Download - Cips Negotiation Challenge
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Cips Negotiation ChallengeRound 1
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A process through which parties move from their initially divergent positions to a point where agreement may be reached
Negotiation – A definition
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HOUSE OF NEGOTIATION
PEOPLE
PERSUASION
PROCESS
PLOYS
3
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The warm and tough approachWarm
Cold
ToughEasy
Warm and toughAssertionValue and respectGood communicator
4
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• Both groups have 10 minutes to prepare for the negotiation.
• Each group list all the variables you may need in order to persuade the other party to your way of thinking.
Remember you can’t make the other party agree but you can persuade them.
17th birthday – persuasion practice session
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• Team A = Parents• Team B = Teenagers approaching 17th birthday
• Parents - You are looking forward to your son/daughters 17th birthday. You have already told them that you have bought them a series of driving lessons. You feel this is an extravagant present as most teenagers have to work and pay for their own lessons.
• Teenagers - You are grateful for receiving driving lessons and appreciate how hard your parents work. However, ALL your friends get driving lessons plus a car for their 17th. You express how you feel and work to persuade your parents you should have a car too.
17th birthday – persuasion practice session
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• Be in control of your emotions – don’t let them control you!
• Use from a sincerely held belief• Use early in the negotiation• Use to increase the “perceived value” of your
bargaining• Use to counter logic
Using Emotion
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• Don’t be too quick to ask “Why?”• Get your own logic in first• Keep to one powerful argument – don’t dilute• Be credible• If others can’t see it, change tack• Counter logic with emotion
Using logic
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• Be slow to threaten• Threaten at the business, not the person• Use a discreet or veiled threat• Never make a threat you can’t …..• Be credible• Add “if” to transfer threat to bargaining
Using threat
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• Don’t expose your position early• Don’t put a marker down• Don’t seem too eager to move• Move, in small steps, • Get a return for any concession you make• Thank and bank
Using bargaining
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The behaviour of last resort
• 50/50 is not the only compromise• Compromise favours the more extreme party• Let the other party suggest compromise…
…..the one suggesting compromise probably accepts or moves towards the position of the other…..
Using compromise
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Preparation & Planning
Opening
Testing
Moving
Concluding
Reviewing
The negotiation cycle
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Flipchart interactive exercise
The negotiation cycle
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The objective here is….To place you in the best possible position before the
negotiation commences
Preparation ………researching the issues
Planning ….strategy, tactics, logistics
Preparation and planning
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We need to set clear targets for each variable• IDEAL
Our ideal settlement, we strive to achieve it – our AIM HIGH figure or STRETCH target!
• REALISTICRealistically we feel that this is where we might finish up!
• FALLBACKThe point beyond which it is not commercially viable to do business
Plan to be flexible as objectives may need to be changed
Preparation and planningobjective setting
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OpeningThe Vital First Impression
• Timekeeping• Politeness• Physical appearance and
dress• Personal hygiene
• The hand shake• Eye contact• Smile• The opening words
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• To test the validity of the assumptions we have made
• To see where movement in the other party is likely to come from
• To understand what is likely to be expected of us
Testing
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Types of question• Open• Closed• Probing• Multiple• Leading• Reflective• Hypothetical
Testing – questioning techniques
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To achieve the maximum movement from the other party and make minimum movement yourself, in
relation to your targets
Moving
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• Progressive and enthusiastic summary“So we’re agreed on the menus and the opening hours - we’re getting through it, let’s move on”
• Thank and bank“Thank you. I appreciate it. Can we move on to…”
“Thanks for that, I do appreciate the offer, it’s a good move, however could you look again at…”
Encouraging movement
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• To reach a workable agreement
• To record what has been agreed
• To agree the next steps
• To condition for next time
Concluding
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• comparison with ‘SMART’ targets• extent of plan achieved• what went well / what didn’t• what could I have done better• hard and soft successes• personal, team, organisation or industry patterns
Review
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• Share two key learning points
Learning review