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8/8/2019 Anything+ +Prof.+ALN

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You Can Negotiate Anything

By HERB COHEN


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Authors Profile:

Herb Cohen - a practicing negotiator for more than threedecades in U.S.A. He is a person with extensive practical

experience and unique presentation style which made him

internationally renowned as someone who can articulate and

explain complex events.

You Can Negotiate Anything, which was on the New YorkTimes Bestseller List for almost one year and has been

translated into twenty-one languages.

Other works Negotiate This! By Caring But Not T-H-A-T Much


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Yes, You Can

Part 1


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What is Negotiation?

A field of knowledge and endeavor that focuses on gaining the

favor of people from whom we want things.

It is also about satisfaction of needs.


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Negotiation contd.

Prestige, Freedom, Money, Justice, Status, Love, Security andrecognition - all can be negotiated.

At least two parties with unsatisfied needs are required for anegotiation.


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Negotiation occurs when we want

to: Reconcile Differences

Manage Conflict

Resolve Dispute

Establish or Adjust Relationship


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Elements of Negotiation

Every negotiation comes with 3 elements

Information:

The other side seems to know more about you than you

know about them. Time:

The other side does not seem to be under any timerestriction as you are.

Power:The other side seems to have more power than youthink you have.


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When to Negotiate?

Are you comfortable negotiating in a givensituation?

Will negotiating meet the needs?

Is the energy and the time spent on

negotiation worth the benefits you receive?


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Criteria for an Ultimatum to Succeed

Frosting on the Cake- Negotiation should not begin with an ultimatum

- Ultimatum must come at the end

Soften Palatable

- Either Hard or Soft ultimatum should not be used- Hard ones might offend the other side

- While soft ones are only a statement

A recipe thatcant be tampered with

- Backing up the statement with some document

Selection from a limited menu- Leave the other side with choices

- Never state Its this or nothing!


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Three Crucial variables

Part 2


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Power

Everyone has power, irony is, not everyone knows how to putit to its proper use.

Power is neutral in its actual sense, but can manifestdepending on the use, two views exist

Power as a medium & not as a goal of life Power to manipulate


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Manifestations of Power

Power ofCompetition Never enter any negotiation without options.

Power ofLegitimacy Printed words, documents and signs carry authority.

Power ofRisk taking Knowledge of the odds and philosophical willingness to absorb

manageable losses.

Power ofIdentification Negotiating ability is maximized if one gets others to identify with him.


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Manifestations Contd..

Power ofCommitment Persuade others to help, get them involved and theyll shoulder part

of the burden.

Power ofExpertise Establish your background and credentials early in the confrontation.

Power ofthe knowledge ofneeds Adapt a style to satisfy the real needs of the other side.

Power ofInvestment Resource investment and compromise are directly proportional.


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Power ofRewarding or Punishing

Advantage rests with the one who knows the needs andperceptions of the other side, while the other side thinkshe is more powerful.

Power ofMorality

If you lay morality on people in an unqualified manner, itoften works.

Power ofPrecedent

They have got it; we should get it too attitude.


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Power ofPersistence

Learn to hang in there and be tenacious.

Power ofPersuasive Capacity Convincing others to meet ones needs and desires.

Power ofAttitude

Regard the negotiation process as a game or a fun filledactivity.


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TIME

Time and tide waits for none, but there's always a tide behind.

Negotiation is not an event (time restricted). WHY?

Deadlines are always there, be patient enough. Deadlinesare negotiable.

Dont reveal your deadline, make effort to the otherpartys deadline.

Keep your cool. Grass only looks greener on the other side Perseverance is the key


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INFORMATION

Its the key to the vault of success.

The process of information gathering precedes any

negotiation.

Methods of information gathering:

Probing

Third party contacts Personal leverage

Understanding Cues


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STYLES OF NEGOTIATINGA Tactic perceived is not a Tactic

PART 3


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Three styles of Negotiating:

Win-Lose ( Soviet Style ) winning at the expense ofother

Collaborative Negotiation lies in finding out what theother side really wants and showing them a way to getit, while u get what you want.

Win-Win both the parties will share the benefits.


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Negative notions about

Negotiation: There is a misconception shared by many great people.

Negotiator is a Slick manipulator who is attempting towin at expense of some innocent victim.

But the competitive strategy is the only one approach toget what u want.


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Characters of Soviet Style Negotiation:

Extreme Initial Positions.

Limited Authority.

Emotional Tactics.

