1

NEGOTIATION TECHNIQUES

THE ART TO MAKE PEOPLE GIVE YOU WHAT YOU WANT

2

NEGOTIATION DEFINED

• NEGOTIATION IS THE PROCESS WHEREBY INTERESTED PARTIES RESOLVE DISPUTES, AGREE UPON COURSES OF ACTION, BARGAIN FOR INDIVIDUAL OR COLLECTIVE ADVANTAGE, AND/OR ATTEMPT TO CRAFT OUTCOMES WHICH SERVE THEIR MUTUAL INTERESTS.

3

ESSENTIAL ELEMENTS OF NEGOTIATION

• THE EXISTENCE OF TWO OR MORE PARTIES

• THEY SHARE AN IMPORTANT OBJECTIVE BUT HAVE SOME SIGNIFICANT DIFFERENCE(S).

• THE PURPOSE OF THE NEGOTIATING MEETING IS TO SEEK TO COMPROMISE THE DIFFERENCE(S).

4

CHARACTERS OF NEGOTIATION

• A SPECIFIC KIND OF COMMUNICATION• AN INTERPERSONAL SKILL• PARTIES HAVE SHARED & OPPOSED

INTERESTS • RESULT IN WIN-WIN AGREEMENT

THAT IS IN THE BEST INTEREST OF BOTH PARTIES

5

CHARACTERS OF NEGOTIATORS

• CREATIVE • EMPATHIC• BUILDERS OF RELATIONSHIP • EFFECTIVE NEGOTIATORS

ARE USUALLY MADE NOT BORN

6

KEY POINTS TO REMEMBER BEFORE NEGOTIATION

• 1.THERE ARE NO RULES.• 2. EVERYTHING IS NEGOTIABLE.• 3. ASK FOR A BETTER DEAL.• 4. LEARN TO SAY “NO”.

7

PRINCIPLED NEGOTIATION(Interest-based approach to negotiation)

• THIS APPROACH ADVOCATES FOUR FUNDAMENTAL PRINCIPLES OF NEGOTIATION: – SEPARATE THE PEOPLE FROM THE

PROBLEM; – FOCUS ON INTERESTS, NOT POSITIONS; – INVENT OPTIONS FOR MUTUAL GAIN;

AND – INSIST ON OBJECTIVE CRITERIA.

8

EXAMPLE OF PRINCIPLED NEGOTIATION

THE 1978 CAMP DAVID NEGOTIATIONS

• ISRAEL’S INTEREST LAY IN SECURITY; THEY DID NOT WANT EGYPTIAN TANKS POISED ON THEIR BORDER;

• EGYPT’S INTEREST LAY IN SOVEREIGNTY; • SOLUTION:

– EGYPT GIVEN FULL SOVEREIGNTY OVER THE SINAI, BUT

– LARGE PORTIONS OF THE AREA DEMILITARIZED, ASSURING ISRAEL’S SECURITY.

9

BILATERAL AND MULTILATERAL DIPLOMACY/ NEGOTIATION

• Participant– Bilateral: two. – Multilateral: More than two.

• Form. – Bilateral: may be relatively informal. – Multilateral: is always conducted in the form of

international conferences.

10

BILATERAL AND MULTILATERAL DIPLOMACY/ NEGOTIATION (CONT.)• DURATION.

– BILATERAL: RELATIVELY SHORTER.– MULTILATERAL: LONGER

• RESULT. – BILATERAL: RELATIVELY MORE

IMMEDIATE AND MORE CONCRETE.– MULTILATERAL: AGREEMENTS ON

GENERAL PRINCIPLES.

11

EMOTIONS IN NEGOTIATION

DISENTANGLE AND DEFUSE EMOTIONAL PROBLEMS:

• POSITIVE EMOTIONS INCREASE LIKELIHOOD FOR PARTIES TO REACH INSTRUMENTAL GOALS.

• FEELINGS OF EMPATHY IMPROVE UNDERSTANDING, FACILITATE COMMUNICATION.

• NEGATIVE FEELINGS IMPACT DETRIMENTALLY ON NEGOTIATION PROCESSES

12

DIFFICULT FEELINGS/EMOTIONS

• DISTRUST• ANGER• FEAR• CONTEMPT• EMBARRASSMENT• SHAME• PRIDE• DISAPPOINTMENT

13

NEGOTIATION WITH YOURSELF.

• WE NEGOTIATE WITH OURSELVES ALL THE TIME; BETWEEN OUR CONSCIOUS (RATIONAL) AND OUR SUBCONSCIOUS (INTUITIVE) SELVES.

• LISTENING TO OUR INNER VOICE MAY BE THE BEST THING WE CAN DO TO AVOID A NEGOTIATION DISASTER.

14

NEGOTIATING THROUGH AGENTS.

