NEGOTIATIONS101:BASICSANDPRACTICALAPPLICATIONS

• MarickF.Masters• Director,Labor@Wayne

• ProfessorofBusinessAdministration• AdjunctProfessorofPoliticalScience

• WayneStateUniversity• 255ReutherLibrary• 313-577-5358

• marickm@wayne.edu

9/20/17 Negotiations101September8,2017 1

LEARNINGOBJECTIVES

• Surveythefundamentalsofthenegotiatingprocess• Takeyournegotiatingprofile• Highlightcriticalskills• Buildawarenessofnegotiatingopportunitiesandchallenges• Demonstrateassertivenessandprofessionalism

9/20/17 Negotiations101September8,2017 2

AGENDA

• Theubiquityofnegotiations/Aworkingdefinition• Knowthyself• Negotiationandleadership• Criticalskills• Thenegotiatingprocess• Howtoprepare• ROLEPLAY:NEGOTIATINGASALARYINCREASE• Alternativeapproachestonegotiating• Closing• Breakingdeadlocks

9/20/17 Negotiations101September8,2017 3

14% 14% 14% 14% 14% 14% 14%

Youaresometimesintimatedbyanegotiatingcounterpartwithmoreauthorityandpower:A. StronglyAgreeB. AgreeC. SomewhatAgreeD. NeutralE. SomewhatDisagreeF. DisagreeG. StronglyDisagree

9/20/17 Negotiations101September8,2017 4

14% 14% 14% 14% 14% 14% 14%

Youaresometimesintimidatedbyanaggressive/competitivenegotiatingcounterpart:A. StronglyAgreeB. AgreeC. SomewhatAgreeD. NeutralE. SomewhatDisagreeF. DisagreeG. StronglyDisagree

9/20/17 Negotiations101September8,2017 5

14% 14% 14% 14% 14% 14% 14%

Yousometimesmakeconcessionstoappearniceandavoidanargument:A. StronglyAgreeB. AgreeC. SomewhatAgreeD. NeutralE. SomewhatDisagreeF. DisagreeG. StronglyDisagree

9/20/17 Negotiations101September8,2017 6

14% 14% 14% 14% 14% 14% 14%

Youaresometimesreluctanttoaskforthingsforyourself(likemoremoney):A. StronglyAgreeB. AgreeC. SomewhatAgreeD. NeutralE. SomewhatDisagreeF. DisagreeG. StronglyDisagree

9/20/17 Negotiations101September8,2017 7

THEUBIQUITYOFNEGOTIATIONS

• Thinkofthevarietyofdailysituationsinwhichyounegotiateorcouldnegotiateifattunedtotheopportunitiestonegotiate• WhatisNON-negotiable?• Negotiationssituationsvary:• Rangeofparties(friends/family;businesspartners;suppliers;customers)• Formality(conversational;transactional;summitry)• Salience(minimalstakes—highstakes)• Complexity(simple—intricate)

9/20/17 Negotiations101September8,2017 8

AWORKINGDEFINITION

• Etymology:Notleisure• Salacuse:aprocessofcommunicationbywhichtwoormorepeopleseektoadvancetheirindividualinterestsbyagreeingonadesiredcourseofaction• Masters:adecision-makingprocessinwhichtwoormorepartiesseektoresolvedisagreements,makedeals,orchangebehaviors

9/20/17 Negotiations101September8,2017 9

NEGOTIATINGCHALLENGES

• #1Createopportunitiestonegotiate• #2Itstartswith“No.”GetpastNo.• #3Don’ttakethefirstoffer;negotiateformore• #4Beassertivenotarrogant:whatisthedifference?• #5Beprofessional:appearance;attentiveness;language;sincerity;confidence

9/20/17 Negotiations101September8,2017 10

KNOWTHYSELF

• Buildyourprofile• Knowhowyouareperceived• NegotiateinTHEIRworld• Thepyramidofaneffectivenegotiator

9/20/17 Negotiations101September8,2017 11

THEPYRAMIDOFANEFFECTIVENEGOTIATOR

9/20/17 Negotiations101September8,2017 12

BEHAVIORSSKILLS

COMPETENCIES

NEGOTIATIONANDLEADERSHIP:COMMONDIMENSIONS

J.Salacuse.2017.RealLeadersNegotiate!

