Negotiation seminar farzin fardiss day 1391 [6 pp mode](1)

fardiss@parssaman.com
fardiss@gmail.com
Negotiation
Principles, Techniques, and Skills
Farzin Fardiss
Member of Board
Persian Telecom Systems Group (Pars Saman)
Negotiation
A
Outline of the remaining sessions
What is Negotiation? & Why it is important?
Negotiation Styles
Negotiation Principles
Negotiation Tactics
Good / Bad Negotiator
Communication Skills required for Neg.
Planning for Negotiation
Influence Principles
Personality Types for Negotiation

fardiss@gmail.com
What is Negotiation?
“The process by which we search for the terms to obtain what
we want from somebody who wants something from us”
“Negotiation is an explicit voluntary traded exchange between
people who want something from each other”
“To negotiate is to trade something we have for something we
want”
“A decision making process by which two or more people come to agreement on
how to allocate scarce resources”
“Mutual discussions for the purpose of arriving at the terms of a transaction or
agreement”
“Negotiating is the art of reaching an
agreement by resolving differences
through creativity”
“Interaction that occurs when two or
more parties attempt to agree on a
mutually acceptable outcome in a
situation where their preferences for
outcomes are negatively related”
“Use of information and power to affect the other party’s
behavior within a web of tension”
“Coordinating preferences to ensure mutually acceptable gains”
“Negotiating is the art of creating
a bigger solution. Negotiating is
not the art of taking advantage
of others.”
‫مذاکره‬‫به‬‫جريان‬‫داد‬‫و‬‫ستدی‬‫اطالق‬‫می‬‫شود‬
‫که‬‫شرايط‬‫آن‬‫از‬‫پيش‬‫معين‬‫نبوده‬‫و‬‫در‬‫جريان‬
‫گفتگو‬‫تعيين‬‫می‬‫شود‬.
‫مذاکره‬‫فرآيندی‬‫است‬‫که‬‫طی‬‫آن‬‫دو‬‫يا‬‫چند‬‫نفر‬
‫بر‬‫اساس‬‫وابستگی‬‫متقابل‬‫برای‬‫توافق‬‫در‬
‫رابطه‬‫با‬‫مبادله‬‫داشته‬‫ھای‬‫خود‬‫به‬‫گفتگو‬‫می‬
‫پردازند‬.

fardiss@gmail.com
Two Kinds of Outcomes
Tangible
– Price, delivery, quality, guarantees
Intangible
– Making the other person happy
– “Winning”
– Being fair
– Preserving your reputation/Integrity
What you are looking for in business negotiation?
Getting what you want
Building a long lasting relation
Letting both parties leave negotiation session happily
– History will fight you
– ‫توافقات‬ ‫اجرای‬ ‫در‬ ‫کارشکنی‬
Other Party shall have a good feeling about the process.
– Your servant will not be satisfied with a one shot 300K Negotiaton
Negotiation Myths
Successful Negotiators are born so
Successful Negotiator do not prepare themselves in advance
Good Negotiators take uncalculated risks
Good Negotiators rely only on intuition
How can we find we are negotiating? (when?)
Existence of
– Multiple Parties
• At least two parties (sides)
– Interdependency (Conflict of Interests)
• Different interests and needs in some issues or domains
– Mutual Goals
• Issues or domains which are common and accepted by both parties
• Both sides want a settlement.
– Flexibility
• Flexible items such as time, price, condition
– Decision Making Ability
• Cooperation whilst Conflict
How can we find we are negotiating? (when?)
Every Negotiation has two parties involved
There is a conflict of interest between involved parties
Both sides have chosen negotiation as a solution to existing
perception of conflict
Negotiation is a goal-seeking process
– Goal seeking is as important as process
Both sides understand that they are engaged in a give and take
(compromise)
Negotiation is just an important part of daily life!
Daily bargains (purchases)
Specific purchases ( Auto, home, … )
Inter Organization and Inter group
conflicts
Marriage
Job Negotiations (Salary, Work
Condition, …)
Next events planning (Trip, Vacation,
…)

fardiss@gmail.com
What negotiation is not?
Negotiation is not a fight
Negotiation is not arguing on a topic
Negotiations is not the last solution
– When you start the negotiation late, you are dictated
– Iran & USA Negotiations
– North Korea & USA Negotiations
– Parking in the Apartment
Negotiation is a not an euphemism for cunning
– Yelling at the manger for the salary; “ you have disturbed my rights”
Negotiation is not a “winner take it all” game
What negotiation is not?
Negotiation is not a contest
– Different from the sport, it may have different gold medals
Why is negotiation important?
One of the most effective tools for
– Business Development
– Sales and Marketing
– Recruitment and Human Resources Planning
One of the most effective tools for
– Being a more lovely person in the groups
– Being a better family member
– Influencing your friends more
– …
To have a happier and more successful life!
Scarce Resources
Increased Competitiveness
Entrepreneurial Environment of Business
Globalization
Want to Achieve Success?
It is not enough to be right to reach our rights. We should be able
to negotiate well. (Caspian Sea as an Example)
Life can be summarized as relationship. Personal, Group, Social,
National and … relationships. Negotiation is the main tool for
successful negotiation.
Our Relationship with our environment is getting more and more
complex and diversified. (WTO as an Example)
The rivals are getting more powerful everyday. We should make
ourselves ready for this improving rivals.
Learning Negotiation is a life time investment. It has return on
investment in our whole life. It is not like all other investments.
Quality of Life is a wish for any human being in this universe.
Negotiation is the most useful tool for reaching such wish.

