Negotiation Strategies and Tactics

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Negotiation Strategies and Tactics
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Evolution of Negotiation A Plan for Success

• Give and Take Dr. Chester Karrass
• Getting to Yes Fisher and Ury
• Difficult Conversations Stone, Patton and Heen

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Give and TakePower Tactics

• Guidelines
• Original Negotiation Encyclopedia
• Power Assessment
• Negotiation Traits
• Planning
• Negotiation Modes
• Buyer/Seller Satisfaction
• Tactics and Countermeasures
• Aspiration Level
• Concessions

• Messages
• Understand Your Sources of Power
• Planning Pays Off
• Profit is a Gain in Satisfaction
• Aim Higher - You Come Out Better
• Always Make Assumptions, but . . .
• Change the Time and Shape of the Money

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Getting to YesJoint Problem Solving

• Guidelines
• Focus on Common Interests, not Differing
  Positions
• Invent Options for Mutual Gain
• Use Power of Independent Standards
• Always Develop your BATNA
• Separate the People from the Problems

• Messages
• Negotiation is Like Playing Frisbee
• Convert Age of Me to Era of We
• Key is Mutually Acceptable Conflict Resolution
• Try Side-by-Side Problem Solving
• There is Always a Better Deal for Both Parties
• Learn How to be a Fly on the Wall

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Getting to YesChange the Game
Problem Solution Positional Bargaining Which
Game Should You Play? Change the Game-Negotiate
on the Merits
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Difficult ConversationsCreate a Learning
Conversation

• Guidelines
• Sort Out Three ConversationsThe What Happened
  ConversationThe Feelings ConversationThe
  Identity Conversation
• Shift to a Learning Stance, a Learning
  Conversation
• Sincere Listening Works
• (Help Me Understand)
• Open with Self Confident Expression
• Begin with the Third Story(Your Story, Other
  Persons Story, and the Invisible Third Story)

• Messages
• Explore Each Others Stories
• Learn to be Curious
• Abandon Blame
• Map the Contribution System
• Feelings Matter
• Acknowledge Feelings
• Ground Your Identity . . .Ask Yourself Whats at
  Stake
• Manage Your Internal Voice
• Join Together as partners, Sort Out the Situation
  Together

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Difficult ConversationsHow to Discuss What
Matters Most
The What Happened? ConversationChallenge The
Situation is more complex than either person can
see.

• A Battle of Messages
• Assumption I know all I need to know to
  understand what happened
• Goal Persuade them Im right.
• Assumption I know what they intended.
• Goal Let them know what they did was wrong.
• Assumption Its all their fault. (Or its all
  my fault.)
• Goal Get them to admit blame and take
  responsibility for making amends.

• A Learning Conversation
• Assumption Each of us is bringing different
  information and perceptions to the table. There
  are likely to be important things that each of us
  doesnt know.
• Goal Explore each others stories how we
  understand the situation and why.
• Assumption I know what I intended, and the
  impact their actions had on me. I dont and
  cant know whats in their head.
• Goal Share the impact on me, and find out what
  they were thinking. Also find out what impact
  Im having on them.
• Assumption We have probably both contributed to
  this mess.
• Goal Understand the contribution system how
  our actions interact to produce this result.

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Difficult ConversationsHow to Discuss What
Matters Most
The Feelings ConversationChallenge The
Situation is emotionally charged

• A Battle of Messages
• Assumption Feelings are irrelevant and
  wouldnt be helpful to share. (Or, my feelings
  are their fault and they need to hear about
  them.)
• Goal Avoid talking about feelings. (Or,
  letem have it!)

• A Learning Conversation
• Assumption Feelings are at the heart of the
  situation. Feelings are usually complex. I may
  have to dig a bit to understand my feelings.
• Goal Address feelings (mine and their) without
  judgements or attributions. Acknowledge feelings
  before problem-solving.

