Negotiation skills

Resolving Conflict
• PURSUADE
 The Cheapest method, but are they open to persuasion?
• POSTPONE
 But will the problem go away?
• GIVE IN
 Any fool can give in
• IMPOSE YOUR WILL
 What does it do to long term relationships?
• PROBLEM SOLVE
 Both people have to perceive the same problem in the same way
• HAGGLE
 IF you split the difference you may only have half of what you need
• NEGOTIATE
 Concede in areas of lesser importance to gain in areas of greater
importance
• ARBITRATE
 But will a contrary decision be acceptable?
 Resolving Conflict
• PURSUADE
 The Cheapest method, but are they open to persuasion?
• POSTPONE
 But will the problem go away?
• GIVE IN
 Any fool can give in
• IMPOSE YOUR WILL
 What does it do to long term relationships?
• PROBLEM SOLVE
 Both people have to perceive the same problem in the same way
• HAGGLE
 IF you split the difference you may only have half of what you need
• NEGOTIATE
 Concede in areas of lesser importance to gain in areas of greater
importance
• ARBITRATE
 But will a contrary decision be acceptable?

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 THE 8 STEPS
1. Prepare 5. Package
2. Argue 6. Bargain
3. Signal 7. Close
4. Propose 8. Agree

4
 PREPARE
• Prepare carefully in advance. Prepare for negotiating, not just for
defending
• Structure your preparation around five keys areas :
 Objectives
 Define what outcome you would like to achieve from the negotiation
 List issues
 Write your realistic expectation against each issue as an intend
 Write the minimum acceptable position against each item (must achieve,
must avoid – Must achieve should only items which)
 Wish List
 Create a wish list of all those things which you would wish to have
 Their Objectives ?
 Thinking about the other party, identify their need, their must, their wish
list and their priorities
• As the negotiation progresses, keep your objectives under
continues review : are they still realistic? …

5
 PREPARE .. continue

• Information
 Analyze the power balance between the parties, their strengths
and weaknesses
 Prepare some of your question in advance
 To give or not to give the information – how will it structure
expectations?
 What do they want and how much do they want it?
 Be ware of assumptions
• Concessions
 Where can you be flexible?
 What concessions can you make?
 What can you give in order to get what you want?
 What will you ask for in return?
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 PREPARE .. continue
• Strategy
 Keep it simple and keep it flexible
 Avoid confusing strategy with Objectives, as this will create
inflexibility
 The Summarizer does not give personal opinion, information
or concessions
If the team area asked a question, it is the leader job to answer, but first
it is the summarizer’s job to clarify and buy thinking time and it is the
Observer’s job to think, “Why are they asking the question?”
The summarize does not give personal opinion, information or
concessions
 Observer
 Watches, listens, records and tries to understand the
motivation of the others party (their concerns, their priorities)
but avoids speaking in order to listen better

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 ARGUE

• An Opportunity
 To Exchange information
 To review the issues
 To structure expectations
ARGUMENTS, PRINCIPLES and OPINIONS cannot be
negotiated, only PROPOSALS can
• Be Constructive
 Avoid interrupting, point scoring and sarcasm
• As Direct question – shut up – Listen to the answer
• Summarize regularly – Exchange information

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 ARGUE … continue

Priorities Power Concerns Facts

Needs Constraints Interests Assumptions Motives

ARGUE

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 SIGNAL
• Characterized by a change in language from
absolute statements to qualified statements
• LISTEN, watch, confirm, EXPAND
• Signals area welcome, they indicate flexibility
• Reward Signals – Don’t punish them
• Buy a signal with a signal

To Advance the negotiation it will be necessary

to make a PROPOSAL. Signals often indicate
that a new proposal will be received

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 Question to Ask – The Right

• Perhaps you could explain the reason?

• Let me understand what your priorities are ?
• Is there anything I can do for you ?
• Why is that important ?
• If I do that for you. What will you do for me
• Which aspects of my proposal are you unhappy with ?
• Can you explain the basis of your proposal ?
• What factors will influence your decision ?
• What would I need to do in order to make that proposal
acceptable to you ?
• Is there anything else that you feel that I should know ?
• What do I need to do in order to get a better deal ?

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 Question to Ask – The Wrong

• Are you listening what I’m saying ?

• Do you think I’m stupid ?
• Yes, Yes, but what are you really after ?
• IS it really important to have it in that
color ?
• How can you justify that ?
• What discount are you prepare to offer ?
• Is that your final offer ?

