Negotiationskillspresintation 190319143234

NEGOTIATION SKILLS.
PRZ 01/11/04
Agenda
What Is Negotiation?
Defining Negotiation
The Context of Negotiation
The Elements of Negotiation
The Goal of Negotiating: Developing Agreement
Critical Elements in Negotiation
The Process of Negotiation
The Process of Negotiation: A Three-Ring Circus
Traits of a Good Negotiator
Preparing for Negotiation
The Value of Preparation
5
NEGOTIATION SKILLS.PRZ 01/11/04
Agenda
Using Communication Skills in Negotiation
Moving into Phase Two of the Negotiation Process
Tactful Questioning
Active Listening
Careful Observation
Using Negotiation Techniques
Moving forward in the Negotiation Process
Common Negotiating Techniques
Selected Negotiating Tactics
Negotiating Like a Pro
Moving toward a Resolution
Getting Agreement 6
What is Negotiation?
The Context of Negotiation
9
1
How would you define Negotiation?

What negotiation is?
and,
What negotiation isn't?
10
Common positive ideas are
Cooperation
Communication
NEGOTIATION
IS
More than
A kind of one person
action involved
12
Major differences are
Confrontation
Aggressiveness
NEGOTIATION
IS NOT
Opportunity One winner
to demonstrate and one
superiority loser
14
A Practical Definition
of Negotiation
Negotiation is a communication process
between two or more people in which they
consider alternatives to arrive at mutually
agreeable solutions or reach mutually
satisfactory objectives.
15
THE CONTEXT OF NEGOTIATION
Consider these key questions.

Who negotiates?
Where do negotiations occur?
What's negotiable?
Why negotiate?
16
THE CONTEXT OF NEGOTIATION
Who negotiates?
You can safely say that everyone negotiates.
Where do negotiations occur?
Negotiations can and do take place almost anywhere.
What's negotiable?
Everything is negotiable!
Why negotiate?
It helps us to meet our goals and objectives.
To satisfy our needs.
To resolve conflicts
17
The Elements of
Negotiation
The Goal of Negotiating

Critical Elements in negotiation
18
2
It's Not Just Win or Lose

19
Cooperation Makes a Difference

20
Remember that negotiation is cooperation

You work with the other side together.
Cooperation usually leads to:
Conflict resolution.
Win-Win Negotiation
21
Negotiation might be considered both

an art and a science.
It is the science of cooperative compromise.
it is the art of collaborative agreement.
Win-Win Negotiation
22
CRITICAL ELEMENTS IN NEGOTIATION
Knowledge or information.
Time or deadline pressure.
Strength or power.
23
Knowledge or Information
Why is information so important in negotiation?
What kind of knowledge do you need?
EXAMPLE ...
How did knowledge or lack of knowledge affect this
negotiation?
24
Time or Deadline Pressure
If you know the other side's deadline pressures,

what advantage might that offer you in the
negotiation process?
EXAMPLE ...
How does deadline pressure affects the negotiating
process in this example?
25
Strength or Power
Strength is gained from
the difference between
your knowledge about the
other side's situation and
what the other side knows
about your situation.
26
Strength or Power
When does the negotiation
process wind down?
If a radically out-of-balance
condition happen.
Or a totally balanced condition
achieved.
28
Based on the three critical negotiation elements, three rules of

thumb usually apply:
The party with the most accurate and relevant
knowledge (information) is likely to prevail.
The party with the earliest deadline (most time
pressure) generally has the weaker position.
The parties must strive to balance their strengths
(power) to encourage compromise and drive toward
a win-win resolution.
29
The Balance of Power in Negotiation
Power may be real or assumed.
Power is effective only if the negotiators are aware of it.
Power is effective only if it is acknowledged.
Power need not actually be used to be effective.
Using power may be risky.
30
The Process of
Negotiation
The Process of Negotiation:

A Three-Ring Circus
The Traits of a Good Negotiator
31
3
THE NEGOTIATION PROCESS
Phase Two
Phase One Phase Three
Interacting
Communicate
Preparing to Use Getting
Negotiate Strategy Agreement
Reassess and
Tactics
32
Phase One
tart
Preparing to
he S
Negotiate
T
33
The first phase of the negotiation process:
PREPARATION
Gathering useful information.

