Negotiating for Results

 
 
 
 Course Overview
What is Negotiation?

The Successful Negotiator

Preparing for Negotiation

The Nuts and Bolts

Making the Right Impression
Getting Off to a Good Start
Exchanging Information
The Bargaining Stage
Moving Beyond “No”
Moving from Bargaining to Closing
Solution Types
Course Wrap-Up
 Course Overview

• Understand how often we all negotiate and

the benefits of good negotiation skills.
• Recognize the importance of preparing for
the negotiation process
• Identify the various negotiation styles and
their advantages and disadvantages.
 Course Overview
• Develop strategies for dealing with tough
or unfair tactics.
• Gain skill in developing alternatives and
recognizing options.
• Understand basic negotiation principles,
including BATNA, WATNA, WAP, and the
ZOPA.
First Thing First

Pre-Test
 First Thing First

Negotiation Style
Self-Assessment
 Some Terms
BATNA:
Best Alternative to a Negotiated Agreement

WATNA:
Worst Alternative to a Negotiated Agreement

WAP
Walk Away Position/Point

ZOPA
Zone of Possible Agreement
 What is Negotiation?

• When you hear the word “negotiation”

what picture comes to mind?
• Often, we think of atmosphere that is
tense, negotiators who are tough, and
stakes that are high.
• The reality is that we negotiate a lot, and
many negotiations are quite amicable.
 What is Negotiation?
• Negotiation is a process centered on a
discussion that is intended to produce an
agreement.
• Negotiating involves issues of ego,
influencing, saving face, being right, and
compromise. leverage
• Negotiation often leads to compromises.
 What is Negotiation?
• When negotiation is not effective, there are
other options.
• We are all negotiators.
• Negotiation takes place over a period of
time and moves through a series of steps.
• Successful negotiation also opens the way
for more negotiation.
 What is Negotiation?
Negotiation methods can be judged by
three criteria:
1.Conclusion should include an agreement
2.The process and result should be
efficient
3.The relationship between the negotiators
should not be damaged and may improve
 What is Negotiation?
Types of Negotiation

1. Integrative/Distributive
• Integrative negotiations are commonly
referred to as “win-win”
• Distributive negotiations are referred to as
“win-lose”
 Mini Case

Buying a Work of Art

 What is Negotiation?
Types of Negotiation
2. Inductive/Deductive/Mixed
•The inductive method (Bottom Up), involves starting on
small details and working upward. Like an agreement on
specifics, such as price, delivery date, and product quality, the
sum total of which becomes the contract.

•Deductive negotiations (Top Down) start with an agreed-

upon strategy and then work out the details or we can say
that it start from an agreement on general principles
and proceed to specific items

•Mixed negotiations are a blend of inductive and deductive

methods
 What is Negotiation?
Types of Negotiation

3. Soft/Hard/Principled
•Soft and hard bargaining involves
negotiating a position rather than interests.
•In Principled negotiation, interests are more
important than positions.
 What is Negotiation?
Hard and Soft Negotiations
 Hard Negotiators (win/lose)
− Adversary to be beaten.
− Take position, demand
concessions, give none.
− Threaten or mislead.
 Soft Negotiators (lose/win)
− Value agreement too much.
− Disclose bottom line.
− Accept one-sided agreements/
concessions.
Principled Negotiations
– Solve underlying issues.
– Preserve relationships.
– Result in enduring, fair
agreements.
• Interest-based Negotiation:
1. Separate the people from
problem.
2. Focus on interests, not
positions.
3. Invent options for mutual
gain.
4. Insist on objective criteria.
 What is Negotiation?
Types of Negotiation

4. Alternative Dispute Resolution

•Alternative Dispute Resolution (ADR) is a
popular alternative to negotiation.
•ADR allows the negotiating parties to take
advantage of a formal dispute resolution
process using mediators or facilitation.
•Negotiating partners must both be satisfied
with the outcome.
 What is Negotiation?
Types of Negotiation

