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Negotiating Skills

To provide you with the skills to plan & implement successful negotiation
At the end of the course you will appreciate how to: Establish objectives to be achieved by negotiation. Identify a range of outcomes from the desired ideal to the ultimate acceptable fall back position. Use interpersonal skills to influence others in both informal and formal situations to achieve your objectives.

Negotiating Skills
Act assertively to achieve objectives Reduce resistance & minimise conflict Know how & when to accept the opinions, values & will of others Work to achieve a WIN-WIN situation

Negotiating Skills
Negotiation occurs when there is something of value that you wish to attain Need is the negotiators starting point Need is also the weakness that can be exploited Negotiation is also a process that is of benefit to all parties

Negotiating Skills Ineffective Negotiation is about:

Non mutual benefit Compromising for no return Playing games

Think of a time when a negotiation has not been successful. Can you identify what went wrong?

When you have purchased a house or a car Did you negotiate terms? Were you successful?

Negotiating Skills Effective Negotiation

Is an important communication skill Reaches the agreement that best meets both sides requirements Should be conducted in a professional manner Be a solid foundation on which to build future relationships

Negotiating Skills Preparing yourself

Preparation enables you to :
Identify your objectives Identify targets Know your resistance point Adopt the most suitable style Time the interaction correctly Achieve a deal

Negotiating Skills
Traditional Negotiation
Has two sides Has opposing objectives Is a form of warfare Has a short sighted approach

Formal Negotiation
Favours the party with the strongest power base Limits the likelihood of informal talks Emphasises the letter of agreement

Informal Negotiation
Emphasises the relationship between the two parties Encourages the spirit of any agreement reached

Negotiating Skills
Modern Negotiation
Enables strategic alliances to be built Emphasises partnerships Builds relationships Is effective long term

Outcomes From Negotiation

Need to achieve the objective set Be of benefit to all parties Ensuring a WIN/WIN situation

Negotiating Skills
Identifying Possible Outcomes
Write down all your objectives Put them in order of priority Identify issues that are open to compromise Identify those that are not

Classifying Priorities
Those that are desirable Those that are acceptable Those that are the minimum you/the organisation require

Negotiating Skills
What is influencing?
Achieving a result that meets the legitimate needs of both sides Achieving long lasting results Improving the relationship of the people involved

Legitimate is the important word here. Needs must be legitimate if influencing is to be successful. For influencing to be effective it has to be sustainable.

Negotiating Skills
What is influencing? When it fails
The MIGHT IS RIGHT style of influencing always fails. People can appear to agree but over time they may show their disagreement by leaving the workplace. A boss who forces his influence onto his work-team may only see short term gains. The relationship of trust may be destroyed and will be hard to rebuild.

Negotiating Skills
Why is influencing important?
Flatter organisation structures need it to be effective. Lean is mean more stress is prevalent in current organisations. The rise of the customer the customer is not always right, but it is our job to make them feel right. Working across organisations its the only positive way forward. The demise of traditional authority all employees have a vested interest in the future success of any company/organisation.

Negotiating Skills
Influencing is not about :
Forcing your point of view on others Nagging until they agree Giving in to someone Bargaining A debate

It is about
Dealing with others assertively Speaking with knowledge and confidence Listening to their point of view Appreciating the differences Showing respect

Negotiating Skills
Pull Skills Creating rapport Authentic listening Skilful questioning

The Levers Of Influence

These Pull techniques also involve the effective use of non-verbal communication. Creating rapport : Posture Voice Tone & Volume Gesture Eye Contact Facial expressions How we occupy our space

Consider carefully how you want to build the relationship with someone who you will be negotiating with.

Negotiating Skills
Authentic Listening The aim is empathy a non-judgmental state that aims to understand the other person.
Authentic Listening is : Listen for content Listening to the other messages Summarising the content Summarising the emotion Testing your assumptions

Negotiating Skills
Barriers to Listening
Dialogue of the deal - Both sides within a discussion, intent on making their own point, may fail to listen to each other. Experience - The parties may have had bad experiences of negotiations in the past. Familiarity - Can be a crucial disabler when negotiating. Skim Listening - Picking up on key words and missing vital parts of the conversation. Attention span Are you focused or distracted?

Negotiating Skills
Pull Levers
Questioning : Have a questioning strategy USE: Hypothetical questions Defining questions Probing questions

The aim is to use effective questioning skills to Help build rapport Obtain accurate information Obtain other peoples opinion

Negotiating Skills
Assertiveness is
Saying what you mean Meaning what you say Asking for what you want clearly Listening to what the other person is saying Being honest about what is relevant Being prepared to look for a workable compromise Being Assertive during a negotiation is the best way to achieve a win/win outcome. Conduct your conversation with clarity, confidence and an open mind.