1. Tears 2. Laughter 3. Threat 4. Guilt. Adversary Concessions viewed as Weakness.

Stingy in their Concessions.

Ignore Deadlines.


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Tactics help Soviet style:

No continuing relationship.

No remorse afterward.

No awareness by victim.


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Collaborative Negotiation :

Using the process to meet needs

Its all in the approach.

Eg: The clock sale.

Harmonizing or reconciling needs Eg: Howard Hughes and Russell Jane contract if $1

million.


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Conflict

Conflict is actual or perceived opposition of needs,values and interests.

It can occur sometimes due to same demand but

different styles to approach it.

Reasons of conflict: Experience- we are all captives of the pictures in our head.

Information Role

A finance and a Marketing manager.


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Win-Win technique

If the focus shifts from defeating each other to defeatingthe problem, everyone can benefit

Negotiation are never totally for what is being openly

talked about, be it price, services, products, territory,concessions, interest rates, or money. What is beingdiscussed and the manner in which it is discussed, areused to satisfy PSYCHOLOGICAL needs.


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Three Important activities for the

Win-Win Negotiation Building trust we make our fortunes and call

them fate. The process stage.

The formal event.

Eg: Stranger offering something in a competition. Gaining commitment.

Eg: Buy a house

Managing opposition.

Two types of opposition: Idea opponents. Eg: Job with a salary of $30000.

Visceral opponents- hate your ideas but alsohate you as a human being


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The Specific Game Plan for

building trust Establish trust. Obtain information.

Meet his needs.

Use his ideas. Transform relationship to collaboration.

Take moderate risk.

Get his help.

Eg: A man goes to a new shop to buy Video recorderand a new T.V.


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There is always risk involved in making Visceral opponents. For every action there is equal and opposite reaction.

Dont humiliate anybody in public.

Eg: Open door policy in an office.

Avoiding Visceral opponents:

1. Never forget the power of your Attitude.

2. Never judge the actions and motives of others.


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Solution to the problem:

Compromise results in an agreement in which eachside gives up something it really wanted.

Half a loaf is better than none.

A good negotiation outcome is one where both sides aresomewhat dissatisfied


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Compromise is not a ultimate

solution to every problem: Eg: Big Buddha solving the matter of his sons.

Eg: Siblings sharing rooms.


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Negotiating Anything, Any Place

Part 4


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Tele Negotiation

Telephone - a vital verbal link in modern life.

Million dollar transactions now a days happen throughphone.


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Phone Negotiation Characteristics

More misunderstanding

Lack of visual feedback

Easy to say NO

Quicker in nature More competitive

A win lose situation flourishes.

More risk

Quick is Risk Advantage to caller as callee is handicapped.


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Tips For success

Be caller and not callee.

Plan & prepare

Prepare check list of points to be covered If facts are present be ready with reference materials.

At end summarize what was agreed by callee.

Graceful exit

Have discipline to listen.


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Memorandum Of

Agreement/Understanding Once the telephone negotiation is over it is necessary to

draft the entire negotiation and pass it on to the otherparty.

It is the document composed after resolution ofconflict/dispute

MOA/MOU- to define the commitments of parties

involved.

It is better to take the responsibility of constructing MOA.


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Moving up in Negotiation

While negotiation deal only with apt persons.

Never waste time on dealing with individual who lackauthority.

Try to be demanding to the person who doesnt have anyauthority, and make sure he directs you to concernedauthorized person.


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Exceptions

Dilution of rules During negotiation rules can beignored, unless they are harmful. It is strictly on basis ofmutual agreement between parties.


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Final Word

Never give up and never give in.


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Personalizing

Process of humanizing yourself, making yourself identifiablewith the circumstance.


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Personalizing

In any negotiation personalize yourself and situation

How to personalize your self

Make the other person feel u are an unique individual, u havefeelings, someone who cares for him, obligated to him

How to personalize Situation

Negotiate on behalf of yourself, representing the institution.Never negotiate on behalf of any institution or organization.

Eg On behalf of IBS-B we would like to invite----


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Personalizing contd..

Make the other person feel/concerned for you.

Make them emotionally involve.

Women better in personalizing thus making them better

negotiators.


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Day To Day experience

Personalizing has a great role to play in Day to Day life.

Eg:- Negotiation between house owner and tenant.


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Tips for personalizing

Never carry any effective technique to such an extremethat it no longer becomes effective.

Act as per circumstance


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Conclusion

Destiny is determined by ones own effort so never backaway from exercising your power.

