resource Availability for Negotiation* 2. Aspects for Negotiation*
3. Your Walk Away Point* 3. Analysis of Alternatives for the Other Party*
4. Your Alternatives* 4. Primary Research
5. Your BATNA* 5. Secondary Research
6. Your Negotiation Reference Frame 6. Meetings and Discussions
7. Your Negotiation Aspects OUTPUTS
8. Your Outcome Preferences 1. Resource Availability for the Other Party
2. Expected Other Party Walk Away Point*
3. Expected Other Party Alternatives*
4. Expected Other Party BATNA*
5. Expected Other Party Negotiation Reference Frame
6. Expected Other Party Negotiation Aspects
7. Expected Other Party Outcome Preferences
• Fig 1-4 provides an overview of the processes associated with this chapter. They
are as follows:
6.1 Plan for Negotiation
6.2 Conduct the Negotiation
INPUTS INPUTS
1. Defined Issues for Negotiation* 1. Logistics for Negotiation*
2. Your Resource Availability for Negotiation* 2. Calibration of outcomes
3. Your Walk Away Point* 3. Expected Negotiation Paths
4. Your Alternatives* 4. Your Negotiators*
5. Your BATNA* 5. Other party Negotiators*
6. Your Negotiation Reference Frame 6. Potential Bottlenecks
7. Your Negotiation Aspects 7. Your BATNA
8. Your Outcome Preferences 8. Your Walk Away Point
9. Expected Resource Availability for the Other 9. Expected BATNA of Other Party
Party 10. Expected Walk Away Point of Other Party
10. Expected Other Party Walk Away Point* 11. Your Negotiation Reference Frame
11. Expected Other Party Alternatives* 12. Expected Other Party Negotiation Reference
12. Expected Other Party BATNA* Frame
13. Expected Other Party Negotiation Reference TOOLS
Frame 1. Offers*
14. Expected Other Party Negotiation Aspects 2. Trade Offs
15. Expected Other Party Outcome Preferences 3. Formulating Policies, Terms and Conditions
TOOLS 4. Tactics for Negotiation
1. External Expertise 5. Third Party Interventions
2. Issue Matrix 6. Managing Agents
3. Negotiation Planning Session* OUTPUTS
4. Negotiation Research 1. Negotiated Deal*
5. Negotiation Leverage 2. Negotiated Deal Terms and Conditions
OUTPUTS 3. Satisfied Parties
1. Logistics for Negotiation* 4. Potential for Future Deals
2. Calibration of Outcomes
3. Expected Negotiation Paths
4. Your Negotiators*
5. Other Party Negotiators*
6. Potential Bottlenecks