Negotiating Skills
Recognising Assertiveness
Effective body language how would you describe this? Use assertive language what is considered assertive language? Never become emotional Angry Resentful Frustrated

Responding Not Reacting

Behaviour breeds behaviour Keep the temperature low Stay detached Show respect

Negotiating Skills
Power In Negotiation
Negotiation assumes a certain equality between parties

Negotiation refers to obtaining something of value that someone else has. The focus is upon mutual benefit. Differing power bases can lead into fighting behaviours. Parties do test each others strengths and probe into just how dependant they are on each other. A balance of power is essential if negotiations are to be successful.

Negotiating Skills
Influencing The balance Of Power
Facts Expertise Explore Strengthen Authority

Facts The skilled negotiator has all the facts , background history and figures. Even a hardened MD cannot fail to be impressed. Expertise Again gained by effective preparation. Explore Pose questions in a non threatening manner. How do we find this solution together. Strengthen Develop acceptance and trust . Find & implement outcomes that are of interest to both parties. Authority it is vital that both parties have the authority to make the outcome happen.

Negotiating Skills
Negotiation Strategy
Opening Exploration Create Closure Create movement Finish

The Process
Agree Boundaries Deny Need Stress the Difference

Agree Boundaries On which the negotiation will focus. Deny the need A deliberate strategy in which both parties play down their need for a particular outcome. From the outset skilled negotiators will play up the fact that they do not believe the outcome will be successful.

Negotiating Skills
Opening Negotiation
Set the offer at the most appropriate level normally a long way removed from target. Respond in a way that is deemed most appropriate, usually rejection.
There is no such thing as a first offer that is too good to refuse. Openings within negotiation are like a chess match both parties will begin with an offer that is far removed from target. The opening offer is very rarely a serious commitment.

Negotiating Skills
Identify : Needs Wants Interests

Needs Those things that you feel you cannot do without Wants Those things that people would prefer to have Interests The reasons that lie behind the WANTS & NEEDS

Exploration is important because:

It allows the parties to explore the situation. Needs & Wants are talked about first. A skilful negotiator can see where the other party expect the final outcome to be.

Negotiating Skills
Create Movement
Be prepared to compromise Explore possibilities Ask what if? questions Be clear about the variables Exchange
During this phase it is vital that if you agree to a concession you get something back in return . Dont give anything away too easily people do not value things that have been obtained with little effort.

Restate your case Ensure that the agreement is clear by going over again what has been agreed. Restate everything that you have agreed on. Minimise the perception of what is left to agree. Write it down It may prompt some questions before the deal is closed. Prevention is better then cure.

Firming Up Proposals

Negotiating Skills
Create Closure
Keep moving Dont get bogged down in detail Focus on issues Give recognition Give the other party a final opportunity to clarify any issues

Negotiating Skills
List of issues from both sides Prepare a draft framework Tackle outstanding details Record each point as it is agreed Agree a process to review Agree a procedure for complaints

The skilled negotiator will not be distracted from their task. Always remember that the whole point of negotiation is that two parties have something of value.

Know when to stop talking

Negotiating Skills
Failing Negotiation
Initial commitment may be based on incomplete information Negotiation may be based on false assumption
People communicate using their mind & body through the use of emotion. Misunderstandings can arise because of stereotyping. Tension is caused by emotions which can then lead to stress & anxiety. Listen actively with empathy to reduce the perceived threat and try to show acceptance and understanding. If everyone ignores the pinch then a crunch can be just around the corner. The relationship may suffer as a consequence. The secret of success is to look for the pinch before it becomes a crunch.

Negotiating Skills
Approaches to Resolve Conflict
Skilful listening to improve understanding Assertion skills Influence by using interpersonal skills

Emphasise issues, break up large issues

Make careful note of actions decided

Facilitation Helping people communicate with one another. Conciliation or mediation Working towards resolving an issue whilst remaining independent. Advocacy negotiating on behalf of one party.

Negotiating Skills
Outcomes From Negotiation
In a win/lose situation one party may feel threatened by the other and react in a defensive or aggressive way to ensure they dont get beaten into submission. In a lose /lose situation, both parties have lost and no-one gets what they really want. In a win/win situation, this provides the basis for a long lasting partnership that can be mutually rewarding.

Negotiating Skills
Stages to Successful Negotiation
Exchange information Assess Wants, Needs, Information Find the middle ground which is fair & reasonable to both Firm up a mutually agreeable solution
Recognise these stages, work towards them. Use the notes in this course to help future Negotiations. Create a learning log a simple diary will do. Assess every negotiation you are involved in. What went well? What could be better? What will you do differently next time?

Negotiating Skills
A successful Negotiator can

Build Rapport Network effectively Work in a team Build consensus Be persuasive Deal with conflict