What benefits does a good decision-making process bring to an organization?
faster and better decisions
increased accountability
alignment
successful implementation
competitive edge.
What six steps maximize the output of the decision making process?
- Define the problem
- Identify decision criteria
- Allocate weights to the criteria
- Develop the alternatives
- Evaluate the best alternatives
- Select the best alternatives
Describe the Decision Style Model. What two issues impact the outcome?
Shows different decision making styles based on ways of thinking and tolerance for uncertainty.
Who may be included in groups empowered to make decisions?
Employees, peers, vendors or customers.
What are the four orientations to the Decision Style Model? Describe each.
- Analytical: make decisions carefully, seek additional information and consider alternatives.
- Conceptual: more intuitive, have a broad outlook and find creative solutions.
- Directive: make logical and efficient decisions.
- Behavioral: rely on intuition and work well with others.
Why should bad decisions be changed as soon as possible?
It is a waste of time and energy to try to cover it. Easier to reject a bad decision and move to a better one.
Who should good decisions serve?
Good decisions serve multiple constituencies (Customer, client, employees and employer).
Define bargaining, agreement, understanding, and procedure.
Bargaining – discussing terms of a transaction.
Agreement – commitment to mutually acceptable terms.
Understanding – knowledge of mutual viewpoints on the issue.
Procedure – the way of conducting a process.
What can bargaining be used for?
A tool to achieve understanding of the positions of various stakeholders and to reach an agreement.
What personal attributes may assist in negotiations?
- Self-confidence
- Ability to disagree when needed
- Careful planning and information probing
- Commitment to integrity, mutual satisfaction
- Patience and conflict management
- Getting involved and understanding issues
- Negotiate and win the confidence of involved organizations
- Use of experts
What are the advantages to using teams in negotiations?
Less likely to overlook important details, plan better and think more broadly.
How is negotiating like a chain reaction?
When planning your negotiation consider the impact each of your actions may have on the other person.
What are the needs of the other party that should be kept in mind?
- want money/service/goods
- to be heard
- to avoid being boxed in
- to avoid future troubles, surprises, risks and changes
- to work more efficiently
- to meet their goals
Why is preparing good questions vital?
Prepare and consider how you will defend yourself against arguments.
What should be avoided in questions?
- Don’t be antagonistic
- Don’t challenge the integrity of the other party
- Don’t set your initial demands close to your final objective
- Don’t make assumptions
Describe BATNA.
“Best alternative to a negotiated agreement” the lowest accepted value that an individual will agree to in a negotiation.
What factors will influence your choice of negotiation tactics?
- personality of the negotiator
- The stage of the negotiation
- The moods of key players
What are the advantages and disadvantages of surprise?
Surprise may be used by a negotiator when it is a good way to keep pressure on the other party. Surprises can take many forms: a new issue, an interruption, new rules, new negotiators, a shift in authority, or a new venue.
What are the two strategies for dealing with threats used in negotiations?
Stop them or ignore them.
What steps should you follow if the other party uses emotions in the process?
- Recognize whether the emotions are genuine.
- Remain calm
- Take a recess or change negotiators.
Why should you be cautious about splitting the difference?
Could end up with results that are equitable but are not equal and both parties may end up leaving unsatisfied.
When might ‘take it or leave it’ be an effective approach?
- There is no future negotiating intended.
- Other party is pressured to say yes.
- A price drop to one customer will force a drop to all customers.
- Cannot afford to go lower and risk a loss (selling at the lowest possible price).
- Signal the other party that you are finished and have gone as far as you will.
Describe the steps in the negotiation process.
- create a set of assumptions
- establish opening positions
- exchange viewpoints
- reach impasse or concessions
- achieve a final agreement.
What are assumptions?
Assumptions are pieces of information that you cannot confirm as facts.
