Livret Negoiation 2012 (Mode de Compatibilité)

Negotiation
strategies and techniques
To guarantee a true win-win outcome by maximising

on your profitability and customer satisfaction
© Hilda MOREAUD 2012
Marketing • Management • Commercial • Communication • Efficacité Professionnelle
210 rue du Faubourg Saint-Antoine 75012 PARIS – Tél 01 43 72 64 00 – Fax 01 43 72 86 54 – http://www.ism.fr

Teaching program
The steps of a negotiation – The best practices for each step

– Introduction
– Simulation: “Loëren sketch”
– Simulation debriefing: structure of the meeting, behavior of the negotiator
Day 1 – Presentation of the steps for a negotiation
– The best practices for each step
– Focus: the concessions matrix
– Simulation: “Bancorp / Future”
– Simulation debriefing
Preparing for the negotiation
– Setting up the objectives
– The Check list
– Balance of power and Primary Role
Day 2 – The planner
– The negotiation scenarios
– Simulation: “Sony / Darty”
– Video debriefing of the simulations
– Negotiatiors Profiles
© Hilda MOREAUD Negotiation strategies and techniques 2

Content
• Negotiation simulation : Loëren sketch 4

• The steps of a negotiation 19
• Negotiation simulation : Bancorp / Future 42
• Preparing for the negotiation 47
• Negotiation simulation : Darty / Sony 68
• The negotiator’s behabiors 73
• Persuasive communication 77
• The behavorial pattern 94
• Assertiveness 103
• Conclusion 114

Negotiation simulation
Loëren sketch

1. Preparation
1. Prepare your negotiation (10’)

• Give yourself a “ceiling” target
• Give yourself a realistic target
• Give yourself a “bottom” target
2. Play out the simulation as face-to-face encounters (15-20’)
3. Write down the terms of your agreement
Once the simulations are over, do not give away any information
about your respective positions

2. Collective debriefing
What do those sentences taken from your

simulations have in common
Write down the sentences in your guidebooks

The best practices for negotiation
Practice n°1:
“Enforce the use of objective criteria by yourself and the other party”
• Be factual
• Be concrete
• Remain unbiased
• Avoid being vague or inaccurate

• Say everything you have to say
“Innuendos create misunderstandings”

What do those sentences taken from your

simulations have in common
Write down the sentences in your guidebooks

Practice n°2:
“Speak only for yourself and only about yourself”
• Negotiating is not about searching for truth or reality, it is about

searching for a solution to YOUR problem
• Stay focused on how the problem affects your position
• Do not speak for other people, even less so for the person in front of
you
• Keep in mind that as long as you speak about the other party, you
speak about something they know better than you do.

Practice n°3:
“avoid depreciative phrasings”
• Small: “a small question”, “a small discount”
• Try: “I will try to...”
• Avoid using the conditional mood: “I would appreciate it if you...”
• Avoid formulating demands as questions: “May you...?”, “Could you

consider...?”

Practice N°4:
“Don’t ask a question when you already know the answer
(especially if the answer goes against you)”
• “Do you think this is really what I need?”,
• “Are your offers within the market prices?”

What do you know about the person you are talking to

Practice n°5:
“Know how to find the relevant information”
• Finding out the real objectives of the other party will let you know
what arguments will be most effective
• Exchanging information may cause unexpected and creative solutions

to spring up
• Exchanging information lets you get closer to the other party

3. Individual debriefing
GO ROUND THE TABLE:
• What latitude did you have to negotiate?
• What result did you obtain?
• What was the structure of your negotiation?

The best practices
Practice N°6:
“Set clear and quantified objectives for yourself”
• Quantified objectives allow you to evaluate your performance during the

negotiation
• It is easier to communicate with quantified objectives

The best practices
According to you,
what are the key-factors of success for the best negotiators

The best practices
The most important key-factor of success is:

The way you set up your objectives.