Spend time analyzing both sides of the conflict.
Determine each side's negotiating objectives or goals.
Assess each side's relative knowledge, strength, and
deadlines.
Determine your own bottom line (stop point).
Try to guess the other side's bottom line.
35
Phase Two
Interacting
Communicate
Use
Strategy
Reassess and
Tactics
37
The second phase of the negotiation process:
INTERACTING
The emphasis here is definitely on dialogue, a two-way

communication.
You are not at the negotiation table to talk.
You are not making a speech or delivering a monologue.
As you communicate in the negotiation process, use

three basic skills:
Active listening. Communicate
Tactful questioning.
Use Strategy
Careful observing. Reassess
and Tactics
38
INTERACTING
You'll apply a variety of negotiating strategies and tactics to :
Advance the process or gain an advantage
that will help you move forward to a
positive close. Communicate
The balance of strength /power is tending to

Use Strategy
shift from one side to another. Reassess
and Tactics
This changing balance of power will require
you to continually probe for more
knowledge and constantly reassess your
relative position in the negotiation.
40
INTERACTING
You'll also need to reassess your position frequently.
As new information is uncovered through listening and
questioning.
As you observe attitudes and body language.
As tactics are tried, you must continuously evaluate three
basic options:
Should you continue negotiating? Communicate
Should you make concessions?
Should you stand firm? Use Strategy
Reassess
and Tactics
42
Phase Three
End
The Getting
Agreement
43
The third phase of the negotiation process:
GETTING AGREEMENT
This last stage represents the close of a negotiation session.

You may end or close a negotiation session by:
Getting agreement to resume negotiations at another time.
You haven't really concluded the negotiations, but for some
reason, it's advisable to pause in the effort.
You may end the session because one party has reached its
bottom line, the point at which it is not worth the effort to
continue negotiating.
44
The third phase of the negotiation process:
GETTING AGREEMENT
You may close a session by completing the

negotiations.
In this situation, the negotiated outcome is
solidified and details are nailed down.
The parties, having cooperated in the
give-and-take of compromise, will part with
mutual respect.
45
TRAITS OF A GOOD NEGOTIATOR

What does it take to be a good negotiator?
The successful negotiator has some important characteristics:
1. Understands people:
He has acquired a practical knowledge of human habits and
behaviors.
Good negotiators somehow seem to be able to anticipate or
guess correctly about the other side's next action or reaction.
2. Exudes confidence:
If you are not confident, you won't really fool the other side for
long.
If you do have it, the other side immediately perceives it.
46
TRAITS OF A GOOD NEGOTIATOR

3. Is open-minded:
In order to participate effectively in the give and take of
negotiation, you need to be open-minded.
4. Remains calm:
Negotiations can become emotional.
Both sides are subject to losing control over their emotions.
It's human nature to get excited, agitated, or irritated with the
tone of the conversation or the selection of tactics in a
negotiation.
5. Seeks options:
One asset in negotiations is the ability to find or invent
alternatives.
47
Phase
Phase One
One
rt
Preparing for
Sta
Preparing
Preparing to
Negotiate
Negotiate
to
The
Negotiation
The Value of Preparation
49
4
Preparing for Negotiation

What's involved in preparing to negotiate?
Your first goal is gathering information that will
enable you to:
Identify your side's motives, objectives, or
needs and
Make an educated guess about the other side's.
Assess your own starting position, and
Do the same for the other side.
Define your side's bottom line and
Attempt to define the other side's bottom line.
50
Identifying Motives, Objectives, or Needs

Gathering information that will enable you to:
Identify your side's motives, objectives, or needs and make an
educated guess about the other side's.
Ask yourself these questions:
What do you hope to achieve as a result of the negotiation
effort?
What are your primary needs? Secondary needs?
Why are you engaging in this negotiation?
Are you a willing player or a forced participant?
What is at risk in the negotiation?
What do you want to get? ...
Objectives ... 52
Assessing the Starting Positions

