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Negotiations

Objectives of the training:


### to ### to ### to ### to

show to participants the need for negotiations (examples from everyday life) explain the negotiation process and concentrate on topics which can be improved give them hints and ideas how to improve the negotiation skills explain that there is no such a thing like the recipe for a good negotiator

The content:
1. Introduction, ice breaker 2. Definition: Mutual communication process, whose objective is to reach agreement for the future in the situation when some of the interests (not values) of involved parties are in conflict.
Important words: -mutual -agreement for the future (this is the reason why one shouldn't include past problems, but using the past experiences, think about the best solutions for the future) -interests ( it is impossible to negotiate about values)

3. Interactions:
The first one will be used in the beginning of the training, the second in the middle Negotiation game - people divided into two equal groups First group leaves the room. The trainer give them instruction: each of them have to sell their watch to another person. Second group: they task is to listen carefully and mark on the piece of paper how many statements and questions the other person used to convinced them to buy a watch. Results: most of the sellers concentrate mainly on the product itself (it's quality, technical parameters, price etc.) and don't try to recognize the needs of the buyer. Second negotiation game- which shows that you can achieve the highest profits only if you cooperate.

4. Negotiation process:
Explanation of the process in the interactive way: We will use the example of the guy who would like to invite the girl for the Friday evening party

Stages: a) the need for the negotiations b) preparation and planning c) the negotiation d) follow up a) The need for the negotiation:
three types of needs - mutual, conflict, different ( after a brief explanation the examples of each type of interests should come from the audience) Mutual interests - those are the interests which create the base of negotiations i.e. the guy and the girl want to have a good time Friday evening Conflict interests - those are the interests, which are the reason for negotiations i.e none of them wants to spend to much money for the party Different interests - they are the tools to reach agreement (you can exchange them) - the girl doesn't want her parents to know about the party; the guy would like to impress his friends etc.

b) Preparation and planning:


It is extremely important stage, because successful negotiation consists of around 70% preparation and planning. Prepare your goals: think what is really important for you - to have a good time at the party, to impress your friends, to make another girl to be jealous etc.
### prepare three levels of goals

the best possible result - the girl goes with you, picks you up with her own car, buys alcohol for the party, wears your favorite mini skirt and she pretends she love with you. the reasonable and fair result - you pick her up, but you share the costs of fuel alcohol, she wears the mini skirt.

is in

and

the worst possible result - she goes with you, you pick her up, you share the costs of alcohol
### analyze what you can do if you don't reach agreement - invite another girl, stay at home,

go alone etc.
### prioritize your goals (look at short and long term perspective) - again what is the most

important for you and how you can achieve it, which are additional things which would be nice to get but it's not necessary for you Collect the information:
### who is your negotiation partner

the background of the person the character of the person the decisions which this person can take (Quite often we discuss with the person who can not take the final decision. In this case it is very important to be really creative and think of the different benefits. First of all we have to convince the person we are negotiating with. Secondly we have to give to this person arguments which will convince the final decision maker).
### what are his/her interests

Think what is really important for them. What would be their highest expectation? What would be the lowest?
### where and when the negotiation will take place

It is extremely important where the negotiation will take place. If it is your office you can arrange it in the way which would the best for your needs. You get a totally different psychological effect depending on how you are going to set up the tables and chairs. If you go to your partner, pay attention to the room set up, because this can give you an idea how your partner is planning to negotiate. You should also know how many people are negotiating on each side. Has it ever happened to you that you came for negotiations alone and you met three or even more people who talked with you? How did you feel? Time is another factor which matters. It is good if you can control it ( when are you going to meet, what is going to be the length of the meeting etc.). Topics:
### prepare the list of topics which you are going to include

to see the big picture of the relationship to think one more time about all important issues

to make sure that you will discuss all points to add some less important issues, which you would be able to swap
### have the agenda of the meeting

Again it gives you a better control of the process, which means that it would be easier for you to realize your goals.
### be creative: invent several different proposals