The best practices
Practice N°7:
“set up ambitious and realistic objectives”
• The result of the negotiation depends on the negotiator’s ability to put

his back to the wall and to uphold that position
• An ambitious objective mathematically draws the negotiation result

towards you

The steps of a negotiation

Presentation
Search
Statement Concessions
First for the
of and Conclusion
contact real counterparts
objectives
objectives

1. First contact

Stakes and objectives
• Introduce yourself as a credible speaker and

decision-maker
First
• Create a work atmosphere
contact
• Build up the conditions for mutual trust
• Know your supplier’s predispositions and state of

mind

Best practises
• Maintain eye contact, breathe calmly, smile
First
contact • Settle down composedly, take out what you need to
take notes
• Send a sonar message

2. Statement of objectives

The statement of objectives stage marks the real start of the

negotiation.
• Become aware of the supplier’s real expectations

Statement
of
objectives • Measure the gap with your own expectations
• Show your supplier how motivated you are about reaching

these objectives

Best practises
• Let your opponent speak first
• Ask him to state his objectives clearly, unequivocally,

Statement
and in a quantified manner.
of
objectives
• Ask all the questions you need to alleviate any

uncertainties
• Take conscientious notes of these objectives

Best pratices
• Announce your own objectives in a clear and

quantified manner
• Speak slowly, look your counterpart in the eye

Statement
of
objectives
• Be convinced that your demands are in no way
extraordinary, that they are completely legitimate
• Be convinced that your supplier can actually comply

with your requests

3. Search for the real objectives

Within a negotiation, there is sometime a

discrepancy between what you say you want
and what you actually want.
Search
for the
real
objectives
Seemingly incompatible negotiating stances
may in fact hide real objectives that can be
reconciled

• Use any mean available to search for your

Search
counterpart’s deeper motivations
for the
real
objectives
• Of course, your opponent will be very reluctant to
reveal those deep motivations. You will have to lead a
full-blown investigation

Best practices
• Ask your questions as many time as you need
• Vary your approaches, ask your questions in different

ways
Search
for the • Double-check your information
real
objectives
• Confront your opponents with his own inconsistencies
and ask him for explanations
• If you detect a lie, smile, show politely that you are

not deceived, and ask your opponent for clarifications

Best practices
• Devote the required time to this stage. This can take

up to 50% -sometimes even 75%- of the negotiating
time
Search
for the • Once the real objectives of your opponent are clearly
real
objectives defined, ask him to reformulate them when possible,
or reformulate them yourself.
• Write down these objectives so they will be seen by

both parties (on a paperboard, for instance).

Best practices
• Prepare yourself for the fact that your

counterpart will try to find out your own real
objectives.
Search
for the • Do not retreat into silence, the exchange of
real
objectives information is a necessary part of the negotiating
process, and it can be profitable to you
• Discriminate between the strategic information

you must not disclose under any circumstances,
and the information you may reveal

4. Concessions and counterparts

Once the real objectives are made clear, each

negotiator will have to make concessions in order to
come closer to an agreement.
Concessions
and
counterparts
Your goal is to make as few concessions as possible

and to obtain the larger counterparts possible in
exchange.

Best pratices
• Do not make the first concession
• Put of making a concession for as long as possible,

Concessions make one only when the negotiation is blocked
and
counterparts
• Always make the smallest concession possible
• Explain why you cannot possibly make a larger

concession

Best practices
• Demand a counterpart for each possible concession “if

you give me..., Then I can give you...”
• Always ask for the biggest counterpart possible

Concessions
and
counterparts
• Explain why you ask for that counterpart
• Use the concession matrix

Focus on the matrix
Cost of the concession
Benefit for the other party

Low High
High
Value Exchange
creation of queens
Concessions
and
counterparts
Exchange
of pawns Gift
Low

5. Conclusion

Once the last concessions are made, you need

Conclusion to formalize the agreement and prepare its
implementation

Best practices
• Ask your opponent to reformulate the terms of

the deal, in a precise and quantified manner
• Take careful notes

Conclusion
• Read your notes aloud, under your opponent’s

supervision
• Formalize the deal with a contract, a purchasing

order, a report, minutes of the meeting...

