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NEGOTIATION

SKILLS‫ت‬ ‫اـرـماهــ‬
‫ض‬‫اــ‬
‫ولاـفت‬
Salem Abushawareb
Mohamed Ajaj
Arafat Abdulla El-Af
What Is Negotiating?
‫معنى التفاوض‬ “NEGOTIATIONS” IS A
PROCESS!
by which compromise or
agreement is reached
while avoiding argument
and dispute.
‫التفاوض عملية تحدث بين‬
‫األطراف لمحاولة التوصل إلي‬
‫اتفاق بالتراضي حول بعض‬
‫الموضوعات و يمكن أن تكون‬
‫وقتية أو مستمرة‬
Webster’s Dictionary Definition

• Negotiate: “to settle or conclude a


transaction. To transfer or sell. To
succeed in crossing, moving through,
etc.”
• Negotiation: “conferring or bargaining to
reach an agreement.”
• ‫عملية تشاور أو مساومة للتوصل إلى اتفاق بين‬
‫أطراف‬
Key Elements of the Negotiation Process
‫ا لعناصر ا ألساسية ل لتفاوض‬
• The starting point ‫بدء‬99‫قطة لا‬9‫دد ن‬9‫ح‬

• There may be more than one party


‫كثر منطرف‬9‫وجود أ‬
• Are there any conflicts of interest?
‫ف‬9‫ألطرا‬99‫ين ا‬
999‫ارض ب‬999‫ت‬
9‫ع‬ ‫وجد‬99‫هل ي‬

• “Give and Take”‫عط‬9‫ذ وأ‬9‫خ‬


• It is a voluntary relationship‫ختيارية‬9‫عالقة ا‬
Approaches to Negotiation
‫طرقا لتفاوض‬
1- Distributive Negotiation‫ا لتفاوضا لتوزيعي‬
• For example, a sales business wants to enter a contract with a
vendor for IT services. The business wants the most IT
services for the lowest price possible, while the IT vendor
wants to provide the lowest number of resources for the
highest price. Each party's desire to get a better deal
represents a distributive negotiation approach.
• It’s the “fixed pie” mentality, and I’m going to grab the
biggest piece of the pie that I can possibly grab‫كبر‬9‫لحصولعلىأ‬99‫ا‬
‫لكعكة‬99‫حصة منا‬
• Win/Lose strategy
Approaches to Negotiation
2- Integrative Negotiation‫ا لتفاوضا لتكاملي‬
• Also known as interest-based bargaining
• It seeks mutual benefit for all that are involved
• “A rising tide raises all boats”
• Win/Win strategy

For example, an established fashion company and a


cosmetics startup company agree to collaborate on a product
geared toward their shared target market. They negotiate a
contract that allows the cosmetics startup to gain greater
exposure and the fashion company to reach its financial and
marketing goals.
Approaches to Negotiation
Integrative Distributive
Types of negotiation
1. Principled negotiation ‫ا لمفاوضاتا لمبدئية‬

2. Team negotiation‫مفاوضاتا لفريق‬

3. Multiparty negotiation‫مفاوضاتا ألطراف‬


‫ا لمتع ددة‬
4. Adversarial negotiation‫مفاوضاتا لخصوم‬
Types of negotiation
1. Principled negotiation
For example, the leaders of two departments for a
large company often argue over the resources for
each department. The two leaders enter a principled
negotiation to discuss solutions. They listen to each
other's positions and decide to base resource
allocation on the percentage of revenue each
department generates for the company. The
department leader who receives more resources
agrees to support the other department's
functions, and the two leaders reach a compromise.
Types of negotiation
2. Team negotiation
In a team negotiation, multiple people
bargain toward an agreement on each
side of the negotiation. Team
negotiations are common with large
business deals. There are several
personality roles on a negotiation
team.
Types of negotiation
3. Multiparty negotiation
A multiparty negotiation is a type of
bargaining where more than two
parties negotiate toward an
agreement. An example of a
multiparty negotiation is bargaining
between multiple department leaders
in a large company.
Types of negotiation
4. Adversarial negotiation
An adversarial negotiation is a
distributive approach in which the
most aggressive party in a
negotiation achieves an
agreement that serves their
interests.
Phases of Negotiation
‫مراحل ا لتفاوض‬

#1 Planning‫التخطيط وتهيئة أرضية التفاوض‬

•  it is better to know what the other


party wants from this agreement.
Once you know their intents and
expectations then you can prepare
how to maneuver the deal in your
favor.
Phases of Negotiation

#2 Relationship Building ‫بــ‬


‫نءاـ‬
‫اـقـة‬
‫لث‬
•  Establishing trust and a mutual feeling
of cordiality will help you make the
deal successful. If both parties
exchange information and discuss their
needs and demands then the later
process will be free of
misunderstandings.
Phases of Negotiation
#3 Proposal ‫ا لتفاوضوتقديم ا لمقترح‬

• After knowing each other’s needs and


expectations, one of the two parties
involved in the discussion process will
come forward with an opening deal.
Most of the times, these opening
proposals and deals are just to test
waters. The other party if not happy
with the conditions will ask for
Phases of Negotiation
#4 Bargaining ‫مة‬
‫لاـم واـسـ‬
• As the discussion progresses, both
parties react differently to these
changing conditions and offers. It is
hard to find common ground.
Revisions and concessions keep going
until both parties reach a mutual
agreement.
Phases of Negotiation
#5 Conclusion and
Implementation
‫النتائج والتنفيذ‬
• Conclusion and Implementation: Once
both parties have agreed on the terms
and conditions of their agreement then
it is best to conclude the deal and
formalize the agreement. Both parties
should know what they’ve agreed on.
Face to Face Meeting

• What are the factors to consider?