fardiss@gmail.com
Why we need Negotiation Skills?
You do not get what you deserve, you get what you negotiate for
Negotiation is one of the most popular modes of communication.
It can build a closer relation if it be made in the right way.
Everybody is getting trained and developed in negotiation skills
Everything you want
is under the
control of somebody else.
Only
your desire, plan and skill for
success
is under your control
My Interests are others belongings! When to negotiate?
Win/Win outcome is desirable to both parties
You occupy a defensible position
Both parties have options
When NOT to negotiate?
You are in competition with the other party (Reconsider)
One or both sides enter with false intentions
– Both sides must want and be willing to pursue win/win
Can’t possibly win
You or other party lack authority
When NOT to negotiate?
Don’t negotiate with someone who’s intent is to defeat you (& vice
versa)
– “Don’t wrestle with a pig…you both get dirty and the pig likes it!”

fardiss@gmail.com
Tools for Negotiation
Personal
– Communication skills (Listening, Body Language, Speaking…)
– Expertise in the field of Negotiation (Technical, Norms, Standards, Literature)
– Preparation for Negotiation
– Mastery of Techniques for Negotiation
– Analytical Power
– Understanding Business Law or Trade Law
– Personality & Characteristics Analysis
– Management of Emotions
– ….
Non personal Tools
– Time
– Host / Guest
– Location of Negotiation
– Environment of Negotiation
Tools for Negotiation
You should be completely aware and competent of the
standards and norms of the negotiation issue
– “Do you own the shop or you are tenant?” in Bazaar area
– Transfer of technology and license agreement (SAMSUNG LCD)
– EPC Contract (Construction of a Hospital, Refinery, Port)
– Finance from World Bank (Development of Sewage Network)
– Negotiation for a Purchase in a Real State Agency
Negotiation; Learned or Natural Ability?
“Successful negotiating is a skill. It is not something you have or
don’t have.” (Gerard Nierenberg, The Art of Negotiating)
Like playing a sport, flying an airplane, or driving a car,
becoming an effective negotiator is a skill that can be learned.
Some people have a natural talent for it. Others do not.
If you do not have a natural inclination for negotiating, you can
learn how to do it, and do it well!
If you do have a natural talent for it, you can improve that skill
with training and practice.
Let us never negotiate
out of fear.
But let us never fear to
negotiate.
John Fitzgerald Kennedy
I learned very early that in most
negotiations success or failure
is determined more by the
actions, inactions, habits,
idiosyncrasies, blunders,
insights, and clever strategic
moves of the individuals
involved than by the terms of
the agreement or other formal
elements of the proposed
transaction.
Royce A. Coffin
Negotiation
Negotiation is a game,
“a game of moving people from ‘no’ to ‘yes’.”

fardiss@gmail.com
Negotiation
A
5 Major Principles of Negotiation
Getting to Yes, by William Ury and Roger Fisher
Separate People from the Problem
Focus on the Interests not on the Positions
Invent Options for Mutual Gains
Insist on using Objective Criteria
Know your BATNA
5 Major Principles of Negotiation (Principle 1)
Make human relations with the opposite side negotiator
Keep your relationship with the opposite side friendly
Keep out of any conflicts (‫تنش‬ ‫و‬ ‫)تعارض‬
Absorb the collaboration of the other parties
Mutual Understanding (‫)تفاھم‬
Agreement (‫)توافق‬
Write down the agreements in a legal (Contractual) but friendly
format.
Try to identify any and all interests which you are looking for
Try to evaluate any and all interests which you are driving at
Try to arrange them on the basis of sequence of priority
Consider the legitimate interests of the other side
Go to the negotiation in order to find the meeting point of the
legitimate interests of both parties
Anticipate (Forecast) what are the issue which will be arise on
the negotiation table (Expect what are the problems)
Do not enter to the negotiation without any solutions
Do not enter with only one solution
– A good Soldier shall participate in the battle with a riffle full of
bullets not with one bullet
– Why not one? The one which is acceptable for you, maybe is not
acceptable for him
Why we should this?
We do not negotiate with angels, machines, …
We negotiate with human beings
The Job Description of the negotiator is Problem Solving which
should be done through Creative Solution Providing
– When you are not in collaboration with the other party
(Confrontation!) you can not create new solutions.

