Negotiating is the process of communicating back

and forth, for the purpose of reaching a joint

agreement about differing needs or ideas.

It is a collection of behaviours that involves
communication, sales, marketing, psychology,
sociology, assertiveness and conflict resolution.

A negotiator may be a buyer or seller, a customer or
supplier, a boss or employee, a business partner, a
diplomat or a civil servant. On a more personal level
negotiation takes place between spouses friends,
parents or children.

Title comes from remarks made by participants
at some of my negotiation workshops
thats the opposite of what I do
I know I should do that, but I find myself doing
exactly the opposite
Its counter-intuitive

What are people saying ?
They recognise the prudence of a particular
strategy
But they find it difficult to implement it
Their natural inclination is to do the opposite of
what they recognise is the prudent strategy
Automatic gear Shift into manual
Focus on Positions Focus on interests
Dive into the negotiation Defer the negotiation to a time of our own
choosing, gather information first
When our proposals are rejected,
justify and defend them
Ask why our proposal doesnt work, and
gather information
When a proposal is made to us
that is unacceptable, rejection
Instead of rejecting, ask why their
proposal is important, and gather
information
What are
some of the intuitive things we do in a negotiation
the counter-intuitive thing we might consider as an alternative ?
There are minimum 2 parties involved in the
negotiation process. There exists some
common interest, either in the subject matter of
the negotiation or in the negotiating context,
that puts or keeps the parties in contact.

Though the parties have the same degree of
interest, they initially start with different opinions
and objectives which hinders the outcome in
general.

In the beginning, parties consider that negotiation is a better way of trying to
solve their differences.

Each party is under an impression that there is a possibility of persuading the
other party to modify their original position, as initially parties feel that they shall
maintain their opening position and persuade the other to change.


During the process, the ideal outcome proves unattainable but parties retain
their hope of an acceptable final agreement.

Each party has some influence or power real or assumed over the others
ability to act.

The process of negotiation is that of interaction between people usually this is
direct and verbal interchange.

He should be a good learner and observer.
Should know the body language of the people at the negotiation process.
Should be open and flexible and yet firm.
Exercise great patience, coolness and maturity.
Should possess leadership qualities.
Should control emotions and not
show his weaknesses.
Should bargain from the position of strength.
Should know and anticipate the pros and cons of his each move and its
repercussions.
Should know how to create the momentum for the negotiations and must know
when to exit and where to exit by closing the talks successfully.

Should build trust and confidence.
Should be confident and optimist.
Should have clear cut goals and objectives.
If necessary, he should provide a face saving formula for his counter party.
Should be able to grasp the situation from many dimensions.
Should know human psychology and face reading
Should not be a doubting Thomas.
Should plan and prepare thoroughly with relevant data and information to avoid
blank mind in the process.
Should radiate energy and enthusiasm and must be in a position to empathize
with his opponents.
Should be a patient listener.


what negotiation means and the various forms it can take
that negotiating, in the fullest sense, means forging long-term relationships
the role that the individual personalities play in negotiating
that you must take a variety of approaches to negotiation, since no single set of
principles will suffice in all circumstances

Types Parties
Involved
Examples

Day-to-day/
Managerial
Negotiations
1.Different levels of
Management
2.In between
colleagues
3.Trade unions
4.Legal advisers
1.Negotiation for
pay, terms and
working conditions.
2.Description of the
job and fixation of
responsibility.
3.Increasing
productivity.
Types

Parties
Involved

Examples

Commercial
Negotiations
1.Management
2.Suppliers
3.Government
4.Customers
5.Trade unions
6.Legal advisors
7.Public
1.Striking a contract with
the customer.
2.Negotiations for the
price and quality of
goods to be purchased.
3.Negotiations with
financial institutions as
regarding the availability
of capital
Types Parties
Involved
Examples

Legal
Negotiations
1.Government
2.Management
3.Customers
1.Adhering to
the laws of the
local and
national
government.
Depending on a scale of disagreement, the level of preparation might be
appropriate for conducting the successful negotiation.

