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Negotiation Skills

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Amer Q

on 16 August 2014

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Transcript of Negotiation Skills

Workshop Schedule
Introduction to the Art of Negotiation
Successful Negotiation Strategies
Negotiation Framework
The 4 Ts for Successful Negotiations
Team Activity
Group Project – Negotiation Skills in Action
The Amer Q’s practical Negotiation Tool Kit
Summary & Wrap Up

What is Negotiation?
Who do we negotiate with?
Who Likes to negotiate?


Are you a good Negotiator?

What is a successful negotiation?

It should produce a mutually satisfactory outcome.

It should be efficient.

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

Expectations = met

Objectives = met

Win : Win : Win

What is a successful negotiation?
The need for Negotiations:
Everything in Life is a Negotiation!
From the simplest interaction to the most complex one – they are all negotiations of sorts.

Qualities of a Good Negotiator
Planning Skills
Personal Integrity
Verbal and Non verbal clarity
Clear thinking under stress
Practical Attitude
Ability to gain respect
Team leadership skills
Open Mindedness
Professional Standards
Self Confidence
Product knowledge
Characteristics Required
to become a better Negotiator
Willing to invest time and take the trouble in careful research and analysis of the issues;
Sensitive to the needs of the other party;
Flexible and willing to compromise where necessary;
Good negotiators do not:
Respond to attack or ridicule;
Take it personally;
Lose control of their emotions;
Become aggressive.
Outcome Analysis
Why - Win/Win/Win?
Negotiation Skills – Self Assessment
Self Assessment Quiz
Your Personal development Plan


Different Forms of Negotiation
Distributive: The Fixed Pie Approach – Win: Lose
Both parties want a bigger slice of the pie
Both sides want the most for themselves
Keep information confidential and extracting information from the other side – information is power

Integrative: Everyone Wins Something, the size of the pie is not considered as Fixed - Win : Win
Both parties believe they can walk away with something they want
Adopts a problem solving approach.

People prefer to negotiate with other people who possess:

Before you go too far; make sure that you are dealing with the right person.

Different Forms of Negotiation
Negotiation with a client/customer/supplier is often not a one time event
You need to build a relationship
Build trust and rapport
Be authentic
Be yourself
Be Likeable!?

Your Negotiation Brand!
During the process and over time; you will develop your own Negotiation Brand.
What would you like your brand to represent?
Battles versus Wars! – you don’t have to win every battle.

Business Negotiations generally focus on a few key things:
Time Frames

Often the focus of negotiation becomes the Price only!

Separate people from the problem
Understand your position – The BATNA and WATNA
Understand the other party’s perspective – put yourself in their position
Look for options for mutual gains
Give and Take
Craft a solution
Getting to Yes!
Professor Diamond’s Negotiation research
Don’t think about “winning”
Ask what you can do for the other person.
Uncover and then clarify any misconceptions that may exist.
Never threaten, issue ultimatums or “walk out” on negotiations.

My father said, “You must never try to make all the money that's in a deal. Let the other fellow make some money too, because if you have a reputation for always making all the money, you won't have many deals.”
Jean Paul Getty


BEFORE - Preparation
DURING - Negotiation Process
Opening Position
AFTER - Closing

The Negotiation Framework
The Negotiation Process
What else can I do if this deal doesn't go through?

What are Your Alternatives

Preparation Phase
Preparation - Early Steps
What are the Strengths of both positions?

What are the Weaknesses of both positions?

What are the benefits to both sides?

What are the potential negative consequences to both sides?

What are Your Limits

Put yourself in their position
Don’t blame them for your problem
Share your views with each other
Take advantage of opportunities to update their views
Make your solutions consistent with their values

Identify your Bargaining Mix
Document the range of Issues at Stake
Ensure that all Issues are Discussed and Documented
Construct a ‘Shopping-List’ that can be traded during the course of the negotiation

Prioritize and Weight the Issues for Both Sides
Must Have
Would Like to Have
Be Nice to Have
How many triangles do you see here ?
Perception : Putting yourself into their shoes
During the Negotiation
Opening Position
Outline Your Opening Position

Decide whether this will be High Ball or Low Ball
Low Ball ---
High Ball ---

Ensure that this position is realistic in light of the facts available to both sides

Allow for movement within whatever opening position you adopt

For Information
For Clarification
For Commitment

Confirm all agreements reached and positions offered
Team Roles & Responsibilities
Lead Negotiator

Question for Information
Challenge other side for justifications of their position
Examine and Test their commitment
Present Your Key Commitments
Explore Key Commitments
Summarize Arguments and Seek Acceptance
Look for Signals of Possible Movement
Identify and Highlight Common Ground
Team Control
Never interrupt the Lead Negotiator
Respect Silence - NEVER Interrupt
Decide and Agree the strategy early on
Always keep to the agreed strategy
Negotiate through the Leader
Support one another openly
Empathize with fellow members
Portray a United Front
Lead Negotiator
Main Speaker
Only Member permitted to make

Monitors overall team strategy
Monitors other teams strategy
Identifies areas of Common Ground
Monitors Movement

Records Key Arguments
Records Final Agreement

Personal Control
Always Be
Polite - It never reduces your argument
Firm - Removes Perceptions of Weakness
Calm - Facilitates Persuasion and Compromise
Don’t ever take things personally!
Separate the People from the Problem

Focus on Interests Not Positions

Positions might be conflicting, interests might be compatible.

Look forward to solving problems rather than examining history

Showcase your interests.

