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Negotiating and influencing with
            success


       by Toronto Training and HR

               May 2012
3-4     Introduction to Toronto Training and HR
           5-6     Negotiation maxims
Contents   9-11
           10-11
                   Ethical negotiations
                   Core concerns of negotiation
           12-13   Dealing with subcontractors
           14-15   Renegotiating supply contracts
           16-17   Effect of culture on levels of influence
           18-19   Obstacles that can stand in the way of success
           20-21   Authority
           22-23   Influencing tactics for a business leader
           24-25   How to influence powerful people
           26-29   Effective negotiating
           30-32   Changing jobs
           33-34   Buying a new car
           35-39   Securing a raise
           40-43   Starting salaries
           44-46   Strategies to be an effective influencer
           47-49   Building a reputation as a powerful influencer
           50-51   Drill
           52-53   Conclusion and questions
                       Page 2
Introduction




     Page 3
Introduction to Toronto Training
            and HR
• Toronto Training and HR is a specialist training and human
  resources consultancy headed by Timothy Holden
• 10 years in banking
• 10 years in training and human resources
• Freelance practitioner since 2006
• The core services provided by Toronto Training and HR are:
              - Training event design
              - Training event delivery
              - Reducing costs
              - Saving time
              - Improving employee engagement & morale
              - Services for job seekers

                            Page 4
Negotiation maxims




        Page 5
Negotiation maxims
“Great negotiators never argue with reasons; they
argue the facts”
“You never have to prove anyone wrong; you only
have to prove yourself right”
“People will consider what you have to say, to the
exact degree you demonstrate you understand
their point of view”




                      Page 6
Making your case




       Page 7
Making your case
Preparation
The structure
The technique
Summary and questions




                   Page 8
Ethical negotiations




        Page 9
Ethical negotiations 1 of 2
Establish your credibility and that of your client
Consider sharing negative information
Determine your clients' interests and goals
Discourage your clients from coming to the table
with a bottom line
Make as many concessions as you can
Develop a rapport with the other side
Understand the basis for the proposals



                       Page 10
Ethical negotiations 2 of 2
Be respectful and don’t bully
Let your clients make the deal they want
Stay optimistic




                      Page 11
Dealing with
subcontractors




     Page 12
Dealing with subcontractors
One throat to choke
Subcontractor failures
Timing is everything
Negotiating strategy
Managing subcontractor defaults
Practical realities




                     Page 13
Renegotiating supply
     contracts




        Page 14
Renegotiating supply contracts
What’s the position?
Don’t drag your heels
Bring them to the table
It takes two to tango
Do your prep
Be clear what you want
Be ready to walk
Set the rules of engagement
Strike the right tone


                     Page 15
Effect of culture on levels
       of influence




            Page 16
Effect of culture on levels of
             influence
Formal methods of influence
Informal methods of influence
Who is most influential?
What is the basis of this influence?




                       Page 17
Obstacles that can stand
 in the way of success




          Page 18
Obstacles that can stand in the
        way of success
Fear of rejection
Not being clear about what you must have
Poor command of the language
“Situational influence”
Feeling guilty




                     Page 19
Authority




   Page 20
Authority
Definition
Credibility
Delegation




                Page 21
Influencing tactics for a
    business leader




           Page 22
Influencing tactics for a
          business leader
Silent authority
Assertiveness
Exchange
Coalition formation
Upward appeal
Ingratiation
Impression management
Persuasion
Information control


                   Page 23
How to influence powerful
         people




           Page 24
How to influence powerful
             people
Manage first impressions
Know what you are doing
Practice humility
Show appreciation
Guard your independence




                     Page 25
Effective negotiating




         Page 26
Effective negotiating 1 of 3
Know what you want
Appreciate your own physical presence
Make sure you’re negotiating with the right person
Try to read the people across the table from you
Understand their personality
Be honest with yourself
Recognize that people ask for me than they expect
to get
Share the logic for your requests


