negotiation skills

Negotiating for ResultsAl Waleed Al Shamy

Day 3

1. Obtain better outcomes from negotiations.

2. Learn to use 16 basic strategies to make a bottom-line difference in negotiating.

3. Be able to reach agreement in more negotiations.

By the end of this session, you will:

Learning GoalsLearning Goals

“You will never make more money than when you are negotiating.”

Negotiating To WinNegotiating To Winfeaturing Dr. Jim Hennig

– Roger Dawson, Business Author

“Negotiation can positively affect everything from shared housework to the cost of a car (women pay up to $1,353 extra when they don’t negotiate). Professionally, a woman can lose more than $500,000 by age 60 if she doesn’t negotiate her first salary – and most women don’t.”

- Linda Babcock, Author & Carnegie Mellon University Business Professor

Why This Subject

Is Important

Why This Subject

Is Important

Agenda: Day One

Session One: Introduction & Course Overview

Icebreaker: Mixing up the Modifiers

Session Two: What is Negotiation?

Break

Session Three: The Successful Negotiator

Morning Wrap-Up

Lunch

Session Four: Preparing for Negotiation

Session Five: The Nuts and Bolts

Day One Wrap-Up

Session One: Course Overview

• Understand how often we all negotiate and the benefits of good negotiation skills.

• Recognize the importance of preparing for the negotiation process, regardless of the circumstances.

• Identify the various negotiation styles and their advantages and disadvantages.

• Develop strategies for dealing with tough or unfair tactics.

• Gain skill in developing alternatives and recognizing options.

• Have the opportunity to practice the “how to” of these skills in a supportive environment.

• Understand basic negotiation principles, including BATNA, WATNA, WAP, and the ZOPA.

• How would you define negotiation?

• What other words might we use instead of “negotiate”?

Any method of negotiation may be fairly judged by three criteria:

• It should produce a wise agreement if agreement is possible.

• It should be efficient.

• It should improve or at least not damage the relationship between the parties.


Types of Negotiation

• Integrative/Distributive

• Inductive/Deductive/Mixed

• Soft/Hard/Principled

• Alternative Dispute Resolution

• Non-Negotiable Positions vs. Options


Positional Bargaining


Customer Shopkeeper

• How much do you want for this brass dish?

• That is a beautiful antique, isn’t it? I guess I could let it go for $75.

• Oh, come on, it’s dented. I’ll give you $15.

• Really! I might consider a serious offer, but $15 certainly isn’t serious.

• Well, I could go to $20, but I would never pay anything like $75. Quote me a realistic price.

• You drive a hard bargain. $60 cash, right now.

• $25. • It cost me a great deal more than that. Make me a serious offer.

• $37.50. That’s the highest I’ll go. • Have you noticed the engraving? Next year, pieces like that will be worth twice what you pay today.

Negotiations Triangle

NeedRelationship

Credibility

• Arguing over positions produces unwise agreements

• Arguing over positions endangers ongoing relationships

• Being nice is no answer!


Session Two: What is Negotiation? Soft Hard

• Participants are friends • Participants are adversaries• The goal is agreement • The goal is victory• Make concessions to cultivate

the relationship• Demand concessions as a

condition of the relationship• Be soft on the people and the

problem• Be hard on the problem and the

people• Trust others • Distrust others• Change your position easily • Dig in to your position• Make offers • Make threats• Disclose your bottom line • Don’t disclose your bottom line• Accept one-sided losses to

reach agreement• Demand one-sided gains as the

price of agreement• Search for the single answer:

the one they will accept• Search for the single answer: the

one you will accept• Insist on agreement • Insist on your position• Try to avoid a contest of wills • Try to win a contest of wills• Yield to pressure • Apply pressure

The answer to the question of whether to use soft positional bargaining or hard is “neither.” This method can be boiled down to 4 points.•People: Separate the people from the problem.•Interests: Focus on interests, not positions.•Options: Generate a variety of possibilities before deciding what to do.•Criteria: Insist that the result be based on an objective standard.


• Soft negotiators want to avoid personal conflict and so make concessions readily in order to reach agreement.

