Training - Negotiation Skills

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									Training Presentation




  Negotiation Skills
Why this Session ?

   Identify and discuss individual sources of negotiation strength

   Practice skills that can influence the outcome of the negotiation

   Develop an awareness of the importance of personality traits,
    trust and self-awareness in effective negotiation

   Understand the relationship between conflict and negotiation

   Identify potential problems in the negotiation process

   Develop action plans to overcome problems / issues
What is Negotiation ?
   Negotiation occurs when conflict exists between groups and
    both parties are prepared to seek a resolution through
    bargaining. OR

   Negotiation is a dialogue intended to resolve disputes, to
    produce an agreement upon courses of action, to bargain for
    individual or collective advantage.
Why Negotiation ?
   Negotiation is needed to resolve intra-person or inter-person
    conflicts / disagreements / clash of interests.
   Negotiation is something that we do all the time and is not only
    used for business purposes.The aim of negotiation is to explore the
    situation, and to find a solution that is acceptable to both the
    parties.
   Negotiation is one of the most difficult jobs a person can do. It
    requires not only good business judgment but also a keen
    understanding of human nature.
Example of Negotiation

   Day to Day with your family, friends, relatives
   Day to Day at workplace
   Employee and Employer
   Commercial
   In the Marketplace
   Legal Issues
   Purchasing
   Selling
   and others
Personal Diagnostic


   You need to review the statements, and circle the
    numbers of those that they know they need to work upon

   Remember to sort these in the context of your need to
    influence others, and skilfully get people to take your point
    of view
Personal Diagnostic Activity


   When you have all completed a self assessment sheet, the
    group should have a meeting to discuss the self
    assessments

   Please share your experiences
Various Types of Negotiation
Planned Negotiation
   Integrative negotiation is often referred to as 'win-win' and typically
    entails two or more issues to be negotiated. It often involves an agreement
    process that better integrates the aims and goals of all the involved
    negotiating parties through creative and collaborative problem solving.

   Distributive negotiation usually involves people who have never had a
    previous interactive relationship, nor are they likely to do so again in the
    near future. Simple everyday examples, would be when we're buying a car or
    a house. Purchasing products or services are simple business examples where
    distributive bargaining is often employed. Remember, even friends or business
    associates can drive a hard bargain just as well as any stranger.
Hard Negotiation
   Hard negotiation involves the negotiation of positions, rather than
    interests
   It is highly competitive, seeing victory as the number one goal
   Hard bargainers, see the participants as opponents. They disbelieve the
    other side and play tricky games to try to gain the negotiating
    advantage
   Hard bargainers refuse to make concessions and demand one-sided
    gains as the price of an agreement
   When confronted with a softer opponent, hard bargainers almost
    always will win. When confronted with another hard bargainers,
    however, it can result in no agreement, both losing
Soft Negotiation
   Soft negotiation also involves the negotiation of positions, rather
    than interests.

   However, it treats the participants as friends, seeking agreement
    at almost any cost, and offering concessions easily in the interests
    of preserving (or creating) a good relationship with the other
    side.

   Soft bargainers trust the other side, and are open and honest
    about their bottom line
Principled Negotiation

   Principled negotiation is the interest-based approach to
    negotiation.

   Fundamental principles of principled negotiation are:
       it separates the people from the problem;

       focuses on interests, not positions;

       insists on objective criteria of the solution.
You are out ! - Exercise


   Group activity

   Each individual in the group have to negotiate their
    way into staying in the group.

   The group collectively votes to remove an individual from the
    group.

   5 minutes for each individual to debate or negotiate

   2 minutes for decision making
You’re out ! - Exercise


   What methods of negotiation ? Reasoning or

    Persuasion ?
   How did the chosen individual react to the decision made by
    the group ?

   Were they threatened or had taken up the challenge
    actively?
Negotiation Styles

   The   win-lose is the most common style of distributive
    negotiation wherein a person pursues his or her own
    wishes at the expense of other party.

   Under this style negotiation is viewed as a game to be won.
    Losing may be taken as failure, weakness, and a loss of status.

   When engaged in this style, the parties may use different
    tactics to win like: persuasion, argument, power, or even
    threat.
Usefulness
   A forceful position during negotiation may be appropriate when the stakes
    are high and costs of indecision and compromise are non-affordable.

   It is useful when issues of legality and ethics are at hand.

   Where you do not expect to deal with people ever again, and you do not
    need their goodwill.

   When there is only one prize.

   At management level, this style is helping when     unpopular   but necessary
    decisions must be made.
   Win-lose is also a style   to use when the other party has a    tendency   to
    take advantage of you.
Avoiding Style

   Avoiding the conflict in certain situations – need of no
    negotiation at all – is also a negotiation.