5. Non-Negotiable Positions vs. Options

•As a negotiator, you must not go to the table
with non-negotiable positions.
•If you elect to draw the line, you must know
your limits and the room you have to negotiate.
•Just because someone says no to your request
does not mean you have asked the only
question that is available.
 What is Negotiation?
Types of Negotiation

• A good negotiator is prepared to use

several possible approaches and formulas.
• They often ask questions more than they
provide answers.
• They can assess a situation, including the
expertise of the parties involved, and adapt
their approach to suit the occasion.
 What is Negotiation?
Positional Bargaining

• Argue based on principle instead of

positions
• Arguing chips away at relationships
• The softer side
• Principled negotiation works
• Focus on the problem, not the people
• Negotiators are people first
 What is Negotiation?
Interest Based Bargaining

• Soft negotiators want to create a conflict-free

environment and make concessions readily in
order to reach agreement.
• Hard negotiators approach a situation as a
battle of wills.
• Principled negotiation is based upon a
commitment to mutual gain, so the benefit to
both parties is clear.
 What is Negotiation?
Principled Negotiating

There are three basic negotiating styles:

1.Co-operative style
2.Aggressive style
3.No pattern
 Handout

22 Questions to Separate Positions

from Interests
 What is Negotiation?
Phases of Negotiation
 The Successful Negotiator
Key Attributes

• They see possibilities rather than problems.

• They are excellent communicators.
• They keep an open mind.
• They have confidence in their own abilities
and the negotiation process.
• They are willing to listen.
• They are optimistic.
 The Successful Negotiator
Key Attributes

• Their egos don’t get in the way of a win/win

solution.
• They are creative and ready to consider ways
of doing things differently.
• They are flexible.
• They have excellent self-control.
• They are always well-prepared.
• They are lifelong learners.
 Negotiation

Marketing Case Study

 The Successful Negotiator
In order to become a successful negotiator, there
are some skills you need to develop.

• Communication skills
• Body language
• Problem solving
• Creative thinking
• Building enthusiasm and confidence
 The Successful Negotiator

Communication Skills
•Active Listening
•Asking Questions
– Open questions
– Closed questions
 The Successful Negotiator

Communication Skills ctd - Probing Techniques

•Ask an open question.
•Pause.
•Paraphrase.
•Use summary questions.
 The Successful Negotiator

Body Language
•Facial expression
•Smiling
•Eye contact
•Other aspects of body language
 Chart

The Signals People Send

Gestures
 The Successful Negotiator
Problem Solving
 The Successful Negotiator

Creative Thinking
•The process of negotiating can become stale.
•Take a break to brainstorm.
•Thinking outside of the box takes your
brainstorming session to a new level.
 The Successful Negotiator
Building Enthusiasm and Confidence
•Show your confidence.
•When you meet people, look them in the eye.
•Smile.
•Listen.
•Know your stuff.
•Rehearsal is the best confidence builder.
•Start small.
 Exercise

The Charity Donation

 Preparing for Negotiation
Getting Started

Key Elements of Preparation

Identify your fears.
Know your own hot buttons.
Gather as much information as you can about
the other party.
Figure out your WAP and BATNA.
Identify the ZOPA.
 Preparing for Negotiation
Managing Your Fear (I)

• Fear of humiliation
• Fear of failure
• Fear of rejection
• Fear of leaving behind
• Fear of endless obligation
• Fear of being wrong
• Fear of punishment
 Preparing for Negotiation
Managing Your Fear (II)

Growing and Improving

• Find out what is working and do more of it.
• Find out what isn’t working and stop doing
it.
• Try new things. See which ones work
and which ones don’t.
 Preparing for Negotiation
Personal Preparation

• Do you know things about yourself that are

true, but that you would prefer to avoid?
• When people make comments about things
that we are ashamed of or that we try to deny,
we say that they are “pushing our buttons.”
• When you know what your own personal hot
buttons are, you can prepare for them and
then control your reactions.
 Preparing for Negotiation
Researching Your Side (I)

Three important considerations:

•Collecting facts
•Knowing priorities
•Knowing principles
 Preparing for Negotiation
Researching Your Side (II)

• Determine your main objective.