fardiss@gmail.com
How should we implement human relations and
friendly collaboration
Describe your interests, situation, fundamentals, principles
– In the first stage you are completely opposite to each other but after the
description they agree in some parts with you!
Listen Carefully to the other side
– Good Negotiator is a professional speaker and a professional listener.
First Listen then Speak. First open the other Side.
– Do not Negotiate with Black Box. You are aware of yourself but you should
be aware of the other side.
– Stand on the top of the information Ladder
– Do not blame yourself for saying something which should not be said in this
stage.
– If the other side is aware of this technique, what should we do?
• Open both sides step by step
• Do not tell all your statements one time!
• Start with your most important reason
Hesitate to show your negative reactions immediately!
– Instead Ask why?
– You should not tolerate the load of the proving the wrong
– The first judgment may be wrong
– Example:
• Would you please explain
• why your company
• still
• has such a viewpoint (attitude) (not position!)
Do not attack the other side!
If he is telling lie, if he is in a weak position, let him and encourage him
to speak more
– Do not tell him that you are lying.
– The information which we have in this side of the table is different from the
information which is now delivered (given) to the table.
– ‫بگيريد‬ ‫رو‬ ‫کالمتون‬ ‫زھر‬.
Do not impose him (force him), convince them, persuade him
– They will resist
– Do not dictate
– Help him decide correctly, do not let him go to the negative side
– Lubricate the decision making, Assist him, facilitate, accelerate his
decision making
Put yourself in his shoes specially in case of confrontation
– As a result you will be more logical and fair
Mention his name between the negotiation process occasionally.
– Business Cards
– Name of the participants
– Use 1 Cal and 1 Sec for “Dearest”
Do not attack the other person. It will kill the negotiation
– You are a civil engineer. You do not speak about law! (Governing
law or applicable law)
– You are not familiar with the issue. It is a good time to learn!
Do not leave the session while you are in fight, …
– You should pay so much to come back to the session
Do not ruin the trust of the other side
– ‫گويی‬ ‫تناقض‬
– ‫بندی‬ ‫خالی‬
– ‫گويی‬ ‫دروغ‬
– Prove that you are fair, logical and reliable
Do not let the negative points push to personal negative
judgments about the other side.
The other side is not your personal enemy!
Do not ridicule the other party.
If he is mistaken do not highlight or enlighten his mistakes.
– You know nothing about the L/C. Go and bring your daddy!
– First credit his wrong answer
– Indirect training
– Ask your question in another proper way
What’s the role of Planning
If you fail to plan,
you plan to fail

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Negotiation
A
Negotiation Style
Avoider (‫کننده‬ ‫)اجتناب‬
– This is not possible! Nobody would do this!
– Get out of me!
– I do not play. It is selfish.
– ‫کاريم‬ ‫سر‬
Competitor (‫)رقابتی‬
– The main issue is that I should win.
– I will not follow anybody
– Stand Up and come and follow me
– ‫نگرفتم‬ ‫حالتو‬ ‫تا‬ ‫طرف‬ ‫اين‬ ‫بيا‬ ‫خودت‬ ‫پاشو‬
Accommodator (‫جو‬ ‫)مصالحه‬
– There is no difference between me and you. I will follow you but kindly pls
consider my portion
Compromiser (‫کننده‬ ‫)توافق‬
– Give me a guarantee for my acceptance of following you then I will follow you
Collaborator (‫کننده‬ ‫مساعی‬ ‫)تشريک‬
– Searches for the best solution for the problem!
Negotiation Style
Importance of Relationship
ImportanceofOutcome
Glaser & Glaser (1996). Negotiating Style Profile
Accommodate
Build positive
Relationships.
Collaborate
Problem solve
so both win.
Withdraw
Take whatever you can.
Defeat
Winner at any cost.
Compromise
Negotiation style
There is no one unique good negotiation style which is the best
for all the situations!
You shall be aware of your and the other party’s negotiation style
Maybe you should change your negotiation style during one
negotiation
Two major criteria for selection of the appropriate style is
– Importance of long term relationships
– Importance of outcome
Types of Negotiation
Single Issue vs Multiple Issue
Single Episodic vs Multi Episodic
Offer – Counter Offer
Between Main Stakeholder vs Between Representatives

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Negotiation Strategies
Broadly Distributive: Competitive Situations
– Goals in direct conflict
– Fixed and Limited Resources
– Both parties want to maximize their share
– Therefore strategy to maximize share
– Managing Information
Broadly Integrative: Cooperative Situations
– Committed to each other interest
– Emphasize on commonalities
– Both parties achieve their goals therefore win-win
– Reliant on discussion and trust
A sample for a Bad Negotiation!
Position Based Negotiation vs Interest based Negotiation
– The other party do not accept our position
– If we were in his shoes we would not accept this position
– I will be happy with lower than my position
– The standard or norm is lower than my position and I can not justify
my position
100 Meter Square Apartment
– We Will lock in this situation
• I will believe that it worth 300 Million
• Negotiation is give and Take, is tit for tat, compromise.
• The Other party will lock himself
• The weaker will give the first advantage
The Dog of the neighbor
Communications Importance in Negotiations
Negotiation is a process by which
negotiators communicate their
own interests, positions, and
goals
and in return
make sense of those of the other
party and of the negotiation as a
whole.

Negotiation seminar farzin fardiss day 1391 [6 pp mode](1)

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