CTCM (Cumulative) EXAM QUESTIONS AND
ANSWERS.
Common Negotiation Philosophies
Win-Win, Win-Lose, and Lose-Lose
Win-Win
Each party has a vested interest in the issue and the relationship; look for mutual gain;
does not mean equality of outcome.
Win-Lose
Issues matter more than relationships
Lose-Lose
Negotiators do not choose this method, it choses you. Everything is going south.
Principled Negotiations
People, interests, criteria, options
Interests vs Positions
Focus on interests, not positions; Your position is something you have decided upon;
Your interests are the needs, desires and fears that drive positions.
Obstacles to mutual gain
-Premature Judgement
-Search for a single answer
-Assumption of a fixed pie
-Thinking that "solving their problem" is their problem
3 Phases to Negotiation
Planning and Preparation; Negotiation; Settlement & Documentation
Negotiation Planning
-Determine your negotiation position
-Anticipate the other party's actions
-Respond to proposals
-Know if the agreement is resonable
6 Steps in Planning Phase
Formulate Position
Analyze other party's proposal
Define and Organize the Issues
Establish objectives
Assess the other party's strengths and positions
Develop your strategies and tactics
Types of decision making
Unilateral
Minority
Majority
Unanimous
Consensus
Synergy
The energy created when people interact in a way that generates new solutions or
better decisions
, Types of Analysis
Cost - Actual expenses - delivery of product or service
Price - Total cost to be paid for product or service
Worth - Price one is willing to pay for product or service
BATNA
Best Alternative To A Negotiated Agreement; When a proposal is better than your
BATNA, accept it. When a proposal is worse than your BATNA, reject it.
Assumption
A conclusion drawn without affirmation from another source; The problem is when one
thinks and acts as if it is the absolute fact. Be prepared to be proven wrong.
Power in Negotiations
Sources (Negotiation power): preparation; legitimacy; laws and regulations;
marketplace; time; organizational and personal power
Negotiation Strategies
-Active listening
-Use questions wisely
-Anticipate compromise
-Use solid data
-Use silence
-Avoid emotional reactions
-Make use of caucuses
-Pay attention to timing
Overcoming Roadblocks
focus on interests, not position
defuse emotions
don't react
change the scope of risk sharing
change the delivery schedule
change the shape of money.
When to Negotiate
Competitive Sealed Proposals (RFP), Professional/Consulting Services, Emergency,
Proprietary, DIR, TXMAS, State Use Program (Services Only)
Types of Information Exchanges
Clarification, Communication, Negotiations or Discussions
Types of Issues
Unable or Unwilling to compromise
Prefer not to compromise
Willing to give up (or significantly compromise)
Ethics in Negotiation
Vast difference between not revealing information and providing wrong information.
Never condone law-breaking, lying, or gross misrepresentation.
Characteristics of Skilled Negotiator
Confident/Assertive
Plan and be creative with alternate solutions
Good business judgement
Tolerate conflict and ambiguity
ANSWERS.
Common Negotiation Philosophies
Win-Win, Win-Lose, and Lose-Lose
Win-Win
Each party has a vested interest in the issue and the relationship; look for mutual gain;
does not mean equality of outcome.
Win-Lose
Issues matter more than relationships
Lose-Lose
Negotiators do not choose this method, it choses you. Everything is going south.
Principled Negotiations
People, interests, criteria, options
Interests vs Positions
Focus on interests, not positions; Your position is something you have decided upon;
Your interests are the needs, desires and fears that drive positions.
Obstacles to mutual gain
-Premature Judgement
-Search for a single answer
-Assumption of a fixed pie
-Thinking that "solving their problem" is their problem
3 Phases to Negotiation
Planning and Preparation; Negotiation; Settlement & Documentation
Negotiation Planning
-Determine your negotiation position
-Anticipate the other party's actions
-Respond to proposals
-Know if the agreement is resonable
6 Steps in Planning Phase
Formulate Position
Analyze other party's proposal
Define and Organize the Issues
Establish objectives
Assess the other party's strengths and positions
Develop your strategies and tactics
Types of decision making
Unilateral
Minority
Majority
Unanimous
Consensus
Synergy
The energy created when people interact in a way that generates new solutions or
better decisions
, Types of Analysis
Cost - Actual expenses - delivery of product or service
Price - Total cost to be paid for product or service
Worth - Price one is willing to pay for product or service
BATNA
Best Alternative To A Negotiated Agreement; When a proposal is better than your
BATNA, accept it. When a proposal is worse than your BATNA, reject it.
Assumption
A conclusion drawn without affirmation from another source; The problem is when one
thinks and acts as if it is the absolute fact. Be prepared to be proven wrong.
Power in Negotiations
Sources (Negotiation power): preparation; legitimacy; laws and regulations;
marketplace; time; organizational and personal power
Negotiation Strategies
-Active listening
-Use questions wisely
-Anticipate compromise
-Use solid data
-Use silence
-Avoid emotional reactions
-Make use of caucuses
-Pay attention to timing
Overcoming Roadblocks
focus on interests, not position
defuse emotions
don't react
change the scope of risk sharing
change the delivery schedule
change the shape of money.
When to Negotiate
Competitive Sealed Proposals (RFP), Professional/Consulting Services, Emergency,
Proprietary, DIR, TXMAS, State Use Program (Services Only)
Types of Information Exchanges
Clarification, Communication, Negotiations or Discussions
Types of Issues
Unable or Unwilling to compromise
Prefer not to compromise
Willing to give up (or significantly compromise)
Ethics in Negotiation
Vast difference between not revealing information and providing wrong information.
Never condone law-breaking, lying, or gross misrepresentation.
Characteristics of Skilled Negotiator
Confident/Assertive
Plan and be creative with alternate solutions
Good business judgement
Tolerate conflict and ambiguity
