Negotiations — large and small — are embedded in most aspects of business and life. Being a successful negotiator is pivotal to establishing mutually beneficial, prosperous and lasting relationships. This presentation will delve into the art of negotiation, helping you feel more comfortable at the negotiating table and increasing your ability to broker profitable partnerships for your organization. Attendees will learn: The basics of win-win negotiation Tips and techniques for better negotiation results How to manage relationships after the negotiation is complete

1. THE ART OF NEGOTIATION
GARY TUCKER | AUGUST 2016

2. A LITTLE BIT ABOUT ME

3. TODAY’S PRESENTATION

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What we will cover:
Basics of win-win negotiation and types negotiations
we’re likely to encounter or want to encounter
Tips and techniques for better negotiation results
How to manage relationships after the negotiation is
complete

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How we’ll cover it
The Basics
– Definitions
– Terminology
– Other fun things
Before a Negotiation
– Setting the Stage for Success
During a Negotiation
– The Performance
After a Negotiation
– Managing the Future

6. BASICS FOR BEGINNERS

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What negotiation is…and isn’t?
Interactions that deal
with money
– This is too narrow a view and
not always an accurate
reflection of the true points
of negotiation
Interactions between
people, companies or
otherwise outlining the
nature of the relationship
Can include pricing,
profit-sharing, partnerships,
plans for communication,
emergency or crisis
planning

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What makes a
negotiation successful?
Success in a negotiation is
best defined as:
– Achieving greater than
expected outcomes
based upon leverage

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Terms to
know
Leverage
⎼ Real vs. perceived
Valuation
Incentive Management
⎼ The single most important thing
to having a happy life

10. BEFORE A NEGOTIATION:
SETTING THE STAGE FOR SUCCESS

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First things first.
Know yourself.
Leverage? Valuation?
What are the spending
thresholds? What can charge
and still allow for
profitability?

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First things first.
Know yourself
How important is this partnership?
What is the current situation?
What market conditions surround
this negotiation? And finally….
Do I need a lawyer, accountant
or other
expert to help me first?

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Know the other party
Collect everything available about the
organization and individual you will
be negotiating with
Great places to look for this
information:
– Google, websites, social media esp. Facebook
– Tax records
– Other clients and partnering organizations
– Vendini sales records

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I know myself. I know
the other party. What now?
Develop a BATNA.
Best
Alternative
To
Negotiated
Agreement

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BATNA is
done. When
do we
negotiate?
The location can completely change the
outcome:
– Try to meet at a neutral site
• This helps prevent subliminal reminders of other
costs or responsibilities
– Think about seating arrangement
– If a negotiation will be contentious or you
cannot control your own facial expressions
or body language try to sit side by side

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Who should
be at the
table?
In general, it is best to have as few
people as possible in a negotiation.
– A Lead Negotiator
• This person is the only on who should speak
unless called upon by the lead
– Decision Markers
• Don’t show up without a person who can
give the final yes or no
– Secondary Parties
• Only If they bring a skill you don’t have

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Who should NEVER be at the table?
Nervous talkers
Those without the ability to focus for 2+ hours
Those who cannot control their emotions
Overly “perky” people
Those who do not listen when told not to talk
Outside organizations or media

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You just described my boss…
Managing upward
– Get permission to be the decision
maker
– Ask you boss not to talk unless you
ask him/her to
Be honest about the issues
that concern you
Work around their liabilities
– Game out scenarios that
could come up

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Pro Tip: Squares Sheet
Space for notes that will
help you organize your
thoughts and approach
Each square is a facet to
be negotiated
Always have a minimum
of 4 squares
– 12 to 16 is best

20. DURING THE NEGOTIATION

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Pro Tip: Strategic Thinking vs.
Strategic Planning
Strategic planning is important but it is more important
to use “strategic thinking.”
– In other words, applying this same type of logic to daily processes.
Examples:
– Reframing a problem
– Future earning versus immediate gains
– Reaching long term goals
– Awareness of the external environment.

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The Ultimate Goal:
Determine their BATNA
Determine the other party’s
bottom line
First 20 minutes is the best time
to fill in what you don’t know
Ask don’t tell. Keep them
talking about themselves
and their company.

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Opening negotiations…
start with an easy square
Start with an easy square, where you are most flexible,
say length of term
If possible, make a concession to their needs and you
can use it to get them to bend in the future.
Easy agreement in the beginning will lead to easier
win-win agreements later
NEVER START WITH PRICE!!!!

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Work your way through the squares
Once you feel as though you are working well together,
bring up price, or the most challenging part of the
negotiation
Make sure you have at least two more squares when
you do this.
– If you find yourself at an impasse, move to another square and come
back to this

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I'm all out of squares and
we are stuck
Getting a Negotiation moving again:
– Offer a creative alternative
– Ask more questions. Try to find a place
where you might be able to meet
– Change the scope of the offer, what
other squares can be tweaked?
– Let the room breathe
– Avoid Heading Down the “Rabbit Hole”

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One that stretches on for much longer
period than anticipated or desired goal
is to negotiate at a minute level
– Eliminate emotion from the meeting
– Each concession obtained will take a great deal
of convincing in hopes the other party will feel so
committed to coming to an agreement that
they go beyond their BATNA
– Should only happen when both parties are truly
out of options. If this is not true, walk away Rabbit Hole
Negotiations

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Pro Tip: How to
comport yourself
Always be professional,
courteous, kind, and
empathetic
Most of all be yourself and
be a good listener
Practice makes perfect

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Pro Tip: Feeling a Room
The best negotiators get
to a point where they can
simultaneously:
– Be a part of the conversation
– Be an observer of the
conversation, the room and
surroundings
This comes with LOTS
of practice

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Pro Tip: Practice
these things
Video or audio record your
negotiations and then go
back and do “tape study”
Observe other people
negotiating
Remember small things
around you

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Negotiation is going well…
Pump the brakes
Be careful. There comes a
point where you need to
pump the brakes.
– Make sure they make a fair profit
or they are in position to grow
with you.
– Think long term. Don’t get them
fired for making a terrible deal.

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When to walk away from a negotiation
There are some circumstances where it is best to walk
away from a deal, even if it is within your BATNA.
– Uncomfortable with person or company – trust your gut
– Being disrespected or belittled
– Other party makes remark insulting other clients
– Interruption or lack of attentions
– Agreed Impasse or need of more information
– Being taken “ Down the Rabbit Hole”

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Debunking "Wives Tales"
Matching or Mirroring
“ The first one to talk loses”
Poker faces
Born Negotiators
You must tell lies
There is always a winner

33. AFTER THE NEGOTIATION

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Immediate aftermath
Put it in writing
Follow up with everything
you promised
Send a Thank You notes

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Managing
Partnerships
A Customer Service frame
of mind
Keep in touch
Keep everyone happy –
This includes yourself

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Learning from each
negotiation
Failure mode
efficiency analysis

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Questions?

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Resources
“Competing for the Future” by Gary Hamel & CK
Prahalad
“Bargaining for Advantage” by G. Richard Shell

39. THANKS!
GARY TUCKER
THE ART OF NEGOTIATION