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 Ask Yourself
WHAT WHY

• What are the issue ? • Why do they need the

• What are the concern? information?
• What are the strength and • Why is that importance?
weaknesses? • Why is that not an issue?
• What are the consequences of • Why is our proposal
not agreeing? unacceptable?
• What are the hidden agenda? • Why are they being inflexible?
• What are the alternatives? • Why is their perception different
• What the corporate pressure are from us?
the under? • Why should we agree to that?

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 PROPOSE
If you are involved in making a complaint then it important
to avoid putting the other person on the defensive
Explain the problem, explain the consequences
Be realistic

• CREDIBLE – do the facts support your proposal ?

• Address all the key issues
• At the other party’s limit

If you are dealing with someone who has a complaint

then listen, try not to justify the situation, apologize if
necessary and invite them to propose their remedy

• Explain
• Summarize
• Invite a response

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 PROPOSE … Tips

• If some part of your proposal is not acceptable, that is the

opportunity to bring new issues onto the table from your wish list
• If they are inclined to accept your proposal too quickly then you
may increase your proposal by adding some wish list items

PROPOSALS SET THE AGENDA

REALISTIC PROPOSALS ADDRESS THE ISSUES
A PROPOSAL BEATS AN ARGUMENT

• If you have to modify your position as the negotiation progresses

then any secondary proposals can be tentative
 What if we were prepared to consider that possibility …
 Just suppose we were prepared to agree to that …

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 Receiving a Proposal
Never interrupt a proposal
Question – Clarify – Summarize

• There are a number of possible responses :

 NO – this leaves the other party with the initiative
 YES – Are you missing the opportunity to add small item from
you’re your WISH list to gain a closing concession ?
 INSTANT COUNTER – PROPOSAL – Seldom build on earlier
proposal and often leads to haggling or argument
 ADJOURN – Much better, gives thinking time and allows you to
consult others
 DETAILED RESPONSE – Encourages repacking of the proposal to
make it more acceptable
 CONSIDERED COUNTER – PROPOSAL – The best response of
all. Are there any circumstances in which you could agree to
what they are proposing?

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 PACKAGE
Packaging adjusts the variables without increasing the offer in
order to make the proposal more acceptable

• If the proposal not acceptanble to the other party it is

because either ids does not address their needs and axcites
their inhibitions or because it is simply not enough
 If it is the former then it is packaging issue
 If it is the latter it is bargaining issue

PROPOSALS ARE SOLUTIONS TO NEEDS

Before you begin to respond to a proposal attempt to identify

the need; there may be another solution to the problem
which involves a lower cost

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 Styles of Negotiation
There are two fundamental styles of negotiation :
COMPETITIVE or CO-OPERATIVE
Co-Operative Competitive
• Long term relationship • Mandatory relationship
• Voluntary relationship • Suspicion
• Trust • Public and Formal
• Private and informal • Intolerance of other views
• Tolerance of other views • Emotionally involved
• Emotionally detached • Poor negotiators
• Skilled negotiators • Irritations
• ALck of irritations • WIN - LOSE
• WIN - WIN

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 Styles of Negotiation .. Tips
• When dealing with Competitive style people, the following tips
may be helpful :
 PREPARE
 Choose the forum for the meeting : your office, their office or a neutral
place ?
 Plan the size of your team
 Define the task and stick to them
 Double check your fact
 Gain full internal agreement on your objectives, strategies and limits
 ARGUE
 Ask lots of open questions, listen to the answers and make full notes
 Review the power balance issues in play
 Use clearly supported facts
 Don’t defend the indefensible

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 Styles of Negotiation .. Tips ..
continue
 PROPOSE
 Be conscious of managing the process
 If they complain, ask them for their remedy
 Don’t be rushed into making proposals before you are ready
 Park their proposals if you are not ready move out of argue
step
 If they want to argue, move forward by making proposals
 PACKAGE
 Consider what is making them behave competitively
 Can you alter those factors
 If they use more reasonable language then mirror it
 Use their key words in your proposal

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 Styles of Negotiation .. Tips ..
continue
 BARGAIN
 Trade everything, keep the linkage absolutely clear
 Put a price on demands in order the say “YES” on your terms as
often as possible
 ‘NO’ will just encourage them to argue with you
 Reward co-operative and punish competitive action
 CLOSE
 Look for closing opportunities
 Use trial closing to assess their willingness to reach agreement
 AGREE
 Beware of “Deal creep”
 Take responsibility for a balanced and detailed summary of the deal
 Get their agreement and circulate it immediately

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 BARGAIN

Bargain is any trading activity. You can bargain at all

stages in the negotiation : for information, for
concessions, for signals, for time and for deal
The fundamental rule in bargaining is to TRADE
You should always have an answer to the questions :
WHAT DID YOU GET IN RETURN?