• What message does your choice
send?
• Housekeeping?
Face to Face Meeting
Where do we meet and
• Your office why?
• Neutral place
• Lessor’s office
• Lessee’s office
• Country Club
• Favorite
Restaurant
Face to Face Meeting
Factors to Consider
• Time of Day
– AM vs. PM?
• Choose your seat carefully
– Head of table
– Facing door or window
– Next to opponent or client
• Who will attend? What are the roles
of each attendee?
Face to Face Meeting
Factors to Consider
“He/She who controls the agenda, controls the meeting.”

What is/are the goal(s) for the


meeting?
Face to Face Meeting
Prepare the Room
• Coffee
• Pens
• Paper
• WiFi
• Technology needs
Face to Face Meeting
Housekeeping
• Be on time = early!!
• Dress appropriately: over, under
or equal?
• Everyone is there for a reason!
Powerful Negotiating Strategies

ANCHORING AND PIE-


SHARING
Powerful Negotiating Strategies

THE SILENT TREATMENT


Powerful Negotiating Strategies

LOW-
BALLING/ANCHORING
Powerful Negotiating Strategies

POWER OF PRINT
Powerful Negotiating Strategies

TIME: LAST MINUTE


Powerful Negotiating Strategies

GOOD GUY/BAD GUY


Powerful Negotiating Strategies

MY MANAGEMENT
Powerful Negotiating Strategies

LEAVING MONEY
ON THE TABLE
Powerful Negotiating Strategies

FAIT ACCOMPLI
Powerful Negotiating Strategies

APPEAR
UNREASONABLE
Powerful Negotiating Strategies

CLARIFICATION OF POSITION
Powerful Negotiating Strategies

LISTING THE
PROS AND CONS
Powerful Negotiating Strategies

THE POWER OF GUILT


Powerful Negotiating Strategies

STRAW TIGER ISSUES


Powerful Negotiating Strategies

RED HERRING
Powerful Negotiating Strategies

SUMMARIES OF FACTS,
STATEMENTS,
AND AGREEMENTS
Powerful Negotiating Strategies

RECESSES AND
ADJOURNMENTS
Powerful Negotiating Strategies

CHANGING
NEGOTIATORS IN MID-
DEAL
Powerful Negotiating Strategies

CONCILIATORY
MOVES
CONCESSIONS

SPICE AND DRAMA


Powerful Negotiating Strategies

THREATS –
ULTIMATUMS AND
INTIMIDATION
Powerful Negotiating Strategies

BLUFFS
Powerful Negotiating Strategies

WALKOUTS –
DO NOTHING
Powerful Negotiating Strategies

LEAVING
GRACEFULLY IF NO
DEAL: BATNA
Powerful Negotiating Strategies

NEGATIVE SALESMANSHIP
Powerful Negotiating Strategies

SPLIT DOWN THE MIDDLE / RE-ANCHORING


Powerful Negotiating Strategies

IT’S TOO COMPLICATED


– LET’S MAKE IT SIMPLE
Powerful Negotiating Strategies

• Alternative of Choice Close


• Left at the Altar
• Making Balloon Futures
• Calling in a Higher Authority
• Crunch Time
• Bring in the Dancer
• Re-Trading the Deal
Powerful Negotiating Strategies

• Huntley and Brinkley


• Turning Soviet
• Roaring Brains
• Needs vs. Wants Matrix
Unselfish Thinking Makes You Part of
Something Greater than Yourself
“We try never to forget that medicine is for
the people. It is not for the profits. The profits
follow, and if we have remembered that, they
have never failed to appear.” – George W.
Merck
The lesson to be learned? Simple.
Instead of trying to be great, be part of
something greater than yourself.

From How Successful People Think by


John C. Maxwell
Exhibits
Exhibit A
Is the Substantive Outcome
Very Important?
YES NO

YE TRUSTINGLY OPENLY
SUBORDINAT
S COLLABORATE
E
Is the
Relationship
Outcome Very
Important?
ACTIVELY
N FIRMLY
AVOID
O COMPETE NEGOTIATING
Exhibit B
Moderate High Defeat Collaborate
Be a winner Creatively problem
Concern for Substance

at any cost. solve so both


Compromise parties win

Split the
difference
Take whatever Build friendly
you can get relationships.

Withdraw Accommodate
Low Moderate High
Concern for Relationship
Low
Exhibit C
THANK YOU, SIOR
STUDENTS!!

William A. Burgess,
CCIM, SIOR
The Burgess Company,
LLC
Greenville, SC

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