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.
2
3
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