• Determine your supporting points.
• Determine a fallback position.
• Identify your BATNA and WATNA.
• Identify your WAP.
• What ZOPA might exist?
 Preparing for Negotiation
Case Study (Roommates)
• For a good job you moved to Dubai, UAE. You were looking
for a good accommodation. One day while you were buying
donuts and coffee at Dunkin, you find your college friend
there. He told you that he also moved to Dubai to work as a
freelance artist, but times are tough for him. He is living in a
two bed room apartment and works from home. You and
your best friend decided to become roommates and start
sharing the apartment on 50% basis in rent and utilities, so
that he can reduce financial burden on him. After few days
you begin thinking that your friend spend more time at
home and because he spend more time at home, you feels
that he should do more of the housework and pay a larger
share of the power and water bills. This issue is causing
significant strain on your relationship, so you decide to try
to negotiate a solution.
 Preparing for Negotiation
Case Study (Roommates)

• What might be some of your hot buttons?

• Determine your main objective.
• Determine your supporting points.
• Determine a fallback position.
• Identify your BATNA and WATNA.
• Identify your WAP.
• What ZOPA might exist?
 Preparing for Negotiation
Researching the Other Side (II)
Taking the example of asking your boss for a
raise, what are some things you may want to
research about him/her and the company?
Their interests outside work
Pet projects or particular interests
Company’s sales for the past several years
Areas of weakness or things they would like to
do but they don’t have the time for
Areas of strength
 The Nuts and Bolts
Preparing Documentation (I)

• Prepare your research in a professional

format and bring it with you.
• Ensure you have separate folders for
confidential information and information
you’re going to share.
• Keep both sets of information with you
at all times.
 The Nuts and Bolts
Setting the Time and Place

• Home field advantage

• Choosing the time
• Other factors
– Temperature
– Food and drink
 The Nuts and Bolts
Case Study (Roommates)

• What documentation might you

want to bring?
• What would be your home turf?
• What would be neutral ground?
• What would be your roommate’s
home turf?
 Fact Sheet

Negotiation Techniques
 Making the Right Impression
The Skill of Making Small Talk (I)

• Small talk has a bad reputation.

• Sometimes we think of it as the poor
cousin of a “real” conversation, and in
certain cultures it is not valued at all.
• However, without small talk, many of us
will never get to those “real”
conversations.
 Making the Right Impression
The Skill of Making Small Talk (II)

• Small talk helps us put others at ease

and make them comfortable.
• Small talk breaks the ice and goes a
long way toward furthering a
relationship.
• Small talk is crucial to getting a
negotiation off to a good start.
 Making the Right Impression
The Skill of Making Small Talk (III)

• For most of us, it’s harder to talk to

people we don’t know.
• Conversations are much easier to start if
you are a multi-topic person.
• Where can you get some good
conversational openers? Listen to what
people are talking about.
 Making the Right Impression
The Skill of Making Small Talk (IV)

What Works?
•Wear a smile.
•If you find yourself alone, look for others who
look similarly disengaged.
•You could also pass the cheese tray or sample
the buffet table.
•One tip that often works is to imagine you are
the host or hostess.
 Making the Right Impression
The Skill of Making Small Talk (V)

What Doesn’t Work?

•Don’t attempt to make a derogatory remark
under the guise of humor (that’s sarcasm).
•Don’t try to shock.
•Lengthy emotional debates will not contribute
to the gathering.
•Death, politics, religion, illness, and children
usually head the list of subjects to be avoided.
 Moving Beyond “No”
Breaking the Impasse

• Identify hidden interests.

• Manage unrealistic expectations.
• Use brainstorming and problem solving.
• Focus on areas of agreement.
Blue Bananas
Case Study
Dealing with Negative Emotions
Defusing the Bomb (I)

Tough Tactics
•Delaying or Blocking
•Attacking
•Dishonesty
 Solution Types
Possible Outcomes

• Lose-lose
• Win-lose
• Win-win
Post-Test