Negotiating Skills to Reach a Deal

April / May 2012

Introduction to Negotiation

Introduction to Negotiation
How would you define negotiation? What other words do you associate with negotiation? Terminology used in negotiations

Individual Exercise
What scenario do you want to focus on?

Who is involved?

Individual Exercise
Describe the current situation?

What are you willing to give in order to get?

Individual Exercise
Issues Realistic Outcomes Acceptable Worst possible

Interpersonal Skills

Interpersonal Skills
Interpersonal skills require that we are aware of our behaviour and of our counterparts in the negotiations.

The four basic styles of behaviour gives an indication of how people react and respond to situations

Interpersonal Skills
No one style is superior to the other style, and no one person can be all four styles.

To improve your negotiation, know who and how to deal with the various people, and who you are.

Interpersonal Styles
Driver (Action) Analytical (Process)

Expressive (Idea)

Amiable (People)

Interpersonal Skills
Avoider: dislikes conflict Compromiser: fair-minded people interested in maintaining relationships Accommodator: resolve interpersonal conflicts by resolving the other persons problem Competitor: winning is the main thing Problem-Solver: seeks to find the underlying problem, use brainstorming to solve

Interpersonal Skills
You are one of ten people at a conference table, each person sitting across from one another Someone comes in the room and says I will give R1,000 to the first person who can persuade the person sitting across from them to come and stand behind his/her chair.

Interpersonal Skills
Results Avoider: says I dont want to play, look foolish Compromiser: both offering R500, starts running to other side Accommodator: runs to other side, negotiates later Competitor: sits tight, demands other person move Problem-Solver: lets both get behind each others chairs, we can each make R1,000.

What Makes a Good Negotiator?

Group Activity
You have 10 minutes within your small group of three to brainstorm a list of the 10 key skills that successful negotiators need. List your key skills and note the reason why each of your ten skills is crucial to you as a negotiator.

Group Activity
Key Skills
1 2 3 4 5

Reasons
1 2 3 4 5

Negotiators Ratings
Planning skills

Thinking Under Stress

General Practical Sense

Integrity

Verbal clarity

Negotiators Ratings
Ability to gain respect
Ability to exploit power

Open mind

Team Leadersh ip skills

Tact

Negotiators Ratings
Professional standards

Product Knowledge

Self Confidence

Persistence

Insight

Individual Exercise
List all your personal strengths as a negotiator? List your personal areas for development? How good a negotiator are you? (p21)

Results
20 - 40 - You are not a successful negotiator 40 - 60 - You have some ability in negotiation 60 - 80 - You are a good negotiator 80 - 100 - You are an excellent negotiator

Body Language

Body Language

Body Language

Body Language

Body Language

Steps of Negotiation

Planning
Negotiators with high aspirations consistently outperform those with low aspirations. By adopting a high aspiration base, negotiators create sufficient room to make and request the necessary concessions. High aspirations generate positive psychological energy and prevent a negotiator from being rigid and defensive.

Planning
A high aspiration communicates confidence to the other party and generally prevents irrational negotiation behaviour. High aspirations require the other negotiating party to expend more energy in trying to lower these aspirations, thus not focusing on promoting its own aspiration.

Planning

What is the reason?

What are the topics to be discussed?

What is my perception of the issues?

That of the opposer?

What resources can I draw on?

Planning

What do I know about my opposer?

What do I know about the person he represents?

What are the negotiating style of the other party?

What are my interests?

Planning

What are the interests of the other side?

What are our common interests?

What are the opposing interests?

What standards to use to resolve conflicting ideas?

Planning

Low vs High

Why is the other side talking to me?

Why do they need something from me?

What prevents them from doing it another way?

Setting Goals and Objectives

S
M A C

Specific Measurable
Achievable Challenging Compatible

Opening Position

Opening Position
Outline Your Opening Position

Decide on Low Ball

Decide on High Ball

Opening Position
This Position is Realistic

Confirm all Agreements

Perception of Power

Opening Position - Agenda

Number Issue Sequence Priority Negotiator Priority Opposer

Bargaining

Bargaining
Define your range Start Target

Walkaway BATNA: your alternatives

Agreement and Close

Put pen to paper and agree on the way forward

Questioning Techniques
An OPEN question is one that encourages a full response
A CLOSED question is one that can be answered with a short answer

Questioning Techniques

Practical Session

Ethical Negotiation
INDIVIDUAL EXERCISE - A question of ETHICS Decide whether or not the approach would be appropriate p42 - (the deal is important to you)

Influencing Techniques

Practical Role Play

Pg 45

The Ugli Orange

Tactics
Competitive Tactics Avoidance Tactics Compromising Tactics Collaborative Tactics Accommodating Tactics

Tactics
Negotiation Gambit
Good Cop/Bad Cop Cherry Picking Walking Away Split the Difference Flinch

Description

How to Overcome it

Closing Techniques
Concession close Summary close Adjournment close Or Else close Either or close