Assess your own starting position, and do the
same for the other side.
Estimate your relative positions with regard to
the three critical elements:
Information/knowledge
Power/strength
Time or deadline pressure
54
Establishing the Bottom Line

Define your side's bottom line and to define the other
side's bottom line.
In every negotiable situation, there is a point of no
return.
You need to decide on your bottom line.
Then make an educated guess as to the other party's
bottom line.
55
Using Communication
Skills in Negotiation
Moving into Phase Two of the Negotiation Process
Tactful Questioning
Active Listening
Careful Observation
58
5
Using Communication Skills in Negotiation
Phase Two
Interacting
Communicate
Use
Strategy
Reassess and
Tactics
59
MOVING INTO PHASE TWO OF THE
NEGOTIATION PROCESS
In this chapter we will learn how to use communication

skills in the context of negotiation
Ask useful questions in a negotiation session by:
Tactful questioning.
Listen actively during a negotiation session by:
Active listening.
Carefully observe the other side during negotiations by:
Careful observation.
60
TACTFUL QUESTIONING
Types of Questions
Two types of questions are most frequently
used during negotiations:
Direct and
Indirect
61
Indirect Questions
Why are you interested in obtaining more time to

decide?
How is your negotiating team organized?
What are you hoping to achieve during this
negotiating session?
What issues most concern your members?
Can you explain how you arrived at that position?
62
Direct Questions
Will we be able to complete our session by noon
today?
Can we agree to meet again tomorrow?
Do you prefer the 60-day or 90-day
implementation plan?
Do you have authority to decide this matter?
Is the corporate benefits package confirmed with
your team?
Are we in agreement on the terms of the deal?
63
Framing Questions
The following four questions aimed to get the same
information, but framed differently:
1. "What's your excuse for not paying overtime to the
workers?"
2. "How come you didn't pay the required overtime?"
3. "Would you help us understand why you were unable
to pay the overtime?"
4. "There seems to be a misunderstanding, so will you
explain how overtime pay is calculated?
64
When framing questions
consider the following

What information do you want to uncover?
What kind of question (direct or indirect) is most likely
to elicit the information you need?
What kind of effect (positive, negative, neutral) do you
want the question to have on the other side?
What tone or emotional impact (aggressive, passive,
hostile, conciliatory, etc.) do you want to make with
the question?
65
ACTIVE LISTENING
The biggest source of mistakes in negotiations is failing

to listen.
When you do not listen carefully, you are likely to:
Misinterpret what the other side said.
Be unable to confirm or verify what was said.
Misunderstand the other side's question.
Make improper assumptions.
Be unable to respond appropriately.
66
CAREFUL OBSERVATION
Nonverbal communication involves visible movements

or gestures that convey emotions or intentions.
For example:
when you frown and fold your arms as you speak to a
child, you are clearly communicating your displeasure via
nonverbal means.
When you smile and move closer to another person, you
are communicating your comfort, approval, or interest.
67
Take Care ..
Beware of hearing what you want to hear.

Or, see what you want to see.
Do not make assumptions. Remember the old saying:
"Never assume any thing; assuming makes an ass out of you
and me"
68
How do you know what a gesture or

expression means?
Your experience in observing physical movements

and gestures.
By trial and error, you've become attuned to the
probable meaning associated with posture.
Now you've got to apply that knowledge in the
negotiating session.
69
Your Powers of Observation

Watch for changes in facial expression
Watch for hand gestures or mannerisms
Watch for physical movements or changing positions
70
Studied Reactions and Cultural Differences