Bancorp / Future

1. Preparation

Preparation

• Give yourself a “ceiling” target
• Give yourself a realistic target
• Give yourself a “bottom” target
• Map out your concession matrix

• Develop several scenarios
2. Act out the face-to-face meetings (45’)
3. Write down the terms of your deal
Once the simulations are over,

do not give away any information

2. Debriefing

Debriefing
• Did you comply with the structure of the negotiation

and the best practices?
• Did the concession matrix and the scenarios help you

out?


Preparation is a key-factor of success if it is done systematically and if

it produces tools you can use during the negotiation.

Your objectives in Your negotiating

the negotiation strategy
Your planner for

the negotiation

1. Setting up the objectives

1. Set up your objectives
Reminder:
• Set up clear and quantified objectives
• Set up ambitious and realistic objectives
• Set up three level of objectives (ideal or “ceiling”, realistic, break-up

point or “bottom”)

Make a clear distinction between alleged objectives and real objectives

Make a clear distinction between

what you want to WIN
and what you must AVOID LOSING
What I can win What I must avoid losing

in this negotiation in this negotiation
-
-
-
-
-
-
-
-

2. Negotiating strategy

2. Define a strategy
3 possibilities:
• Leader strategy
• Partner strategy
• Follower strategy

The LEADER strategy
• It can be used when the balance of power is in your favor
• It involves putting your supplier under pressure
• In a negotiation, a leader is a buyer who: Asks, demands, turns down,

speaks at length, explains, judges, advises, makes the decision, gets
angry, forgives...

The PARTNER strategy
• It can be used when the balance of power is even, or when you are in
a win-win perspective with your supplier
• It may only be used if you and the other party are of one mind
• In a negotiation, partners: Treat each other as equals, trust each

other, listen to one another, search for the best solution for both, take
the time to know and understand each other

The FOLLOWER strategy
• It can be used when the balance of power is tipped against you
• It does not imply that you will “lose” the negotiation or that you must
give up your objectives
• It is a strategy that requires subtlety
• In a negotiation, a follower is a buyer who: Asks questions, requests

guidance, flatters, makes the most of a seller’s pride, takes advantage of
the fatherly or professorial streak of the other party

3. The negotiation planner

3. Create your own negotiation planner
• The planner is a tool that you design during the preparation phase and
use during the actual negotiation process
• It is a tool that allows you to know what to say and do at any time,
what decision to take, and what proposal to make to your supplier

3. Create your planner
How to create the planer?

1. Establish all the fields of your negotiation (ex: buying a subscription
contract for a fleet of 25 mobile phones)
Kind of Hourly rate Handset Payment

Handset cost Commitment
subscription for calls model exemption

3. Create your instument panel
How to create the instrument panel?
2. Draw the lines symbolizing your three levels for objectives

Ceiling First
objective offer
Realist
objective
Bottom Break-up
objective line

How to create the planner?
3. Determine your objectives for each level in every field

Ceiling adjustable PDA 6 months First

9€ 1€ 12 months
objective w/phone ability
offer
Realist 5h 11€
Smart 49€ 4 months 12 months
objective phone
Bottom 4h 12€
Cell
99€ 2 months 24 months Break-up
phone line
objective

How to use the planner?

