Negotiation skills presentation

AgendaAgenda
What Is Negotiation?What Is Negotiation?
Defining Negotiation
The Context of Negotiation
The Elements of NegotiationThe Elements of Negotiation
The Goal of Negotiating: Developing Agreement
Critical Elements in Negotiation
The Process of NegotiationThe Process of Negotiation
The Process of Negotiation: A Three-Ring Circus
Traits of a Good Negotiator
Preparing for NegotiationPreparing for Negotiation
The Value of Preparation
NEGOTIATION SKILLS.PRZ 01/11/04
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AgendaAgenda
Using Communication Skills in NegotiationUsing Communication Skills in Negotiation
Moving into Phase Two of the Negotiation Process
Tactful Questioning
Active Listening
Careful Observation
Using Negotiation TechniquesUsing Negotiation Techniques
Moving forward in the Negotiation Process
Common Negotiating Techniques
Selected Negotiating Tactics
Negotiating Like a ProNegotiating Like a Pro
Moving toward a Resolution
Getting Agreement
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What is Negotiation?What is Negotiation?
Defining NegotiationDefining Negotiation
The Context of NegotiationThe Context of Negotiation
1
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Defining NegotiationDefining Negotiation
How would you define Negotiation?
What negotiation is?
and,
What negotiation isn't?
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Common positive ideas areCommon positive ideas are
NEGOTIATIONNEGOTIATION
ISIS
A kind ofA kind of
actionaction
More thanMore than
one personone person
involvedinvolved
CooperationCooperation
CommunicationCommunication
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Major differences areMajor differences are
NEGOTIATIONNEGOTIATION
IS NOTIS NOT
OpportunityOpportunity
to demonstrateto demonstrate
superioritysuperiority
ConfrontationConfrontation
AggressivenessAggressiveness
One winnerOne winner
and oneand one
loserloser
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A Practical DefinitionA Practical Definition
of Negotiationof Negotiation
NegotiationNegotiation isis aa communicationcommunication processprocess
betweenbetween twotwo oror moremore peoplepeople inin whichwhich theythey
considerconsider alternativesalternatives toto arrivearrive atat mutuallymutually
agreeableagreeable solutionssolutions oror reachreach mutuallymutually
satisfactory objectives.satisfactory objectives.
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THE CONTEXT OF NEGOTIATIONTHE CONTEXT OF NEGOTIATION
Consider these key questions.
Who negotiates?
Where do negotiations occur?
What's negotiable?
Why negotiate?
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THE CONTEXT OF NEGOTIATIONTHE CONTEXT OF NEGOTIATION
Who negotiates?
You can safely say that everyone negotiates.
Where do negotiations occur?
Negotiations can and do take place almost anywhere.
What's negotiable?
Everything is negotiable!
Why negotiate?
It helps us to meet our goals and objectives.
To satisfy our needs.
To resolve conflicts
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The Elements ofThe Elements of
NegotiationNegotiation
The Goal of NegotiatingThe Goal of Negotiating
Critical Elements in negotiationCritical Elements in negotiation
2
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It's Not Just Win or LoseIt's Not Just Win or Lose
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Cooperation Makes a DifferenceCooperation Makes a Difference
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The Goal of Negotiating: Developing AgreementThe Goal of Negotiating: Developing Agreement
Win-Win NegotiationWin-Win Negotiation
Remember that negotiation is cooperationRemember that negotiation is cooperation
You work with the other side together.You work with the other side together.
Cooperation usually leads to:Cooperation usually leads to:
Conflict resolution.Conflict resolution.
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The Goal of Negotiating: Developing AgreementThe Goal of Negotiating: Developing Agreement
Win-Win NegotiationWin-Win Negotiation
Negotiation might be considered bothNegotiation might be considered both
an art and a science.an art and a science.
It is the science of cooperative compromise.It is the science of cooperative compromise.
it is the art of collaborative agreement.it is the art of collaborative agreement.
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Knowledge or information.
Time or deadline pressure.
Strength or power.
CRITICAL ELEMENTS IN NEGOTIATIONCRITICAL ELEMENTS IN NEGOTIATION
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Knowledge or Information
Why is information so important in negotiation?
What kind of knowledge do you need?
EXAMPLE ...
How did knowledge or lack of knowledge affect this
negotiation?