AGENTS/REPRESENTATIVES ARE USED IN CERTAIN NEGOTIATIONS. IF YOU REALLY NEED TO NEGOTIATE THROUGH AN AGENT:

• MAKE SURE THE AGENT KNOWS YOUR OBJECTIVES AND INTERESTS.

• DISCUSS WHETHER YOU WISH TO BE PRESENT FOR SOME OR ALL OF NEGOTIATIONS.

15

• BE VERY CLEAR ABOUT HOW MUCH AUTHORITY THE AGENT HAS TO MAKE A DEAL ON YOUR BEHALF.

• DISCUSS A SCHEDULE FOR RECEIVING PROGRESS REPORTS.

• BE CLEAR ABOUT THE TERMS OF THE AGENT’S COMPENSATION FOR TIME AND SERVICES.

16

MACRO-LEVEL STRUCTURAL ANALYSIS(ORGANIZING QUESTIONS BEFORE A

NEGOTIATION)

• ARE THE PARTIES MONOLITHIC? • IS THE GAME REPETITIVE? • ARE THE NEGOTIATIONS PRIVATE

OR PUBLIC? • IS THERE MORE THAN ONE ISSUE? • IS THIS NEGOTIATION LINKED TO

ANOTHER ONE?

17

MACRO-LEVEL STRUCTURAL ANALYSIS(ORGANIZING QUESTIONS BEFORE A

NEGOTIATION)-CONT.

• CAN WE EXPECT THEM TO USE THREATS IN THE NEGOTIATION?

• IS AN AGREEMENT REQUIRED? • IS RATIFICATION REQUIRED? • ARE THERE TIME CONSTRAINTS? • IS THIRD PARTY INTERVENTION

POSSIBLE?

18

NEGOTIATION AS A PROCESS

• NEGOTIATION PROCESS NORMALLY CONSISTS OF 3 PHASES:– PHASE 1: BEFORE THE NEGOTIATION

(PREPARATION OR INVESTIGATIVE PHASE)– PHASE 2: DURING THE NEGOTIATION

(OPENING, PRESENTATION, BARGAINING, CLOSING/AGREEMENT)

– PHASE 3: AFTER THE NEGOTIATION (REVIEWING THE NEGOTIATION)

19

PHASE 1:BEFORE THE NEGOTIATION

• PLANNING– INFORMATION-GATHERING (FACT

FINDING). • INFORMATION THAT WILL HELP YOU

DEFINE YOUR OWN OBJECTIVES, AND ARGUE FOR WHAT YOU WANT TO ACHIEVE IN THE NEGOTIATION.

• INFORMATION ABOUT THE OTHER SIDE, THEIR GOALS AND OBJECTIVES ETC

20

– GOAL SETTING• DEFINING WHAT YOU WANT TO

ACHIEVE• DEFINING YOUR LIMITS, OR HOW FAR

YOU WILL GO• DECIDING ON YOUR OPENING BID

– PREPARE ALTERNATIVE PROPOSALS AND ESTABLISH BATNA (BEST ALTERNATIVE TO A NEGOTIATED AGREEMENT)

21

• HAVE CONSULTION ON THE AGENDA AND THE PROGRAMME

• FORMULATE A STRATEGY

22

BATNA(the Best Alternative To a Negotiated Agreement).

• Best alternative that is available to you without entering a negotiation.

• BATNA tells you whether you should accept the offer, deal, or proposal in front of you or you should walk away.

23

AGENDA & PROGRAMME

• THEY ARE NECESSARY IN ORDER TO HAVE A CONTROLLED AND ORDERLY DISCUSSION.

• IT IS IMPERATIVE THAT THEY BE AGREED BY THE PARTIES CONCERNED.

24

• AGENDA MAY INCLUDE: – A LIST OF ISSUES UNDER NEGOTIATION.– A DEFINITION WHAT EACH ISSUE MEANS

(ANNOTATED AGENDA).– THE ORDER OF THE DISCUSSION OF

ISSUES – THE AMOUNT OF TIME THAT WILL BE

ALLOCATED TO THE DISCUSSION AND RESOLUTION OF EACH ISSUE.

25

FORMULATE A STRATEGY

• A STRATEGY IS A GENERAL PLAN OR A SET OF PLANS TO ACHIEVE THE NEGOTIATION GOALS. IT IS THE ART OF PLANNING THE BEST WAY TO GAIN AN ADVANTAGE OR ACHIEVE SUCCESS.

• STRATEGIES INCLUDE A VARIETY OF PLANS AND PREMEDITATED TECHNIQUES.

• STRATEGY REQUIRES SKILLS TO ADAPT RULES, PROCEDURES AND TECHNIQUES TO NEGOTIATION APPLICATIONS.

