4.4 Creating and Evaluating Options

Negotiation success hinges on generating and evaluating options effectively. Brainstorming, lateral thinking, and scenario planning spark creative solutions. BATNA provides leverage, while objective criteria and prioritization methods guide option assessment.

Value creation is key in negotiations. Integrative strategies and interest-based bargaining uncover mutual gains. Logrolling and contingent agreements maximize satisfaction. Decision frameworks, anchoring, and timing considerations help select winning proposals.

Option Generation and Evaluation in Negotiation

Generation of negotiation options

Top images from around the web for Generation of negotiation options

• 

  Introduction to Problem Solving Skills | CCMIT View original

  Is this image relevant?

• 

  Stages of Negotiation | Organizational Behavior and Human Relations View original

  Is this image relevant?

• 

  Creativity in Decision Making | Organizational Behavior and Human Relations View original

  Is this image relevant?

• 

  Introduction to Problem Solving Skills | CCMIT View original

  Is this image relevant?

• 

  Stages of Negotiation | Organizational Behavior and Human Relations View original

  Is this image relevant?

1 of 3

Top images from around the web for Generation of negotiation options

• 

  Introduction to Problem Solving Skills | CCMIT View original

  Is this image relevant?

• 

  Stages of Negotiation | Organizational Behavior and Human Relations View original

  Is this image relevant?

• 

  Creativity in Decision Making | Organizational Behavior and Human Relations View original

  Is this image relevant?

• 

  Introduction to Problem Solving Skills | CCMIT View original

  Is this image relevant?

• 

  Stages of Negotiation | Organizational Behavior and Human Relations View original

  Is this image relevant?

1 of 3

• Brainstorming techniques stimulate creative thinking and idea generation
  • Individual brainstorming encourages independent thought without group influence
  • Group brainstorming leverages diverse perspectives and builds on ideas (roundtable discussions)
  • Mind mapping visually organizes ideas and shows relationships between concepts
• BATNA (Best Alternative to a Negotiated Agreement) provides leverage and fallback options
  • Identifying alternatives outside the negotiation expands possibilities (other suppliers, job offers)
  • Strengthening BATNA before negotiation improves bargaining position (skill development, networking)
• Lateral thinking challenges conventional approaches to problem-solving
  • Challenging assumptions uncovers hidden opportunities and breaks mental barriers
  • Exploring unconventional ideas leads to innovative solutions (reverse auctions, barter systems)
• Scenario planning prepares negotiators for various outcomes
  • Developing multiple potential outcomes increases adaptability (best-case, worst-case, most likely)
  • Preparing for various negotiation paths improves strategic flexibility and responsiveness

Evaluation of options and goals

• Objective criteria provide fair standards for assessing options
  • Market value offers external benchmarks for pricing and terms
  • Expert opinions provide specialized insights and credibility
  • Legal standards ensure compliance and reduce risks
  • Precedents guide decisions based on similar past situations
• Prioritization methods help rank options systematically
  • Weighted decision matrix assigns importance scores to criteria
  • Pareto analysis identifies the most significant factors (80/20 rule)
• Cost-benefit analysis assesses the overall value of each option
  • Quantifying potential gains and losses in monetary terms
  • Assessing long-term implications considers future impacts (ROI, market share)
• Risk assessment evaluates potential downsides of options
  • Identifying potential risks for each option (financial, operational, reputational)
  • Evaluating risk tolerance determines acceptable levels of uncertainty

Value-creating trades and packages

• Integrative negotiation strategies focus on mutual gains
  • Expanding the pie increases total value available (joint ventures, partnerships)
  • Looking for mutual gains identifies win-win opportunities
• Interest-based bargaining addresses underlying needs and motivations
  • Focusing on underlying interests rather than positions uncovers hidden value
  • Finding complementary interests allows for creative solutions (employee flexibility for increased productivity)
• Logrolling exchanges concessions to maximize overall satisfaction
  • Trading concessions on less important issues for gains on more important ones
• Contingent agreements address uncertainty through flexible terms
  • Addressing uncertainty through conditional terms (performance-based bonuses, sliding scale pricing)
• Multi-issue negotiations create opportunities for value creation
  • Bundling multiple issues to create value (product features, delivery terms, payment schedules)
  • Identifying trade-offs across different issues allows for creative problem-solving

Selection of promising proposals

• Decision-making frameworks guide option selection
  • Rational choice theory assumes logical decision-making based on preferences
  • Prospect theory considers psychological factors in decision-making under uncertainty
• Anchoring strategies influence perception of value
  • Setting initial proposals establishes reference points for negotiation
  • Managing anchoring effects by adjusting to counterpart's anchors
• Flexibility and adaptability improve negotiation outcomes
  • Preparing multiple proposal options increases responsiveness
  • Adjusting based on new information allows for dynamic negotiation
• Timing considerations impact proposal effectiveness
  • When to present options affects their reception and impact
  • Sequencing of proposals builds momentum and creates concession patterns
• Presentation techniques enhance proposal appeal
  • Framing options positively highlights benefits and opportunities
  • Emphasizing mutual benefits aligns proposals with counterpart's interests