What does banana represent in negotiation?

It stands for: BEST ALTERNATIVE TO A NEGOTIATED AGREEMENT. Honestly. Take the first letter of each word and you can just about make a BANANA out of it.

What are the 7 elements of negotiation?

Seven Elements of Negotiations
  • Interests. Interests are “the fundamental drivers of negotiation,” according to Patton—our basic needs, wants, and motivations. ...
  • Legitimacy. ...
  • Relationships. ...
  • Alternatives and BATNA. ...
  • Options. ...
  • Commitments. ...
  • Communication.

What are the five 5 stages of negotiation?

Negotiation consists of five phases that include investigation, determining your BATNA, presentation, bargaining, and closure.

What does BATNA meaning negotiation?

A BATNA, or Best Alternative to Negotiated Agreement, represents the best option to one party in a negotiation if the talks fail. A strong BATNA means that that party has a reasonably attractive alternative to negotiation; if they fail to reach agreement, they can implement the BATNA with minimal disruption.

What are the 4 most important elements of negotiation?

There are many different ways to categorize the essential elements of negotiation.
Another view of negotiation comprises 4 elements:
  • Strategy,
  • Process,
  • Tools, and.
  • Tactics.

Negotiation Skills: BANANAS at work.

What is the golden rule of negotiation?

The “Golden Rule” of Negotiating: never let a negotiation come down to one issue… ever! Why? Because, by definition there is a winner and a loser.

What are the 4 C's of negotiation?

Cross-Cultural Business Negotiations identifies the four Cs of negotiation: common interest, conflicting interest, compromise, and conditions.

What is BATNA and ZOPA in negotiation?

In addition to understanding the ZOPA and negative ZOPA in a negotiation, you should also consider your Best Alternative to a Negotiated Agreement, or BATNA, before any discussions take place. The BATNA is the course of action a party will take if no agreement can be reached during a negotiation.

Is BATNA a walk away point?

If you are offered a used car for $7,500, but there's an even better one at another dealer for $6,500--the $6,500 car is your BATNA. Another term for the same thing is your "walk away point." If the seller doesn't drop her price below $6,500, you will WALK AWAY and buy the other car.

What is ZOPA in negotiation with example?

A "Zone of Possible Agreement" (ZOPA--also called the "bargaining range") exists if there is a potential agreement that would benefit both sides more than their alternative options do. For example, if Fred wants to buy a used car for $5,000 or less, and Mary wants to sell one for $4,500, those two have a ZOPA.

What are 3 negotiation techniques?

There are 3 key approaches to negotiations: hard, soft and principled negotiation. Many experts consider the third option – principled negotiation – to be best practice: The hard approach involves contending by using extremely competitive bargaining.

What are the 10 rules of negotiation?

10 Rules for Successful Negotiation
  • Don't view it as a win/lose scenario.
  • It's a collaborative discussion.
  • Don't make any assumptions.
  • Show up prepared.
  • Know the different levers you can pull.
  • Get everything important in writing.
  • Sometimes you have to give to get.
  • Be 100% transparent, clear, and honest.

What are the three keys to negotiating?

3 Keys to Successful Negotiations
  • Know what you want. ...
  • Ask lots of questions. ...
  • Persistence pays off.

What is the first rule golden rule of negotiation?

1. Always Start the Negotiations. You must initiate the process because whoever controls the start of the negotiations tends to control where they end. If you let the other party start negotiations, you will be constantly giving up control, often without even realizing it.

What are the 8 stages of negotiation?

The Eight-Stage Negotiation Process
  • Prepare: Know what you want. ...
  • Open: Put your case. ...
  • Argue: Support your case. ...
  • Explore: Seek understanding and possibility.
  • Signal: Indicate your readiness to work together.
  • Package: Assemble potential trades.
  • Close: Reach final agreement.
  • Sustain: Make sure what is agreed happens.

Is BATNA a strategy or a tactic?

BATNA is often used in negotiation tactics and should always be considered before a negotiation takes place. It is never wise to enter into a serious negotiation without knowing your BATNA.

What are the two dilemmas of negotiation?

All negotiators face two basic questions: “How can we make the pie bigger?” and “How can I make sure that I get the biggest possible piece?” The pie is enlarged (value is created) through the cooperative process of interest-based bargaining.

How do you determine BATNA and ZOPA?

BATNA analysis helps you determine each party's reservation point, or walk away point, in your negotiation. If there is a set of resolutions that both parties would prefer over the impasse, then a ZOPA exists, and it would be optimal for you to reach a settlement.

What is a WAP in negotiation?

In any negotiation, it is important that you keep your WAP (Walk Away Price) to yourself, especially if it is significantly less than your initial offer. If the other party knows that you will be willing to take a lot less than you are offering, then you will be negotiating from a position of weakness.

Is BATNA your bottom line?

A BATNA is not the negotiation's “bottom line” – a BATNA is something you may wish to do if an acceptable “bottom line” cannot be achieved during the negotiations. You should always know and update your BATNA and always estimate (and update) the opposite's BATNA.

How do you know if a BATNA is in negotiation?

Follow these steps to identify a BATNA for your negotiation:
  1. List your alternatives. Create a list of all the possible alternatives available to you. ...
  2. Evaluate the value of your alternatives. ...
  3. Choose your preferred alternative. ...
  4. Determine the lowest deal you'd be willing to accept. ...
  5. Business example.
  6. Personal example.

What are the three 3 most important negotiating skills and why?

Many managers shy away from negotiations because they feel uncomfortable with it.
Developing these three essential negotiation skills will give you the confidence to successfully negotiate any agreement.
  • Planning & Preparation. ...
  • Emotional Intelligence. ...
  • Creative Problem Solving.

What are the six stages of negotiation?

The Six Stage Negotiation Process
  • Stage 1 – Statement of Intent. ...
  • Stage 2 – Preparation for Negotiations. ...
  • Stage 3 – Negotiation of a Framework Agreement. ...
  • Stage 4 – Negotiation of an Agreement in Principle (AIP) ...
  • Stage 5 – Negotiation to Finalize a Treaty. ...
  • Stage 6 – Implementation of a Treaty.

What is the 80/20 rule in negotiation?

Most people succeed or fail in a negotiation based on how well-prepared they are (or are not!). We adhere to the 80/20 rule – 80% of negotiation is preparation and 20% is the actual negotiation with the other party.

What is the chicken in negotiation?

When someone gives you a “last and final offer,” don't accept it at face value. Test it. It could be they are simply asking you to play “chicken” to test your resolve. When you are given a last clear chance to take a final offer or risk the consequences, you are in this “chicken” situation.