• Hard negotiators see any situation as a contest of wills in which the side that takes the more extreme position and holds out longer fares better.

• There is a third way to negotiate, a way neither hard nor soft, but rather both hard and soft. This method suggests that you look for mutual gains whenever possible.


Researchers have found there are three basic negotiating styles.

•Co-operative Style

•Aggressive Style

•No Pattern


What are the characteristics a successful negotiator must have?•They see possibilities rather than problems. •They are excellent communicators.•They keep an open mind. •They have confidence in their own abilities (or act like they do) and the negotiation process. •They are willing to listen. •They are optimistic.


• Their egos don’t get in the way of a win/win solution.

• They are creative and ready to consider ways of doing things differently.

• They are flexible.• They have excellent self-control.• They are always well-prepared.• They are life-long learners.


Topic List:

• Communication skills

• Understanding body language

• Problem solving

• Creative thinking

• Building enthusiasm and confidence


Communication Barriers

Age Agendas

Perceptions

Education

ExperiencesCulture

Selective ListeningSelective Listening

Talk LineTalk Line

Listening Line Listening Line..

Selective ListeningSelective Listening

What was saidWhat was said

What was heardWhat was heard

Only our minds can produce fear.• Fear of humiliation• Fear of failure• Fear of rejection• Fear of powerlessness• What are some other fears you are familiar

with?


• Do you know things about you that are true, but that you would prefer to avoid?

• When people make comments about (or when situations expose) things that we are ashamed of or that we try to deny, we say that they are “pushing our buttons.”

• When you know what your own personal hot buttons are, you can prepare for them and then control your reactions.

• Take a few moments to write down some of your hot buttons and ways to respond when those buttons are pushed.


Preparation Checklist

• Determine your main objective.

• Determine your supporting points.

• Determine a fallback position.

• Identify your Best Alternative To a Negotiated Agreement (BATNA) and Worst Alternative To a Negotiated Agreement (WATNA).

• Identify your WAP, Walk away position.

• What Zone Of Possible Agreement (ZOPA) might exist?


Case Study

You and your best friend recently decided to become roommates and share a two-bedroom apartment. You are a freelance artist and you work from home. Because you spend more time at home, he feels that you should do more of the housework and pay a larger share of the power and water bills. This issue is causing significant strain on your relationship, so you decide to try to negotiate a solution.


• What might be some of your hot buttons?

• Determine your main objective.

• Determine your supporting points.

• Determine a fallback position.

• Identify your Best Alternative To a Negotiated Agreement (BATNA) and Worst Alternative To a Negotiated Agreement (WATNA).

• Identify your WAP.

• What Zone Of Possible Agreement (ZOPA) might exist?


Some things you can explore about the negotiator:•What is their business about?•What are their competitors like?•What is their stock like?•What associations does the person belong to?•What people do you both know?•What hobbies does the person have?


• Always prepare your research in a professional format and bring it with you.

• Ensure you have separate folders for confidential information and information you’re going to share.

• Keep both sets of information with you at all times during the negotiation.

• You should have an information sheet outlining your main objectives, supporting points, fallback position, BATNA, WATNA, WAP, and ZOPA.


• The best place to meet is somewhere that you feel comfortable – your office, your company’s boardroom, or even your favorite coffee shop.

• The worst place is somewhere your opponent feels comfortable.

• Neutral ground would be a rented boardroom or a restaurant neither of you have visited before.

• If you’re given the choice, choose a time of day that works best for you.


Case Study

You and your best friend recently decided to become roommates and share a two-bedroom apartment. You are a freelance artist and you work from home. Because you spend more time at home, she feels that you should do more of the housework and pay a larger share of the power and water bills. This issue is causing significant strain on your relationship, so you decide to try to negotiate a solution.


• What documentation might you want to bring?

• What would be your home turf?

• What would be neutral ground?

• What would be your roommate’s home turf?