For a small disagreements, excessive preparation could be counter-productive
because it do takes time which is better focused in reaching the team goals.
If the major disagreement needed to be resolved, preparing thoroughly for that
is required, and worthwhile.
Think through following points before you could start negotiating.
Goals:
What you want to get out from the negotiation? What do you
expect from the other person?


Trading:
What you and the other person have which
you can trade?
What do you and the other person have so
that the other wants it?
What might you both be prepared to give
away?
Alternatives:
If you do not reach the agreement with
him/her, what alternatives you have?
Are these things good or bad alternatives?
How much it matters if you do not reach the
agreement?
Will the failure to reach the agreement cut
out future opportunities?
What alternatives may the other person
have?


The relationship:
What is a history of relationship?
Can or should this history impact
negotiation?
Will there be any of the hidden issues that
might influence negotiation?
How you will handle these?
Expected outcomes:
What outcome would people be
expecting from the negotiation?
What was the outcome in the past,
and what precedents been set?

The consequences:
What are the consequences of winning or
losing this negotiation by you?
What are the consequences of winning or
loosing by the other person?

Power:
Who has the power in the relationship?
Who do controls the resources?
Who stands to lose most if agreement is
not been reached?
What power does other person have to
deliver which you do hope for?

Possible solutions:
Based on all considerations, what possible compromises might be there?
Good negotiators are the people who understand
how to build key relationships
how to identify what people need
how to give them what they need and
how to get what they want in return, all in a way that seems effortless.

Autocratic managers typically hold the view
that they are going to get what they want when
they interact with subordinates, because their
inherent authority precludes the need to
negotiate.

These managers do not realize that, in the
process of handing out orders, they are
engaged in a kind of one-sided negotiation that
can antagonize others, with the result that the
tasks they wish to see completed may be
carried out improperly or not at all.

The Accommodating manager is more concerned with what others want than
with their own needs.

In order to avoid conflict, they do not negotiate at all and often end up
overriding their own interests.
BATNA
The Best Alternative To a
Negotiated Agreement; the lowest
acceptable value (outcome) to an
individual for a negotiated
agreement.
Your BATNA "is the only standard which can
protect you both from accepting terms that are
too unfavourable and from rejecting terms it
would be in your interest to accept.

In the simplest terms, if the proposed
agreement is better than your BATNA, then you
should accept it. If the agreement is not better
than your BATNA, then you should reopen
negotiations.
BATNAs are not always readily apparent. Fisher and Ury outline a simple
process for determining your BATNA:
develop a list of actions you might conceivably take if no agreement is
reached;
improve some of the more promising ideas and convert them into practical
options; and
select, tentatively, the one option that seems best.
A community discovers that its water is being polluted by the discharges of a
nearby factory.
Community leaders first attempt to negotiate a cleanup plan with the company,
but the business refuses to voluntarily agree on a plan of action that the
community is satisfied with.
The Role of Mood & Personality Traits in Negotiation
Positive moods positively affect negotiations
Traits do not appear to have a significantly direct effect on the outcomes of
either bargaining or negotiating processes (except extraversion, which is
bad for negotiation effectiveness)

Gender Differences in Negotiations
Women negotiate no differently from men, although men apparently
negotiate slightly better outcomes.
Men and women with similar power bases use the same negotiating styles.
Womens attitudes toward negotiation and their success as negotiators are
less favorable than mens.

Once parties establish a BATNA, they must then compare the costs and
benefits of the BATNA to all of the settlement options on the table.

Ask, "What's it going to cost you if you don't?"

Most of the negotiation literature focuses on two strategies, although they call
them by different names.

One strategy is interest-based(or integrative, or cooperative) bargaining, while
the other is positional (or distributive or competitive) bargaining.

Integrative bargaining in which parties collaborate to find a win-win" solution to
their dispute.
This strategy focuses on developing mutually beneficial agreements based on
the interests of the disputants.
Interests include the needs, desires, concerns, and fears important to each
side.
Positional bargaining is one that involves holding on to a fixed idea, or position,
of what you want and arguing for it and it alone, regardless of any underlying
interests.