1. Start out your negotiation at the highest level


9€ 1€ 12 months
offer
Realist 5h 11€
objective phone
Bottom 4h 12€
Cell
phone line
objective


2. Move the cursors about


9€ 1€ 12 months
offer
Realist 5h 11€
objective phone
Bottom 4h 12€
Cell
phone line
objective


3. Use graph reading


9€ 1€ 12 months
offer
Realist 5h 11€
objective phone
Bottom 4h 12€
Cell
phone line
objective


4. Elaborate your negotiation scenarios
“If I commit myself for 24 months, I need a 6 months exemption”


9€ 1€ 12 months
offer
Realist 5h 11€
objective phone
Bottom 4h 12€
Cell
phone line
objective

Darty / Sony

1. Preparation

1. Preparation

• set up your negotiating objectives
• establish a strategy
• write down your concession matrix
• build your planner
• outline your scenarios
2. Act out the simulation in teams (45’)
3. Write down the terms of your deal
Once the simulations are over,

do not exchange any information

2. Debriefing

2. Debriefing
1. Show your preparatory documents
2. Using the video, analyze the following points:

• compliance with the structure of the negotiation
• compliance with the best practices
• compliance with –and efficiency of– the chosen strategy
• use of the planner
3. Display the results of your analyses

The negotiator’s behaviors

The negotiator’s behavior
According to you, how is the impact of your message distributed between

VERBAL and NON-VERBAL communication?
Non-Verbal Verbal
?% ?%

Non-Verbal Verbal
70 % 30 %

Persuasive
communication
Active Listening
Assertiveness

Persuasive communication

1. Assessment

1. Assessment
Look at the slide for 10 seconds and write down what this message
means to you.
DON’T SAY ANYTHING OUT LOUD, IT WOULD UNDULY

INFLUENCE THE OTHERS!!

1. Assessment
Write down what this conjures up for you

1. Assessment
This game illustrates the difference between “communication” and

“information”:
INFORMATION is giving form to something

COMMUNICATION is putting something in common
Let’s now see how well you communicate in a difficult situation...

2. Communication games

2. Communication games
• By word of mouth
• Two-people tangram

3. Communication diagram

3. Communication diagram
Send a clear message
Ask for feedback
1) ENCODING 5) DECODING
2) EMITTING 4) RECEIVING
3) TRANSFERING
Active Listening

4. Active listenning

4. Active listenning : E=mc²
E like… Ears to listen

• Until the end
• Without interrupting
M like… Manifesting my attention

• Through my behavior
• By taking notes
C² like… manifesting my Capacity for Comprehension

• Through my questions
• By my reformulation

5. The triangle of Aristotle

5. The triangle of Aristotle
Emotional arguments
Factual arguments Rational arguments

6. Sensorial perceptions

6. Sensorial perceptions
• 40% auditory
• 40% visual
• 20% kinesthetic
• Do not speak to the other party as you would like to be spoken to...
• Speak to him as HE likes to be spoken to
• Adapt.

The behavioral pattern

1. Debates “pros” and “cons”

1. Debate “pros” and “cons”
• Pair up and choose a polemic subject
• Prepare a debate. The goal is to convince an audience
• One of you must uphold the “pro” position, while the other will
champion the “con” position.
• The debate will be filmed and debriefed

1. Debate “pros” and “cons”
Debriefing:
• Does your behavior add something to your power of persuasion?
• Have you respected the rules of communication?
• Have you argued using the triangle of Aristotle and the sensorial
perceptions?

2. Draw up a behavioral pattern

2. Draw up a behavioral pattern
My primary role:
LEADER PARTNER FOLLOWER
My secondary role (write down 2 or 3 qualifying adjectives):
________________________________________________________
Topics of behavioral alertness:
________________________________________________________
________________________________________________________
The impression I make (write down how the other party will perceive you as a PERSON):
________________________________________________________

3. Exercise in individual persuasion

• Choose a subject and an associated opinion you would like to convey

to one of your suppliers
• Draw up a list of selling points using the triangle of Aristotle and the
sensorial perceptions
• Write down your behavioral pattern
KEEP YOUR BEHAVIORAL

PATTERN A SECRET!!

