Negotiation Skills Presintation

NEGOTIATION
SKILLS
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
What is
Negotiation?
Defining
Negotiation The
Context of Negotiation
1
NEGOTIATION SKILLS.PRZ 01/11/04
Defining
Negotiation
How would you define Negotiation?
What negotiation is?
and,
What negotiation
isn't?
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
to demonstrate and
winner
superiority one
loser
A Practical
Definition
Negotiation is a of Negotiation
communication process
between two or more people in which they
consider alternatives to arrive at mutually
agreeable solutions or reach mutually
satisfactory objectives.
THE CONTEXT OF
NEGOTIATION
Consider these key questions.

Who negotiates?
Where do negotiations
occur? What's negotiable?
Why negotiate?
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
The Elements
of
Negotiation
The Goal of
Negotiating Critical
Elements in negotiation
2
The Goal of
Negotiating
It's Not Just Win or

Lose
The Goal of
Negotiating
Cooperation Makes a
Difference

Agreement
Remember that negotiation is

cooperation You work with the other
side together.
Cooperation usually leads
to: Conflict resolution.
Win-Win
Negotiation
NEGOTIATION SLLS.PRZ 01/11/04

Agreement
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
CRITICAL ELEMENTS IN
NEGOTIATION
Knowledge or
information. Time or
deadline pressure.
NEGOTIATION
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?
NEGOTIATION
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?
NEGOTIATION
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.
NEGOTIATION
Strength or Power
When does the
negotiation process
wind down?
If a radically out-of-balance
condition happen.
Or a totally balanced condition
achieved.
NEGOTIATION
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.
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
Negotiatio
n
The Process of
Negotiation: A
Three-Ring Circus
The Traits of a Good
Negotiator
3
THE NEGOTIATION
PROCESS
Phase
Phase Phase
Two
One Three
Interacting
Communicat
Preparing Use Getting
to e Agreemen
Strateg
Negotiate Reasses y
and t
s Tactics
THE NEGOTIATION
PROCESS
Phase
One
Preparing
to h e
T ar t
Negotiate
S t
T T he first phase of the negotiation
NEGOTIATION SKILLS. P RZ
01/11/04
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
35
point). Try to guess the other side's bottom

THE NEGOTIATION
PROCESS
Phase
Two
Interacting
Communicate
Use
Strategy
Reasses and
s Tactics
T h h e second phase of the negotiation
NEGOTIATION SKI LLS. P RZ
process: 01/11/04
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,

useActive
threelistening.
basic skills: Communicat
e
Tactful
Use
questioning. Reasses
Strategy
Careful observing. s
and Tactics
process: 01/11/04
INTERACTING
You'll apply a variety of negotiating strategies and tactics
to :
Advance the process or gain an
positive
advantageclose.
that will help you move Communicat
e
forward to a
The balance of strength / power is
Use
tending to shift from one side to Reasses
Strategy
another. s
and Tactics
This changing balance of power will
require you to continually probe for
more knowledge and constantly
reassess your relative position in the
40
process: 01/11/04
You'll also need toINTERACTING

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
Should
three you
basic continue
options: Communicat
negotiating? Should you make e
concessions? Use
Reasses
Should you stand firm? s
Strategy
and Tactics
THE NEGOTIATION
PROCESS
Phase
Three
h e
T d
Getting
Agreemen
E n t
T he third phase of the negotiation
NEGOTIATION SKILLS .PRZ
01/11/04
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.
T he third phase of the negotiation
NEGOTIATION SKILLS .PRZ
01/11/04
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.
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.
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
One Preparing
Preparing
to
Negotiate
he
T art
St
for
Negotiatio
n
The Value of
Preparation
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
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
52
negotiation? What do you

Assessing the Starting

Positions
Gathering information that will enable you
to: 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
Establishing the Bottom

Line
Gathering information that will enable you to:
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.
Using
Communication
Skills in
Moving into Phase Two of the Negotiation
Negotiation Process
Tactful
Questioning
Active Listening
Careful
5
THE NEGOTIATION
UsingPROCESS
Communication Skills in
Negotiation
Phase
Two
Interacting
Communicat
e
Use
Strategy
Reasses and
s Tactics
M O VING INTO PHASE TWO
01/11/04
NEGOTIATION SKILL S.PRZ
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.
TACTFUL
QUESTIONING
Types of Questions
Two types of questions are most
frequently used during negotiations:
Direct
and
Indirect
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?
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
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?
01/11/04
W W h e n framing
NEGOTIATIO N SKILL S.PR Z
What information do you want to uncover?

