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Effective Negotiation #367625-2

Course Overview

Credit

Amount

CPA

CFP^®

Course Author: Steven M. Bragg, CPA Field of Study (CPA): Business Management & Organization Field of Study (CFP): Psychology of Financial Planning

Course Description

Course publication/revision date: This course was updated on 1/1/2026.

This course discusses how to be a more effective negotiator. It does so by introducing the basic negotiation concepts, including the best alternative to a negotiated agreement, the reservation price, and the zone of possible agreement. The course also notes the differences between distributive and integrative negotiations. It addresses the characteristics of a negotiator, how to prepare for a negotiation, and the types of tactics that can be used in a negotiation. Attention is also paid to dealing with failing negotiations, negotiations with employees and suppliers, and how to measure the effectiveness of negotiations.

Table of Contents

Chapter 1 - Negotiation Concepts1

When not to Negotiate	1
Negotiation Core Concepts	2
Best Alternative to a Negotiated Agreement (BATNA)	2
Reservation Price	3
Zone of Possible Agreement	4
Resistance Point	4
Value Creation through Trades	4
Bargaining Mix	5
Distributive and Integrative Negotiations	5
Distributive Negotiations	5
The Normal Flow of Distributive Negotiations	6
Integrative Negotiations	6
The Normal Flow of an Integrative Negotiation	7
Comparison of Distributive and Integrative Negotiations	8
The Continuum of Negotiation Types	9
Types of Negotiation Outcomes	9
The Three Critical Elements in a Deal	9
Negotiation Sessions	10
Review Questions	11

Chapter 2 - Negotiator Skills and Characteristics12

Negotiator Characteristics	12
Active Listener	13
The Role of Anxiety	13
Willingness to Walk Away	14
Protects His Reputation	14
Review Questions	15

Chapter 3 - Negotiation Preparation16

Review Desired Outcomes	16
Uncover Value Creation Options	17
Understand and Enhance Positions	18
Identify the Decision Maker	20
Establish the Negotiator's Level of Authority	21
Understand the Individuals	21
Preparing for Difficult Negotiators	21
Understand the Big Picture	22
Compile Comparison Standards	22
Adjust the Process	22
Manage the Framework	23
A Note Regarding the Uncertainty of Negotiations	23
Other Topics	23
Outsourcing	23
The Devil's Advocate	24
Review Questions	26

Chapter 4 - Negotiation Tactics27

Gain Their Attention	27
Manage the Other Party	27
Frame the Conversation	28
Relieve the Tension	29
The Negotiator's Dilemma	30
Understand Why	31
Distributive Negotiation Tactics	32
Set a Reference Point	32
Counter the Reference Point	33
Address Concessions	33
Make a Commitment	34
Offer a Snow Job	34
Make an Exploding Offer	35
Offer Package Deals	35
Show Little Concern for Value	35
Use Signaling	36
Add a Last-Minute Change	36
Offer a Sweetener	36
Split the Difference	36
Shut Down Further Negotiations	36
Integrative Negotiation Tactics	36
Establish the Nature of the Negotiation	37
Start Slow	37
Explore Value in Differences	37
Expand Upon Offers	38
Evaluate Solutions	38
Assemble the Final Package	38
Additional Negotiation Tactics	38
The Initial Position	40
Information not to Reveal	40
Final-Offer Arbitration	40
Conventional Arbitration	41
Dealing with Unreasonable Offers	41
Dealing with Consecutive Bids	42
Dealing with Angry Negotiators	42
Dealing with Blockers	42
Dealing with Multiparty Negotiations	43
Whether to Lie	43
Detecting and Dealing with Liars	44
Negotiation Tips	45
Review Questions	47

Chapter 5 - Dealing with Failing Negotiations48

Dealing with Distrust	48
Dealing with Anger	48
Dealing with Threats	49
Dealing with Irrational Behavior	49
The Other Party is Unable to Take Action	50
The Other Party Lacks Information	50
The Other Party has a Hidden Agenda	51
Arbitration	51
Mediation	51
Review Questions	53

