Lecture Two,Principles of Business Negotiation,4Cs in Negotiation,The context of the 4Cs in which negotiation takes place.谈判要明确的四点背景内容 Common interests (谈判者追求的目标) Conflicting interests （要谈的内容） Compromise （取舍点） Criteria or objectives（明确目标及实现的准则）,Negotiation environment,The composition of international negotiation environment:会影响谈判的战略和策略 1.Political system 2.Economical system 3.Social system 4.Cultural system,Some Basic Negotiation Principles,Principle of willingness ( premise of negotiation ) Equality Principle ( foundation of negotiation ) Principle of Mutual Benefits ( aim or goal of negotiation ) 4. Principle for Common interests ( key of negotiation ) 5. Principle for efficiency ( guarantee of negotiation ) Principle of legality (foundation of negotiation),Equality Principle: 1) It means both parties are equal in law status. They have equal rights and obligation. They do business out of their own needs and they are informed of each other to enjoy mutual benefits. 2)When one party takes much less than is given, the other party will feel reluctant to continue negotiating. Hence either party should be well prepared for the negotiation and ready to satisfy each others needs on an equal basis.,Principle of Collaborative Negotiation (CN),The six guidelines for CN Acknowledge the concerns of the other side and focus on interests rather than positions. Encourage joint fact finding. 3. Offer contingent commitments to minimize impacts if they do occur, and promise to compensate knowable but unintended impacts.,4. Accept responsibility, admit mistakes, and share power. 5. Act in a trustworthy fashion at all times. 6. Focus on building long-term relationships The collabrative negotiation focuses on interests rather than positions, place value on relationship.,Principled Negotiation (It is particularly oriented to collaborative negotiations.),Four key words are focused: People & problems Interests or position Options for mutual gains Criteria: insist on using objective criteria (continued for more details),Separate the people from the problem People problems are often caused by inaccurate perceptions, inappropriate emotions and poor communication. Three techniques are recommended: Establish an accurate perception Cultivate appropriate emotion Strive for better communication,1) Establish an accurate perception. Conflict ,very often, is not caused by what happens, but by how people perceive what happens. Increase the capability of each party to see the other sides point of view by reversing roles. Avoid blaming the other party for your problem,2) Cultivate appropriate emotion. Your emotion affects that of the other party. Recognize and understand emotions of both parties. Make emotions explicit and legitimate Allow the other party to let off steam. Stay calm with the other partys emotional outbursts.,3) Strive for better communication. Be an active listener and acknowledge what is being said. Speak to be understood. Avoid being judgmental or debating the other party as an opponent. Avoid criticism that may hurt the other partys feelings.,Discuss the problems before proposing a solution. Be concrete but flexible. Be hard on the problem but soft on the people.,2. Focus on interests instead of positions Methods: Identify the self-interests Discuss interests with the other party,1) Identify the self-interests. Respect your counterparts as human beings and recognize the needs and interests that underlie their positions. 2) Discuss interests with the other party Give your interests a vivid description. Be specific. Demonstrate your understanding of the other partys interests and acknowledge them as part of the overall problem that you are trying to solve.,3. Invent options for mutual gains The brainstorming of options prior to decision-making is a critical piece for the success of the collaborative negotiation process. The ability to invent options is one of the most useful assets a negotiator can have. 1) Separate the act of inventing options from the act of judging them 2) Develop as many options as possible before choosing one 3) Search for mutual gains 4) Find ways to help make the other partys decision easy,1) Separate the act of inventing options from the act of judging them,Before brainstorm During After,2) Develop as many options as possible before choosing one,Look at the problem through the eyes of different experts. Change the scope of a proposed agreement-break down the problem into smaller units. Agreements may be partial, involve fewer parties, cover selected subject matters, or remain in effect for a limited period of time.,3) Search for mutual gains,Shared interests exist in every negotiation; they are opportunities, not godsends;,4) Find ways to help make the other partys decision easy,Your success in a negotiation depends upon the other partys making a decision you want; therefore, you should do what you can to make that decision an easy one.,4. Insi