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Time or Deadline Pressure
If you know the other side's deadline pressures,
what advantage might that offer you in the
negotiation process?
EXAMPLE ...
How does deadline pressure affects the negotiating
process in this example?
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Strength or Power
Strength is gained from
the difference between
your knowledge about the
other side's situation and
what the other side knows
about your situation.
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Strength or Power
When does the negotiation
process wind down?
If a radically out-of-balance
condition happen.
Or a totally balanced condition
achieved.
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Based on the three critical negotiation elements, three rules of
thumb usually apply:
The party with the most accurate and relevant
knowledge (information) is likely to prevail.
The party with the earliest deadline (most time
pressure) generally has the weaker position.
The parties must strive to balance their strengths
(power) to encourage compromise and drive toward
a win-win resolution.
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Power may be real or assumed.
Power is effective only if the negotiators are aware of it.
Power is effective only if it is acknowledged.
Power need not actually be used to be effective.
Using power may be risky.
The Balance of Power in NegotiationThe Balance of Power in Negotiation
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The Process ofThe Process of
The Process of Negotiation:The Process of Negotiation:
A Three-Ring CircusA Three-Ring Circus
The Traits of a Good NegotiatorThe Traits of a Good Negotiator
3
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THE NEGOTIATION PROCESSTHE NEGOTIATION PROCESS
andand
TacticsTactics
UseUse
StrategyStrategy
ReassessReassess
CommunicateCommunicate
Preparing toPreparing to
NegotiateNegotiate
GettingGetting
AgreementAgreement
Phase OnePhase One Phase ThreePhase Three
Phase TwoPhase Two
InteractingInteracting
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NegotiateNegotiate
Phase OnePhase One
The Start
The Start
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Gathering useful information.
Spend time analyzing both sides of the conflict.
Determine each side's negotiating objectives or goals.
Assess each side's relative knowledge, strength, and
deadlines.
Determine your own bottom line (stop point).
Try to guess the other side's bottom line.
The first phase of the negotiation process:The first phase of the negotiation process:
PREPARATIONPREPARATION
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andand
TacticsTactics
UseUse
StrategyStrategy
ReassessReassess
Phase TwoPhase Two
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The emphasis here is definitely on dialogue, a two-way
communication.
You are not at the negotiation table to talk.
You are not making a speech or delivering a monologue.
As you communicate in the negotiation process, use
three basic skills:
Active listening.
Tactful questioning.
Careful observing.
The second phase of the negotiation process:The second phase of the negotiation process:
INTERACTINGINTERACTING
ReassessReassess
and Tacticsand Tactics
Use StrategyUse Strategy
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Advance the process or gain an advantage
that will help you move forward to a
positive close.
The balance of strength /power is tending to
shift from one side to another.
This changing balance of power will require
you to continually probe for more
knowledge and constantly reassess your
relative position in the negotiation.
ReassessReassess
You'll apply a variety of negotiating strategies and tactics to :
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You'll also need to reassess your position frequently.
As new information is uncovered through listening and
questioning.
As you observe attitudes and body language.
As tactics are tried, you must continuously evaluate three
basic options:
Should you continue negotiating?
Should you make concessions?
Should you stand firm?
ReassessReassess
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GettingGetting
AgreementAgreement
Phase ThreePhase Three
The End
The End
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This last stage represents the close of a negotiation session.
You may end or close a negotiation session by:
Getting agreement to resume negotiations at another time.
You haven't really concluded the negotiations, but for some
reason, it's advisable to pause in the effort.
You may end the session because one party has reached its
bottom line, the point at which it is not worth the effort to
continue negotiating.
The third phase of the negotiation process:The third phase of the negotiation process:
GETTING AGREEMENTGETTING AGREEMENT
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You may close a session by completing the
negotiations.
In this situation, the negotiated outcome is
solidified and details are nailed down.
The parties, having cooperated in the
give-and-take of compromise, will part with
mutual respect.
The third phase of the negotiation process:The third phase of the negotiation process:
GETTING AGREEMENTGETTING AGREEMENT
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What does it take to be a good negotiator?
The successful negotiator has some important characteristics:
1. Understands people:
He has acquired a practical knowledge of human habits and
behaviors.
Good negotiators somehow seem to be able to anticipate or
guess correctly about the other side's next action or reaction.