Chapter 6 - Negotiation Outcomes54

Negotiation Follow Up	54
Relations at the End of a Negotiation	54
Continuous Improvement	55
Additional Settlements	55
Renegotiations	56
Dealing with Negotiation Failures	56
Failed Negotiation Analysis	57
Review Questions	59

Chapter 7 - Employee Negotiations60

Opportunities for Employee Negotiations	60
Employee Negotiations	60
Employee-Specific Negotiation Opportunities	61
Compensation Negotiations	62
Final Period Negotiations	62
Review Questions	64

Chapter 8 - Supplier Negotiations65

The Supplier Negotiation Team	65
Supplier Negotiation Topics	65
Supplier Negotiation Considerations	67
Comparative Value Assessments	68
Review Questions	70

Chapter 9 - Negotiation Measurement71

The Traditional Measurement of Negotiation Outcomes	71
Problems with the Purchase Price Variance	72
Improved Negotiation Measurements	72
Review Questions	74

Answers to Course Questions75

Glossary81

Index83

Course Details

Author: Steven M. Bragg, CPA

Steven Bragg, CPA, has been the chief financial officer or controller of four companies, as well as a consulting manager at Ernst & Young. He received a master’s degree in finance from Bentley College, an MBA from Babson College, and a Bachelor’s degree in Economics from the University of Maine. He has been a two-time president of the Colorado Mountain Club, and is an avid alpine skier, mountain biker, and certified master diver. Mr. Bragg resides in Centennial, Colorado. He has written more than 300 books and courses, including New Controller Guidebook, GAAP Guidebook, and Payroll Management.

Publication/Revision Date: 1/1/2026

Course Exam Questions (online): 25 (multiple-choice)

Program Delivery Method: Self-Study (NASBA QAS Self-Study)

Available Formats of Course Text: Downloadable PDF, Printed/Mailed

Course Level, Prerequisites, and Advance Preparation Requirements

License	Course Level	Prerequisites	Advance Preparation Requirements
CPA	Overview	None	None
CFP®	Overview	None	None

* This program is appropriate for professionals at all organizational levels.

Sponsor ID Numbers

National Registry of CPE Sponsors I.D.: 107615

CFP Board Sponsor I.D.: 1008 — Course I.D.: 344329

State CPA Board Sponsor ID Numbers (where applicable)

Florida Division of Certified Public Accounting: 0004761

Hawaii Board of Public Accountancy: 14003

New York State Board for Public Accountancy: 002146

Ohio Accountancy Board: CPE .51 PSR

Pennsylvania State Board of Accountancy: PX178025

Texas State Board of Public Accountancy: 009349

Learning Objectives

As a result of studying the course material, you should be able to meet the objectives listed below:

Recognize when it is not appropriate to engage in a negotiation.
Describe how value creation through trades works.
Describe the different win-loss combinations and what causes each one.
Specify the core elements driving the outcome of a deal.
Describe the characteristics of a successful negotiator.
Recognize the impact of anxiety on a negotiation.
Identify the types of preparation work to complete prior to a negotiation.
Describe how to deal with a weak BATNA.
Specify the circumstances under which to hire a professional negotiator.
Specify the advantages of framing in a negotiation.
Cite the options available for relieving tension in a negotiation meeting.
Recognize the nature of the negotiator's dilemma.
Specify the variations on how a commitment statement can be sent.
Recognize the situations in which an exploding offer may be used.
Describe when final-offer arbitration is used and its shortcomings.
Specify the differences between arbitration and mediation.
State why a negotiation should be fully documented.
Describe why the timing of additional settlements can be beneficial.
Identify the options for reducing the financial burden of a compensation arrangement.
Identify the members of a negotiation team and note why they are on the team.
Recognize the different types of cost-sharing clauses that may be used with a supplier.
Specify the offsetting clauses that can be used when a buyer wants to include an early contract termination clause in a contract.
Identify the factors that can be used to judge the outcome of a negotiation.