   People may physically withdraw by simply leaving the scene
    of conflict or they can refuse to get involved by using silence,
    or changing the topic of conversation.
Usefulness

Useful when:

   your involvement will only result in negative outcomes for
    you;

   cost of challenge / cost is quite high;

   there is little chance of success;

   relationships are more important to be maintained;

   to buy time and / or get other party cool down.
Accommodating Style

   Accommodating style of negotiation entails giving in to the
    wishes of the opponent party.

   Like avoidance, accommodating the other party almost in
    one-sided way, is also a negotiation.

   Unlike avoiders, the accommodators enter into negotiation
    and give in a way that strengthens the relationships.

   During negotiation, giving in totally / partially may be part of
    strategic strategy.
Usefulness

   When other issues are more important that need satisfying
    others and maintaining cooperation.

   When social credit is to be built for some final issue.

   To minimize loss when one is already losing.

   When relationships are more important than the interests.
Compromising Style

   Compromising, the most common style of conflict resolution,
    entails splitting the differences and reaching an acceptable middle
    ground solution through give-and-take whereby each party
    should gain something and may have to lose something.

   Parties under this style of negotiation, generally use techniques
    like trading, bargaining, and voting etc.

   Most of the negotiations though start with lose-win style, do end
    up at the compromising style.
Usefulness

It is useful:

   when two parties have relatively equal power and have
    mutually exclusive goals;

   when time is not available to solve problems that are
    complex and require a great deal of effort to sort out all
    the issues;

   when competition or collaboration fails to lead to a solution.
Collaborating (Win-Win) Style

   Collaborating is based on a willingness to accept other
    party’s needs while asserting your own needs as well.

   It assumes that there is some reasonable chance that a
    solution can be found to satisfy both parties in conflict
    without losing much.

   Such solution, most of the time, is not possible but it is
    worth trying to find that.
Negotiation Style


I Win,You Lose      I Win,You Win




I Lose,You Lose     I Lose,You Win
Win-Win Negotiation
   Best type of negotiation is “win-win” which means both parties
    will be satisfied with the result.
   “Win-Win” negotiation is about agreement not conflict.
    1.   Plan your questions, strategies, alternative offers and suggestions
    2.   Listening and Showing genuine interests
    3.   Competent negotiator appreciates and praises
    4.   Be prepared to be flexible and to change your position
    5.   List all the points covered in the meeting
A Story

   Two brothers had an orange.

   Each of them wanted to have it.

   Ultimately they resolved the conflict through splitting the
    orange into two halves, one half for the each.
   Elder brother ate the pulp and threw the peeling.
   The younger brother who did not have an natural liking for the
    oranges and just wanted the peeling as a recipe ingredient,
    used the peeling and discarded the pulp.
Your Comments

   What negotiation style(s) the two brothers adopted to
    resolve the conflict?

   Offer your comments over degree of usefulness of the
    style(s) used in this situation
The Four Phases of Negotiation


                 BARGAIN
          PROPOSE

   DISCUSS

 PLAN
The Four Phases of Negotiation
   Plan
   What do we want?
   What do they want?
   What will/can we trade?
   Explore all the available options of the trade.
   Explore long and short term implications of each option for all parties involved
   Set objectives in terms of acceptable limits and that you have a realistic chance
    of achieving.
   Visualise possible gains, not losses.
   Be aware that the opposition might have a hidden agenda
The Four Phases of Negotiation
   Plan
   Example – Share your experience.
   Each individual share an example
The Four Phases of Negotiation
   Discuss
   Positive Powerful opening – confident body language, tone and words

   Break the ice and discuss neutral topics and build rapport

   Cover: Why we are here, what we are going to do, how long it will take

   Emphasise the need for agreement at the kick-off

   Listen to what the other party say and how they say it

   Observe non-verbal signals

   Sit where you can see everyone
The Four Phases of Negotiation
   Discuss
   Example – Share your experience.
   Each individual share an example
The Four Phases of Negotiation
   Propose
   Decide whether you will speak your proposal first or respond to the proposal
    from the other party

   Put forward your proposal with as little emotion as possible.


   Example – Share your experience.
   Each individual share an example
The Four Phases of Negotiation
Propose

                    Submissive (Passive)                                      Assertive (Confident)
1. How about we make it 10%?                                        If you make it a 10% discount, then we will
                                                                    order in lots of 100,000.


