Negotiations
NEGOTIATION by
The Negotiation Canvas was created by Pablo Restrepo and Stephanie Wolcott, founders of Negotiation by Design. Learn more at negotiationbydesign.com
THE NEGOTIATION CANVAS Learning Version: New to the Negotiation Canvas? Start here!
THEIR DESIRED OUTCOME
MY WALKAWAY
ALTERNATIVE AGREEMENT
POSSIBLE SOLUTIONS
MY BARGAINING
CHIPS
THEIR BARGAINING
CHIPS
MY KEY INTERESTS
THEIR WALKAWAY
ALTERNATIVE
THEIR KEY INTERESTS
MY DESIRED OUTCOME
NEGOTIATION CANVAS
This work is licensed under the Creative Commons Attribution-NoDerivates 4.0 International License. To view a copy please visit: https://creativecommons.org/licenses/by-nd/4.0/
The Negotiation Canvas was created by Pablo Restrepo and Stephanie Wolcott, founders of Negotiation by Design.
Learn more at negotiationbydesign.com
1) MY DESIRED OUTCOME What do I want? learn more
Why? 3) MY KEY INTERESTS
What will I do if we do not reach a deal? 5) MY WALKAWAY ALTERNATIVE
Why? 4) THEIR KEY INTERESTS
What do they want? 2) THEIR DESIRED OUTCOME
What do I have that they value? 7) MY BARGAINING CHIPS
What do they have that I value? 8) THEIR BARGAINING CHIPS
6) THEIR WALKAWAY ALTERNATIVE What will they do if we do not reach a deal?
9) POSSIBLE SOLUTIONS What solutions could work for both of us?
10) AGREEMENT What did we agree to?
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Learn more about the canvas watching our introductory video.
NEGOTIATION by
Title: Date: Version:
THE NEGOTIATION CANVAS
Desired Outcomes: Steps 1-2 Go
Key Interests: Steps 3-4 Go
Walkaway Alternatives: Steps 5-6 Go
Bargaining Chips: Steps 7-8 Go
Possible Solutions: Step 9 Go
Agreement: Step 10 Go
Negotiation Canvas ElementsThe Negotiation Canvas is a one-page easy-to-use tool that helps you reach better deals on all your negotiations. Pablo Restrepo and Stephanie Wolcott created the Negotiation Canvas to provide you with the most efficient and effective way to prepare and conduct a negotiation. No time to prepare? This tool makes it simple and fast.
Completing the canvas will help you to clarify what you want, understand your counterpart, identify and capture more value and improve your confidence in every negotiation.
The Negotiation Canvas is built as an editable PDF to make it easy to fill out and save your work. You will notice a video icon in the header of the canvas, watch this video for a quick overview using the popular orange example. Select the ‘learn more’ option in each field for a short description on how to fill out that field. Then return back to the Canvas using the ‘To Canvas’ buttons in the lower left corner.
TO CANVAS
Let’s get started! Watch our introductory video.
NEGOTIATION by
TO CANVAS
DESIRED OUTCOMES: Steps 1-2 What do you want?
1) MY DESIRED OUTCOME
2) THEIR DESIRED OUTCOME
- I want the orange.
- She wants the orange.
The Desired Outcome is the beginning position of each side of the negotiation. Begin the canvas by writing down what you want from the negotiation and if you can, write down what you think your counterpart wants.
Typically, people approach negotiation with a preconceived outcome in mind. They want a certain price, a certain place, a certain time, etc.
It is important to identify your Desired Outcome in the beginning, but as we will see, this initial position is only a starting point. You might find later on that you can create even better solutions that are good for both parties.
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NEGOTIATION by
ORANGE EXAMPLE
TO CANVAS
KEY INTERESTS: Steps 3-4 Why do you want what you want?
ORANGE EXAMPLE
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Key Interests are the motivations behind each parties' Desired Outcome. Asking 'Why?' will uncover Key Interests. Why?, is the magical question in negotiation.
Why do we want what we want? Why do we want our Desired Outcome? Why do they want what they want? Why do they want their Desired Outcome?
Try to ask yourself ‘Why?’ at least five times. Write down as many interests as you have related to the negotiation. Do the same with your counterpart. You can ask them why in person or if that is not possible, make your best guess based on the information you have.