2. Exudes confidence:
If you are not confident, you won't really fool the other side for
long.
If you do have it, the other side immediately perceives it.
TRAITS OF A GOOD NEGOTIATORTRAITS OF A GOOD NEGOTIATOR
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3.Is open-minded:
In order to participate effectively in the give and take of
negotiation, you need to be open-minded.
4.Remains calm:
Negotiations can become emotional.
Both sides are subject to losing control over their emotions.
It's human nature to get excited, agitated, or irritated with the
tone of the conversation or the selection of tactics in a
negotiation.
5.Seeks options:
One asset in negotiations is the ability to find or invent
alternatives.
TRAITS OF A GOOD NEGOTIATORTRAITS OF A GOOD NEGOTIATOR
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Preparing forPreparing for
The Value of PreparationThe Value of Preparation
NegotiateNegotiate
Phase OnePhase One
The Start
The Start
4
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Preparing for NegotiationPreparing for Negotiation
What's involved in preparing to negotiate?
Your first goal is gathering information that will
enable you to:
Identify your side's motives, objectives, or
needs and
Make an educated guess about the other side's.
Assess your own starting position, and
Do the same for the other side.
Define your side's bottom line and
Attempt to define the other side's bottom line.
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Identifying Motives, Objectives, or NeedsIdentifying Motives, Objectives, or Needs
Gathering information that will enable you to:
Identify your side's motives, objectives, or needs and make an
educated guess about the other side's.
Ask yourself these questions:
What do you hope to achieve as a result of the negotiation
effort?
What are your primary needs? Secondary needs?
Why are you engaging in this negotiation?
Are you a willing player or a forced participant?
What is at risk in the negotiation?
What do you want to get? ...
Objectives ...
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Assessing the Starting PositionsAssessing the Starting Positions
Assess your own starting position, and do the
same for the other side.
Estimate your relative positions with regard to
the three critical elements:
Information/knowledge
Power/strength
Time or deadline pressure
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Establishing the Bottom LineEstablishing the Bottom Line
Define your side's bottom line and to define the other
side's bottom line.
In every negotiable situation, there is a point of no
return.
You need to decide on your bottom line.
Then make an educated guess as to the other party's
bottom line.
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Using CommunicationUsing Communication
Skills in NegotiationSkills in Negotiation
Moving into Phase Two of the Negotiation ProcessMoving into Phase Two of the Negotiation Process
Tactful QuestioningTactful Questioning
Active ListeningActive Listening
Careful ObservationCareful Observation
5
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ReassessReassess
andand
TacticsTactics
UseUse
StrategyStrategy
Phase TwoPhase Two
Using Communication Skills in NegotiationUsing Communication Skills in Negotiation
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MOVING INTO PHASE TWO OF THEMOVING INTO PHASE TWO OF THE
NEGOTIATION PROCESSNEGOTIATION PROCESS
In this chapter we will learn how to use communication
skills in the context of negotiation
Ask useful questions in a negotiation session by:
Tactful questioning.
Listen actively during a negotiation session by:
Active listening.
Carefully observe the other side during negotiations by:
Careful observation.
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TACTFUL QUESTIONINGTACTFUL QUESTIONING
Types of Questions
Two types of questions are most frequently
used during negotiations:
Direct and
Indirect
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Why are you interested in obtaining more time to
decide?
How is your negotiating team organized?
What are you hoping to achieve during this
negotiating session?
What issues most concern your members?
Can you explain how you arrived at that position?
Indirect QuestionsIndirect Questions
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Direct QuestionsDirect Questions
Will we be able to complete our session by noon
today?
Can we agree to meet again tomorrow?
Do you prefer the 60-day or 90-day
implementation plan?
Do you have authority to decide this matter?
Is the corporate benefits package confirmed with
your team?
Are we in agreement on the terms of the deal?
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Framing QuestionsFraming Questions
The following four questions aimed to get the same
information, but framed differently:
1. "What's your excuse for not paying overtime to the
workers?"
2. "How come you didn't pay the required overtime?"
3. "Would you help us understand why you were unable
to pay the overtime?"
4. "There seems to be a misunderstanding, so will you
explain how overtime pay is calculated?
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When framing questionsWhen framing questions
consider the followingconsider the following
What information do you want to uncover?