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Difficult ConversationsHow to Discuss What
Matters Most
The Identity ConversationChallenge The
Situation threatens our identity

• A Battle of Messages
• Assumption Im competent or incompetent, good
  or bad, lovable or unlovable. There is no
  in-between.
• Goal Protect my all-or-nothing self-image

• A Learning Conversation
• Assumption There may be a lot at stake
  psychologically for both of us. Each of us is
  complex, neither of us is perfect.
• Goal Understand the identity issues on the line
  for each of us. Build a more complex self-image
  to maintain my balance better.

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Negotiation Lessons Learned

• View negotiation as a long process
• Map objectives, strategies and tactics
• Create time to plan and prepare
• Select appropriate model and style
• Spend time in the details
• Learn to be self-confident
• Adopt challenges and expectations
• Listen and Learn
• Represent all interested parties at table
• Acquire a negotiation toolbox (Tactics, Caucus,
  Relationships, etc.)

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Evolution of Negotiation and Conflict Resolution
1970 to 1985
Power
Side by SideProblem Solving
1985 to 2000
A LearningConversation
2000 to _____
What Tools do you Carry in Your Negotiation
Toolbox?
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What Tools Do You Carry in Your Negotiation
Toolbox?
Fill Your Toolbox Be Tough, But Be Fair

• Karrass
• Win/Lose
• Take It or Leave It
• Self-Confidence
• Power
• Preparation
• Invent Options
• Strategy
• Common Interests
• Fly on the Wall

• Aim Higher - You Come Out Better
• Body Language
• Planning
• Traits
• Listen
• Bogey
• P.O.
• Options
• Find the Better Deal
• Nibble

• Make Love
• Research
• Brainstorming
• Ethics
• Satisfaction
• Strategic Partners
• Caucus
• BATNA?
• Tactics
• Electronic Commerce

• Long-Term Agreements
• Cost Drivers
• GTY Sharing
• Standards
• Make War
• Relationships
• Continuous Improvement
• Separate People/Issues

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Key Negotiation Activities
Documenting the Negotiation and Forming the
Contract
Planning the Negotiation
Conducting the Negotiation

• Prepare yourself and your team
• Know the other party
• Know the big picture
• Identify objectives
• Prioritize objection
• Create options
• Select fair standards
• Examine alternatives
• Select your strategy, tactics and counter tactics
• Develop a solid and approved team negotiation
  plan

• Prepare the negotiation memorandum
• Send the memorandum to the other party
• Offer to write the contract
• Prepare the contract
• Prepare negotiation results summary
• Obtain required reviews and approvals
• Send the contract tot he other party for
  signature
• Provide copies of the contract to affected
  organizations
• Document lessons learned
• Prepare for implementation

• Determine who has authority
• Prepare the facility
• Use an agenda
• Introduce the team
• Set the right tone
• Exchange information
• Focus on objectives
• Use strategy, tactics and counter tactics
• Make counter offers
• Document the agreement or know when to walk away

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Negotiation Best Practices
Best Practices

• Understand that contract negotiation is a
  process, usually involving a team effort
• Select and train highly skilled negotiators to
  lead the contract negotiation process
• Know market and industry practices
• Prepare yourself and your team
• Know the other party
• Know the big picture
• Identify and prioritize objectives
• Create options --be flexible in your planning
• Examine alternatives
• Select your negotiation strategy, tactics and
  counter tactics
• Develop a solid and approved team negotiation
  plan
• Determine who has the authority to negotiate
• Prepare the negotiation facility at your location
  or at a neutral site
• Use an agenda during contract negotiation

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Negotiation Best Practices
Best Practices

• Set the right tone at the start of the
  negotiation
• Maintain your focus on your objectives
• Use interim summaries to keep on track
• Do not be too predictable in your tactics
• Document your agreement throughout the process
• Know when to walk away
• Offer to write the contract
• Prepare a negotiation results summary
• Obtain required reviews and approvals
• Provide copies of the contract to all affected
  parties
• Document negotiation lessons learned and best
  practices
• Prepare a transition plan for contract
  administration
• Understand that everything affects price
• Understand that Ts and Cs have cost, risk and
  value
• Tailor Ts and Cs to the deal, but understand the
  financial effects on price and profitability
• Know what is negotiable and what is not