                      Page 27
Effective negotiating 2 of 3
Trust, but verify
Resist the temptation to cut the pie in half
Don’t negotiate by email
Give to get
Perception is more important than reality
Put all your big issues on the table
Make sure your concessions are acknowledged
Use your leverage
Be prepared


                     Page 28
Effective negotiating 3 of 3
Know when to walk away
Don’t let negotiations drag on too long




                      Page 29
Changing jobs




     Page 30
Changing jobs 1 of 2
If you are being lured from secure employment,
how much money are you leaving on the table by
resigning? Have you thought about how to recoup
this money from your new employer?
If you have signed any restrictive covenants with
your current employer such as a non-solicitation
clause, have you disclosed and addressed this
topic with the new employer?



                      Page 31
Changing jobs 2 of 2
Have you calculated the value of your current
benefit package and compared it to the new
employer’s package?
Do you really understand the performance
compensation scheme in place with the new
employer?
What kind of job security do you need –
particularly if you are leaving secure long-term
employment? Have you thought of an exit strategy
if the new employer is sold or is taken public?

                     Page 32
Buying a new car




      Page 33
Buying a new car
Set targets
Create competition between dealers
Feign interest in a model not stocked to settle for
an alternative
Be flexible
Avoid unnecessary charges




                       Page 34
Securing a raise




      Page 35
Securing a raise 1 of 4
Just because you’re new to the job force doesn’t
mean you can’t ask for more…
…but don’t push your luck too much
Don’t limit yourself to talking about money
Know the best time to bargain
Come prepared
Be resourceful




                      Page 36
Securing a raise 2 of 4
PROVE YOUR VALUE TO THE EMPLOYER
You need to be clear and fluent about why you
deserve what you're asking for without sounding
defensive
You want to be able to highlight what the market
value is for a person with your skills and
experience
If there have been any occasions in the past
where your performance was less than exemplary,
note this and be prepared to offer an explanation

                     Page 37
Securing a raise 3 of 4
PROVE YOUR VALUE TO THE EMPLOYER
Your ability to get a raise will depend a lot on how
your company is doing financially
Practice in advance
A raise doesn't have to come in dollar signs




                       Page 38
Securing a raise 4 of 4
WHAT DOES IT DEPEND UPON?
Level of experience and skills
Person negotiating with
Type of organization




                     Page 39
Starting salaries




       Page 40
Starting salaries 1 of 3
Calculate minimum starting salary
Research salaries and benefits
Determine your market value
Have a firm job offer before you negotiate
Convey an element of flexibility
Let the prospective employer broach the subject
first
Repeat the amount of the offer and stay silent



                     Page 41
Starting salaries 2 of 3
Look at the total package
Share your research
Make your case
Emphasize the benefits of your skills
Be ready to demonstrate that you have the exact
skills needed
Prepare to trade
Negotiate with respect



                     Page 42
Starting salaries 3 of 3
Don’t get discouraged during salary negotiations
Get it in writing
Be reasonable and flexible
Demonstrate your excitement for the job




                      Page 43
Strategies to be an
effective influencer




        Page 44
Strategies to be an effective
         influencer 1 of 2
You have to believe in yourself and believe that
what you want (your goals and intentions), is
valuable, necessary, and relevant
Be very, very clear about your goal
Know what your best alternative to a negotiated
agreement (BATNA)
Identify the audience correctly




                      Page 45
Strategies to be an effective
         influencer 2 of 2
Be seen as a trustworthy individual of high
integrity, someone who is looking out not only for
his or her own best interests but also for the best
interests of the parties he or she is attempting to
influence




                       Page 46
Building a reputation as a
   powerful influencer




           Page 47
Building a reputation as a
     powerful influencer 1 of 2
Know what you want to accomplish
Specifically identify the person you must persuade
Choose the optimal time and place for persuasion
Understand the other person’s position and
interests before you begin the process
While you’re in conversation, listen for overlap and
commonality, so you can begin your discussion
from a position of agreement