Normally you never have the full information about the situation. This is the reason why it is very good to prepare different scenarios. It will allow to react quickly for new information during the negotiation. At the same time it will let you analyze one more time which options satisfy your needs and the needs of your partner in the best way.
### find the objective criteria on which you base your proposals:

When you suggest anything try to base it on some objective criteria which are accepted by your partner i.e. company policies, tradition, statistics etc. It explains why you offer certain things. It is also a good way to deal with objections.
### analyze different techniques you can use:

promises - "if you agree to do this, I will do this..." (you have to be careful because you might have to give up too much) threats - "if you don't agree to do this, I will harm you" (the threats from one side quite often provoke the threats from the other) bluff - if it works- great; if it doesn't you lose credibility

c) Negotiations:
create positive atmosphere "you never get the second chance to make a first impression" Start negotiations with some general comments on the topics not related to your problem (breaking the ice). Weather or business will do. agree on the agenda of the meeting If you offer reasonable agenda, your partner will probably agree to follow it. exchange the first offers The moment you have state your first offers, you design the field for negotiations. When you will finally reach agreement it will always be somewhere in between you opening statement and the statement of your partner. So the first offer should be more than you expect in terms of quantity and quality. don't give up all your strong points immediately

During the preparation and planning stage come up with as many as possible positive points of your "product". While negotiating, use them in the most effective way. see the big picture Not only clearly realize what is important for you and which factors can influence the final result, but also show your partner this understanding. It doesn't mean that you have to tell your partner everything about yourself (person who has more information usually has more power). ask questions This is a very simple and very useful tool to reach agreement. First, it will allow you to understand better the needs of your partners. Secondly, it is a very good way to deal with objections (simple - could you please tell me why you can not agree with my proposal? make your partner explain exactly his reasons for objection and allows you to come up with another proposal). Questions finally clear all misunderstandings. summarize what you have understood this will help to avoid misunderstandings during the negotiation process be open for ideas Even you spent a long time preparing scenarios, your partner might show you the new point of view. So listen to him carefully and be creative at the same time. Together you can create the solution which will satisfy everybody. reach the final agreement in which both sides will be satisfied The final agreement should be fair (for both sides) and smart.

d) Follow up
write down conclusions to make sure you understood each other Paper stays - you wouldn't be able to deny what you promised always do what you promised The information that you are not reliable will harm your future business (in average person disappointed with a service will go and tell his story to 5 other people) remember: you might meet again

5. Don't think that:


### the other person wants to take an advantage of you (this creates a psychological barrier) ### the negotiation is win or lose game ( you can both win, which was already explained) ### you are smarter than the other guy, so you can take advantage of him (you might be

wrong)
### he is less determined than you are, so you can push to achieve more (you might be wrong) ### playing tough doesn't cost anything (wrong- it might encourage the other side to play

tough too. In this case it would be very difficult to reach a smart agreement)

### there is a recipe how to be a good negotiator (no- every negotiation is different, you can

use hints and ideas from this training to improve your negotiation skills, but only practice makes perfect) ### NO means you failed (it might, but sometimes it doesn't. So the best way to deal with the situation is to analyze what has happen and learn from it) "Nothing is a total loss if you are smarter after the experience"

6. Additional hints
### control your emotion ( when you get nervous or angry, you will not be able to make wise

decisions)
### be sensitive to cultural differences (different types of behavior mean different things in

different cultures)
### separate people and the problem (don't say - you are stupid, say - I don't agree with

you because...)

7. Sale - type of negotiations


Sale is just one type of negotiations. The difference appears when your partner doesn't see the need to buy your product. To achieve the best results in this situation form your offer according to "AIDA" rule.

Awareness
You build up your credibility. Show your references and references of your product.

Interest
Find out the needs of your client Show to your client his hidden needs or create the new needs. Say that your product can meet his needs

Desire
Prove how your product can meet those needs. Be precise, show the benefits.

Action
Explain step by step what your customer has to do to receive your offer.