What kind of question (direct or indirect) is most likely
to elicit the information you need?
What kind of effect (positive, negative, neutral) do you
want the question to have on the other side?
What tone or emotional impact (aggressive, passive,
hostile, conciliatory, etc.) do you want to make with
the question?
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ACTIVE LISTENINGACTIVE LISTENING
The biggest source of mistakes in negotiations is failing
to listen.
When you do not listen carefully, you are likely to:
Misinterpret what the other side said.
Be unable to confirm or verify what was said.
Misunderstand the other side's question.
Make improper assumptions.
Be unable to respond appropriately.
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CAREFUL OBSERVATIONCAREFUL OBSERVATION
Nonverbal communication involves visible movements
or gestures that convey emotions or intentions.
For example:
when you frown and fold your arms as you speak to a
child, you are clearly communicating your displeasure via
nonverbal means.
When you smile and move closer to another person, you
are communicating your comfort, approval, or interest.
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Take Care ..Take Care ..
Beware of hearing what you want to hear.
Or, see what you want to see.
Do not make assumptions. Remember the old saying:
"Never assume any thing; assuming makes an ass out of you
and me"
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How do you know what a gesture orHow do you know what a gesture or
expression means?expression means?
Your experience in observing physical movements
and gestures.
By trial and error, you've become attuned to the
probable meaning associated with posture.
Now you've got to apply that knowledge in the
negotiating session.
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Your Powers of ObservationYour Powers of Observation
Watch for changes in facial expression
Watch for hand gestures or mannerisms
Watch for physical movements or changing positions
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Studied Reactions and Cultural DifferencesStudied Reactions and Cultural Differences
Sometimes your observations are subject to
interpretation.
Your ability to mask your feelings is important
As a rule, very few people are able to consistently hide
their reactions.
Cultural differences can also add to the complexity of
observing and interpreting nonverbal communications.
Also, in some cultures, a deadline is not taken
seriously.
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Are you aware of other cultural, social, orAre you aware of other cultural, social, or
linguistic differences that could impact yourlinguistic differences that could impact your
ability to communicate in upcoming negotiations?ability to communicate in upcoming negotiations?
Jot down some examples of cultural differencesJot down some examples of cultural differences
that you have observed or that you expect tothat you have observed or that you expect to
encounter in future negotiations.encounter in future negotiations.
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At the start of a commercial negotiation,
two teams face each other around a table,
Notice how each team member's body
language is supportive of their partner
Team A
Team B
Body leans
towards partner
Head tilted
towards partner
Eye contact is
maintained
with partner
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Understanding Body LanguageUnderstanding Body Language
Crossed arms
indicate
disbelief
Wide eyes and warm
expression indicate
willingness to be
persuaded. Open arms
imply indecision
Leaning back
implies
hostility Fiddling with a
pen confirms
thoughts are
elsewhere
Inattentive gaze
means lack of
concentration
Hand on chin
shows
thoughtfulness
Direct eye contact
implies positive
thoughts
Open expression
shows interest in
proceedingsPosture
suggests
attentiveness
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Using NegotiationUsing Negotiation
TechniquesTechniques
Moving forward in the Negotiation ProcessMoving forward in the Negotiation Process
Common Negotiating TechniquesCommon Negotiating Techniques
Selected Negotiating TacticsSelected Negotiating Tactics
6
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ReassessReassess
andand
TacticsTactics
UseUse
StrategyStrategy
Phase TwoPhase Two
Using NegotiationUsing Negotiation TechniquesTechniques
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This chapter will help us to:This chapter will help us to:
Apply negotiation techniques and tactics to
advance the negotiation process.
Respond appropriately when the other side uses
proven negotiation techniques and tactics during a
negotiation session.
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MOVING FORWARD IN THEMOVING FORWARD IN THE
You might adopt a certain general strategy.
You'd select tactics that would be appropriate for that
approach.
You may change strategies and tactics at any time in
a negotiation.
During the actual negotiation session, you will be
constantly evaluating your position.
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MOVING FORWARD IN THEMOVING FORWARD IN THE
Using information and insights you obtain
by listening, questioning and observation,
you quickly select or modify your
negotiating strategies and tactics.
Your guiding objective is to move the
negotiation process forward to Phase
Three, getting agreement.