Invent Options for Mutual Gain

Help them to solve their problem.
Work on options to broaden the topic in line with each party’s interests.
Make their choices clear and easy to understand
Brainstorm to find more answers before making decisions.
Understand their preferences

Understand their emotion as well as your own

Don’t jump to conclusions on their intentions based on your own emotional state such as fear

Don’t react to their emotional outbursts

Let them cool off or back off emotionally
Use active listening techniques to fully engage with the other side

Propose conditionally - Speak with the intention to be understood

Focus your talk on yourself, not them

How to be sure of a Win/Win/Win situation before closing
Does the agreement further your personal goals?

Does the agreement fall comfortably within the goals and limits that you set for this particular negotiation?

Can you perform your side of the agreement to the fullest?
Do you intend to meet your commitment?

Based on all the information, can the other side perform the agreement to your expectations?

Based on what you know, does the other side intend to carry out the terms of the agreement?

Concluding the Negotiations
Take Care when making a Final Offer
Be sure that it is consistent with your brief
Ensure that all agreements are understood and accepted before finalization
Agreements should be well documented
Lawyers should be well briefed

The 4 Ts
T1 – Techniques
T2 – Tricks
T3 – Traps
T4 - Tools
Technique : Good Cop, Bad Cop

Technique : Take it or leave it

Technique : Who is your boss?

Trick : Show up late

Tactic : Time pressure

Technique : Location/Physical surrounding

Trap : Irrational behaviour

Trap : The Fine Print

Trap: Last Minute Additions in the scope of the agreement

Amer Q’s Tool kit
Preparation Tool Kit – Handout
Negotiation Buzzwords
Saying No – Handout
Asking the Right Questions

Harvard Business School Research
5 Common Business Negotiation Mistakes
Mistake No 1: Viewing Negotiation as a fixed pie

The fixed pie mindset
Look for trade offs
Build trust and share information

5 Common Business Negotiation Mistakes
Mistake No 2: Overvaluing your assets

Would I want it, if it weren’t mine?
How much is it really worth?
What if it doesn’t sell?
What other value can I offer?

5 Common Business Negotiation Mistakes
Mistake No 3: Going on a power trip

Take it or Leave it approach can back fire
The other party digs their heels in
They renege on the deal or fail to deliver
Disputes arise

5 Common Business Negotiation Mistakes
Mistake No 4: Not knowing what you really want

Articulating and understanding what you really want – only way to assess if you were successful

5 Common Business Negotiation Mistakes
Asking The Right Questions
Closed Questions
Reflective Questions
Questions to Open Negotiations
Questions To get information
Questions to get an interest
Questions to get solutions
Questions to get consequences
Questions to test agreement

Committed to a win/win/win philosophy;
Have a high tolerance for conflict and stress;
Able to identify bottom line issues quickly;
Good active listener;
Demonstrate a high degree of patience.
Integrative negotiations involve:
Multiple issues. This allows each party to make concessions on less important issues in return for concessions from the other party on more important issues.
Information sharing. This is an essential part of problem solving.
Bridge building. The success of integrative negotiations depends on a spirit of trust and cooperation.


Mistake No 5: Binding yourself too tightly to a deal

Ensure both parties are equally committed to the deal
Manage your escalation to the commitment – understand the implications and plan ahead to manage the risks
Level the playing field – ensure the deal is balanced

The Negotiation Buzzwords and Nomenclature
Integrative Negotiations
– Joint problem solving, striving for results that benefit both parties
Distributive Negotiations
– The fixed pie, the aim is to increase our share of the pie.
– Best Alternative to a Negotiated Agreement
– Worst Alternative to a Negotiated Agreement
– Walk Away Price
– Zone of Possible Agreement
– Attempt to establish a reference point around which a negotiation will revolve.
– Creating a perspective of the Problems or Issues
– Trade - offs in which you engage in conceding, yielding or exchanging things of value
– when someone gives or concedes something of value in a negotiation in response to a concession from the other party.

Asking the Right Questions
Often it is not what you say that matters but how you say it. Here are some suggestions to get you asking the RIGHT questions.

General Questions to get to core of the issues:
How would you characterize the problem?
What’s most important to you?
What’s least important to you?
What would be the best outcome for you?

Reflective Questions:
The reflective type of question is essentially like holding up a mirror to the other side. It is designed to allow you to respond to their answer with another question. It is useful as you repeat their answer in your own words to confirm or clarify your understanding of their answer.
You feel that the offer is too low?
The proposed date is too soon. Is that what you are saying?
So, you believe that the offer is still too low, how far apart are we?
Asking the Right Questions
Questions to Open Negotiations
Could you tell us how we can help you?

Questions to Get Information
Could you tell me more about
how your view.....?

Questions to Get an Interest

What is important to you?

Questions to Get Solutions
What might work for you?

Finally, when all else fails try the magic wand question….
If you had a Magic Wand…..

Preparation Worksheet
This document has been devised as a general tool to help you plan for any negotiation and should be modified/revised as appropriate.

Identify the key issues for negotiation
List the parties/stakeholders involved in or related to the negotiation
Document linkages with any other projects
Review past agreements/precedents
Understand your BATNA, Walk Away point
Ensure internal approvals are in place for your position

Preparation Worksheet
Gathering Information
Review Internal Documents
Discuss with Colleagues/Supervisors
Websites/Publications/Market sources

The Other Party
How is the Organization performing – market research
Any changes in the key management team that may impact on the negotiation
Their key negotiators – do basic research as a minimum, Linked In, Facebook
Their expectations
Who are the Decision Makers
Approval process
Authority Limits
Internal Politics
Areas of common interest
Key areas for negotiation

Preparation Worksheet
Full transcript