26

EXAMPLES OF NEGOTIATION STRATEGIES

• QUICK AND DELIBERATE STYLES TO START NEGOTIATIONS

• INTRODUCING COMBINATIONS • USING BROAD COVERAGE • MOVING ONE STEP AT A TIME • USING STATISTICS

27

TACTICS

• Tactics are methods used to gain an end in a particular situation. In our case, it is to reach an agreement in making a deal.

• Like strategy, tactics also require skills to adapt rules, procedures and techniques to negotiation applications.

28

EXAMPLES OF NEGOTIATION TACTICS

• Showing patience • Using surprise• Employing diversion • Manipulating participation• Blaming a third party

29

• Applying pressure tactics• Setting pre-conditions before the

meeting • Volunteering to keep the minutes of

the meeting • Presenting demands• Declining to speak first

30

EFFECTIVE QUESTIONING

• Planning which questions to ask during negotiations is part of preparing for negotiation

• Effective questioning does not follow scientific rules but is more of an art

31

• Should be approached in a manner that does not cause embarrassment

• Avoid asking questions that are either controversial or ambiguous

32

TYPES OF QUESTIONS (EXAMPLES)

• Direct: A direct question is very specific. You may ask your opponent to provide a rationale for a specific item under review.

• Factual: a factual question asks for information about actual data.

33

• Leading: a leading question attempts to get affirmative answers.

• Delegated: a delegated question addresses questions to someone else on your opponent's negotiating team

34

UNETHICAL TACTICS

Negotiators should not use unethical tactics, because:

• They may be dealing with the other party again in the future, and need to have a positive, long-term relationship.

• The other party will possibly discover that the tactics are being used.

35

• The other party may have enough power to get revenge or punish the perpetrators of unfair tactics.

• They may not be effective in using them, or their conscience will bother them or give them away.

36

EXAMPLE OF UNETHICAL TACTICS

• EXAGGERATING OR DISGUISING FACTS.• MANIPULATING POWER.

TROUBLESOME TACTICS:– OUTRIGHT LYING – GIVING GIFTS OR BRIBES.– MANIPULATING THE OTHER PARTY’S CONSTITUENCY.– MAKING FALSE THREATS OR PROMISES.– DEMEANING THE OTHER PARTY.– SPYING– STEALING

37

PHASE 2: DURING THE NEGOTIATION (AT THE BARGAINING TABLE)

• OPENING OR PRESENTATION: LAY OUT ARGUMENTS, LISTEN CAREFULLY, TAKE NOTES, ASK QUESTIONS, OBSERVE BODY LANGUAGE.

• SETTING THE TONE• EXPLORING UNDERLYING NEEDS OF THE

OTHER PARTY• USE OF PARTICULAR STRATEGY AND

TACTICS SKILFULLY

38

STEPS USUALLY TAKE PLACE IN THIS STAGE:

• OPENING (INTRODUCTION), • PRESENTATION (QUESTIONS AND

INFORMATION), • BARGAINING (ISSUES REDUCTION),

AND • CLOSING/AGREEMENT.(END-PLAY)

39

PRESENTATION (QUESTIONS AND INFORMATION)

• REQUESTS FOR INFORMATION, QUESTIONS AND ANSWERS,

• ESTABLISHMENT OF WORKING GROUPS OR SUB-COMMITTEES (IF NECESSARY)

• PRESENTING ADDITIONAL ARGUMENTS AND COUNTERARGUMENTS.

40

BARGAINING (ISSUES REDUCTION)

• You play the classic negotiation game of give and take.

• Parties will have to make concessions to reach some agreement.

• Make your watchwords discipline and control.

41

( 2 )

• Leave your egos at home and concentrate on the most creative way to seek agreements

• Usually the other side is reluctant to lose what they have gained, so they will agree to small concessions to save negotiating again.

42

CLOSING/AGREEMENT (END-PLAY)

• Parties wrap up the final agreement and formalize it in a writing.

• Clarify anything ambiguous or incomplete.

• Closing rituals are important.• Decision needs to be made on the

place of the final agreement.

43

PHASE 3: AFTER THE NEGOTIATION

• REVIEWING THE NEGOTIATION (WHAT WENT WRONG?. WHAT CAN BE IMPROVED NEXT TIME?)

• CRIETERIA FOR MEASURING THE OUTCOME OF NEGOTIATION: FAIRNESS, EFFICIENCY, WISDOM, STABILIITY.

44

REVIEWING THE NEGOTIATION

• Parties often discover that the agreement was incomplete or flawed.

• If the other party wants to raise a new issue that they “forgot” , you have the right to reopen the entire negotiation package and discuss other issues as well.

45

( 2 )

• Every good agreement should create the opportunity for the parties to reopen discussions if there are problems in implementation.

46

CRITERIA FOR MEASURING THE OUTCOME OF A NEGOTIATION

• Fair: Although fairness is very subjective, but we can compare our deal with other similar ones that we know about. Also consider special circumstances.