What
questions
consider
kind of the
question (direct or indirect) is most
likely to elicit the information you need?
following
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?
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.
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.
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"
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.
Your Powers of
Observation
Watch for changes in facial expression
Watch for hand gestures or
mannerisms
Watch for physical movements or
changing positions
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.
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.
NEGOTIATION SKILLS.PRZ At the start of a commercial
negotia0t1i/o1n0/ ,4 two teams face each
Head tilted other around a table, Notice how
towards each team member's body language
Team partner is supportive of their partner
A Eye contact Team
is B
Body leans maintained
towards with partner
partner
Understanding Body Language

Wide eyes and
warm expression
Direct eye indicate willingness
Open Inattentive to be persuaded.
Leaning expression contact implies gaze means
positive thoughts Open arm imply
back Posture shows interest lack of
indecision
implies in proceedings Hand on concentration
hostility suggest
attentivenes chin shows Fiddling with
s Crosseds arms thoughtfulnes a pen
i s confirms
ndicate thoughts are
disbelie elsewhere
f
Using
Negotiation
Techniques
Moving forward in the Negotiation
Process Common Negotiating
Techniques
Selected Negotiating Tactics
6
THE NEGOTIATION
PROCESS
Using Negotiation
Phase
Techniques
Two
Interacting
Communicate
Use
Strateg
Reasses y and
s Tactics
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.
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.
MOVING FORWARD IN
THE NEGOTIATION
PROCESS
Using information and insights you
obtain by listening, questioning and
you quickly select or modify
observation,
negotiating strategies and tactics.
your
Your guiding objective is to move
the
negotiation process forward to
Phase Three, getting agreement.
NEGOTIATION
MMON NEGOTIATING TECHNIQUES

01/11/04
C OO
SKIL LS.P R
Z 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.
C OMMON NEGOTIATING
01/11/04
NEGOTIATION SKILLS. PRZ
TECHNIQUES
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:
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.
C OMMON NEGOTIATING
01/11/04
NEGOTIATION SKILLS.P RZ
TECHNIQUES
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.
How to Respond to
an 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.
COMMON NEGOTIATING
TECHNIQUES
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.
NEGOTIATION
OMMON NEGOTIATING
01/11/04
CC
SKILLS.P R Z
TECHNIQUES
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.
How to Respond to
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.
SELECTED NEGOTIATING
TACTICS
High Ball/ Low Ball
An Emotional Outburst
The Ebenezer Scrooge
Tactic Mother-May-I
Negotiating Like a Pro
Moving toward a
Resolution
Getting Agreement
7
MOVING TOWARD A
RESOLUTION
GETTING
AGREEMENT
Seek Alternatives
Find Common
Ground Use an
Agent
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.

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NEGOTIATION

Common positive ideas

Consider these key questions.

It's Not Just Win or

The Goal of Negotiating: Developing

Remember that negotiation is

The Goal of Negotiating: Developing

Negotiation might be considered

Why is information so important in

negotiation? What kind of knowledge do

If you know the other side's deadline

The Balance of Power in

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.

Spend time analyzing both sides of the conflict.

point). Try to guess the other side's bottom

As you communicate in the negotiation process,

You'll also need toINTERACTING

Identifying Motives, Objectives, or

negotiation? What do you

Assessing the Starting

Establishing the Bottom

NEGOTIATION SKILL S.PRZ

OF THE NEGOTIATION PROCESS

In this chapter we will learn how to use

What information do you want to uncover?

How do you know what a

Your experience in observing physical

Studied Reactions and Cultural

Are you aware of other cultural, social, or

Understanding Body Language

This chapter will help us

Respond appropriately when the other side uses

MMON NEGOTIATING TECHNIQUES

NEGOTIATION SKILLS. PRZ

A gotcha forces the issue being negotiated.

This negotiating technique works best when

The conventional dodge uses a ploy to shift

Another variation on this theme is "testing the

The Ebenezer Scrooge

Negotiating Like a Pro

Never lose sight of your primary

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