Sometimes your observations are subject to
interpretation.
Your ability to mask your feelings is important
As a rule, very few people are able to consistently hide
their reactions.
Cultural differences can also add to the complexity of
observing and interpreting nonverbal communications.
Also, in some cultures, a deadline is not taken
seriously.
71
Are you aware of other cultural, social, or

linguistic differences that could impact your
ability to communicate in upcoming negotiations?
Jot down some examples of cultural differences
that you have observed or that you expect to
encounter in future negotiations.
72
NEGOTIATION SKILLS.PRZ At the start of a commercial negotiation,
01/11/04
two teams face each other around a table,

Head tilted Notice how each team member's body
towards partner language is supportive of their partner
Team A
Eye contact is Team B
maintained
Body leans with partner
towards partner
73
Understanding Body Language

Wide eyes and warm
expression indicate
Direct eye contact willingness to be
Open expression Inattentive gaze
implies positive persuaded. Open arms
Leaning back shows interest in means lack of
thoughts imply indecision
implies Posture proceedings concentration
hostility suggests Hand on chin Fiddling with a
attentiveness shows pen confirms
Crossed arms thoughtfulness thoughts are
indicate elsewhere
disbelief
74
Using Negotiation
Techniques
Moving forward in the Negotiation Process
Common Negotiating Techniques
Selected Negotiating Tactics
76
6
Using Negotiation Techniques

Phase Two
Interacting
Communicate
Use
Strategy
Reassess and
Tactics
77
This chapter will help us to:
Apply negotiation techniques and tactics to

advance the negotiation process.
Respond appropriately when the other side uses

proven negotiation techniques and tactics during a
negotiation session.
78
79
MOVING FORWARD IN THE

NEGOTIATION PROCESS
You might adopt a certain general strategy.
You'd select tactics that would be appropriate for that
approach.
You may change strategies and tactics at any time in
a negotiation.
During the actual negotiation session, you will be
constantly evaluating your position.
80
MOVING FORWARD IN THE
NEGOTIATION PROCESS
Using information and insights you obtain

by listening, questioning and observation,
you quickly select or modify your
negotiating strategies and tactics.
Your guiding objective is to move the
negotiation process forward to Phase
Three, getting agreement.
81
COMMON NEGOTIATING TECHNIQUES
Stonewalling
As you already know, time pressures or deadlines
represent one of the three critical elements in any
negotiation.
The idea here is to stall and delay.
Causing the other side to become short-tempered and
agitated as its deadline looms closer.
Meanwhile, other side frustration builds until just
about to blow up and lose control.
This is a strategy called stonewalling.
82
Stonewalling
The operative issue in stonewalling is time.

When one of the parties in a negotiation uses this
approach, he/she is really saying:
"I can last longer than you can.
Whenever you encounter it, you need to be prepared
to respond.
The first thing you need to do is identify it.
Once you identify the strategy, you immediately minimize
its effectiveness by:
83
Stonewalling Respond
Respond with a more suitable, less emotional reaction
Get your own deadline extended to take the pressure
off.
Wait patiently for the other side to make a move.
A third approach might be to turn the other side's
strategy back on them.
let them know that you are relieved.
Indicate your preference for a slower time schedule.
Describe how busy you are with other commitments or
more pressing issues.
84
Impulsive Change
Change can often be unsettling, especially when the
change is unexpected.
How do you feel when this happens?
You're probably surprised and somewhat confused by the change in
behavior.
What's happening? It's an approach called the impulsive
change.
The sudden shift in attitude or emotion, without warning the other
side makes a dramatic shift in attitude, approach, or tactics.
They hope to upset your equilibrium, to draw attention
to an issue, or simply to shake up what they perceive as
complacency.
85
NEGOTIATION SKILLS.PRZ
How to Respond to an 01/11/04
Impulsive Change Attitude

You need to think fast.
What motives lie behind the change?
Can the sudden change be explained rationally? Or
Does it seem totally out of context?
If you cannot answer these questions to your own
satisfaction, then you need to ask the other side.
What provoked the change? .
If you understand the motivation behind the change.
You may adopt other tactics.
86

The G o t c h a
A gotcha is an approach used by people who

prefer to act now and negotiate later.
A gotcha forces the issue being negotiated.
This negotiating technique works best when power

is unevenly distributed at the negotiating table.
87
The D o d g e
The conventional dodge uses a ploy to shift attention

from the real issue to a side issue.
Another variation on this theme is "testing the waters."

