Negotiating Skills to Reach a DealApril / May 2012

Introduction to Negotiation

Introduction to NegotiationHow would you define negotiation?What other words do you associate with negotiation?Terminology used in negotiations

Individual Exercise

What scenario do you want to focus on?

Who is involved?

Individual Exercise

Describe the current situation?

What are you willing to give in order to get?

Individual Exercise

IssuesOutcomesRealisticAcceptableWorst possible

Interpersonal Skills

Interpersonal Skills

Interpersonal Skills

Interpersonal Styles

Interpersonal SkillsAvoider: dislikes conflictCompromiser: fair-minded people interested in maintaining relationshipsAccommodator: resolve interpersonal conflicts by resolving the other persons problemCompetitor: winning is the main thingProblem-Solver: seeks to find the underlying problem, use brainstorming to solve

Interpersonal SkillsYou are one of ten people at a conference table, each person sitting across from one anotherSomeone comes in the room and says I will give R1,000 to the first person who can persuade the person sitting across from them to come and stand behind his/her chair.

Interpersonal SkillsResultsAvoider: says I dont want to play, look foolishCompromiser: both offering R500, starts running to other sideAccommodator: runs to other side, negotiates laterCompetitor: sits tight, demands other person moveProblem-Solver: lets both get behind each others chairs, we can each make R1,000.

What Makes a Good Negotiator?

Group ActivityYou have 10 minutes within your small group of three to brainstorm a list of the 10 key skills that successful negotiators need. List your key skills and note the reason why each of your ten skills is crucial to you as a negotiator.

Group Activity

Key SkillsReasons1122334455

Negotiators Ratings

Negotiators Ratings

Negotiators Ratings

Individual Exercise

Results

Body Language

Body Language

Body Language

Body Language

Body Language

Steps of Negotiation

PlanningNegotiators with high aspirations consistently outperform those with low aspirations.By adopting a high aspiration base, negotiators create sufficient room to make and request the necessary concessions.High aspirations generate positive psychological energy and prevent a negotiator from being rigid and defensive.

PlanningA high aspiration communicates confidence to the other party and generally prevents irrational negotiation behaviour.High aspirations require the other negotiating party to expend more energy in trying to lower these aspirations, thus not focusing on promoting its own aspiration.

Planning

Planning

Planning

Planning

Setting Goals and Objectives

Opening Position

Opening Position

Opening Position

Opening Position - Agenda

NumberIssueSequencePriority Negotiator Priority Opposer

Bargaining

Bargaining

Agreement and ClosePut pen to paper and agree on the way forward

Questioning TechniquesAn OPEN question is one that encourages a full response

A CLOSED question is one that can be answered with a short answer

Questioning Techniques

Ethical NegotiationINDIVIDUAL EXERCISE - A question of ETHICSDecide whether or not the approach would be appropriate p42 - (the deal is important to you)

Influencing Techniques

Practical Role Play

TacticsCompetitive TacticsAvoidance TacticsCompromising TacticsCollaborative TacticsAccommodating Tactics

Tactics

Negotiation GambitDescriptionHow to Overcome itGood Cop/Bad CopCherry PickingWalking AwaySplit the DifferenceFlinch

Closing TechniquesConcession closeSummary closeAdjournment closeOr Else closeEither or close

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