Negotiation is not always about getting what you want,but part of what you want should be to help others.


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Review

This book talks about the strategies for successful negotiationwith ease.

Author presents 3 important aspects of negotiation Information

Time & Power

The explanation is aptly presented under each topic.

Imparts knowledge in an interesting way.

The book relates to all age groups. Instances presented are humorous, making it an enjoyableread.

A Few of the examples are region-specific.


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Comments

Some of it looks outdated because the informationera has changed the scenario eg cellphones

Predominantly US based . Cross- Cultural issues not

considered adequately Money seems to be the most important platform for

negotiation!! Is it adequate

Gender bias.

Point made about Mahatma Gandhi using guilt ployto gain independence not n good taste.


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Comment:

Examples are mostly on price, however in lifemany other variables can be negotiated such

as need, choice, delivery, timing, etc

Examples from USA however in India one getsused to negotiation???

More emphasis needed on TRUST

Communication issues

What can we negotiate in business:


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COMMENT: ON NEGOTIATION

EVERY ONE NEGOTIATES

NEGOTIATION DEPENDS ONCOMMUNICATION

EVERY DESIRE THAT DEMANDS SATISFACTIONIS A POTENTIAL NEGOTIATION CANDIDATE


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WHAT CAN WE NEGOTIATE IN BUSINESS:

PRICE

TERMS

DELIVERY

QUALITY

SERVICE

TRAINING

RESOURCES (PEOPLE, MONEY, MATERIALS)

WARRANTY


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TIME POLYCHRONIC VS

MONOCHRONIC SYSTEMS

SWISS ARE MONOCHRONIC DOONE TASK ATA TIME IN STRUCTURED FASHION

IRISH ARE POLYCHRONIC PREFER TO DOMULTIPLE TASKS AT THE SAME TIME.


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COMMUNICATION/CULTURE ETC


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COMMUNICATION STYLES

FRENCH MAIN COMPANY/ JAPANESESUBSIDIARY

SUBSIDIARY SHOULD BUY FROM SAMESUPPLIERS AS PARENT COMPANY

REACTION ONE OF THE TEAM MEMBERS SAIDTHIS WILL BE VERY DIFFICULT FOR US


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FRENCH UNDERSTOOD IT AS NOT EASY, BUTNOT IMPOSSIBLE EITHER

JAPANESE WERE SAYING THIS IS ABSOLUTELYOUT OF THE QUESTION. THERES NOWAY WE

CAN AGREE TO THIS


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AN IRISH COMMUNICATION JOKE

A TOURIST APPROACHES TWO FELLOWS ANDASKS THEM HOW FAR IT IS TO THE MUSEUM.ONE RESPONDS TWOKM . THE TOURIST

THANKS HIM AND GOES OFF, THE OTHER ASKS HIM WHY DID YOU TELL

HIM THAT

THE REPLY THE POOR GUY IS WALKING


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TAKING RESPONSIBILITY

JAPANESE TO EUROPEANS - WHY DO YOUALWAYS HAVE TO GIVE EXCUSES I DID NOT

MEET THE DEAD LINE BECAUSE THE

SOFTWARE HAD BUGS, I WAS GIVEN WRONG

FIGURES,OR DATABASE HAS NOT BEEN

UPDATED..

INDIVIDUALISTIC VS GROUP


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CULTURE

SOFTWARE OF THE MIND

It is interrelated, learned and shared


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ELEMENTS OF CULTURE

LANGUAGE

VERBAL

NON-VERBAL

RELIGION VALUES AND ATTITUDES

MATERIAL ELEMENTS

AESTHETICS

EDUCATION

SOCIAL INSTITUTIONS


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CULTURE

IS PRESCRIPTIVE

SOCIALLY SHARED

FACILITATES COMMUNICATION IS LEARNED

ENDURING

Ho3 ho4


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FIXED TRUTH RELATIVE TRUTH

FIXED TRUTH THERE ARE CLEAR RIGHT AND WRONG

RELATIVE TRUTH WHAT IS RIGHT AND WRONG DEPENDS ONTHE CIRCUMSTANCE.