                       Page 48
Building a reputation as a
    powerful influencer 2 of 2
Prepare to sacrifice “wants” to gain “musts”
Be sure there is opportunity for a win-win-win
situation for all involved
Reflect on and reaffirm the agreement, which
means summarizing it as you go through the
process
Aim for a commitment, because buy-in is as
important as an agreement
Document the agreement as necessary


                      Page 49
Drill




 Page 50
Drill




Page 51
Conclusion and questions




          Page 52
Conclusion and questions
Summary
Videos
Questions




               Page 53

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Negotiating and influencing with success May 2012

  • 1. Negotiating and influencing with success by Toronto Training and HR May 2012
  • 2. 3-4 Introduction to Toronto Training and HR 5-6 Negotiation maxims Contents 9-11 10-11 Ethical negotiations Core concerns of negotiation 12-13 Dealing with subcontractors 14-15 Renegotiating supply contracts 16-17 Effect of culture on levels of influence 18-19 Obstacles that can stand in the way of success 20-21 Authority 22-23 Influencing tactics for a business leader 24-25 How to influence powerful people 26-29 Effective negotiating 30-32 Changing jobs 33-34 Buying a new car 35-39 Securing a raise 40-43 Starting salaries 44-46 Strategies to be an effective influencer 47-49 Building a reputation as a powerful influencer 50-51 Drill 52-53 Conclusion and questions Page 2
  • 3. Introduction Page 3
  • 4. Introduction to Toronto Training and HR • Toronto Training and HR is a specialist training and human resources consultancy headed by Timothy Holden • 10 years in banking • 10 years in training and human resources • Freelance practitioner since 2006 • The core services provided by Toronto Training and HR are: - Training event design - Training event delivery - Reducing costs - Saving time - Improving employee engagement & morale - Services for job seekers Page 4
  • 6. Negotiation maxims “Great negotiators never argue with reasons; they argue the facts” “You never have to prove anyone wrong; you only have to prove yourself right” “People will consider what you have to say, to the exact degree you demonstrate you understand their point of view” Page 6
  • 8. Making your case Preparation The structure The technique Summary and questions Page 8
  • 10. Ethical negotiations 1 of 2 Establish your credibility and that of your client Consider sharing negative information Determine your clients' interests and goals Discourage your clients from coming to the table with a bottom line Make as many concessions as you can Develop a rapport with the other side Understand the basis for the proposals Page 10
  • 11. Ethical negotiations 2 of 2 Be respectful and don’t bully Let your clients make the deal they want Stay optimistic Page 11
  • 13. Dealing with subcontractors One throat to choke Subcontractor failures Timing is everything Negotiating strategy Managing subcontractor defaults Practical realities Page 13
  • 14. Renegotiating supply contracts Page 14
  • 15. Renegotiating supply contracts What’s the position? Don’t drag your heels Bring them to the table It takes two to tango Do your prep Be clear what you want Be ready to walk Set the rules of engagement Strike the right tone Page 15
  • 16. Effect of culture on levels of influence Page 16
  • 17. Effect of culture on levels of influence Formal methods of influence Informal methods of influence Who is most influential? What is the basis of this influence? Page 17
  • 18. Obstacles that can stand in the way of success Page 18
  • 19. Obstacles that can stand in the way of success Fear of rejection Not being clear about what you must have Poor command of the language “Situational influence” Feeling guilty Page 19
  • 20. Authority Page 20
  • 22. Influencing tactics for a business leader Page 22
  • 23. Influencing tactics for a business leader Silent authority Assertiveness Exchange Coalition formation Upward appeal Ingratiation Impression management Persuasion Information control Page 23
  • 24. How to influence powerful people Page 24
  • 25. How to influence powerful people Manage first impressions Know what you are doing Practice humility Show appreciation Guard your independence Page 25
  • 27. Effective negotiating 1 of 3 Know what you want Appreciate your own physical presence Make sure you’re negotiating with the right person Try to read the people across the table from you Understand their personality Be honest with yourself Recognize that people ask for me than they expect to get Share the logic for your requests Page 27