Debriefing :
• figure out the behavioral patterns of the other participants

Assertiveness

1. Self-diagnosis

1. Self-diagnosis
Fill out the self-diagnosis

2. Definitions

2. Definitions
• The ability to assume a hard-lined or even confrontational stance

without damaging your relationship with the other party
• The ability to say “no” in a positive manner
• The assertion of yourself, of your willpower, of your non-

confrontational expectations

3. Principles

3. Principles
• I have a right to want what I want, and not to want what I don’t want
• I have a right to tell what I want and what I don’t want
• I have a right to feel what I feel, and to express my feelings
• I have a right to be respected

3. Principles
• I treat my opponent as an equal
• He is entitled to the same rights I have, I am bound by the same

duties he has.

4. The golden rules of assertiveness

4. The golden rules of assertiveness
• I speak only for myself and about myself
• I remain concrete, factual, and unbiased
• I differentiate the person from the problem
• I speak to be understood
• I suggest solutions

5. Practice : mini role-playing games

Conclusion

3 questions
• What I expected and received
• What I expected but did not receive
• What I did not expect yet received

Thank you

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Negotiation

strategies and techniques

To guarantee a true win-win outcome by maximising

© Hilda MOREAUD 2012

Marketing • Management • Commercial • Communication • Efficacité Professionnelle

210 rue du Faubourg Saint-Antoine 75012 PARIS – Tél 01 43 72 64 00 – Fax 01 43 72 86 54 – http://www.ism.fr

The steps of a negotiation – The best practices for each step

© Hilda MOREAUD Negotiation strategies and techniques 2

• Negotiation simulation : Loëren sketch 4

© Hilda MOREAUD Negotiation strategies and techniques 3

© Hilda MOREAUD Negotiation strategies and techniques 4

1. Prepare your negotiation (10’)

2. Play out the simulation as face-to-face encounters (15-20’)

3. Write down the terms of your agreement

© Hilda MOREAUD Negotiation strategies and techniques 5

What do those sentences taken from your

Write down the sentences in your guidebooks

© Hilda MOREAUD Negotiation strategies and techniques 6

The best practices for negotiation

• Avoid being vague or inaccurate

© Hilda MOREAUD Negotiation strategies and techniques 7

What do those sentences taken from your

Write down the sentences in your guidebooks

© Hilda MOREAUD Negotiation strategies and techniques 8

The best practices for negotiation

• Negotiating is not about searching for truth or reality, it is about

• Stay focused on how the problem affects your position

© Hilda MOREAUD Negotiation strategies and techniques 9

The best practices for negotiation

• Small: “a small question”, “a small discount”

• Try: “I will try to...”

• Avoid using the conditional mood: “I would appreciate it if you...”

• Avoid formulating demands as questions: “May you...?”, “Could you

© Hilda MOREAUD Negotiation strategies and techniques 10

The best practices for negotiation

• “Do you think this is really what I need?”,

• “Are your offers within the market prices?”

© Hilda MOREAUD Negotiation strategies and techniques 11

The best practices for negotiation

What do you know about the person you are talking to

© Hilda MOREAUD Negotiation strategies and techniques 12

• Exchanging information may cause unexpected and creative solutions

• Exchanging information lets you get closer to the other party

© Hilda MOREAUD Negotiation strategies and techniques 13

GO ROUND THE TABLE:

• What latitude did you have to negotiate?

• What result did you obtain?

• What was the structure of your negotiation?

© Hilda MOREAUD Negotiation strategies and techniques 14

The best practices

• Quantified objectives allow you to evaluate your performance during the

• It is easier to communicate with quantified objectives

© Hilda MOREAUD Negotiation strategies and techniques 15

The best practices

© Hilda MOREAUD Negotiation strategies and techniques 16

The best practices

The most important key-factor of success is:

© Hilda MOREAUD Negotiation strategies and techniques 17

The best practices

• The result of the negotiation depends on the negotiator’s ability to put

• An ambitious objective mathematically draws the negotiation result

© Hilda MOREAUD Negotiation strategies and techniques 18

© Hilda MOREAUD Negotiation strategies and techniques 19