Welcome to

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Welcome to

• Successful Negotiations
• Please make yourself comfortable.
• We will begin at 830 a.m.

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Every Negotiation Is Concerned With

• Results
• Relationships

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What Makes a Difference?

• Optimism
• Creativity
• Mental Outlook
• Honesty
• Knowledge of all parties needs

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To Achieve Your Goals

• Manage the other sides perceptions
• Use problem-solving approach

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What is Negotiable?

• Price
• Terms
• Delivery
• Quality
• Service

• Training
• Resources (people, materials, budget)
• Scope
• Schedule

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Tough Negotiators

• Know how to control the negotiation
• Know how to stand their ground
• Know how to determine the other sides needs in
  advance

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Strategic Options

• BARGAINING is a competitive, win-lose process
  focused on competing interests. use when..
• You have more power
• The relationship is not important
• When you do not trust the other party
• When they are relying on bargaining
• To resolve simple issues

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Strategic Options

• PROBLEM SOLVING is a cooperative win/win focused
  on common concerns. Use when
• Power is equal
• You are weaker
• When you trust the other party
• You want a continuing relationship
• The opposition is using problem solving
• The negotiation is complex

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Negotiations are a method for reaching agreement
with both cooperative and competitive elements

• There must be
• A conflict of interest
• Some ambiguity about the right solution
• An opportunity to compromise, to reach a deal
  that satisfies both sides

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Choosing a Negotiating strategy

• Win - Lose
• Lose - Win
• Lose - Lose
• Win - Win

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Win / Win Benefits

• Promote stable agreements
• Provide foundation for future dealings
• Easy to smooth out business problems

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Importance of Win / Win

• Meet the needs of the other side
• Focus on interests, not position

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For Every Issue, Ask Yourself...

• Is the substantive issue important to you?
• Do you value the relationship with the other
  side?
• Is time an important factor?

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Win-Win

• Your goals Their goals

Win-win line
Their M.A.P.
Your M.A.P.
Win-lose/lose-lose area
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Close the deal?

• Satisfy logical needs
• Satisfy emotional needs
• Convince the other side you have reached your
  bottom line

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• WIIFT
• WIIFM

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The Negotiating Process

• Fact Finding
• Exploration
• Resistance
• Reformulation of Strategies
• Hard Bargaining and Problem Solving
• Agreement
• Follow up
• Autopsy

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Style Comparisons Chart
CONTROL
THINKERS STYLE FOCUS ON principles and
thinking SPEND TIME to be accurate PROVIDE
evidence PRIORITY IS TO BE ACCURATE
ASSERTOR STYLE FOCUS ON objectives and
actions SPEND TIME to be efficient PROVIDE
essentials only PRIORITY IS TO BE IN CHARGE
NON-RESPONSIVE
ASSERTIVE
NON_ASSERTIVE
TELLS
ASKS
PLEASER STYLE FOCUS ON relationships SPEND TIME
to be personal PROVIDE personal
assurance PRIORITY IS TO BE ACCEPTED
EXPRESSOR STYLE FOCUS ON dreams SPEND TIME to
listen PROVIDE incentives PRIORITY IS TO BE
RECOGNIZED
RESPONSIVE
SHOWS
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Style comparisons
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Negotiating Facts

• You are negotiating all the time
• Everything you want is owned or controlled by
  someone else
• There are predictable responses that you can
  count on in the negotiating process
• There are three critical factors in every
  negotiation power, information, time.
• The proper mesh of personality types is
  important to the negotiating success

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Keys to Power!

• Knowledge
• Control

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Three Stages of Negotiation

• Learning your opponents stated goals stating
  what you want
• Gathering information on your opponent and
  his/her needs
• Reaching for compromise

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How to Negotiate an Issue

• Introduce the issue
• Sell the issue
• ask for their position
• Allow response and listen carefully
• Summarize their position and state agreement if
  reached
• Resell if necessary

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Skilled Negotiators

• Consider twice as many options and outcomes
• Spend three times as much attention on finding
  common ground
• Spend more than twice as much time on long-term
  issues as short-term issues
• Set range objectives rather than single point
  objectives
• Discuss each issue independently of other issues

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Setting Your Objectives

• The substantive issues
• The relationship costs
• Transaction costs

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Planning Stages

• Identify all of the issues
• Prioritize the issues
• Establish a settlement range
• Develop strategies and tactics

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Factors to Know About People

• Decision Makers
• Key Influential People
• Special Concerns
• Information About Key Personnel
• Perceptions, Biases About Your Organisation

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Analyze

• Who are the people involved?
• What are the issues to be settled?
• Where will we settle, negotiate?
• When is the best time to negotiate?
• Why negotiate this at all?
• How will I, they, negotiate this?
• What if we tried?

