NEGOTIATION SKILL

Why do we negotiate

Because a deal as presented, as it stands, doesn't fit one of the

parties' needs or requirements -to find

out what the other one wants.

Negotiation Basics

• Get Data- information is power• Have alternatives• Practice with colleagues• Be clear about what is most important to you• Be relentlessly pleasant

Rules• Preparation You have to prepare - be clear about what is to be

negotiated • Planning Define the issues - get the facts. • Execution Understand other's position Develop a strategy that takes both to gain

Execute with flexibility and patience

Games people Play

ThreateningMaking Threats-warning of unwelcome repercussions if you fail to agree to the terms on offer saying penalties will be incurred by your side.

Tell the other party that you can negotiate under duress and the concessions will be made only if the party can prove the merits of the case.Review other options and backup plan. A party which threatens cannot be a long term and beneficial team.

Offering insultsQuestioning the performance of your organization or your professional competence, criticizing the quality of your products and service

Stay calm; do not lose your temper or offer insults in return. Restate your position firmly, and request the other party to stick to the issue in concern. You can warn them that you will not move the discussion forward unless the other party is more constructive.

Bluffing Threatening punitive action without

being too specific; making dubious assertions that the competitors are undercutting price.

Call their bluff; refuse the agree to other party's terms and wait for the reaction.Question all statements and ask for evidence to support any claims that appear dubious.

Using intimidation Keeping you waiting; while making

you sit in an awkward place; receiving phone calls or visitors during negotiations.

Recognize that these are ploys to make you feel less confident. Do not drop your original terms unless you have gained concessions in return.

Dividing and Ruling Exploiting potential

disagreements among members of your team by appealing to the person most sympathetic to their case.

Brief team members in advance and decide on a common position. Call for an adjournment if there is a difference in opinion in your team and settle it internally before approaching the party.

Using leading questions Asking you a series of questions

which lead you to declare a weakness in your negotiating position, force concessions from your side.

Avoid answering question if you doubt the intention behind it. Attach conditions to any concessions.

Making emotional appeal Accusing you of acting unfairly in

not agreeing terms; stressing their sacrifices; claiming to be offended by your lack of trust.

Affirm your commitment to achieving a fair settlement or business terms. Ask questions to test the validity of manipulative claims. Lead the conversion back to real issue.

Testing the boundaries Gaining additional boundaries

concessions through minor infringements of the terms agreed, resulting in substantial gain over a long period.

Be clear on what you are agreeing to when you reach a settlement. Draw a clearly worded statement of terms agreed and hold the other party to these at all times.

Five Ways To Negotiate More Effectively

• Learn to flinch.• Recognize that people often ask for more than they

expect to get.• The person with the most information usually does

better.• Practice at every opportunity.• Maintain your walk away power.

summary

I never refuse. I contradict. I sometimes forget.

Benjamin Disraeli

Thank you