3. What adjustments (if any) could you make to adapt to a more optimal thinking style for this negotiation?
Several adjustments can be made to adapt to a more optimal thinking style. First, as a good listener, one adopts external thinking style. The objective of listening should be to understand the point of view of client or other party. Acknowledgment is also important because it makes client feel that they are heard. Client’s statement should be restated as it is or paraphrased. The party should avoid judgments. Judgment leads to decrease the probability of successful outcome. Negotiators should not consider themselves as smarter, more honest and better prepared. It often leads to disregard for client or the party. Parties can also use humour in negotiation. Good humour relieves tensions and reduces hostility. Soft negotiation should be avoided. It is an unproductive and non-profitable practice. In hierarchic thinking style, the party should know when to reject the offer. The offer should be rejected if it is not in party’s interest. Both the client and the party should be aware of their BATNA and reservation values. BATNA and reservation value are important because they are useful in situation where there is no common agreements. It helps in deciding when to walk away from the deal. ZOPA range lies between the client’s reservation value and other party’s reservation value.
4. What is your client’s BATNA? What is your client’s reservation value?
BATNA is an acronym for the Best alternative to a negotiated agreement. BATNA is a situation that occurs when the parties don’t agree to the terms of one another and there is no final agreement. To find out one’s BATNA, person needs to identify all the alternate options, assign value to each option and then choose the best option. Clear understanding of BATNA is important because it helps in acceptance or rejection of the final offer. Reservation value is the least favourable value that the client will accept in a deal. It can be referred to as walk away point in negotiation. BATNA and reservation value are important because they help in recognizing the worst deals.