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COMMON NEGOTIATING TECHNIQUESCOMMON NEGOTIATING TECHNIQUES
S t o n e w a l l i n gS t o n e w a l l i n g
As you already know, time pressures or deadlines
represent one of the three critical elements in any
negotiation.
The idea here is to stall and delay.
Causing the other side to become short-tempered and
agitated as its deadline looms closer.
Meanwhile, other side frustration builds until just
about to blow up and lose control.
This is a strategy called stonewalling.
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S t o n e w a l l i n gS t o n e w a l l i n g
The operative issue in stonewalling is time.
When one of the parties in a negotiation uses this
approach, he/she is really saying:
"I can last longer than you can.
Whenever you encounter it, you need to be prepared
to respond.
The first thing you need to do is identify it.
Once you identify the strategy, you immediately minimize
its effectiveness by:
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Stonewalling RespondStonewalling Respond
Respond with a more suitable, less emotional reaction
Get your own deadline extended to take the pressure
off.
Wait patiently for the other side to make a move.
A third approach might be to turn the other side's
strategy back on them.
let them know that you are relieved.
Indicate your preference for a slower time schedule.
Describe how busy you are with other commitments or
more pressing issues.
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Impulsive ChangeImpulsive Change
Change can often be unsettling, especially when the
change is unexpected.
How do you feel when this happens?
You're probably surprised and somewhat confused by the change in
behavior.
What's happening? It's an approach called the impulsive
change.
The sudden shift in attitude or emotion, without warning the other
side makes a dramatic shift in attitude, approach, or tactics.
They hope to upset your equilibrium, to draw attention
to an issue, or simply to shake up what they perceive as
complacency.
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You need to think fast.
What motives lie behind the change?
Can the sudden change be explained rationally? Or
Does it seem totally out of context?
If you cannot answer these questions to your own
satisfaction, then you need to ask the other side.
What provoked the change? .
If you understand the motivation behind the change.
You may adopt other tactics.
How to Respond to anHow to Respond to an
Impulsive Change AttitudeImpulsive Change Attitude
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The G o t c h aThe G o t c h a
A gotcha is an approach used by people who
prefer to act now and negotiate later.
A gotcha forces the issue being negotiated.
This negotiating technique works best when power
is unevenly distributed at the negotiating table.
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The D o d g eThe D o d g e
The conventional dodge uses a ploy to shift attention
from the real issue to a side issue.
Another variation on this theme is "testing the waters."
Then you abandon the idea for a while, but you'll return
to it near the end of the negotiation when you have
figured out a strategy and a set of tactics that will enable
you to gain agreement on that original idea.
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First, listen carefully for seemingly casual remarks
or suggestions.
Be aware of the other side's attempts to test the waters
or float a trial balloon.
See through the facade of the dodge.
Focus on the other side's real interests and needs.
Bring them back gently but firmly to the current issue.
Redirect attention to the agreed upon agenda or
refocus on the matter at hand.
How to Respond toHow to Respond to
The D o d g e TechniqueThe D o d g e Technique
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SELECTED NEGOTIATING TACTICSSELECTED NEGOTIATING TACTICS
High Ball/Low Ball
An Emotional Outburst
The Ebenezer Scrooge Tactic
Mother-May-I
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NegotiatingNegotiating
Like a ProLike a Pro
Moving toward a ResolutionMoving toward a Resolution
Getting AgreementGetting Agreement
7
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This chapter will help us to:This chapter will help us to:
Apply techniques to develop agreement.
Develop a positive attitude toward negotiation.
GettingGetting
Agreement
Agreement
Phase Three
Phase Three
TheEnd
TheEnd
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MOVING TOWARD A RESOLUTIONMOVING TOWARD A RESOLUTION
GETTING AGREEMENT
Seek Alternatives
Find Common Ground
Use an Agent
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MOVING TOWARD A RESOLUTIONMOVING TOWARD A RESOLUTION
Buy Time to Think
Defer to Standards
Make It Easy to Agree
Develop a Partnership
Never lose sight of your primary objective inNever lose sight of your primary objective in
negotiations-getting agreement.negotiations-getting agreement.
If you work together to achieve that objective, yourIf you work together to achieve that objective, your
chances of success increase dramatically.chances of success increase dramatically.
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