NEGOTIATION LEADERSHIP

Communications Communication

Interests Interests

Action Action

Process Process

Power Power

9/20/17 Negotiations101September8,2017 13

CRITICALSKILLS

• Communications• Listening• Questioning

9/20/17 Negotiations101September8,2017 14

COMMUNICATIONS

• Verbal:thewordsyouuse• Para-verbal:inflection,pace• Bodylanguage:facial,gestures,posture,dress,handshake,distance,eyecontact

9/20/17 Negotiations101September8,2017 15

LISTENING

• Passive:hearwords• Active:hearwords,emotions,relationship;conveyunderstanding;observebodylanguageandpara-verbal;communicateinterest• Clearmindof“noise”• Focus• Followthe70/30rule:listen70%ofthetime

9/20/17 Negotiations101September8,2017 16

QUESTIONING

• Askinterrogativequestions:how,what,why• Askandlisten• Recapandlisten• Use“I”not“You”word:I don’tunderstandratherthanyou don’tunderstand

9/20/17 Negotiations101September8,2017 17

THENEGOTIATINGPROCESS

9/20/17 Negotiations101September8,2017 18

PHASES DIMENSIONS ELEMENTS

Prospect Process Interests

Prepare Substance Options

Propose Context Alternatives

Bargain Timing Relationship

Close Commitment

Implement Communications

Re-negotiate Standards

POWERINNEGOTIATIONS

• Widelymisperceived• Under- andover-estimated• Abilitytowalkaway• Availabilityofalternatives

• BESTALTERNATIVETOANEGOTITATEDAGREEMENT(BATNA)• Whatdoyoudoifthisnegotiationfails?• FailuretoagreeisNOTthesameafailuretonegotiate

9/20/17 Negotiations101September8,2017 19

HOWTOPREPARE

• PlanningNOTplan• Prospect:buildalternatives• Determineinterestsandpositions• Setprices:asking,target,reservation(walkaway)• Knowtheotherside(TOS)• Prepareproposals• Thinkradially• Rehearseandreverse

9/20/17 Negotiations101September8,2017 20

ROLEPLAY

NEGOTIATINGASALARYINCREASE

9/20/17 Negotiations101September8,2017 21

PREPAREDNESS

• Intellectual:knowthesubjectmatter,TOS,context• Psychological:anticipatetheunexpected;focused• Emotional:balanced(ifyougetangry…youget….)• Physical:rested

9/20/17 Negotiations101September8,2017 22

NEGOTIATINGSTYLES

• Dualconcernsmodel:outcomeandrelationshipbalance• Accommodating• Avoiding• Competing• Collaborating• Compromising

9/20/17 Negotiations101September8,2017 23

TWOAPPROACHES:COLLABORATEv.COMPETE

9/20/17 Negotiations101September8,2017 24

COLLABORATE COMPETE

Focus ininterests Focusonpositions

Seekmutualgains SeekadvantageatexpenseofTOS

Explore options Hardtactics

Opencommunications Playthings closetothevest

Reciprocate Dominate

INTEREST-BASEDBARGAINING(IBB)

• FocusonproblemNOTpeople• FocusoninterestsNOTpositions• Exploreoptions• Applylegitimatestandardstoassessoptions• Developalternatives

9/20/17 Negotiations101September8,2017 25

CLOSING

• Startwithacloseinmind• Paintapictureofwhatadealmightlooklike• Takeconfidencebuildingsteps• Buildmomentum• Recap• Leapaheadifthetimeisripe• Listen:give“considered”responses

9/20/17 Negotiations101September8,2017 26

BREAKINGDEADLOCKS

• Takeabreak• Walkaway(temporarily)• Changevenues• Changepeople• Third-partyintervention

9/20/17 Negotiations101September8,2017 27

APPLICATION:NEGOTIATINGA“JOB”

• Determinewhat’simportant• KnowTOS’slatitude• Beflexibleandreasonable• Askforwhatyoucanjustify• Justifythroughexternalstandards• InBusinessasInLife,YouDon’tGetWhatYouDeserve,YouGetWhatYouNegotiate• Negotiateintheirworld:whatcanYoudoforThem• “We”isapowerfulword

9/20/17 Negotiations101September8,2017 28

TAKEAWAYS

• KnowThyself• Listen• BePrepared• PaintaPicture• ProspectAlternatives• AskConfidently• NegotiateinTheirWorld• BeProfessionalAtAllTimesandInAllVenues(DigitalandTelephonic)

9/20/17 Negotiations101September8,2017 29