2. No Problem....



3. I hope you can meet that deadline....



4. We were hoping to include a liquidated damages clause....



5. It‟ll be tough to meet that deadline but ok we‟ll give it a go
....
The Four Phases of Negotiation
Propose

               Submissive (Passive)                                       Assertive (Confident)
1. How about we make it 10%?                                   If you make it a 10% discount, then we will
                                                               order in lots of 100,000.


2. No Problem....                                              If you pay our costs then we could consider
                                                               uplifting it ourselves.


3. I hope you can meet that deadline....                       If you meet that deadline then we can consider
                                                               giving you the work


4. We were hoping to include a liquidated damages c            If you include a liquidated damages clause then
clause....                                                     you are eligible to be awarded the contract


5. It‟ll be tough to meet that deadline but ok we‟ll give it   If you pay our premium hourly overtime rates
a go ....                                                      then we’ll go for that deadline.
The Four Phases of Negotiation
   Bargain
   A bargain is the conclusion of the negotiation....
   Phrases like:
        „So, what you are offering is…‟
        „Ok I get the picture…‟
        „Let me be clear, you want x for y‟
        „Here‟s how I see it….‟
        „To sum up, in return for x I‟ll agree to y‟

   Above examples show that the two parties are moving towards each other and
    the negotiation is coming to agreement....
The Four Phases of Negotiation
   During Bargain
   Be prepared to make concessions or You may not need to go any further

   Do not ignore issues in order to speed up negotiations.

   Record fully all agreements finalised at the negotiations close.
   Example – Share your experience.
   Each individual share an example

   Closing the Negotiation
   Summarise the details of the conditions and the offer, and ask for an agreement.
The Four Phases of Negotiation


                 BARGAIN
          PROPOSE

   DISCUSS

 PLAN
Negotiation Mixer
TASK:

   In your teams, negotiate with your partners to decide how you
    would divide USD $ 100 among you.

   Once you have agreement, all members stand up.

   You have 120 seconds to negotiate.

   Are you ready to begin?

   Go!
BATNA
   Deadlock
       What you would most prefer to do if you and the other party
        are not able to reach a deal ?

   Best Alternative To a Negotiated Agreement
   Help you make smarter choices because they remove the
    pressure to reach an agreement.
   Before you negotiate, you should also consider the options you
    have if you cannot reach an agreement.These options make up
    your BATNA
BATNA
1.   Describe a negotiation you‟re facing in the future

2.   Ask yourself “What will I do if this agreement cannot be
     reached?”

        List Alternatives

3.   Outline the interests that the alternatives meet or don‟t meet.
     Consider – ease, process, time pressure, relationships, risks

4.   What else could you do to improve your analysis?

5.   Are the alternatives practical and actionable?
Non-Verbal Communication
1.   Speech pace, pauses

2.   Pitch and Tone

3.   Use of space, distance

4.   Body motion and gestures

5.   Body posture

6.   Facial Expressions

7.   Look / Gaze

8.   Touch and body contact

9.   Style of written text – Interrogative etc
Non-Verbal Communication
             Body Language                     What it could mean ?




Avoiding eye contact

Making excessive eye contact

Fiddling with objects such as hair, pencils,
or papers

Crossing and uncrossing the legs

Keeping legs and arms crossed
Non-Verbal Communication
             Body Language                               What it could mean ?




Avoiding eye contact                           Lack of confidence in bargaining
                                               position

Making excessive eye contact                   Trying to bully or intimidate

Fiddling with objects such as hair, pencils,   Lack of confidence in bargaining
or papers                                      position

Crossing and uncrossing the legs               Impatient – wants to cut a deal
                                               quickly

Keeping legs and arms crossed                  Not receptive to your bargaining
                                               position
Non-Verbal Communication
          The impact of a speaker's feelings and attitudes in a
                             conversation
          60%                  55%

          50%
                                                 38%
          40%                                                           Verbal (w ords)
 Impact




          30%                                                           Visual (face)

          20%                                                           Vocal (voice)
                   7%
          10%
          0%
                 Verbal       Visual            Vocal
                 (w ords)      (face)          (voice)


                                        Reference: Making Presentations Happen (Page 7) by Michael Brown, 2004
Non-Verbal Communication
If we combine the last two columns, we get what we see in the following figure:


                        Your words versus how you present them
             100%                              93%

             80%

             60%                                                                           Your Words
    Impact




             40%                                                                           How you present
                                                                                           your words?
             20%                 7%

              0%
                           Your Words               How you present
                                                        your words?

                                                           Reference: Making Presentations Happen (Page 7) by Michael Brown, 2004
Conflict - Exercise
   Each participant record 3 conflicts that they were involved in, in the last 3 days.
   The „toxic words‟ that triggered the conflicts and made them feel that they had to
    protest and defend themselves.