  • 28. Effective negotiating 2 of 3 Trust, but verify Resist the temptation to cut the pie in half Don’t negotiate by email Give to get Perception is more important than reality Put all your big issues on the table Make sure your concessions are acknowledged Use your leverage Be prepared Page 28
  • 29. Effective negotiating 3 of 3 Know when to walk away Don’t let negotiations drag on too long Page 29
  • 30. Changing jobs Page 30
  • 31. Changing jobs 1 of 2 If you are being lured from secure employment, how much money are you leaving on the table by resigning? Have you thought about how to recoup this money from your new employer? If you have signed any restrictive covenants with your current employer such as a non-solicitation clause, have you disclosed and addressed this topic with the new employer? Page 31
  • 32. Changing jobs 2 of 2 Have you calculated the value of your current benefit package and compared it to the new employer’s package? Do you really understand the performance compensation scheme in place with the new employer? What kind of job security do you need – particularly if you are leaving secure long-term employment? Have you thought of an exit strategy if the new employer is sold or is taken public? Page 32
  • 33. Buying a new car Page 33
  • 34. Buying a new car Set targets Create competition between dealers Feign interest in a model not stocked to settle for an alternative Be flexible Avoid unnecessary charges Page 34
  • 35. Securing a raise Page 35
  • 36. Securing a raise 1 of 4 Just because you’re new to the job force doesn’t mean you can’t ask for more… …but don’t push your luck too much Don’t limit yourself to talking about money Know the best time to bargain Come prepared Be resourceful Page 36
  • 37. Securing a raise 2 of 4 PROVE YOUR VALUE TO THE EMPLOYER You need to be clear and fluent about why you deserve what you're asking for without sounding defensive You want to be able to highlight what the market value is for a person with your skills and experience If there have been any occasions in the past where your performance was less than exemplary, note this and be prepared to offer an explanation Page 37
  • 38. Securing a raise 3 of 4 PROVE YOUR VALUE TO THE EMPLOYER Your ability to get a raise will depend a lot on how your company is doing financially Practice in advance A raise doesn't have to come in dollar signs Page 38
  • 39. Securing a raise 4 of 4 WHAT DOES IT DEPEND UPON? Level of experience and skills Person negotiating with Type of organization Page 39
  • 40. Starting salaries Page 40
  • 41. Starting salaries 1 of 3 Calculate minimum starting salary Research salaries and benefits Determine your market value Have a firm job offer before you negotiate Convey an element of flexibility Let the prospective employer broach the subject first Repeat the amount of the offer and stay silent Page 41
  • 42. Starting salaries 2 of 3 Look at the total package Share your research Make your case Emphasize the benefits of your skills Be ready to demonstrate that you have the exact skills needed Prepare to trade Negotiate with respect Page 42
  • 43. Starting salaries 3 of 3 Don’t get discouraged during salary negotiations Get it in writing Be reasonable and flexible Demonstrate your excitement for the job Page 43
  • 44. Strategies to be an effective influencer Page 44
  • 45. Strategies to be an effective influencer 1 of 2 You have to believe in yourself and believe that what you want (your goals and intentions), is valuable, necessary, and relevant Be very, very clear about your goal Know what your best alternative to a negotiated agreement (BATNA) Identify the audience correctly Page 45
  • 46. Strategies to be an effective influencer 2 of 2 Be seen as a trustworthy individual of high integrity, someone who is looking out not only for his or her own best interests but also for the best interests of the parties he or she is attempting to influence Page 46
  • 47. Building a reputation as a powerful influencer Page 47
  • 48. Building a reputation as a powerful influencer 1 of 2 Know what you want to accomplish Specifically identify the person you must persuade Choose the optimal time and place for persuasion Understand the other person’s position and interests before you begin the process While you’re in conversation, listen for overlap and commonality, so you can begin your discussion from a position of agreement Page 48
  • 49. Building a reputation as a powerful influencer 2 of 2 Prepare to sacrifice “wants” to gain “musts” Be sure there is opportunity for a win-win-win situation for all involved Reflect on and reaffirm the agreement, which means summarizing it as you go through the process Aim for a commitment, because buy-in is as important as an agreement Document the agreement as necessary Page 49