Four Key Concepts
Your Starting Points
Key Topics Covered in This Chapter
- BATNA (best alternative to a negotiated agreement)
- Reservation price
- ZOPA (zone of possible agreement)
- Value creation through trades
WHEN PEOPLE don’t have the power to force a desired outcome, they generally negotiate—but only when they believe it is to their advantage to do so. A negotiated solution is advantageous only under certain conditions, that is, when a better option is not available. Consider this example: One of your best employees, Charles, is being courted by another company. Replacing him will be costly, but perhaps not as costly as negotiating some combination of financial inducements and work changes that will persuade him to stay and keep on contributing. ...