If you do X then I can do Y

• Conditions before offers

 If you give me XXX then I will give you YYY
 It makes a statement
 It avoids interruption
 It makes you think about the trade off
• Give to Get
 Be prepared to concede in areas of lesser importance in order to
gain in areas of greater importance

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 CLOSE
Trial closing can be useful device for drawing out all the issues
“Are you saying that if I agree to both of those items, you will be
satisfied?”

• What is the most common closing opportunity?

 A question about a minor aspect of your proposal (Typically the answer
would be “yes” or “no”)
 “Does that include delivery?”
 “Does that cover legal costs?”
 “Would that be backdated?”
• The answer should be :
“IF YOU AGREE to the proposal THEN – We shall include delivery,
cover
legal costs, backdate it”
• Closing concessions should be :
 Conditional (on the deal)
 Specific
 Small
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 AGREE

AGREE WHAT IS AGREED

• Confirm the agreement in an acceptable form

• Agree action for implementations
• Both parties should feel happy with the deal

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 ADJOURNMENT

When to take them

• When you feel that you may have to consider your objectives in the
light of changing circumstances
• When you discover new critical information which needs to be
factored into your calculation
• When your strategy has been overtaken by events or has proved to
be inappropriate to the circumstances
• When you are stuck in circular argument
• When you need to consult your colleagues
• When ever you feel either party needs time to consider a proposal,
new information, deadlock…

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 ADJOURNMENT

How to take them

• Always summarize the position the negotiation has reached.

Explain that you wisj to consider certain points which have
been raised
• Try to withdraw to a private area where you can discuss
matters freely with your colleagues
• IF you feel inhibited about asking for “time to think”, then use
naturally occurring breaks in the meeting : telephone
interruptions, meals break, requests for some information or to
calculate some figures
• You may wish to give the other party issues for them to
consider during the adjournment
• In a formal adjournment you may need to agree how the
meeting is going to be reconvened

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 The most common mistaken and
The positive actions

The most common mistake The Positive Actions

• PREPARE • Prioritize your objectives

 Failing to prioritize objectives  Have a wish list
 Having an inflexible strategy  Keep your strategy flexible
• ARGUE • Structure expectations
 Arguing to Win  Ask better questions
 Not listing  Improve your listening skills
• SIGNAL • Be alert for signals
 Missing Signals  Reward useful signals
 Punishing Signals • Make proposals
• PROPOSE  State remedies to grievances
 Not making proposals  Be specific
 Being vague  Be realistic
 Being unrealistic

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 The most common mistaken and
The positive actions
The most common mistake The Positive Actions

• RESPONDING TO PROPOSAL • Do not interrupt

 Interrupting  Summarize the proposal
 Not Trying to give them  Try to incude their figures in your
 What they want – on your terms counter proposal
• PACKAGE • Be more “co-operative”
 Being “Competitive”  Value your concessions
 Not Valuing concessions  Be creative
• BARGAIN • What did you get in return?
 Giving not trading  Put a price on demands
 Not putting a price on demands  If you … then I …
• CLOSE • Listen for the questions about the minor
 Not spotting a closing opportunity points of your proposal
 Late Elk steaks  Continue to bargain
• Agree what is agreed by all parties
• AGREE summarizing in turn
 Failing to summarize  Clear up any ambiguity immediately
 Bending the deal afterwards

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Ten Steps to Successful Negotiation

●
Recognize that every thing in life is negotiable!

●
Go for Win/Win outcomes.

●
Aim High!

●
Have sound strategies and tactics.

●
Plan ahead and research well.
 Ten Steps to Successful
Negotiation

●
Listen more than you speak.

●
When you do speak, ask 'GREAT QUESTIONS'

●
Learn to read effectively non-verbal communication.

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Learn to identify your three negotiation counterparts.

●
In most negotiations, you will have the ability to walk away.
Thank YOU