FIXED TRUTH NORTH AMERICANS, EUROPEANS,

AUSTRALIANS RELATIVE TRUTH EAST,SOUTH EAST AND SOUTH ASIA,

AFRICA, AROUND THE MEDITERRANEAN


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HIGH CONTEXT

VS

LOW CONTEXT


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HIGH CONTEXT - LOW CONTEXT

HIGH CONTEXT - BUSINESS RELATIONSHIPSARE COMPLICATED. THEREFORE BEDIPLOMATIC, IMPLICIT AND INDIRECT

LOW CONTEXT BUSINESS RELATIONSHIPSARE COMPLICATED. THEREFORE BE FRANK,EXPLICIT AND DIRECT


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HIGH CONTEXT

LAWYERS ARE NOT IMPORTANT

PERSONS WORD IS HIS BOND

RESPONSIBILITY FOR ORGANISATIONAL ERRORTAKEN BY HIGHEST LEVEL

POLYCHRONIC NO HURRY

COMPETITIVE BIDDING INFREQUENT


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High context cultures

Arab cultures

France

Japan Mediterranean cultures

Russia


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LOW CONTEXT

LAWYERS ARE VERY IMPORTANT

DONT RELY ON A PERSONS WORD GET IT INWRITING

RESPONSIBILITY FOR ORGANISATIONAL ERROR PUSHED TO LOWEST LEVEL

PEOPLE HAVE A PRIVATE SPACE

TIME IS MONOCHROMATIC TIME IS MONEY

NEGOTIATIONS PROCEED QUICKLY COMPETITIVE BIDDING IS COMMON


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Low-context cultures

Germany

Scandinavian cultures

Switzerland United States


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HANDLING THE HIERARCHY

IN SWEDEN THERE IS NO HIERARCHY

THE MUMBAI STORY

IN INDIA ???


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NON-VERBAL LANGUAGE

Nodding we understand it as YES

- Greece, Bulgaria and Turkey it

means NO

Thumbs up sign to us Good

- France deal is worthless

- Japan a little bribe hasbeen asked for


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Smiling In Japan people smile when they are sad,angry and confused

Earlobe pinching Brazil shows appreciation Waving In China means come here

UsingOne hand Japan pass someone an itemwith one hand , it is considered as an epitome of

rudeness.

Beckoning with an index finger- obscene inPortugal, Spain, Latin America, Japan, Indonesia and

Hong Kong. Crossing fingers rudest gesture in Paraguay


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MAKING SMALL TALK

JAPAN, ARABS GAIN TRUST

NO SMALL TALKWITH GERMANS, SWISS,SCANDINAVIANS AND FINNS


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CHOOSINGWHAT YOU SAY AND

HOW YOU SAY IT


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Individualism vs collectivism

Individualism places individual needs overcollective needs

Collectivism places collective needs aboveindividual needs


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Individualistic cultures

USA

Australia

Great Britain

Canada

France

Germany

Italy

New Zealand


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Collective Cultures

Brazil

Greece

Singapore

Hong Kong

Pakistan

Philippines

Thailand

Mexico


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Intermediate Cultures

India

Japan

Austria Israel

Spain

Argentina Iran


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VALUES AND ATTITUDES

VALUES ARE SHARED BELIEFS THAT HAVE BEENINTERNALISED BY INDIVIDUALS e.g. Japanese

raise an invisible wall against Gaijin(

foreigners)

ATTITUDES ARE EVALUATION OFALTERNATIVES BASED ON THESE VALUES e.g.

Japanese feel that buying foreign products isunpatriotic


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MANNERS AND CUSTOMS

Understanding manners and customs

Americans often interpret inaction and silence

as a negative sign

Russians have an abrasive style and it is usual for

them to come up with last minute change

requests.

Finland they may continue negotiations in the

Sauna bath.


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MANNERS AND CUSTOMS

Prepare for understanding the negotiating partysway of thinking

Pay attention to the necessity to save face Read up on the host country- history, culture,

government and image of foreigners

Recognize decision making process and the role ofpersonal relations and personalities.

Allocate sufficient time for negotiations.


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Material culture

Aesthetics

Education, social institutions ho10


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TRUST


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How Culture Affects Negotiation

InterestsAnd

Priorities

Potential forIntegrative

Agreement

Culture ANegotiator

Type ofAgreement

InterestsAnd

Priorities

Culture BNegotiator

Strategies Pattern ofInteraction

Strategies

Source : J.M. Brett, Culture and Negotiation, Intl jrl of Psy, 2000


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Take Away:

Many dimensions to approach Negotiations. He relates practical examples uniquely with

each situation.

Win-Win situation is the best negotiationpolicy.

It gives a perspective to tackle Visceral

opponents intelligently. Trust only mantra for success.

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