best practices in negotiation

8/8/2019 Best Practices in Negotiation

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Chapter 20

By:

Mohd Ithnain Hafizie B Hamzah


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Everyone negotiates, but some are much better than others. Those

who excel in negotiations are more likely to set and reach their goals;

apply for and land better jobs; and obtain higher compensation, larger

raises and more recognition--all while benefiting their companies by

interacting more effectiv

ely with customers,vendors, management

and with those who report to them. In this seminar, learn the best

negotiation techniques for striking better bargains, making lasting

agreements and sustaining positive relationships.


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Learn to recognize your counterpart's tactics; to counter them

effectively; and to launch your own successful strategies. Equally

important, learn to be a savvy consumer when negotiating "big-ticket"

items like your next vehicle or home. You will examine how to:

y identify your "default" negotiating style

y inventory your current strengths and weaknesses

y understand the dynamics in effectively opening negotiations

y implement tactics for "giving and taking"

y resist pressure to make needless concessionsy instantly spot your counterpart's dodges, deceptions and "dirty

tricks"


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World-Class Modern Negotiations Management

Is characterized by a high degree of preparation, planning, analysis

and strategy. It is also favorably impacted by cross-functional

participation, and a speaking with one voice discipline at all levels.

We develop an extensive fact base of internal and external factors to

guide the development of negotiations strategy and objectives. In

particular, the fact base drives the analysis and conclusions regarding

three,very important concepts: MDO,

LAAand B

ATN

A. Furthermore,

to be most effective, the negotiations process must be an integrated

part of a robust strategic sourcing process employed at your company.

(see Chapter 20 slides; 10 best practices in negotiations)


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Speaking with One Voice

Every supply management professional has probably encountered this

challenge repeatedly in his or her career: someone, outside of the

sourcing organization or sourcing process, has unauthorized

conversations with a supplier and weakens or even disrupts the

negotiations plan. World-class companies make it a corporate wide

mantra to speak with one voice in all dealings with all suppliers.

How to achieve that corporate-wide awareness is the challenge? The

presenter shares his experiences, and also will show the audience the

Speaking with One Voice video that he uses - as one element of an overall

program - to create awareness and buy-in throughout an organization.


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Behaviors to Avoid in Negotiations

1. Notputting your agreement in writingPeoples memories fade. Disagreements occurregarding exact points of the negotiation. As soon aspossible, preferably while all parties are still together,put the basics in writing. Clear up any

misunderstandings before they can become dealbreakers later.

2. Not questioningThe more the other side talks the betteryour deal can be. Ask for explanations.

Question the wayvalues were arrived at.You can only determine the other sidesmotivations and true interests throughquestions.Ask, ask, ask.


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4. Making assumptions about others motivators, wants or needsRemember thisyou dont know why people do what they do or exactlywhat they want. The same things that motivate you do not motivateother people. Their needs, wants and desires will differ from yours.(Reflect on your personal relationships if you need proof.) Ask thepeople you are negotiating with what they want or need and ask abouttheir motivation.

3. Not asking for more or less

Shoot for the moon. Know what isreasonable and ask for a little bit more.No, it isnt greedy to ask for more. Younever know when you might get a littleextra. Also, if you dont, you havenothing left to barter with to get you to

what you consider is a reasonableposition.


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5. Believing everything you are told

Yes, it is true. Not ev

erything you hear in thisworld is the truth and not everyonesversion ofthe truth is accurate. Just because information iswritten or produced in a graph, does not make itvalid. If what you are told smells funny, isillogical or does not follow what you have beeninformed before, ask for independent support.Back to the basics: Ask, ask, ask.

6. Over-committing or over-attaching toprocessThis attachment to the process is why some people make bad

deals when purchasing a car. It takes a lot of emotional energy totrade in an existing car, pick the color and model of a new car, anddetermine a price that they can afford. Many buyers findthemselves so entrenched in the purchase process that they willagree to pay more or purchase undesired options rather thanstarting the buying hassle all over again.


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7. Becoming emotionally involved

Emotions can register as excitement, anger or even frustration. The sayingnever let them see you sweat is appropriate. Once any negotiation becomespersonal instead of a business deal, you are in danger of coming out on thepoor end of the agreement. Instead, take a break. Get your emotions undercontrol or send in someone else to negotiate for you.

8. Not holding something back for barter chipDont be surprised when the other party asks for a littlesomething extra at the end. Know what you have that youcan barter with and that is not essential to your position. Ifyou dont have to play that card, you have a bonus. If youdo, it is not unexpected.


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#1: See Yourself from the Other Partys Point ofView

"Empathy" does not mean soft, emotional feelings ofaffection - it means the ability to put yourself in the other

person's shoes, to see the world from his/her point ofview.

Empathy does not require "sympathy," it onlyrequiresunderstanding.

You can agree or disagree with whatever the other party seesor believes, but you will do well to understand it. By understanding it, you will have the advantage in knowinghow to present what you seek as a fair outcome in terms thatthe other party will be able to accept and understand, ratherthan fear.

Negotiations : Success tips


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#2: See the Other Party from Their Point of View

You will be most successful if you can advance your position so the otherparty can still maintain the "ego" beliefs they hold most important.

Tact is the ability to see others as they see themselves - AbrahamLincoln

For example, if the other parties see themselves as "tough negotiators," findways during the process to emphasize their "toughness" - directly or, (betteryet) indirectly - especially when you are making progress in advancing yourposition.

#3: Be Honest, and Get Your Facts Right

You can't negotiate successfully if you lose or lack credibility. Neverknowingly make a false statement or assertion.


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#4: Find Some Objective, Fair StandardsAll Sides Can Agree

Upon

Take the initiative early on to stake out some fair standard againstwhich any final solution can be judged.

Tell the otherparty youwant to come to a fair solution thatmaximizes the outcome for both of you, and propose some

standard against which the results can be measured.

For example, if you are selling your car, you may want to use the KellyBlue Book - especially since Blue Book values tend to be slightly

higher than those found in other such sources, so that this resourcefavors the seller, but is still a recognized, fair standard.


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By setting the standards for final judgment of thesolution, youframe the issuestake greater control of the processframe of the standard to your advantage, as in the BlueBook example

set the stage to win.

Doing all these things wont make youan expert negotiator, but practicing

these negotiation skills will make youstronger and help you learn lessons the

experienced pros have discoveredthrough lots of trial and error.

Good luck!

best practices in negotiation

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