Identifying interests will allow you to expand the range of possible solutions that meet both parties’ needs and can create more value for each party.
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3) MY KEY INTERESTS
4) THEIR KEY INTERESTS
- Peel - Orange cake - Hungry for sweets
- Pulp - Orange juice - Thirsty for orange juice
NEGOTIATION by
TO CANVAS
WALKAWAY ALTERNATIVES: Steps 5-6 What will you do if an agreement cannot be reached?
ORANGE EXAMPLE
Walkaway Alternatives are the options you have if you do not reach an agreement. Identifying your Walkaway Alternatives helps you to determine when to stay in the negotiation and when to walk away.
There are three questions to answer in this section: 1. What will you do if you do not reach an agreement? 2. What are the consequences (both good and bad)? 3. Is there a way to improve your walkaway alternative?
The more you can improve your Walkaway Alternative, the more power you will have to negotiate.
Answer the same questions for your counterpart. Only this time, think of ways to weaken their alternative. Remember, you must do this legitimately and with care. Your reputation is at stake and future negotiations with this party need to be considered.
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5-6) WALKAWAY ALTERNATIVES
- Yield and lose the orange, setting up a bad precedent.
- Fight, risk losing the orange, get punished by mom, set a difficult relationship for future negotiations.
In this case, both girls have the same Walkaway Alternative:
NEGOTIATION by
TO CANVAS
BARGAINING CHIPS: Steps 7-8 What can each party offer to the other?
ORANGE EXAMPLE
Bargaining Chips are the items you can offer to the other party to get more of what you want. This step helps you to bring more value to the table for both parties.
Looking at the other party’s desired outcome and interests, think of all the things you can offer them to meet their interests. You will notice each field has stars in it. When you list the bargaining chips, list them in order of priority. If you know something is very important to your counterpart, put that issue in the three-star category. If an issue is not that important, put it in the one-star category.
Moving to the box on the right, what can your counterpart offer you that you value? Make sure to prioritize these issues as well.
We prioritize chips because substantial value can be created if we can offer the other party something that they value highly but costs us little, for something we value highly and costs them little.
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7) MY BARGAINING CHIPS
Pulp
8) THEIR BARGAINING CHIPS
Peel Money Chocolate
Money Glass of water
NEGOTIATION by
TO CANVAS
POSSIBLE SOLUTIONS: Step 9 What solutions could work for both parties?
ORANGE EXAMPLE
Possible Solutions are proposals for an agreement that meet both parties interests. These are the proposals that you will present to your counterpart.
Review the previous steps to help you create solutions. Pay special attention to the Key Interests and Bargaining Chips. Are there other options for meeting both parties’ interests? What Bargaining Chips can you exchange to create more value for both parties?
Try to identify at least three solutions. Three forces you to be creative and might lead to a solution you would not have thought of otherwise. Three also shows flexibility and helps to build trust with your counterpart.
Offering three Possible Solutions helps you find out more about your counterpart's interests, priorities and preferences. You can ask which option they prefer and why. This is especially helpful when negotiating with people from less direct cultures. Even if you do not reach an agreement after this step, you will have more information to revise your proposals and try again.
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9) POSSIBLE SOLUTIONS
PS1 PS2 PS3
Water x Orange
Money x Orange
Pulp x Peel
NEGOTIATION by
AGREEMENT: Step 10 What did we agree to?
ORANGE EXAMPLE 10) AGREEMENT
Optimal agreement: Emma got 100% of the peel and Sara got 100% of the pulp.
Congratulations! You’ve done it! Once an agreement is made, write down the important details. You will want a record of what is agreed to so that you can review past agreements and assess both success and progress.
Make sure to include all relevant information, such as:
- all Bargaining Chips agreed to - roles and responsibilities for both parties - timelines - measurement and quality - indemnities, contingencies and termination clauses - confidentiality requirements - process for settling disputes - terms of payment
Remember, an agreement is only successful if it is:
- Better than your Walkaway Alternative - Acceptable for both parties - Implementable
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TO CANVAS NEGOTIATION by
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- PS3 Pulp x Peel:
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