Roles : Rita, a 15 year old girl. The Observer
becomes Ritas parent. Others are Observers to
record use/abuse of win/win techniques.

Background: Rita is calling home from a payphone
on Hwy 401 to tell her parent she is hitch-hiking to
Hollywood to be a movie star. She has no money, is a
little afraid, and secretly wants to go to drama
school. The parent is worried about Rita being out
after curfew. Parent picks up the phone, and has 3
minutes to effect a win-win approach before the
payphone times out.
Background:
Suresh has a Programmer off sick, and wants to negotiate
two weeks of Kunals time to work on the Companys most
important project immediately, because Kunal is the best
programmer, and knows the tasks. Delays may affect everyones
bonus.

Kunals Manager is concerned the loss of Kunal will mean
he will not be able to complete tasks on another project their
department is committed to deliver (requiring one week of work in
the next 3 weeks), because Suresh has a reputation of over-
utilizing resources (and padding their schedule contingency).
Other commitments will also need juggling.


Background: Raima is not using the
car this weekend, but is concerned the
good friend is a fast driver. The friend is
generous, and has done Raima several
favours for Raima, including a recent
birthday gift.
Time: 3 minutes
When quick, decisive action is vital (in
emergencies); on important issues.
Where unpopular actions need implementing
(in cost cutting, enforcing unpopular rules,
discipline).
On issues vital to the organizations welfare.
When you know youre right.
Against people who take advantage of
noncompetitive behavior.
To find an integrative solution when both sets of
concerns are too important to be compromised.
When your objective is to learn.
To merge insights from people with different
perspectives.
To gain commitment by incorporating concerns
into a consensus.
To work through feelings that have interfered
with a relationship.
When an issue is trivial, or more important
issues are pressing.
When you perceive no chance of satisfying
your concerns.
When potential disruption outweighs the
benefits of resolution.
To let people cool down and regain
perspective.
When gathering information supersedes
immediate decision.
When others can resolve the conflict effectively.
When issues seem tangential or symptomatic
of other issues.
When you find youre wrong and to allow a
better position to be heard.
To learn, and to show your reasonableness.
When issues are more important to others than
to yourself and to satisfy others and maintain
cooperation.
To build social credits for later issues.
To minimize loss when outmatched and losing.
When harmony and stability are especially
important.
To allow employees to develop by learning from
mistakes.
When goals are important but not worth the
effort of potential disruption of more assertive
approaches.
When opponents with equal power are
committed to mutually exclusive goals.
To achieve temporary settlements to complex
issues.
To arrive at expedient solutions under time
pressure.
As a backup when collaboration or competition
is unsuccessful.
Behaviour
Motivation: Analytic-autonomizing, Assertive-directing, Altruistic-nurturing,
Flexible-cohering
Personal strengths
Personal weaknesses

1)Prepare, prepare, prepare
2)Pay attention to timing
3)Leave behind your ego.
4)Ramp up your listening skills.
5)If you don't ask, you don't get
1.Anticipate compromise
2.Offer and expect commitment
3.Don't absorb their problems
4.Stick to your principles
5.Close with confirmation.
Speak more quietly than them.
Have more space in between your words than them.
If they interrupt, pause for a few seconds after they finish.
Be critical of foul language.
Do not rise to a bait if they attack or blame you.
Ignore all threats.

Emotional
Challenges
Anger/exasperation
Insulted
Guilt
False flattery

Recommended
Response
Allow venting. Probe for why
What wouldnt be insulting?
Focus on issues
Re-focus

Tips:
Dont lose your cool .
Try to defuse with acknowledgement, empathy, patience,
impartiality.
Consider dealing with less emotional issues first
Know your own Hot Buttons
Practice
Exercise: List the last 3 times you felt someone pressed
your Hot Button.
Subject
discussed
Who pushed
your buttons?
Why did you feel
manipulated?
Next time I
will..