• Efficient: All deals have not been rammed through too fast.

47

( 2 )

• Wise: Implications of the agreement for other negotiations have taken into account. Also the implications of this agreement for other people.

• Stable: It means the commitment should ensure stability. It will be honoured and it will hold up over time.

48

GOOD AND BAD HABITS IN NEGOTIATING

• GOOD NEGOTIATING HABITS WILL PUT YOU IN A BETTER POSITION TO DEAL WITH THE UNEXPECTED, BECAUSE YOU WILL BE ABLE TO FOCUS ON THE CHANGING SITUATION WITHOUT ANY DISTRACTIONS

• BAD NEGOTIATING HABITS WILL HURT YOUR BARGAINING POSITION BECAUSE THEY WILL HINDER YOUR PERFORMANCE

49

GOOD HABITS for NEGOTIATORS

• Make good eye contact with everyone you meet. Looking away from people suggests that you lack confidence.

• Dress neatly and professionally (conservatively or status oriented).

• Speak clearly.• Eliminate "fillers" ("you know" and

"uuummm").

50

• Listen carefully and ask pertinent questions.

• Sit with good posture.• Stand and walk with your head up,

shoulders back, and body straight.• Develop a standard method of preparation

for every negotiation.• Arrive early at all of your appointments.

51

HABITS TO AVOID

Nasty habits you should eliminate from your negotiating repertoire include:

• Fidgeting with pencils, eyeglasses, cups, or anything that distracts your opponent.

• Interrupting your opponent. • Using “fillers”, such as "you know" or

"ummmmmm." • Taking suspicious notes.

52

YOUR APPEARANCE

• Don’t forget that during negotiations you are on display. Physical appearance is very importance. Make a good first impression and project a positive image. Your dress and deportment reflect your authority, credibility and appeal.

• Be careful in making any gestures that may give your position away. Eyes, facial gestures and coughing can also reveal one’s feeling.

53

ART OF LISTENING

• Don’t stop listening. Good negotiators are active listeners.

• Take notes and refer to them when you are given the opportunity to reply.

• The chance of misunderstanding is minimized by careful listening.

• You have got two ears but only one mouth.

54

THE DO’S AND THE DON’TS OF NEGOTIATION TACTICS (1)

• Never assume that your demands are too high.

• Never say yes to the first offer or counteroffer from the other side.

• Never give a concession without getting one in return.

55

(2)

• Do not start without a shopping list. • Don’t bargain until you get your

opponent’s demands.• Do not let the other side know you

have the authority to make a decision.

56

(3)

• Do not fall into the trap of thinking that splitting the difference is the fair thing to do.

• Do not negotiate hastily. • Do not fail to reflect on your opponent’s

position.

57

(4)

• Do not negotiate when you are surprised.

• Never honour unreasonable demands.

• Avoid confrontational negotiation.

58

(5)

• Never be afraid of silence.• Do not get angry.• Any agreements reached should be put in

writing.• Do not negotiate when fatigued.• Never let your guard down.• Know when to stop negotiating.

59

DEALING WITH CONFLICT (1)

• If conflict exists, try to develop creative alternatives.

• Point out the advantages of your proposal instead of the problems of your opponent’s position.

• Under no circumstances should you try to cause your opponent to lose face.

60

DEALING WITH CONFLICT (2)

• Do not confuse an impasse with a deadlock. Handle an impasse with the “set aside gambit

• Be aware of the difference between an impasse, a stalemate and a deadlock. One effective response to a stalemate is by altering one of the elements.

• One way to resolve a deadlock is by bringing in a neutral third party.

61

TACTICS TO BREAK A DEADLOCK (1)

Any of the following tactics or combination of them can be used to break the deadlock:

• Change the members of your own delegation. • Call in new negotiators.• Suggest the presence of superior both sides. • Introduce new package. Alter terms and conditions.

62

TACTICS TO BREAK A DEADLOCK (2)

• Break into small groups.• Propose a break for consultation or new instruction.• Come with any creative solutions.• Bring in a neutral third party

63

International and Cross-Cultural Negotiation

• It is necessary to understand culture as a shared system of symbols, beliefs, attitudes, values, expectations and norms of behaviour.

• All members of a culture basically share similar mindset and tend to act accordingly.

64

(2)

• The key factors in negotiation with people from different cultures are the open mindedness to understand the opposing party and the willingness to pay serious attention to any proposal and view without making unnecessary concession.

65

DEFINING LOBBY AND LOBBYIST

• If you lobby someone you try to persuade him/her that a particular thing should be done.

• A lobby is a group of people who represent a particular organization or campaign and try to persuade a government or council or an institution to take action in favour of that organization or campaign.

66

( 2 )

• A lobbyist is someone who tries actively to persuade a government or a council or an institution that a particular thing should be done.