Then you abandon the idea for a while, but you'll return
to it near the end of the negotiation when you have
figured out a strategy and a set of tactics that will enable
you to gain agreement on that original idea.
88
NEGOTIATION SKILLS.PRZ
How to Respond to 01/11/04
The D o d g e Technique
First, listen carefully for seemingly casual remarks
or suggestions.
Be aware of the other side's attempts to test the waters
or float a trial balloon.
See through the facade of the dodge.
Focus on the other side's real interests and needs.
Bring them back gently but firmly to the current issue.
Redirect attention to the agreed upon agenda or
refocus on the matter at hand.
89
SELECTED NEGOTIATING TACTICS
High Ball/Low Ball
An Emotional Outburst
The Ebenezer Scrooge Tactic
Mother-May-I
90
Negotiating
Like a Pro
Moving toward a Resolution
Getting Agreement
91
7
This chapter will help us to:
Apply techniques to develop agreement.
Develop a positive attitude toward negotiation.
a s e T h ree
Ph
End GGeettttiinngg
AAggrreeeem meenntt
he
T
92
MOVING TOWARD A RESOLUTION
GETTING AGREEMENT
Seek Alternatives
Find Common Ground
Use an Agent
93
MOVING TOWARD A RESOLUTION

Buy Time to Think
Defer to Standards
Make It Easy to Agree
Develop a Partnership
Never lose sight of your primary objective in

negotiations-getting agreement.
If you work together to achieve that objective, your
chances of success increase dramatically.
94

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NEGOTIATION SKILLS.

How would you define Negotiation?

Common positive ideas are

Major differences are

THE CONTEXT OF NEGOTIATION

Consider these key questions.

THE CONTEXT OF NEGOTIATION

The Goal of Negotiating

The Goal of Negotiating

It's Not Just Win or Lose

The Goal of Negotiating

Cooperation Makes a Difference

The Goal of Negotiating: Developing Agreement

Remember that negotiation is cooperation

The Goal of Negotiating: Developing Agreement

Negotiation might be considered both

CRITICAL ELEMENTS IN NEGOTIATION

Time or deadline pressure.

CRITICAL ELEMENTS IN NEGOTIATION

Why is information so important in negotiation?

What kind of knowledge do you need?

CRITICAL ELEMENTS IN NEGOTIATION

Time or Deadline Pressure

If you know the other side's deadline pressures,

CRITICAL ELEMENTS IN NEGOTIATION

CRITICAL ELEMENTS IN NEGOTIATION

CRITICAL ELEMENTS IN NEGOTIATION

Based on the three critical negotiation elements, three rules of

The Balance of Power in Negotiation

Power may be real or assumed.

Power is effective only if the negotiators are aware of it.

Power is effective only if it is acknowledged.

Power need not actually be used to be effective.

Using power may be risky.

The Process of Negotiation:

THE NEGOTIATION PROCESS

THE NEGOTIATION PROCESS

Gathering useful information.

THE NEGOTIATION PROCESS

The emphasis here is definitely on dialogue, a two-way

As you communicate in the negotiation process, use

The balance of strength /power is tending to

THE NEGOTIATION PROCESS

This last stage represents the close of a negotiation session.

You may close a session by completing the

TRAITS OF A GOOD NEGOTIATOR

TRAITS OF A GOOD NEGOTIATOR

The Value of Preparation

Preparing for Negotiation

Identifying Motives, Objectives, or Needs

Assessing the Starting Positions

Gathering information that will enable you to:

Establishing the Bottom Line

Using Communication Skills in Negotiation

In this chapter we will learn how to use communication

Why are you interested in obtaining more time to

consider the following

The biggest source of mistakes in negotiations is failing

Nonverbal communication involves visible movements

Beware of hearing what you want to hear.

How do you know what a gesture or

Your experience in observing physical movements