Agenda: Day Two8:30-8:45 Re-Connect: Flying Around the Room

8:45-9:30 Session Six: Making the Right Impression

9:30-10:00 Session Seven: Getting off to a Good Start

10:00-10:30 Session Eight: Exchanging Information

10:30-10:45 Break

10:45-11:15 Session Nine: The Bargaining Stage

11:15-11:45 Session Ten: Inventing Options for Mutual Gain

11:45-12:00 Morning Wrap-Up

12:00-1:00 Lunch

1:00-1:15 Energizer: Freeze Frame

1:15-2:00 Session Eleven: Getting Past No and Getting to Yes

2:00-3:00 Session Twelve: Dealing with Negative Emotions

3:00-3:30 Session Thirteen: Moving from Bargaining to Closing

3:30-4:15 Session Fourteen: The Closing Stage

4:15-4:30 Workshop Wrap-Up

Here are some things to keep in mind to make a positive impression:•Confident posture•Eye contact•Minimal body movement•Clothes are clean, unrumpled, stain-free•Shoes are clean and polished•Fingernails are clean•Pleasant expression

Session Six: Making the Right Impression

The Rule of Twelve suggests that we first notice and remember three things about people we meet.•The first twelve inches (shoulders up).•The first twelve steps a person takes.•The first twelve words a person speaks.


Research tells us people determine seven things from your appearance.•Income•Education Level•Social Position•Sophistication•Success


The message you communicate with your handshake is determined by five factors.

•Degree of firmness

•Dryness of hand

•Depth of grip

•Duration of grip

•Eye contact


Tips to dress for success:

• Do your research

• What does your appearance say?

• Consider your work environment


• Once the warm and fuzzies are over, it’s time to get into the meat of the negotiation.

• Start by outlining your position and having the other party outline their position.

• If you’ve identified a zone of possible agreement (ZOPA) that gives a solution that you’re happy with, you will want to outline that as well.

Session Eight: Exchanging Information

Techniques for Success

• Equalization

• Building a Case

• It’s Too Bad…

• Wear Them Down

• Mix It Up

• Bridge the Gap

Session Nine: The Bargaining Stage

Session Eleven: Getting Past No and Getting to Yes

• Go to the balcony.

• Step to their side.

• Invite them to step to your side.

• Build a golden bridge.

• Make it difficult to say “no.”

• Use high-yield questions.


On the road from No to Yes, you’re likely to reach one (if not several) impasses, where one or both of you are digging in your heels and you’re not making progress. Break it by:•Taking a break.•Identify hidden interests.•Deal with unrealistic expectations.•Use brainstorming techniques.


What should you do once you break the impasse and get past “no”?

•Avoid positional bargaining.

•Separate the person from the problem.

•Focus on interests.

•Work towards a mutual gain solution.

•Insist on using objective criteria.


Three tactics:

• Stonewalling

• Attacking

• Dishonesty

Session Twelve: Dealing with Negative Emotions

Session Thirteen: Moving from Bargaining to Closing

Things not to do:• Beg, plead, or bully.• Give your opponent time to think the deal

over. • Raise additional questions or points during

your closing procedure.


• For simple negotiations, a verbal agreement will probably be sufficient.

• You will, however, want to date and sign any notes that you took and any documentation you gathered and file them away for reference.

• It’s also good to send a follow-up letter outlining the terms of the negotiation and get a signed receipt.


• For more complex negotiations, written documents will likely be involved.

• We strongly recommend that you use a lawyer. It’s worth the investment.

• If possible, have your lawyer prepare the document to be signed. If you are taking this route, make sure you have all the necessary paperwork with you when you go to the negotiation.

• Read the document over thoroughly, clause by clause. Ask about anything that is unclear to you.

• Ensure that you and your opponent have signed, original copies of all documents. Keep your copies in a safe place.


In general, there are three possible outcomes to a negotiation.

•Lose-Lose

•Win-Lose

•Win-Win

Session Fourteen:The Closing Process

• What do we mean by a sustainable agreement?

• What makes a sustainable agreement?

Three Steps:

1.Getting everyone’s perspective

2.Reviewing the information

3.Outlining the options


Getting Consensus• Please explain what we have agreed to. • Do you agree with what we have agreed

to?• Are you committed to carry out the

agreement? • If not, what factors need to be clarified?


negotiation skills

Documents

negotiation session

method of negotiation

options session

negotiation process

wrapup session

pressure session

pattern session

modifiers session