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Gather Information

• Repeat statements as questions
• Ask for responses
• Ask for restatements
• Ask others who deal with your opponent
• Ask your opponents subordinates
• Mix your companys specialists with their
  specialists
• Ask open-ended questions

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SIZE UP YOUR OPPONENT

• Identify the Interests
• Explore the Options
• Know the Alternatives
• Develop sound Reasoning
• Understand Relationship

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Settlement Point

• Maximum supportable
• Really asking
• Least acceptable
• Deal breaker

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Negotiation Style Chart
Accommodate
Collaborate
Defeat
Relationship--------------------------------------
-Outcome
100 50-50 0
Compromise Withdraw
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Issues and Objectives

• 31
• Last
• ?
• ?
• ?
• First

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Five Kinds of Power

• Expert Power
• Personal Power
• Reward Power
• Coercive Power
• Legitimate Power

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Sources of Power

• Charismatic Power
• Expertise Power
• Situation Power
• Information Power

• Title Power
• Reward Power
• Punish Power
• Reverent power

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Where to Sit in Negotiations

• When youre negotiating with two people sit
  where you can watch both.
• When you have two people on your team sit apart
  so you speak with two different voices.
• When you have a large group opposing their small
  group keep your group together for power.
• When they have a large group opposing your small
  group intermingle to diffuse their power

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Tradables

• Slice concessions into small pieces and turn them
  into TRADABLES

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GAME PLAN

• RELATE - BUILD TRUST REALTIONSHIP
• EXPLORE - INTERESTS AND POSITIONS
• PROPOSE - IN WRITING
• AGREE - FIND OPTIONS

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• Encode Noise Decode
• Look for answers that do not quite fit
• the question

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Take Notes

• Clear
• Consistent
• Concise
• Accurate
• Thorough
• Kept in original form

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Pressure Tactics

• Pseudo-Problem Solving
• Trade-Off
• Positioning for Acceptance
• Power Play
• Fait Accompli

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Pressure tactics contd

• Funny Money
• Decoy
• Relationship Hostage
• Refusing to Negotiate

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Tricks Gambits

• Printed Word
• Higher Authority
• Splitting the difference
• Good-guy / Bad-guy

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Tricks Gambits contd

• Excessive Demands
• Take it or leave it
• Take away
• Puppy dog close
• Blaming / shifting burden

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Negotiating Tactics

• The Flinch
• The Vise Technique
• The Printed Word
• The Withdrawn Offer

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RCA Technique

• Reveal
• Confess
• Ask

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Keys to Persuasion

• Present both sides of the issue
• Limit information
• Use the power of the printed word
• Downplay benefits to you
• Own up to any major gains
• Use test concessions

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Rules and Principles

• Dont be the first to name a price
• Position opponents for easy acceptance
• Be the one who writes the contract
• Make your offers low but flexible

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Rules and Principles

• Never reveal it if you have a deadline
• Dont negotiate on the phone ( you cant read
  your opponents body language).
• Watch for sudden changes in body language,
  rather than just the body language itself.

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Rules and Principles

• Never say Yes to the first offer.
• The Value principle. ( the value of services
  diminishes rapidly after the services have been
  performed).
• Always maintain your Walk Away Power
• Make a big deal of any concession you make, and
  get a counter-concession for doing so.

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Rules and Principles

• Never be the one to offer to split the
  difference. Get your opponent to make the
  offer to you.
• 80 of concessions are made in the last 20 of
  the time - so dont leave details till later.
• The person under the greatest time pressure
  generally loses in negotiations

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Rules and Principles

• Win/Win Negotiating
• Never narrow negotiations down to just one issue.
• Different people want different things
• Price is not always all-important

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Results of Successful Negotiations

• Both sides feel a sense of accomplishment
• Both sides feel the other side cared
• Both sides feel the other side was fair.
• Each side would deal again with the other
• Each side feels the other side will keep the
  bargain.

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Good Negotiators

• Know that both sides are under pressure and
  dont feel intimidated
• Want to learn negotiating skills
• Understand negotiating skills
• Are willing to practice
• Want to create Win/Win negotiating situations

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Personality Styles Chart

• The hardest type for you to negotiate with is in
  the corner diagonally opposite yours.
• Analytical Pragmatic
• Amiable Extrovert

Higher Assertiveness
Higher Emotionalism
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Negotiating Tactics

• The Nibble
• The Hot Potatoe
• The Higher Authority gambit
• The Set-Aside technique for avoiding impasse

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Negotiating Tactics

• Puppy Dog technique
• Reluctant Buyer / Reluctant Seller
• The Want-It-All technique

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Negotiating Tactics

• Use Arbitrators to Break deadlocks
• Good Guy/Bad Guy
• Feel, Felt, Found formula
• Dumb is Smart Smart is Dumb

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Negotiating Tactics

• The Fait Accompli.
• The Funny Money gambit
• The Red Herring