.

Top 10
Negotiation Mistakes
 .

Video
Negotiation Mistakes
 Negotiation Mistakes

1.Negotiating with the wrong people

2.Poorly managing information
3.Not managing other peoples expectations
4.Not setting high enough goals and targets
5.Focusing on price
6.Not uncovering the other sides real needs
7.Getting Emotional
8.No closing or concession strategy
9.Not reinforcing values
10.Over-commiting or failing to coordinate resources
 .
Secret Sauce for Success at Work
The centre for Talent Innovation-UK
World Senior Executive Survey
67% the most single trait “Gravitas”
Confidence
Decisiveness
Integrity
Emotional Intelligence
Always projecting vision
 .
78% Communication the second trait
Speaking and negotiating skills
Command a room
Ability to read audience

Appearance the third most important

Good grooming
Physical attraction
 Ten steps for effective negotiation

1. Persuade 1st and only negotiate later…if you have to

2. Logic is not persuasive!
3. Beware argument dilution
4. Effective persuasion leads to ‘I’d like to deal with you if…’
5. Average persuaders give things away to achieve this
6. Identify and use your levers
7. You may need to instigate the negotiating
8. Trade concessions, don’t give them away
9. Remember Win-Win is not 50:50
10.Never, ever forget that ‘no deal’ is better than a bad deal
 Common Barriers to
Successful Negotiations

• Viewing Negotiations as a confrontation

• Trying to “Win” at all costs
– It’s a solution that should benefit both parties not a win
lose confrontation
• Being Emotional
– It’s important to maintain control
• Not trying to understand the other person’s
perspective
• Blaming the other person
 5 Basic Bargaining Styles

• Competitor: win-lose
• Problem Solvers: win-win
• Compromisers: each win and lose a bit
• Accommodators: lose-win
• Conflict Avoiders: lose-lose
5 Basic Bargaining Styles
 Competitor

• They like to win and be in control of the

situation. They believe if they win, you
lose.
 Problem Solvers

• The most imaginative thinkers who think

about fair “win/win” solutions and greater
solutions that “make the pie bigger.”
• This is the one you want to be!!!

½,1/3,1/9
 Compromisers

• Their priority is to maintain a productive

relationship. So they will make a
compromise first, giving the other person
what they want in order to reach an
agreement and preserve the relationship.
 Accommodators

• They like to resolve conflict by solving the

other person’s problems. If the other
person is also an accommodator then they
return the favor and help solve their
problems. If not, the other person takes
and gives nothing in return.
 Conflict Avoiders

• The most imaginative thinkers who think

about fair “win/win” solutions and greater
solutions that “make the pie bigger.”
 Negotiation Styles Compatibility

Avoider Compromiser Accommodator Competitor Problem

solver

Avoider Good Bad Bad Bad bad

Compromiser Bad Good Good Bad Good

Accommodator Bad Good Good Bad Good

Competitor Bad Bad Bad Good Good

Problem solver Bad Good Good Good Good

 Tips for a successful negotiation

• Prepare, Prepare, Prepare

• Make sure you are clear about what you and the other
party want from the arrangement
– What are your goals and which ones are most important?
– What are the goals of the other parties involved and which ones
do they perceive to be the most important?
– What will be the major issues be in this negotiation?
– What are the strongest and weakest points in your overall
position?
– What are the strongest and weakest points in the other parties
overall position?
– What is the minimum you are willing to accept?
– In your opinion, what is the minimum the other parties are willing
to accept?
• Carry your goals with you into negotiations
 Information is power

– Research the other side to determine their needs and

their strengths and weaknesses
– Preparing supporting information for your arguments
– Anticipate the arguments the other side will make and
have data present that support your side
– Anticipate why the other party may say know and low
cost options that may quell the other parties rejection.
– Enlist expert opinions
 Getting off to a good start

– Express respect for the other side’s experience and

expertise
– Frame the task positively, as a joint endeavor
– Remain flexible
– Emphasize your openness to the other side’s interests and
concerns
– Be friendly
• people like helping friendly people out, they don’t like dealing with jerks
 Ask probing questions

• "What prompted you to consider a purchase of this nature?"

• "Who else have you been speaking to?"
• "What was your experience with…?"
• "What time frames are you working with?"
• "What is most important to you about this?“

– Solicit the other side’s perspective

• What do you need from me on this?
• What are your concerns about what I am suggesting /
asking?
 Tone
– If the other side is formal, don’t be too casual (visa-
versa)
• Maintain a sense of humor if its appropriate
– Speak slowly, but with purpose
– Stop and listen when the other side is talking
• Remember- it’s a two way exchange
– Don’t let your ego do the negotiating
Body Language
 Body Language
– Display good body language
• How are you sitting?
• What body language message are you telling the other person?
• Matching the other person’s nonverbal cues, builds rapport
– What should you do:
• Maintain Eye Contact
• Smile confidently
• Nod in agreement when the other party is talking
• Keep hand gestures natural
• Sit up straight
• Dress appropriately
– Things to Avoid
• Avoid crossing arms tightly
• Avoid putting hands on face
• Avoid fidgeting and messing with your clothes
• Try not to talk too fast or increase your pitch if you get nervous
• Don’t get defensive or aggressive
 Read counterpart’s body language

• Are his arms and legs crossed in a tentative manner?

• Is his eye contact inquiring and attentive or is it glaring?
• Does he cover his mouth when he speak?
– Dominance and power cues
» When a person leans back in the chair, makes piercing
eye contact or puts his feet on a desk could be a sign of
desire to show power.
» Approach cautiously
– Submission and nervousness
» Someone who touches his face or excessively changes
positions could be showing nervousness or irritation.
 Listening Skills

– Listen to the other side

– Never interrupt
– Let the other side speak first
• Silence is Golden
• Don’t jump to an offer/rejection  Take your time to
respond
 “If you don’t ask, you don’t get”

– Go as high as you are able to convincingly

argue.
– However, leave out the ultimatums.
 Anticipate Compromise

– Never take the first offer.

• Practice your best look of disappointment and
politely decline
 Don’t Absorb Their Problems

– The other side will come up with excuses they

can’t meet your price
– Just anticipate each problem and try to solve
them
– Look for creative solutions
 Stick to your Principals

– Write out the values that you just won’t

compromise…
– And don’t.
 Close with Confirmation

– At the close of the meeting

• Recap the points covered and any areas of
agreement
• Get confirmation
 Don’t be Afraid to Walk Away

– This often times gives the party who walks

away the most leverage as the other party has
put time and effort into the negotiations
– IE street markets, when you walk away many
times the seller will chase after you and lower
their demands.
 Group Activity

You have 10 minutes within your small

group of three to brainstorm a list of the
10 key skills that successful negotiators
need.
List your key skills and note the reason
why each of your ten skills is crucial to
you as a negotiator.
 Group Activity

Key Skills Reasons

1 1
2 2
3 3
4 4
5 5