   10 Minutes
   Toxic Words 
Conflict - Exercise
Subject of the People       What happened?                    Trigger
Conflict       Involved                                       Word

Example:        Me and      Supplier accused me of being      Always
Email Problem   Materials   unprofessional by saying
                Supplier    “ You always not sending emails
                            on time ”


1:

2:

3:
Conflict - Exercise

To DO
   Volunteer participant to read the first conflict case they have identified ...

   The person on the left should then proceed to provide a solution to resolve the
    conflict.....

   Next person to present his own conflict and again the next people on the left
    should provide the solutions.....

   Continues with this cycle until all cases have been presented....
Conflict - Exercise

Questions

   How did recalling a conflict make you feel ?

   Why was the trigger word that made you feel you are in a
    conflicting situation?

   How helpful were other‟s suggestions?
Dealing with Difficult Negotiators.

   Threats
   Bossy
   Bullying
   Irritation
   Pressure
   Focusing on their own interests and not yours
Dealing with Difficult Negotiators.
     Case 1 - The man you are negotiating with has a bombastic
     and rude manner. He interrupts constantly and loudly and at a
     pace that does not allow interruptions to his flow. He is
     emphatic and threatening and shows no interest in your point
     of view.
     Do you:
a)     Retaliate in kind with matching behaviour?
b)     Wait for an opening to say your piece?
c)     Agree to what he wants.
Dealing with Difficult Negotiators.

a)   Retaliation is a challenge. He is not intimidating you
     enough – he will put on more pressure.

b)   Yes. But only if you are clear that his behaviour will not
     affect your focus on the outcome.

c)   Never! Do not give him the satisfaction, by giving into a
     bully and their intimidation.
Dealing with Difficult Negotiators.
     Case 2 - The Owner of a large customer is an abusive and bossy
     person, who has a list of swear words and will not accept ‘No’ for
     an answer. She expects you to sit there and take it and throws
     papers around when she wants to make a point.

     Do you:

a)      Behave in a contrasting manner and keep your cool?

b)      Agree to what she wants?

c)      Wait to say your piece?
Dealing with Difficult Negotiators.

a)   To contrast her behaviour only shows her that her
     behaviour is working, she’ll put on more pressure until
     you give in.

b)   Never! Do not give in to her threats.

c)   Yes, but only if you are sure her behaviour will not affect
     the outcome.
How do You Negotiate ?
GOOD                                         BAD

 Active Listening                           x Interrupting

 Question for Clarification                 x Attacking

 Summarising                                x Blaming

 Test Commitment                            x Talking too much

 Seeking and giving Information             x Threats

 Encourage two way communication            x Taking it personally


State & plan your proposal then summarise   x Defensive body language
Do’s for Negotiations
   Obtain as much background about the subject to be discussed from the other side as
    possible.
   Assess the other party's strengths, weaknesses and negotiating strategies.
   Study the culture of the other party and negotiating style. Identify your needs.
   Adopt cooperative tactics but be ready to use a competitive approach when warranted.
   View negotiation as an opportunity to build a rewarding working relationship that is mutually
    beneficial over the long term.
   Project confidence, credibility and professionalism.
   Anticipate last-minute demands when planning your negotiating strategy and tactics.
   Examine the draft agreement and clarify any points that you don't understand, before
    signing.
   Follow up complaints and seek mutually agreeable solutions.
Don'ts for Negotiations
   Enter into negotiations without preparation.
   Assess the other party's position and behaviour on the basis of your own culture or
    background.
   Develop negotiating strategies based on assumptions.
   Make too many concessions in the early stage of negotiations.
   Under estimate the other side.
   Rush into hasty decisions and calculations.
   View closing as a separate step in the negotiations.
   Be in a hurry to close.
   Make large concessions at the last minute.
   Consider your involvement finished after the agreement has been signed.
   Take a rigid stance concerning any required re-negotiation.
Personal Action Plan


   Determine what you want to accomplish (goal) after this session ?

   Plan the direction by which you intend to achieve the goal ?

   Give time to your good self.
Personal Action Plan
        Area of                                         Timelines
     improvement /             Plan of Action           for Action
      development
    Negotiation Planning   Before engaging in formal   Immediately.
1
                           negotiations, I first
                           determine my needs and
                           what I want to achieve.


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Recommended Books
   Getting to YES – Negotiating Agreement Without Giving In by Roger Fisher & William Ury

   Lateral Thinking - by Edward De Bona

   The Alchemist – Paulo Choelho

   The 7 Habits of Highly Effective People by Stephen R. Covey

   Built to Last by Jim Collins
								
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