The OCEAN Diagnosis
Objects, Context, Stakes, Asymmetries, Negotiators
O=the Objects
C=the Context
E=the Stakes (Enjeux)
A= the Asymmetry of Power
N= the Negotiators
Objects
What are the objects to trade?
We mean by objects the points that will be clearly cited, detailed, not to say dissected throughout the negotiation. There are two main types of objects:
- Quantitative objects: they can be measured quantitatively (for example the price or the terms of payment)
- Qualitative objects: they are difficult to measure (for example the type of power or the limits of responsibility).
We will try to establish a list of objects with for each:
- Its breaking point (or area)
- Its objective point
- Its position displayed.
Context
The context may be economic or structural. The basic question is: “In which context are we?”
Socio-economic? Politic ? Cultural ?
Stakes, Challenges (Enjeux)
There are several types of issues:
- Explicit issues: we take care to name them.
- Implicit issues: we do not take care to name them.
- Hidden issues: we fail to talk about them or we deny their existence.
- Organizational issues: these concern the service, the company or the organization, the country, or even the economic zone from which the negotiator has a mandate to negotiate.
- Private issues: any negotiator may have private issues related to his mode of remuneration, his hierarchical position, political and/or ideological options. It should be noted that the private stakes can be in contradiction with the organizational stakes for the same negotiator.
- Technical issues: (reliability, security).
- Economic issues: (brand image).
- Material issues: (financial means, options).
- Relational issues: (recognition, solidarity).
- Intellectual and spiritual issues: (believing, realizing oneself).
Power asymmetry
Is there a power asymmetry? What is the current balance of power?
In other words: what power do I have over him and vice versa? How vulnerable are the parties?
Negotiators
What do we know about negotiators? What are their personalities, their usual attitudes outside and in negotiations? How do they behave in life, at work, in the organization, towards me, in conflict situations and in negotiations? What is their style?
Are they cooperative, combative, manoeuvring, diplomatic, rather result-oriented or relationship-oriented?
Do they have “tricks”, manners? (Systematically arriving late, monopolizing speech, practicing silence, etc.).
The BATNA method
Having a negotiation framework is good…having several negotiation scenarios is better…
In case of disagreement in a negotiation, the BATNA becomes indispensable. Determine how the opposing party sets its priorities, its issues, its objectives… in order to plan the negotiation techniques to adopt in order to negotiate better.
BATNA: the Best Alternative To Negotiate an Agreement
Never leave the table first, so you always have to have an alternative solution and find a satisfactory solution for both parties.
Very often, traders overlook this very useful option when the initial trading plan goes wrong. However, this is very common with experienced professional buyers.
Define the BATNA before starting a negotiation
In negotiation, the person who is most likely to emerge fully satisfied with the negotiation is most often the one who has a very good alternative. Having fallback solutions is essential to be able to negotiate effectively, it increases your negotiation power.
Not to be overlooked: always try to discover the opposing negotiator’s BATNA. What are his options if he doesn’t do business with you?
List them and take some time to analyze them…
“Whoever has the most choice and weight in the negotiation is one step ahead!”
Philippe Korda
Negotiating and defending your margins
The 7 strategic factors that influence this perceived power:
- The power of weight: who is more important to the other? What market share? What % of turnover?
- The power of choice: who has the most options and possibilities? How much ?
- The power of information: who holds the strategic information?
- The power of influence: who has the most power to harm? lobbying? Who has the most network?
- The power of time: who has the most time to find another solution? What is its margin?
- The power of sanction: who can impact the other with negative consequences? How ?
- The power of legitimacy: who is the most legitimate in their demands for concessions? For what ?
These are all parameters to take into account in the definition and use of your Best Alternative To a Negotiated Agreement.
This is a very important concept, because it allows you to have a fallback solution in the event that the negotiation does not lead to a satisfactory agreement.
Very often the simple fact of subtly communicating elements / signals on the fallback solutions available to you, makes it possible to unblock a negotiation and obtain satisfactory concessions from the other negotiator.
“The best move you can make in negotiation is to think of an incentive the other person hasn’t even thought of, and then meet it.”
Eli Broad
Happy CEO 