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Ahmed Khattab

on 1 April 2015

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Transcript of Strategy

Strategy versus Tactics
What is the difference between strategy and tactics?

Some use the terms interchangeably

Strategy defined = overall approach to a bargaining situation

Tactics defined = techniques used during the process

Charlene Barshefsky, U.S. trade representative:

“Strategy comes first – objectives determine a broad negotiation strategy which is set away from the table, tactics are techniques used at the table”

Key Strategy Elements
Overall a negotiation strategy should consider three critical situational elements:




Tactics for Success:
Negotiation Skills
Skill 6.1: Identify three keys – time (deadlines), information, power

Skill 6.2: Develop an increments of concessions strategy

Skill 6.3: Consider using a principled negotiation strategy (focus on interests, not positions)

Skill 6.4: With multiple issues consider a MESO or Economic Matrix strategy

Skill 6.5: Consider applying a 3-D Negotiation approach

Chapter 6

Use Time to Your Advantage
1. Have patience

2. Be persistent

3. Move quickly when possible

4. Deadlines

5. Know counterparts timelines

6. Make time work for you

Traps to Avoid:
Protect Your BATNA
1. Before negotiating set a specific BATNA – and stick to it

2. Write it down on paper and refer to it when receiving an offer

3. Never reveal your BATNA but you can increase the perception of your power to gain leverage

Strategy 1:
Increments of Concession
Focus on “The Number” – distributive process of finding a settlement point

Increments of concessions defined = pattern of concessions that leads the other party to guess your BATNA, and thus a settlement point

Possible concession patterns:

Split the difference = even division between the last two offers

Equal increments = equivalent concessions

Decreasing increments = smaller concessions, appear to be closing in on a value = “the number”

Strategy 2: Principled
From Getting to Yes, key elements:
Focus on interests, not positions

Separate people from positions

Focus on objective criteria

Develop mutual-gains option

Strategy 3: Multiple Equivalent
Simultaneous Offers (MESOs)
MESO steps:

Identify and prioritize issues, estimate their weights (relative value) to both parties

Identify different likely outcomes for each issue, set one as the standard = 100 points, then set relative value of others

Create at least three equivalent offers (approximately equal point values)

Why Is the MESO Strategy Appealing to Others ?
People prefer to be given choices – many options, rather than a single offer

One MESO option is likely to be a greater value to them – can lead to further discussion, settlement

It gives them input – they can discuss the values, weights, etc.


MESO strategy requires multiple issues with realistic alternative outcomes

MESO can be a complex process

MESO requires a party to reveal some of its own interests

Strategy 4:
The Economic Matrix
Similar to MESO strategy (avoids weights)

May be more useful than MESO if all issues can be given estimated dollar values

Core elements:

Brings several economic issues into one proposal

Limits the total value of all issues (increase in one must be offset by a decrease in another)

Provides options of equal value to the other party to consider
Strategy 4:
The Economic Matrix Advantages
Focus is on the total value of all issues, not distribution of each issue

Positive response by other party which is given choices – and may prefer one option

Matrix presents valuable data, allows discussion and input on values

Strategy 5:
3-D Negotiation
Useful if negotiations stall, reach impasse, or power is imbalanced

Lax and Sebenius view negotiation in “3-D”:

1st dimension – tactics used at the table

2nd dimension – deal design (including specifics)

3rd dimension – the setup of the whole negotiation

Setup includes: parties, issues, BATNAs, timing, information

Thus, 3-D strategy = review all the elements of the setup, change one to influence the outcome

Examples: Bring a new third party into the negotiation; improve your BATNA; shift the priorities of the issues; seek offers from other parties

The Three Dimensions of Negotiations

Summary of Strategies and Likely Use Situations
Eman Hassanien

Eman Mahmoud

Samira Hady

Shrouk Hussein

Tasneem Shalby

Aya Hossam

Islam Negm

Ahmed Hashad

Ahmed Hussein

Ahmed Afefy

Ahmed khattab

By: Ahmed Khattab
Full transcript